Latest news with #artificialintelligence
The Guardian
23 minutes ago
- Business
- The Guardian
Zuckerberg says Meta will build a data center the size of Manhattan in latest AI push
Mark Zuckerberg proclaimed that Meta would spend hundreds of billions of dollars on developing artificial intelligence products in the near future and, to that end, construct a data center planned to be nearly the size of Manhattan. The parent company of Facebook, Instagram and WhatsApp is among the large tech companies that have struck high-profile deals and doled out multimillion-dollar pay packages to AI researchers in recent months – some as high as $100m – to fast-track work on machines that could outthink humans on many tasks, a concept known as 'superintelligence' or 'artificial general intelligence'. Its first multi-gigawatt data center, dubbed Prometheus, is expected to come online in 2026, while another, called Hyperion, will be able to scale up to 5 gigawatts over the coming years, Zuckerberg said. 'We're building multiple more titan clusters as well. Just one of these covers a significant part of the footprint of Manhattan,' the billionaire CEO said. This article includes content provided by Facebook. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. To view this content, click 'Allow and continue'. He also pointed to a report from industry publication SemiAnalysis that Meta was on track to be the first AI lab to bring a gigawatt-plus supercluster online. Zuckerberg touted the strength in the company's core advertising business to justify the massive spending amid investor concerns on whether the expenditure would pay off. 'We have the capital from our business to do this,' he said. The company, which generated nearly $165bn in revenue last year, reorganized its AI efforts last month under a division called Superintelligence Labs after setbacks for its open-source Llama 4 model and key staff departures. It is betting that the division will generate new cashflows from the Meta AI app, image-to-video ad tools and smart glasses. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion DA Davidson analyst Gil Luria said Meta was investing aggressively in AI as the technology has already boosted its ad business by allowing it to sell more ads and at higher prices. In recent weeks, Zuckerberg has personally led an aggressive talent raid for the Meta Superintelligence Labs, which will be led by former Scale AI CEO Alexandr Wang and ex-GitHub chief Nat Friedman, after Meta invested $14.3bn in Scale. Meta had raised its 2025 capital expenditure predictions to between $64bn and $72bn in April, aiming to bolster the company's position against rivals OpenAI and Google.
Globe and Mail
an hour ago
- Business
- Globe and Mail
Where Will C3.ai Stock Be in 1 Year?
Key Points endured some tough growing pains over the past few years. But its revenues are still rising and its gross margins are stabilizing. It could climb higher over the next 12 months, but it should remain below its IPO price. 10 stocks we like better than › (NYSE: AI) was once a hot artificial intelligence (AI) stock. Back in December 2020, it more than quadrupled from its initial public offering (IPO) price of $42 to a record high of $177.47 in just two weeks. At the time, investors were impressed by its rapid growth rates, catchy ticker symbol, and the fact that it was led by Tom Siebel, who sold his previous company -- Siebel Systems -- to Oracle for $5.8 billion in 2006. The buying frenzy in meme and growth stocks amplified those monstrous gains. But today, stock trades at about $26. It fizzled out as its growth cooled off, it racked up steep losses, and rising interest rates popped its bubbly valuations. It hasn't traded above its IPO price since last December, and it's declined roughly 12% over the past 12 months. Let's see where it might be headed over the next year. How does make money? AI modules can be plugged into an organization's existing software infrastructure to ingest and analyze a wide range of data. Those modules can also be run as stand-alone services. Its modules are often used to detect safety issues, fraudulent transactions, and operating inefficiencies. It mainly serves government clients and large enterprise customers across the energy, industrial, and financial sectors, and its top customer is the energy technology giant Baker Hughes. initially only offered subscriptions, but it rolled out consumption-based fees in late 2022 to attract more customers as rising interest rates stirred up some fierce macro headwinds. That move reduced its recurring revenues and the stickiness of its ecosystem, but it broadened its market by reaching smaller and more budget-conscious customers. Why were its last few years challenging? In fiscal 2023 (which ended in April 2023), revenue only rose 6% as the competitive headwinds, a challenging macro environment, and the cannibalization of its subscriptions with its consumption-based fees throttled its growth. Its adjusted gross margin also dipped 2 percentage points to 77% as its pricing power waned. However, revenue rose 16% in fiscal 2024 and 25% in fiscal 2025. That acceleration was driven by its new federal contracts; fresh partnerships with Microsoft, Amazon Web Services (AWS), and McKinsey; and its rollout of more modules for generative AI applications. Its adjusted gross margin dropped another 8 percentage points to 69% in fiscal 2024 as it relied on more low-margin pilot trials to attract more customers. But in fiscal 2025, that figure expanded to 70% as it converted more of those pilot programs into full-priced deployments. It also expanded its higher-margin subscriptions again. What happened to over the past year? Over the past year, year-over-year revenue growth stabilized above 20% as its adjusted gross margins improved. That recovery was driven by declining interest rates, the growth of the AI market, and its broadening customer base. Metric Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Revenue growth (YOY) 20% 21% 29% 26% 26% Adjusted gross margin 69% 68% 70% 70% 71% Data source: YOY = year over year. More importantly, renewed its joint venture with Baker Hughes, which accounted for more than 30% of its revenue, for an additional three years. That renewal allayed some bearish concerns about abruptly losing its top client before it could diversify its customer base. What will happen over the next year? expects its revenue to rise 15%-25% in both the first quarter of fiscal 2026 and the full year. Analysts expect its revenue to increase 20% to $465 million for the full year. With a market cap of $3.5 billion, stock doesn't seem that expensive at 8 times this year's sales. But it isn't expected to break even anytime soon. At the beginning of fiscal 2024, it abandoned its near-term goal of turning profitable on an adjusted basis by the end of the year in favor of ramping up its investments in its AI-oriented modules. For fiscal 2026, expects to post an adjusted operating loss of $65 million-$100 million. That wouldn't be much of an improvement from its adjusted operating loss of $88 million in fiscal 2025. It will also likely continue to spend a lot of cash on its stock-based compensation expenses, which rose 7% to $231 million in fiscal 2025 and consumed 59% of its revenue. On a generally accepted accounting principles (GAAP) basis, analysts expect its net loss to widen from $288 million in fiscal 2025 to $302 million in fiscal 2026. For fiscal 2027, analysts expect its revenue to rise 19%. Assuming it meets those expectations and still trades at 8 times its forward sales, its stock price could rise about 26% to $33 over the next 12 months. That would be a decent gain, but it would remain far below its IPO price and likely underperform some of the market's higher-growth AI plays. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Oracle. The Motley Fool recommends and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
an hour ago
- Business
- Yahoo
Better Artificial Intelligence (AI) Stock: D-Wave Quantum vs. Nvidia
Key Points D-Wave Quantum and Nvidia are building technology to drive the advancement of artificial intelligence. D-Wave's quantum computing solutions catapulted Q1 revenue to $15 million, an incredible 509% year-over-year increase. Nvidia is developing a quantum computing approach similar to how it conquered the market for AI semiconductor chips. 10 stocks we like better than Nvidia › The artificial intelligence (AI) market presents an excellent investment opportunity given AI's awesome technological potential. After all, AI-related sales propelled Nvidia (NASDAQ: NVDA) to a $4 trillion market cap, making it the first public company to reach that milestone. D-Wave Quantum (NYSE: QBTS) could one day be a challenger to Nvidia. It's developing quantum computing technology that promises to supercharge AI using the power of quantum physics. One of these tech innovators may be a fabulous stock investment over the long haul. But which one looks like the better choice? A look into D-Wave Quantum D-Wave has constructed quantum computers capable of solving complex problems in minutes that would take today's supercomputers 1 million years to complete. This powerful tech could elevate AI to new heights, such as its application in identifying individuals developing diabetes-induced blindness. D-Wave shares took off this year, rising over 75% through the week ending July 11. The jump was driven by a 509% year-over-year increase in first-quarter revenue to $15 million. This sum was a record for D-Wave, and, in fact, exceeded the $8.8 million in total sales made in all of 2024. The huge growth was due to the company selling one of its quantum computers for the first time. Typically, it makes the bulk of its income from fees for access to its quantum systems via the cloud. At the end of Q1, D-Wave had 133 customers compared to 128 last year, including a dozen government clients. It's encouraging to see customer growth. However, the company isn't profitable. Its Q1 net loss totaled $5.4 million. Nvidia and the future of AI Nvidia is recognized as a leader in AI thanks to its powerful graphics processing units (GPUs). GPUs help to power AI supercomputers around the world, which includes one being built for the U.S. Department of Energy to drive breakthroughs in fusion energy, materials manufacturing, and other scientific areas. This is just the start of the widespread technological transformation that is to come. According to Nvidia CEO Jensen Huang in a June statement, "We are entering a new industrial era -- one defined by the ability to generate intelligence at scale." He sees organizations updating their tech infrastructure to support AI, and that means more GPU sales for Nvidia. To date, those sales have been spectacular. In its fiscal first quarter, ended April 27, revenue reached $44.1 billion, a jump of 69% over the prior year's $26 billion. That performance followed fiscal 2025's record revenue of $130.5 billion, which represented 114% year-over-year growth. The company is also profitable with fiscal Q1 net income of $14.9 billion, a 628% year-over-year increase. Nvidia's success is poised to continue. Recognizing the potential of quantum computers, the company is developing quantum processing units (QPUs). QPUs will work alongside Nvidia's GPUs to mitigate key limitations of quantum computers. Quantum machines are error-prone due to their reliance on atomic particles sensitive to the slightest disruption, such as a small bump in temperature. The company's GPUs can enable fixing errors as they come up, boosting the utility of quantum computers while reducing error correction costs. Weighing whether to invest in D-Wave or Nvidia stock Both D-Wave and Nvidia have assembled impressive technology. But technological prowess isn't the only factor to consider. One key component is share price valuation. This can be assessed by looking at the price-to-sales (P/S) ratio for each company, a metric commonly used for unprofitable businesses such as D-Wave. The chart reveals D-Wave's P/S multiple is sky-high compared to where it was a year ago, and far above Nvidia's. This suggests D-Wave shares are overpriced, so now is not a good time to buy. On top of that, while AI's evolution through quantum computing sounds exciting, the reality is that this could take years. Some industry forecasts estimate a fully scalable quantum computer may not happen until after 2040. Over that time, any number of companies could take the lead in quantum computing. Tech giants with deep pockets, such as Microsoft, are working on their own solutions. Against this backdrop, Nvidia's strategy of combining QPUs and GPUs offers a low-risk transition into quantum computing. It gives businesses investing in the space the flexibility to add Nvidia's QPUs to their quantum machines, much like how they incorporated GPUs into their current AI systems. These factors make Nvidia the better AI stock pick over D-Wave. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Robert Izquierdo has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Better Artificial Intelligence (AI) Stock: D-Wave Quantum vs. Nvidia was originally published by The Motley Fool 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
Yahoo
2 hours ago
- Business
- Yahoo
Wedbush Identifies Palo Alto (PANW) as a Top Cybersecurity Play
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Palo Alto Networks, Inc. (NASDAQ:PANW) has been identified as one of Wedbush Securities' top cybersecurity picks for the second half of 2025, reflecting the firm's bullish outlook on the sector's momentum. In a note released Sunday, Wedbush analysts, led by Daniel Ives, pointed to a 'very resilient spending environment' that continues to support strong industry performance. A cutting-edge computer lab full of IT experts monitoring the security of multiple systems. According to the report, cybersecurity is positioned to be one of the standout segments in the broader tech landscape through the remainder of the year. As malicious cyber activity becomes more sophisticated, enterprises are increasingly prioritizing security infrastructure, reinforcing a demand trend that Wedbush sees sustaining double-digit growth in the years ahead. The firm emphasized that cybersecurity remains essential not only for digital protection but also as a core pillar in the deployment of artificial intelligence across industries. This strategic importance is expected to drive increased mergers and acquisitions, with companies seeking to bolster their capabilities and stay competitive in an evolving threat landscape. Palo Alto Networks stands out, the analysts noted, due to its scale, innovation, and positioning in key enterprise accounts. Its inclusion on Wedbush's high-conviction list underscores growing confidence in the company's ability to capitalize on sector-wide tailwinds as 2025 unfolds. While we acknowledge the potential of PANW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Consumer Defensive Stocks to Buy Now. Disclosure: None. This article is originally published at Insider Monkey. 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
Gizmodo
5 hours ago
- Politics
- Gizmodo
Trump Shares a Personal Story About the Unabomber That Doesn't Make Any Sense
President Donald Trump appeared at an event in Pennsylvania on Tuesday to promote investment in artificial intelligence. But in classic Trump fashion, he veered into a story that had nothing to do with AI. The story involved Trump's uncle and the Unabomber, but it's filled with so many inconsistencies that people have no real idea what to make of it. 'When I first heard about AI, you know, it's not my thing, although my uncle was at MIT, one of the great professors, 51 years, whatever, he was the longest serving professor in the history of MIT, three degrees in nuclear, chemical, and math,' said Trump. The president was referring to John G. Trump, who was the brother of Donald's father, Frederick C. Trump. John wasn't the longest-serving professor in the history of MIT, according to Newsweek, and it's not clear what a degree in 'chemical' is supposed to mean. But those aren't even the weirdest falsehoods. Trump went on to explain that 'Kaczynski,' presumably referring to Ted Kaczynski, was one of his uncle's students at MIT. Kaczynski was better known as the Unabomber, who killed three people and injured 23 others in a mail bombing campaign from 1978 until 1995. 'Kaczynski was one of his students. Do you know who Kaczynski was?' Trump said. 'There's very little difference between a madman and a genius. But Kaczynski, I said, what kind of a student was he, Uncle John, Dr. John Trump? He said, what kind of a student? And then he said, seriously, good. He said he'd go around correcting everybody, but it didn't work out too well for him. Didn't work out too well, but it's interesting in life.' Where to begin? For starters, the president's uncle John died in 1985 at the age of 77. The public had no idea who the Unabomber might be until he was captured in 1996. There's basically no way that Donald would know to ask his uncle about Kaczynski in any exceptional way before his identity became publicly known. Kaczynski's brother helped identify him after the Washington Post published his anti-technology manifesto (promising to give up terrorism if they did) and recognized the arguments in Industrial Society and Its Future as the work of his brother. There's also the fact that Kaczynski got his bachelor's at Harvard and then went on to earn graduate degrees at Harvard. There's no evidence Gizmodo can find that Kaczynski studied at the Massachusetts Institute of Technology, where John Trump taught. And it doesn't appear that John Trump ever taught anything at the University of Michigan or Harvard, as best as we can tell. Kaczynski killed himself by hanging in prison in June 2023. What does it all mean? It probably means President Trump is losing his mind. Trump likes to brag about his uncle being a genius, largely because he thinks that this kind of family lineage obviously means he's a genius too. But there's just no way that Trump could've conceivably talked about the Unabomber with his uncle, who, again, died a decade before anyone knew his identity. It's the kind of bizarre claim that would define the legacy of any other presidency during normal times. But it's just another day that ends in Y here in the second Trump era. And there's only going to be more weirdness to come. We can pretty much guarantee that part.
