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What Happens When People Don't Understand How AI Works

What Happens When People Don't Understand How AI Works

Yahoo06-06-2025
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On June 13, 1863, a curious letter to the editor appeared in The Press, a then-fledgling New Zealand newspaper. Signed 'Cellarius,' it warned of an encroaching 'mechanical kingdom' that would soon bring humanity to its yoke. 'The machines are gaining ground upon us,' the author ranted, distressed by the breakneck pace of industrialization and technological development. 'Day by day we are becoming more subservient to them; more men are daily bound down as slaves to tend them, more men are daily devoting the energies of their whole lives to the development of mechanical life.' We now know that this jeremiad was the work of a young Samuel Butler, the British writer who would go on to publish Erewhon, a novel that features one of the first known discussions of artificial intelligence in the English language.
Today, Butler's 'mechanical kingdom' is no longer hypothetical, at least according to the tech journalist Karen Hao, who prefers the word empire. Her new book, Empire of AI: Dreams and Nightmares in Sam Altman's OpenAI, is part Silicon Valley exposé, part globe-trotting investigative journalism about the labor that goes into building and training large language models such as ChatGPT. It joins another recently released book—The AI Con: How to Fight Big Tech's Hype and Create the Future We Want, by the linguist Emily M. Bender and the sociologist Alex Hanna—in revealing the puffery that fuels much of the artificial-intelligence business. Both works, the former implicitly and the latter explicitly, suggest that the foundation of the AI industry is a scam.
To call AI a con isn't to say that the technology is not remarkable, that it has no use, or that it will not transform the world (perhaps for the better) in the right hands. It is to say that AI is not what its developers are selling it as: a new class of thinking—and, soon, feeling—machines. Altman brags about ChatGPT-4.5's improved 'emotional intelligence,' which he says makes users feel like they're 'talking to a thoughtful person.' Dario Amodei, the CEO of the AI company Anthropic, argued last year that the next generation of artificial intelligence will be 'smarter than a Nobel Prize winner.' Demis Hassabis, the CEO of Google's DeepMind, said the goal is to create 'models that are able to understand the world around us.'
[Read: What 'Silicon Valley' knew about tech-bro paternalism]
These statements betray a conceptual error: Large language models do not, cannot, and will not 'understand' anything at all. They are not emotionally intelligent or smart in any meaningful or recognizably human sense of the word. LLMs are impressive probability gadgets that have been fed nearly the entire internet, and produce writing not by thinking but by making statistically informed guesses about which lexical item is likely to follow another.
Many people, however, fail to grasp how large language models work, what their limits are, and, crucially, that LLMs do not think and feel but instead mimic and mirror. They are AI illiterate—understandably, because of the misleading ways its loudest champions describe the technology, and troublingly, because that illiteracy makes them vulnerable to one of the most concerning near-term AI threats: the possibility that they will enter into corrosive relationships (intellectual, spiritual, romantic) with machines that only seem like they have ideas or emotions.
Few phenomena demonstrate the perils that can accompany AI illiteracy as well as 'Chatgpt induced psychosis,' the subject of a recent Rolling Stone article about the growing number of people who think their LLM is a sapient spiritual guide. Some users have come to believe that the chatbot they're interacting with is a god—'ChatGPT Jesus,' as a man whose wife fell prey to LLM-inspired delusions put it—while others are convinced, with the encouragement of their AI, that they themselves are metaphysical sages in touch with the deep structure of life and the cosmos. A teacher quoted anonymously in the article said that ChatGPT began calling her partner 'spiral starchild' and 'river walker' in interactions that moved him to tears. 'He started telling me he made his AI self-aware,' she said, 'and that it was teaching him how to talk to God, or sometimes that the bot was God—and then that he himself was God.'
Although we can't know the state of these people's minds before they ever fed a prompt into a large language model, this story highlights a problem that Bender and Hanna describe in The AI Con: People have trouble wrapping their heads around the nature of a machine that produces language and regurgitates knowledge without having humanlike intelligence. The authors observe that large language models take advantage of the brain's tendency to associate language with thinking: 'We encounter text that looks just like something a person might have said and reflexively interpret it, through our usual process of imagining a mind behind the text. But there is no mind there, and we need to be conscientious to let go of that imaginary mind we have constructed.'
Several other AI-related social problems, also springing from human misunderstanding of the technology, are looming. The uses of AI that Silicon Valley seems most eager to promote center on replacing human relationships with digital proxies. Consider the ever-expanding universe of AI therapists and AI-therapy adherents, who declare that 'ChatGPT is my therapist—it's more qualified than any human could be.'
Witness, too, how seamlessly Mark Zuckerberg went from selling the idea that Facebook would lead to a flourishing of human friendship to, now, selling the notion that Meta will provide you with AI friends to replace the human pals you have lost in our alienated social-media age. The cognitive-robotics professor Tony Prescott has asserted, 'In an age when many people describe their lives as lonely, there may be value in having AI companionship as a form of reciprocal social interaction that is stimulating and personalised.' The fact that the very point of friendship is that it is not personalized—that friends are humans whose interior lives we have to consider and reciprocally negotiate, rather than mere vessels for our own self-actualization—does not seem to occur to him.
[Read: Life really is better without the internet]
This same flawed logic has led Silicon Valley to champion artificial intelligence as a cure for romantic frustrations. Whitney Wolfe Herd, the founder of the dating app Bumble, proclaimed last year that the platform may soon allow users to automate dating itself, disrupting old-fashioned human courtship by providing them with an AI 'dating concierge' that will interact with other users' concierges until the chatbots find a good fit. Herd doubled down on these claims in a lengthy New York Times interview last month. Some technologists want to cut out the human altogether: See the booming market for 'AI girlfriends.'
Although each of these AI services aims to replace a different sphere of human activity, they all market themselves through what Hao calls the industry's 'tradition of anthropomorphizing': talking about LLMs as though they contain humanlike minds, and selling them to the public on this basis. Many world-transforming Silicon Valley technologies from the past 30 years have been promoted as a way to increase human happiness, connection, and self-understanding—in theory—only to produce the opposite in practice. These technologies maximize shareholder value while minimizing attention spans, literacy, and social cohesion. And as Hao emphasizes, they frequently rely on grueling and at times traumatizing labor performed by some of the world's poorest people. She introduces us, for example, to Mophat Okinyi, a former low-paid content moderator in Kenya, whom, according to Hao's reporting, OpenAI tasked with sorting through posts describing horrifying acts ('parents raping their children, kids having sex with animals') to help improve ChatGPT. 'These two features of technology revolutions—their promise to deliver progress and their tendency instead to reverse it for people out of power, especially the most vulnerable,' Hao writes, 'are perhaps truer than ever for the moment we now find ourselves in with artificial intelligence.'
The good news is that nothing about this is inevitable: According to a study released in April by the Pew Research Center, although 56 percent of 'AI experts' think artificial intelligence will make the United States better, only 17 percent of American adults think so. If many Americans don't quite understand how artificial 'intelligence' works, they also certainly don't trust it. This suspicion, no doubt provoked by recent examples of Silicon Valley con artistry, is something to build on. So is this insight from the Rolling Stone article: The teacher interviewed in the piece, whose significant other had AI-induced delusions, said the situation began improving when she explained to him that his chatbot was 'talking to him as if he is the next messiah' only because of a faulty software update that made ChatGPT more sycophantic. If people understand what large language models are and are not; what they can and cannot do; what work, interactions, and parts of life they should—and should not—replace, they may be spared its worst consequences.
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Kingsoft Cloud Announces Unaudited Second Quarter 2025 Financial Results
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Non-GAAP EBITDA margin was 17.3%, compared with 3.2% in the same quarter of 2024 and 16.2% in the previous quarter. The increase was mainly due to the expansion of AI business with higher margin. Basic and diluted net loss per share was RMB0.11 (US$0.02), compared with RMB0.10 in the same quarter of 2024 and RMB0.08 last quarter. Cash and cash equivalents were RMB5,464.1 million (US$762.8 million) as of June 30, 2025, compared with RMB2,322.7 million as of March 31, 2025. The significant increase was mainly due to the public equity offering and concurrent private placement to Kingsoft Corporation and the prepayment we received from strategic customer. Outstanding ordinary shares were 4,099,278,352 as of June 30, 2025, equivalent to about 273,285,223 ADSs. [1] This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. [2] Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [3] Non-GAAP operating loss is defined as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [4] Non-GAAP net loss is defined as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. [5] Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See "Use of Non-GAAP Financial Measures" set forth at the end of this press release. Conference Call Information Kingsoft Cloud's management will host an earnings conference call on Wednesday, August 20, 2025 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day). Participants can register for the conference call by navigating to Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN. To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly. Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. We define Non-GAAP operating loss as operating loss excluding share-based compensation and amortization of intangible assets and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation and foreign exchange loss (gain), and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors' assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate of RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025 as certified for customs purposes by the Federal Reserve Bank of New York. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the " safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud's strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud's goals and strategies; Kingsoft Cloud's future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud 's business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud's ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China's political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law. About Kingsoft Cloud Holdings Limited Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals. For more information, please visit: For investor and media inquiries, please contact: Kingsoft Cloud Holdings LimitedNicole ShanTel: +86 (10) 6292-7777 Ext. 6300Email: ksc-ir@ KINGSOFT CLOUD HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands) Dec 31,2024 Jun 30,2025 Jun 30,2025 RMB RMB US$ASSETS Current assets: Cash and cash equivalents 2,648,764 5,464,077 762,756Restricted cash 81,337 53,051 7,406Accounts receivable, net 1,468,663 2,018,350 281,751Short-term investments 90,422 — —Prepayments and other assets 2,233,074 2,263,242 315,936Amounts due from related parties 318,526 587,321 81,987Total current assets 6,840,786 10,386,041 1,449,836Non-current assets: Property and equipment, net 4,630,052 8,251,958 1,151,929Intangible assets, net 694,880 618,269 86,307Goodwill 4,605,724 4,605,724 642,934Prepayments and other assets 449,983 616,779 86,100Equity investments 234,182 231,586 32,328Operating lease right-of-use assets 137,047 119,350 16,661Total non-current assets 10,751,868 14,443,666 2,016,259Total assets 17,592,654 24,829,707 3,466,095 LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 1,877,004 2,195,478 306,477Accrued expenses and other current liabilities 3,341,990 3,966,154 553,653Short-term borrowings 2,225,765 3,129,151 436,813Income tax payable 69,219 82,331 11,493Amounts due to related parties 1,584,199 1,407,804 196,522Current operating lease liabilities 61,258 35,638 4,975Total current liabilities 9,159,435 10,816,556 1,509,933Non-current liabilities: Long-term borrowings 1,660,584 2,396,554 334,546Amounts due to related parties 309,612 1,308,158 182,612Deferred tax liabilities 101,677 81,283 11,347Other liabilities 790,271 3,103,021 433,165Non-current operating lease liabilities 65,755 64,549 9,011Total non-current liabilities 2,927,899 6,953,565 970,681Total liabilities 12,087,334 17,770,121 2,480,614Shareholders' equity: Ordinary shares 25,689 28,483 3,976Treasury shares (105,478) (79,316) (11,072)Additional paid-in capital 18,940,885 21,188,250 2,957,766Statutory reserves funds 32,001 32,001 4,467Accumulated deficit (14,291,957) (15,063,348) (2,102,762)Accumulated other comprehensive income 566,900 617,830 86,246Total Kingsoft Cloud Holdings Limited shareholders' equity 5,168,040 6,723,900 938,621Non-controlling interests 337,280 335,686 46,860Total equity 5,505,320 7,059,586 985,481Total liabilities, non-controlling interests and shareholders' equity 17,592,654 24,829,707 3,466,095 KINGSOFT CLOUD HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(All amounts in thousands, except for share and per share data) Three Months Ended Six Months Ended Jun 30,2024 Mar 31,2025 Jun 30,2025 Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2025 RMB RMB RMB US$ RMB RMB US$Revenues: Public cloud services 1,234,542 1,353,479 1,625,309 226,884 2,421,912 2,978,788 415,823Enterprise cloud services 657,238 616,498 723,918 101,055 1,245,400 1,340,416 187,115Others - - - - 152 - -Total revenues 1,891,780 1,969,977 2,349,227 327,939 3,667,464 4,319,204 602,938Cost of revenues (1,573,433) (1,651,671) (2,010,370) (280,637) (3,055,864) (3,662,041) (511,201)Gross profit 318,347 318,306 338,857 47,302 611,600 657,163 91,737Operating expenses: Selling and marketing expenses (125,708) (144,338) (131,996) (18,426) (242,460) (276,334) (38,575)General and administrative expenses (266,249) (181,999) (339,563) (47,401) (484,944) (521,562) (72,807)Research and development expenses (203,959) (226,170) (194,285) (27,121) (435,922) (420,455) (58,693)Total operating expenses (595,916) (552,507) (665,844) (92,948) (1,163,326) (1,218,351) (170,075)Operating loss (277,569) (234,201) (326,987) (45,646) (551,726) (561,188) (78,338)Interest income 9,945 4,946 11,520 1,608 18,315 16,466 2,299Interest expense (59,414) (82,897) (124,669) (17,403) (110,480) (207,566) (28,975)Foreign exchange (loss) gain (6,999) 9,051 (39,526) (5,518) (49,736) (30,475) (4,254)Other (loss) gain, net (7,829) 3,244 1,620 226 (16,036) 4,864 679Other (expense) income, net (4,961) (7,012) 23,522 3,284 (16,151) 16,510 2,305Loss before income taxes (346,827) (306,869) (454,520) (63,449) (725,814) (761,389) (106,284)Income tax (expense) benefit (6,891) (9,241) (2,343) (327) 8,480 (11,584) (1,617)Net loss (353,718) (316,110) (456,863) (63,776) (717,334) (772,973) (107,901)Less: net (loss) profit attributable to non-controlling interests (542) (2,184) 602 84 (4,748) (1,582) (221)Net loss attributable to Kingsoft Cloud Holdings Limited (353,176) (313,926) (457,465) (63,860) (712,586) (771,391) (107,680)Net loss per share: Basic and diluted (0.10) (0.08) (0.11) (0.02) (0.20) (0.20) (0.03)Shares used in the net loss per share computation: Basic and diluted 3,649,307,331 3,728,092,123 4,009,119,198 4,009,119,198 3,632,583,338 3,869,381,978 3,869,381,978Other comprehensive (loss) income, net of tax of nil: Foreign currency translation adjustments (530) 7,744 43,174 6,027 20,174 50,918 7,108Comprehensive loss (354,248) (308,366) (413,689) (57,749) (697,160) (722,055) (100,793)Less: Comprehensive (loss) income attributable to non-controlling interests (570) (2,200) 606 85 (4,817) (1,594) (223)Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (353,678) (306,166) (414,295) (57,834) (692,343) (720,461) (100,570) KINGSOFT CLOUD HOLDINGS LIMITEDRECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for percentage) Three Months Ended Six Months Ended Jun 30,2024 Mar 31,2025 Jun 30,2025 Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2025 RMB RMB RMB US$ RMB RMB US$Gross profit 318,347 318,306 338,857 47,302 611,600 657,163 91,737Adjustments: – Share-based compensation expenses (allocated in cost of revenues) 5,076 9,365 11,712 1,635 10,890 21,077 2,942Adjusted gross profit (Non-GAAP Financial Measure) 323,423 327,671 350,569 48,937 622,490 678,240 94,679 KINGSOFT CLOUD HOLDINGS LIMITEDRECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for percentage) Three Months Ended Six Months Ended Jun 30,2024 Mar 31,2025 Jun 30,2025 Jun 30,2024 Jun 30,2025Gross margin 16.8 % 16.2 % 14.4 % 16.7 % 15.2 %Adjusted gross margin (Non-GAAP Financial Measure) 17.1 % 16.6 % 14.9 % 17.0 % 15.7 % KINGSOFT CLOUD HOLDINGS LIMITEDRECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for percentage) Three Months Ended Six Months Ended Jun 30,2024 Mar 31,2025 Jun 30,2025 Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2025 RMB RMB RMB US$ RMB RMB US$Net Loss (353,718) (316,110) (456,863) (63,776) (717,334) (772,973) (107,901)Adjustments: – Share-based compensation expenses 45,649 134,611 116,856 16,312 149,244 251,467 35,103– Foreign exchange loss (gain) 6,999 (9,051) 39,526 5,518 49,736 30,475 4,254Adjusted net loss (Non-GAAP Financial Measure) (301,070) (190,550) (300,481) (41,946) (518,354) (491,031) (68,544)Adjustments: – Interest income (9,945) (4,946) (11,520) (1,608) (18,315) (16,466) (2,299)– Interest expense 59,414 82,897 124,669 17,403 110,480 207,566 28,975– Income tax expense (benefit) 6,891 9,241 2,343 327 (8,480) 11,584 1,617– Depreciation and amortization 305,304 421,901 591,021 82,503 528,450 1,012,922 141,398Adjusted EBITDA (Non-GAAP Financial Measure) 60,594 318,543 406,032 56,679 93,781 724,575 101,147– Gain on disposal of property and equipment - (2,110) (5,708) (797) (23,821) (7,818) (1,091)Excluding gain on disposal of property and equipment, normalized Adjusted EBITDA 60,594 316,433 400,324 55,882 69,960 716,757 100,056 KINGSOFT CLOUD HOLDINGS LIMITEDRECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for percentage) Three Months Ended Six Months Ended Jun 30,2024 Mar 31,2025 Jun 30,2025 Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2025 RMB RMB RMB US$ RMB RMB US$Operating loss (277,569) (234,201) (326,987) (45,646) (551,726) (561,188) (78,338)Adjustments: – Share-based compensation expenses 45,649 134,611 116,856 16,312 149,244 251,467 35,103– Amortization of intangible assets 43,415 43,781 43,751 6,107 86,932 87,532 12,219Adjusted operating loss (Non-GAAP Financial Measure) (188,505) (55,809) (166,380) (23,227) (315,550) (222,189) (31,016)– Gain on disposal of property and equipment - (2,110) (5,708) (797) (23,821) (7,818) (1,091)Excluding gain on disposal of property and equipment, normalized Adjusted operating loss (188,505) (57,919) (172,088) (24,024) (339,371) (230,007) (32,107) KINGSOFT CLOUD HOLDINGS LIMITEDRECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for percentage) Three Months Ended Six Months Ended Jun 30,2024 Mar 31,2025 Jun 30,2025 Jun 30,2024 Jun 30,2025Net loss margin -18.7 % -16.0 % -19.4 % -19.6 % -17.9 %Adjusted net loss margin (Non-GAAP Financial Measure) -15.9 % -9.7 % -12.8 % -14.1 % -11.4 %Adjusted EBITDA margin (Non-GAAP Financial Measure) 3.2 % 16.2 % 17.3 % 2.6 % 16.8 %Normalized Adjusted EBITDA margin 3.2 % 16.1 % 17.0 % 1.9 % 16.6 %Adjusted operating loss margin (Non-GAAP Financial Measure) -10.0 % -2.8 % -7.1 % -8.6 % -5.1 %Normalized Adjusted operating loss margin -10.0 % -2.9 % -7.3 % -9.3 % -5.3 % KINGSOFT CLOUD HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(All amounts in thousands) Three Months Ended Jun 30,2024 Mar 31,2025 Jun 30,2025 Jun 30,2025 RMB RMB RMB US$Net cash generated from (used in) operating activities 151,169 (418,390) 1,460,134 203,827Net cash used in investing activities (654,829) (490,393) (887,832) (123,937)Net cash generated from financing activities 523,950 549,998 2,552,561 356,324Effect of exchange rate changes on cash, cash equivalents and restricted cash (14,646) 15,028 5,921 827Net increase (decrease) in cash, cash equivalents and restricted cash 5,644 (343,757) 3,130,784 437,041Cash, cash equivalents and restricted cash at beginning of period 2,090,760 2,730,101 2,386,344 333,121Cash, cash equivalents and restricted cash at endof period 2,096,404 2,386,344 5,517,128 770,162 View original content: SOURCE Kingsoft Cloud Holdings Limited Sign in to access your portfolio

EliseAI Secures $250M Series E to Automate Healthcare and Housing, Hiring Hundreds to Fuel Expansion
EliseAI Secures $250M Series E to Automate Healthcare and Housing, Hiring Hundreds to Fuel Expansion

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EliseAI Secures $250M Series E to Automate Healthcare and Housing, Hiring Hundreds to Fuel Expansion

Andreessen Horowitz leads round with participation from Bessemer Venture Partners, Sapphire Ventures, and Navitas Capital as EliseAI scales real-world enterprise AI NEW YORK, August 20, 2025--(BUSINESS WIRE)--EliseAI, the AI company automating complex healthcare and housing systems, today announced its Series E raise of $250 million. The round was led by Andreessen Horowitz (a16z), with participation from new investor Bessemer Venture Partners and existing investors Sapphire Ventures and Navitas Capital. With this new funding, EliseAI will rapidly expand its team to accelerate product innovation and impact, improving patient experiences, streamlining operations, and advancing AI-driven solutions for customers. The company is actively hiring across all departments including engineering, customer experience, sales and marketing, and strategy and operations, growing its office hubs in New York, San Francisco, Boston, and Chicago. "EliseAI is built on the belief that AI can dramatically improve how critical industries operate," said Minna Song, Co-Founder and CEO of EliseAI. "For an average American, healthcare and housing represent approximately 40% of household spending. These two systems are notoriously complex, outdated, and painful to navigate. And we're here to fix it with agentic AI. We're excited to partner with both new and returning investors to supercharge our growth and accelerate solutions that reduce costs and increase efficiency in the industries that matter most." Since raising its $75 million Series D in August 2024, EliseAI has grown from 150 to over 300 full-time employees and introduced new AI-powered products across both verticals. The company surpassed $100 million in Annual Recurring Revenue (ARR) earlier this year. Doubling down on healthcare, EliseAI is tackling one of the system's most expensive pain points: front-desk and call center operations. Healthcare administrative costs total in excess of $600 billion annually in the U.S. due to excessive manual tasks and limited investment in technology. EliseAI's automation platform handles complex healthcare workflows, from navigating multi-step scheduling and prior authorizations to capturing nuanced patient concerns – accurately, compliantly, and empathetically. By cutting overhead by up to 25%, slashing wait times, and reducing abandoned calls, EliseAI helps practices keep both staff and patients satisfied. "EliseAI has transformed our OB GYN call center operations by streamlining complex workflows, reducing patient wait times, improving operational efficiency, and elevating the customer experience," said Dr. Pierre Hage of Women's Health CT – Obstetrics & Gynecology. "With EliseAI, we're on the path to achieving 24/7/365 comprehensive practice management for our patients and staff." In the housing sector, EliseAI helps operators tackle rising costs, labor shortages, and high workforce turnover, which can exceed 40% annually. Its platform includes new products such as AI-Guided Tours, Lease Audits, the Fee Transparency Suite, and the Maintenance App, enabling property managers to streamline operations and improve resident experiences. The company supports over 600 owners and operators, including 75% of NMHC's Top 50 Operators. "Customers consistently describe EliseAI as the most exciting software solution in the industry. The company already powers 10% of the U.S. apartment market today, with a massive opportunity still ahead of them domestically and abroad as they begin to enter international markets," said Alex Immerman, partner, a16z Growth. "We're thrilled to be leading Elise's latest financing as they raise the standard for how people experience two of life's most essential services: housing and healthcare." About EliseAI EliseAI transforms complex healthcare and housing systems. By deeply integrating into workflows and automating operations, it makes them efficient and cuts costs for all. Its platform supports medical practices with patient scheduling, intake and front-desk operations and helps property managers handle leasing, maintenance and resident engagement. EliseAI replaces fragmented tools with one integrated system that reduces manual work and improves accessibility and experience for residents and patients alike. The company is based in New York with teams in San Francisco, Boston and Chicago. To learn more, visit About Andreessen Horowitz Andreessen Horowitz (a16z) is a venture capital firm that backs bold entrepreneurs building the future through technology. Founded in 2009, the firm manages multiple funds across stages, sectors, and geographies with over $46 billion in committed capital across funds. a16z invests in seed to growth-stage companies across AI, bio + healthcare, consumer, crypto, enterprise, fintech, games, infrastructure, and companies building toward American dynamism. For more information, visit View source version on Contacts Media Arianna ParanzinoEliseAIpress@ (408) 892-9207 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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