Microsoft's access to OpenAI tech is focus of contract talks
The companies have discussed new terms that would let Microsoft use OpenAI's latest models and other technology even if the startup decides it has reached its goal of building a more powerful form of AI known as artificial general intelligence (AGI), according to two people familiar with the negotiations.
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Time of India
an hour ago
- Time of India
Meta's year of bold 'superintelligence' bets unlikely to pump profits
It's crunch time for Mark Zuckerberg as he pulls out all the stops to stay relevant in Silicon Valley's intensifying advanced artificial intelligence race. The Meta CEO has sparked a billion-dollar talent war, aggressively poaching researchers from rivals including OpenAI . But as Meta's spending rises, so does the pressure it faces to deliver returns. For the second quarter, though, Wall Street is bracing for disappointment as the company is set to report its slowest profit growth in two years on Wednesday, rising by 11.5% to $15.01 billion, as operating costs jump nearly 9%. Revenue, too, likely grew at its slowest pace in seven quarters in that period, up an expected 14.7% to $44.80 billion, according to an average analyst estimate from LSEG. While Zuckerberg is no stranger to high-stakes pursuits - Meta's augmented-reality unit has burned more than $60 billion since 2020 - his latest push comes with added urgency because of the underwhelming performance of the company's large language Llama 4 model. He recently pledged hundreds of billions of dollars to build massive AI data centers and shelled out $14.3 billion for a stake in startup Scale AI , poaching its 28-year-old billionaire CEO Alexandr Wang, even as Meta continued to lay off people. Investors have largely backed Zuckerberg's frenzied pursuit of superintelligence - a hypothetical concept where AI surpasses human intelligence in every possible way - pushing the company's stock up more than a fifth so far this year. But they will watch if Meta further increases its capital expenditure for the year after boosting it in April. Alphabet also upped the ante last week, increasing its annual capex forecast by 13% to $85 billion due to surging demand for its AI-powered Google Cloud services. "We view rising capex as positive given... Meta can become a one-stop shop for many marketing departments," said Ben Barringer, head of technology research at Quilter Cheviot, which holds Meta shares. Lagging efforts from Alphabet's Google DeepMind and OpenAI, Meta launched a Superintelligence Lab last month that will work in parallel to Meta AI, the company's established AI research division, led by deep learning pioneer, Yann LeCun. To differentiate its efforts, Zuckerberg has promised to release Meta's AI work as open source and touted that superintelligence can become a mainstream consumer product through devices like Ray-Ban Meta smartglasses , rather than a purely enterprise-focused technology. The strategy plays to Meta's strengths, analysts say, pointing to its more than 3-billion strong social media user base and engagement gains in recent years, driven by AI-enhanced content targeting. Still, Meta's mainstay advertising market is under threat from advertisers pulling back spending in the face of President Donald Trump's tariffs, and tough competition from Chinese-owned TikTok , whose U.S. ban now seems unlikely. Some advertisers may have leaned on proven platforms such as Meta amid the uncertainty, but that will not shield the company from questions over its superintelligence ambitions and how they fit into its broader business strategy, said Minda Smiley, senior analyst at eMarketer. "While Meta has seen massive gains from incorporating AI into its ad platform and algorithms, its attempts to directly compete with the likes of OpenAI are proving to be more challenging while costing it billions of dollars." Questions remain about when superintelligence can be achieved, a timeline Zuckerberg admits is uncertain. Meta's LeCun is also a known skeptic of the large language model path to superintelligence. "Meta's AI strategy today is more cohesive than in 2023, but there's still a sense the company is still searching for direction," MoffettNathanson analysts said.
Economic Times
an hour ago
- Economic Times
Anthropic nears funding at $170 billion value as revenue surges
Bloomberg Anthropic is nearing a deal to raise as much as $5 billion in a new round of funding that would value the artificial intelligence startup at $170 billion, according to a person familiar with the firm Iconiq Capital is leading the round, which is expected to total between $3 billion and $5 billion, said the person, who spoke on condition of anonymity to discuss private information. Iconiq is in talks to invest about $1 billion in the deal, some of the people said. Anthropic has also been in discussions with the Qatar Investment Authority and Singapore's sovereign fund GIC about participating in the round, the person said. Other potential investors include Inc., which previously bet billions on the company. As the most recent funding talks came together, Anthropic's sales have surged. The company was generating about $4 billion in annual recurring revenue earlier this month, Bloomberg previously reported. By the end of July, that number had climbed to about $5 billion, according to one of the people. The company expects its recurring revenue could hit $9 billion by the end of this year. The new financing would mark a significant jump in valuation for the company and cement its status as one of the world's leading AI developers. Anthropic was valued at $61.5 billion in a $3.5 billion round led by Lightspeed Venture Partners earlier this is also participating in the new round, according to a person familiar with the matter. Other VCs in talks to participate include Menlo Ventures and Alkeon Capital company is taking checks no smaller than $200 million in the deal. The financing may ultimately involve a second lead investor, one person said. The discussions are still being finalized and the details could Iconiq, GIC, Lightspeed, Amazon and Menlo Ventures declined to comment. Representatives for QIA and Alkeon did not immediately respond to requests for commentAnthropic, founded in 2021 by former employees of OpenAI, has positioned itself as a reliable, safety-conscious firm that users can trust. The new funding will fuel Anthropic's competition with OpenAI and Elon Musk's xAI, each of which has raised billions in capital this year to finance their investments in data centers and talent for building AI was most recently valued at $300 billion, including money raised. Musk is said to be seeking a valuation of as much as $200 billion for large-language model developers like OpenAI and xAI have previously turned to deep-pocketed Middle Eastern backers such as Abu Dhabi's MGX for funding. Sovereign wealth funds typically have far more assets at their disposal to invest than traditional venture capital a recent memo to employees, first reported by Wired, Anthropic Chief Executive Officer Dario Amodei acknowledged the need to raise funds from the Middle East after having previously voiced concerns about taking money from authoritarian countries. 'Unfortunately, I think 'No bad person should ever benefit from our success' is a pretty difficult principle to run a business on,' he wrote. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Jane St: How an options trader smelt a rat when others raised a toast Regulators promote exchanges; can they stifle one? Watch IEX TCS job cuts may not stop at 12,000; its bench policy threatens more From near bankruptcy to blockbuster drug: How Khorakiwala turned around Wockhardt Stock Radar: SBI Life rebounds after testing 50-DEMA; could hit fresh record highs above Rs 2,000 – check target & stop loss These 10 banking stocks can give more than 25% returns in 1 year, according to analysts Two Trades for Today: A metals stock for an over 6% gain, a large-cap chemicals maker for about 7% upmove F&O Radar| Deploy Broken Wing in LIC Housing Finance to benefit from bearish outlook
The Hindu
an hour ago
- The Hindu
IT Minister Lokesh seeks establishment of Microsoft Experience Zone in Andhra Pradesh
Andhra Pradesh Minister for HRD, IT, Electronics, and RTG Nara Lokesh visited the Microsoft Experience Center in Singapore on Wednesday, and held discussions with Microsoft's Head of Government Affairs Markus Loh, SELA Head Jasmin Begum, and CTO Mark Saus. During the meeting, Mr. Lokesh proposed the establishment of a Microsoft Experience Zone, or Technology Station, in Andhra Pradesh to foster and incorporate Generative AI-based solutions. Hackathon Mr. Lokesh invited Microsoft to organise a hackathon in 2026 at Amaravati's Quantum Valley Tech Park, utilising Azure OpenAI services and Microsoft Copilot. He assured full support from the State Government for necessary infrastructure. He also suggested harnessing the State's talent pool to develop a skilled workforce in Generative AI, Hybrid Cloud, and Microsoft technologies, in partnership with the Microsoft Experience Centre. Microsoft representatives explained the visiting delegation that the experience centre was designed to support businesses, consumers, and observers in the areas such as retail and education. The centre offered executive briefings, innovation workshops, hands-on labs, and demonstrations of digital transformation solutions. It was widely used by major clients such as IBM, Dell, and public sector organisations. They also highlighted the IBM-Microsoft Experience Zone, which showcases AI-based business solutions. The delegation observed how Artificial Intelligence (AI) was transforming sectors such as healthcare, financial services, manufacturing, and consumer industries at the AI-powered GoStore. Chip design facility In his meeting with IVP Semi founder Raja Manickam, Mr. Lokesh discussed semiconductor investment opportunities in the State and invited the company to establish a chip design, or semiconductor equipment manufacturing facility. He proposed leveraging IVP's expertise to support local MSMEs and build a robust semiconductor ecosystem. Responding to it, Mr. Raja Manickam assured that his executive team would seriously evaluate the proposals. In his meeting held with DTDS Group CEO B.S. Chakravarthy, Mr. Lokesh urged collaboration with A.P.-based MSMEs in the semiconductor sector, and expressed confidence in the State's potential to become a vital player in India's growing semiconductor landscape, alongside Tamil Nadu. GCC in Vizag Mr. Lokesh also met Yano Tomokazu, Managing Director of ABeam Consulting, and invited it to establish a Global Capability Centre (GCC) in Visakhapatnam, highlighting its growing reputation as an emerging IT and digital services hub. Mr. Tomokazu, while noting ABeam's expertise in digital transformation, AI, cloud, and cybersecurity, with over 1,200 consultants across Southeast Asia, said the company was focusing on SAP-based services in India, and assured that the proposal would be seriously evaluated. Mr. Lokesh later met Infineon President and MD C.S. Chua, wherein he proposed the setting up of semiconductor packaging and testing units in Andhra Pradesh's Electronics Manufacturing Clusters (EMCs) and industrial parks. He also highlighted opportunities for collaboration with the State's growing EV ecosystem, particularly in the regions such as Tirupati Sri City, Anantapur, and Krishna district, encouraging joint efforts in producing power modules, inverters, and Battery Management Systems (BMS). Software parks During a meeting with CapitaLand Investments CEO Sanjiv Das Gupta, he invited the firm to develop IT and software parks in Visakhapatnam and Vijayawada, citing the trend of software companies moving to Tier-2 cities. Mr. Das Gupta responded positively and assured that the proposals would be evaluated internally.
