Tag Archives: Artificial Intelligence

Meta Invests $10 Billion in AI Firm Scale AI

Meta Invests $10 Billion in AI Firm Scale AI: According to informed sources
who requested anonymity due to the sensitivity of the information,
Meta Platforms is in talks to invest billions of dollars in the AI startup Scale AI.
The value of the investment could exceed $10 billion,
making it one of the largest private funding deals globally.
However, the final terms are still under negotiation and may change.

 

Contents

Scale AI Under the Spotlight

A Rare Investment

Who is Scale

Defense Collaborations

 

 

 

 

Scale AI Under the Spotlight

Despite requests for comment, Scale AI has not issued an official response,
while Meta has declined to speak.
The company is recognized for its advanced data labeling services that support firms like Microsoft and OpenAI.

that assist companies such as Microsoft and OpenAI in training machine learning models.
The company has become one of the primary beneficiaries of the generative AI boom,
reaching a valuation of approximately $14 billion in 2024 in a funding round backed by Meta and Microsoft.
According to Bloomberg, Scale has previously engaged in discussions
about share sales that could boost its valuation to $25 billion.

 

 

A Rare External Investment by Meta

If completed, the deal would represent Meta’s most significant external investment
In the AI sector, a notable move from a company that traditionally
relies on internal R&D and open-source development.
Unlike Meta, other tech giants like Microsoft have made substantial investments in the field,
Microsoft has spent more than $13 billion on OpenAI.

Part of these companies’ investments have been through credits for using cloud computing resources.
Meta, however, does not operate a cloud services business, leaving the form of its investment unclear.

CEO Mark Zuckerberg announced in January that AI would be a top priority
for the company, and the company plans to spend up to $65 billion this year on related projects.
Meta aims to establish its LLaMA language model as a global standard for AI-powered chatbots.
The model is already available on Facebook, Instagram, and WhatsApp, serving over one billion monthly users.

 

 

 

 

Who is Scale?

Scale AI was founded in 2016 by CEO Alexander Wang and has experienced rapid growth.
The company reported revenues of around $870 million
in 2023 and is expected to surpass $2 billion in sales by 2025.

Scale plays a vital role in AI development
by providing high-quality datasets used in model training.
It relies on an extensive network of contractors to clean and label images,
texts, and other data, making it an essential link in the intelligent systems development chain.

 

Defense Collaborations

Meta and Scale also share an interest in defense technologies. Recently,
Meta announced a partnership with a defense contractor
Anduril Industries will develop AI-powered military products,
including a helmet that integrates virtual and augmented reality.
Meta has also been approved by U.S. government agencies and defense contractors to use its AI models.

Both companies are collaborating on a “Defense Llama” project,
a military version of Meta’s LLaMA model tailored for defense applications.

Earlier this year, Scale announced a contract with the U.S. Department of Defense
to develop autonomous AI agents,
calling the agreement a significant milestone in advancing AI-driven military innovation.

 

Meta Invests $10 Billion in AI Firm Scale AI

Apple Plans Safari Redesign with Focus on AI Search Engines

Apple Plans Safari Redesign with Focus on AI Search Engines: Apple has announced that it is seriously considering redesigning
It’s Safari browser across its devices to integrate AI-powered search engines.
This move could spark a significant shift in the tech industry as
The company faces the potential end of its long-standing partnership with Google.


Contents

Google Era

New Competition for Google

Alternative AI Search Options
Improvements Still Needed

The Future of Safari

Expanded Partnership with Google

 

 

 

 

Is the Google Era in Safari Coming to an End?

On Wednesday, Eddy Cue, Apple’s senior vice president of services,
revealed these plans during his testimony in the U.S. Department of Justice’s antitrust lawsuit against Alphabet, Google’s parent company.
 The case revolves around a $20 billion annual deal that makes Google the default search engine in Safari.
If the companies are forced to end this deal, it could significantly affect how iPhones and other Apple products function.

But the impact goes beyond the deal. AI-powered search engines are increasingly capturing user interest.
Cue noted that Safari search volumes declined for the first time last month,
attributing the drop to the rising use of AI tools.

He added that search engines like OpenAI, Perplexity,
and Anthropic could effectively replace traditional engines like Google.
Apple plans to introduce these options in Safari,
although they won’t be default choices due to further development.

 

New Competition for Google

Cue stated: “Before AI emerged, I didn’t see any real alternative to Google,
but the entrance of new players has changed the equation,” referring to companies offering innovative search solutions.

This shift is a significant turning point for the iPhone,
where users have relied on Google as the default search engine since its launch in 2007.
Consumers are approaching a new era dominated by AI-driven tools.

Cue’s testimony was interpreted as a warning sign for both Apple and Alphabet,
as the end of their lucrative agreement appears possible.

Alphabet’s stock dropped by 7.3% on Wednesday.
The steepest decline since February, while Apple shares fell by 1.1% following Cue’s comments.

 

Alternative AI Search Options

Apple currently allows users to access ChatGPT from OpenAI
via Siri and is expected to add Google’s Gemini AI search engine later this year.
Cue also mentioned that Apple has evaluated other options,
including Anthropic, Perplexity, China’s DeepSeek, and Elon Musk’s Groq from xAI.

Cue explained that the deal with OpenAI permits the integration of additional AI providers,
including internally developed tools by Apple.

He noted that Apple selected ChatGPT after a trial comparison with Google,
which presented terms Apple found unacceptable and incompatible with its deal with OpenAI.

Cue added that technology is rapidly evolving, so “people might not even need iPhones in a decade.”
suggesting that tech shifts open the door to genuine competition and fresh opportunities.

 

 

 

 

Improvements Still Needed

Despite recognizing the advanced features of new AI search engines,
Cue emphasized that index quality still needs improvement.
He stated: “There’s enough funding and enough major companies involved that I don’t see a way this shift won’t happen.”

 

The Future of Safari Hangs in the Balance

Cue affirmed that large language models (LLMs), the core technology behind generative AI,
will continue improving, which may drive users to change their search habits.

Still, Cue believes that Google remains the best default engine for Safari due to the significant revenue the partnership provides.
He noted the current deal with Google offers Apple the most favorable financial terms.

Cue oversees services such as iCloud, Apple TV+, and Apple Music, and is known as Apple’s chief dealmaker.
A loss in search-related revenue could impact the financial performance of his division,
which recently posted a record $26.6 billion in quarterly services revenue.

Additionally, a recent court order requires Apple to allow U.S. developers
to use third-party payment methods, potentially cutting Apple’s 30% transaction commission and reducing revenue.

 

Expanded Partnership with Google

Last year, Apple and Google extended their partnership to integrate
Google Lens is integrated into Apple’s Visual Lookup feature on newer iPhones.
Allowing users to analyze images using Google’s AI.

Cue also noted that the agreement with Microsoft’s Bing,
a non-default search option in Safari, is now renewed annually.

Although Apple has lagged behind competitors in AI, lacking a proprietary intelligent search engine,
it is working on Siri enhancements that use personal data to provide more accurate responses.

The company is expected to unveil more updates to its Apple Intelligence platform
at its upcoming Worldwide Developers Conference on June 9.

 

Apple Plans Safari Redesign with Focus on AI Search Engines

Gemini 2.5: Smarter AI by Alphabet

Gemini 2.5: Smarter AI by Alphabet:
Alphabet Inc., Google’s parent company, has launched its new AI model, Gemini 2.5 Pro Experimental.
This marks a significant leap in reasoning and programming capabilities.
The model has outperformed competing systems across several key industry benchmarks.

 

Contents:

Alibaba 

Rise in New Home Sales in the U.S.

Alphabet

 

 

 

 

Alibaba Chairman Warns of AI Spending Bubble and Questions Demand Sustainability

Alibaba chairman Joe Tsai has warned about a potential bubble in AI spending and data center development.
Speaking at an investor conference in Hong Kong on Tuesday,
Tsai expressed concerns over the sustainability of rapid growth in the sector.

He said he was astonished by the amount of capital invested by major U.S. tech companies,
calling it “staggering” and highlighting that AI has entered geopolitical competition between global powers.

Bloomberg reported that Ant Group, a subsidiary of Alibaba,
has successfully trained AI models using Chinese-made chips with efficiency close to that of NVIDIA chips—but at about 20% lower cost.
This demonstrates promising local alternatives in the Chinese market.

In a related context, Robin Li, CEO of Baidu, had already warned last year of a real bubble in the AI sector,
emphasizing that only 1% of the companies riding the current AI wave would succeed in delivering “massive long-term value.”

 

New Home Sales in the U.S. Rise in February

Sales of new homes in the U.S. rose in February,
supported by lower mortgage rates that encouraged more buyers to enter the market
despite ongoing uncertainty over the economic outlook.

Data released by the U.S. Census Bureau on Tuesday showed that new home sales increased by 1.8% month-over-month,
reaching a seasonally adjusted annual rate of 676,000 units,
up from a revised 664,000 units in January.
However, the reading came in slightly below analysts’ expectations of 679,000 units.

Sales rose 5.1% yearly compared to February 2024, when they reached 643,000 units.

In contrast, the median sales price of new homes dropped 1.5% year-over-year to $414,500,
indicating a response to market conditions and buyer incentives.

The report also noted that the number of unsold new homes reached 500,000 units at the end of February,
representing a supply equivalent to 8.9 months of sales at the current pace
signaling a potential surplus that may apply downward pressure on prices in the future.

 

 

 

 

Alphabet Unveils Gemini 2.5: A New AI Model Excelling in Reasoning and Programming

Alphabet Inc., Google’s parent company, announced the launch of Gemini 2.5 Pro Experimental,
a new AI model representing a breakthrough in reasoning and programming.
The model has surpassed competing AI systems across several key industry benchmarks.

The core innovation lies in its advanced reasoning system,
which allows the model to “think” more deeply about problems before responding.
This ability to analyze information and draw logical conclusions
while considering contextual nuances—boosts the accuracy and efficiency of its AI responses.

Gemini 2.5 builds on strong foundations laid by “motivated chain-of-thought” techniques,
first introduced in Gemini 2.0 Flash Thinking.
The new model combines an improved core architecture with post-training advancements,
giving it the power to handle more complex challenges and deliver context-aware intelligent applications.

With this release, Alphabet continues to lead the AI race,
leveraging its deep expertise in reinforcement learning and generative AI technologies.

Gemini 2.5: Smarter AI by Alphabet

Baidu Unveils Advanced AI to Rival DeepSeek & ChatGPT

Baidu Unveils Advanced AI to Rival DeepSeek & ChatGPT: Chinese tech giant Baidu has unveiled a new artificial intelligence
model demonstrating advanced logical and analytical thinking capabilities.
This is part of an effort to counter rising competitors like DeepSeek,
which has garnered significant attention in Silicon Valley.

The new model, Ernie X1, is part of Baidu’s strategy to strengthen its position in the AI market.
It operates similarly to DeepSeek’s R1 model,
which made waves with its ability to rival the world’s top chatbots at a fraction of their development cost.

The company stated that its new model outperforms in several areas,
including daily conversations, complex calculations, and logical reasoning.

 

Content

Free Access and Major Updates

Surpassing ChatGPT

AI Boosts Baidu’s Revenue

 

 

Free Access and Major Updates

In a surprise move, Baidu upgraded its core model to Ernie 4.5 and granted users
of its chatbot services, free access to all service levels
including the X1 model—ahead of its previously scheduled launch.

Although Baidu was one of the first Chinese tech firms to launch a ChatGPT
like chatbot based on OpenAI’s ChatGPT,
competition from companies like ByteDance and Moonshot AI has intensified,
while open-source models like Qwen from Alibaba and DeepSeek have gained wide traction among developers globally.

 

Surpassing ChatGPT

Baidu claims its Ernie 4.5 model outperforms the latest ChatGPT 4.5 in text generation,
referencing several industry benchmarks.
The company also announced plans to make Ernie AI models open-source starting June 30,
marking a significant shift following the success of DeepSeek.

Baidu has also integrated its advanced model into its core search engine,
which remains a key pillar of its business.

 

 

 

AI Boosts Baidu’s Revenue

The generative AI boom has positively impacted Baidu’s financials.
The company reported a 26% increase in cloud services revenue in the final quarter of 2023,
driven by growing demand from developers seeking advanced computing power.
However, declining ad revenues offset this growth amid China’s economic slowdown.

In line with its strategic expansion, Baidu recently completed
a $2.1 billion acquisition of the live-streaming platform YY,
owned by Joyy Inc., unlocking approximately $1.6 billion previously held in escrow,
Baidu plans to invest in AI infrastructure and cloud computing in the near future.

 

Baidu Unveils Advanced AI to Rival DeepSeek & ChatGPT

Launch of the Latest Version of AI Program Grok 3

Launch of the Latest Version of AI Program Grok 3:
Elon Musk, owner of X and CEO of Tesla and SpaceX,
announced that his company, xAI, will unveil the latest version
of the “Grok 3” artificial intelligence program on Monday night.

 

Contents:

The Latest Version of Grok 3

China’s Central Bank
European Union

 

 

 

Launch of the Latest Version of AI Program Grok 3

Elon Musk, owner of X and CEO of Tesla and SpaceX,
announced that his company, xAI, will unveil the latest version
of the “Grok 3” artificial intelligence program on Monday night.

Musk posted on X that “Grok 3” will be showcased in a live broadcast at 8 PM Pacific Time,
describing it as “the smartest AI on Earth.”

During an industrial conference in Dubai last week,
Musk mentioned that “Grok 3” was in its final development stages,
with an expected launch within one to two weeks.
He stated, “We believe it will be the best AI model ever created.
This might be the last time an AI model surpasses Grok.”

Musk previously made a free version of Grok available on X,
enabling users to generate text and images from simple natural language queries.

xAI, founded in July 2023, raised $6 billion in December to accelerate its AI technology development.

 

China’s Central Bank Governor: Strong Economy & Policies to Support Growth

Pan Gongsheng, Governor of the People’s Bank of China,
stated that China’s consumer demand and price growth could strengthen,
supported by a stable economy and reduced risks in local government debt and the real estate sector.

Speaking at a conference in AlUla, Saudi Arabia, Pan emphasized that China
will adopt a more proactive fiscal policy and an accommodative monetary policy to support economic growth.
He also noted that the yuan remains largely stable and that China’s economic fundamentals are strong.

However, Pan acknowledged that China, like other emerging economies,
faces challenges due to rising trade protectionism, geopolitical tensions, and global economic fragmentation.
Despite these challenges, he reaffirmed Beijing’s commitment to reforms and
economic openness during his speech at an event organized by the IMF and Saudi Ministry of Finance.

 

 

 

 

EU Considers New Trade Restrictions to Protect Its Farmers Amid Rising Reciprocity Policies

According to the Financial Times on Sunday, the European Union plans to tighten import
restrictions on certain agricultural products to protect its farming sector.
This move aligns with U.S. President Donald Trump’s trade policies based on reciprocity principles.

According to three officials familiar with the matter,
the European Commission is expected to approve an in-depth study on imposing stricter import standards this week.

These measures may include restrictions on U.S. crops, such as soybeans grown with pesticides banned in the EU,
potentially escalating trade tensions between both sides.

A White House official responded, stating that Trump’s administration
continues to support American farmers and ensure fairer trade,
emphasizing the U.S. push to open global markets for its high-quality agricultural products.

 

 

Launch of the Latest Version of AI Program Grok 3

Wall Street Rises, Overcoming AI Concerns

Wall Street Rises, Overcoming AI Concerns:
U.S. stock indices increased as gains in most major sectors outweighed disappointing earnings from some tech giants.
However, Treasury yields fell to their lowest levels since 2025 following weak data from the U.S. services sector.

 

Contents

Mixed Performance of Tech Stocks

Wall Street Challenges

The Rise of DeepSeek

Market and Index Performance

Market Volatility

Unforeseen Risks

Jobs Report Expectations

 

 

 

Mixed Performance of Tech Stocks Amid Market Volatility

Shares of approximately 350 companies in the S&P 500 index rose,
with Nvidia leading gains in the semiconductor sector.
However, the “Magnificent Seven” index (Alphabet, Apple, Amazon, Nvidia, Meta, Microsoft, Tesla)
declined by 1.5% after Alphabet’s stock recorded
It’s the worst drop in over a year due to disappointing financial results.
Advanced Micro Devices (AMD) shares also fell by 6.3% due to weak forecasts.

Qualcomm shares rose on optimistic sales forecasts in extended trading after market close,
while Arm Holdings issued weak projections.
Ford Motor also warned of a potential decline in profits.

 

Wall Street Challenges and Market Volatility

Economic markets have been impacted by fluctuating data, trade tensions,
and questions about whether massive AI investments will start generating returns.
According to Mark Hackett of Nationwide,
recent market events serve as a stark reminder to investors that volatility can arise unexpectedly.

 

The Emergence of “DeepSeek” and Its Market Impact

Last week, Nvidia lost half a trillion dollars in value after the emergence of the AI competitor DeepSeek.
Additionally, Alphabet’s earnings raised concerns about capital expenditures,
affecting major tech stocks and driving the bull market.

While the “Magnificent Seven” contributed to more than
half of the S&P 500’s gains over the past two years, their earnings growth has slowed.

According to Ed Yardeni, founder of Yardeni Research,
Other S&P 500 companies now have a greater chance of growth and benefit from productivity-enhancing technologies.

 

Market and Index Performance:

The S&P 500 index rose by 0.4%, the Nasdaq 100 added 0.4% in gains,
and the Dow Jones Industrial Average increased by 0.7%.

Meanwhile, UnitedHealth Group trimmed its losses to 1% after announcing its communication
with the U.S. Securities and Exchange Commission (SEC)
regarding concerns over a deleted post by Bill Ackman on the “X” platform,
which claimed the company had exaggerated its earnings report.

On the other hand, Uber shares dropped 7.6% due to weak guidance on booked revenues.

The 10-year U.S. Treasury yield fell by 9 basis points,
reaching 4.42%, while the Bloomberg Dollar Spot Index declined by 0.2%.

 

 

 

 

Market Volatility and Future Investments

According to Daniel Skelly from Morgan Stanley,
markets are struggling to stabilize amid shifts in the economic landscape,
including anticipated tariffs and mixed corporate earnings.

With ongoing uncertainty, global sectors such as information technology, equipment,
and automotive industries may be more vulnerable,
while domestic sectors, such as financial services, could attract more investor interest.

 

Unforeseen Risks and Their Market Impact

According to Jim Chanos, one of the most renowned shortsellers,
real market risks remain unpredictable until they occur.
He pointed to the DeepSeek impact, which unexpectedly erased nearly $1 trillion in market value.

As earnings season approaches,
analysts closely watch companies that achieve a “Triple Play.”
beating revenue and earnings expectations while improving future guidance.

This year:

75% of companies exceeded earnings per share (EPS) expectations

66% surpassed revenue estimates

8% lowered future guidance

 

Jobs Report Expectations and Market Reaction

Traders are eagerly anticipating Friday’s jobs report.
Data has shown strong job growth, reinforcing labor market resilience amid economic uncertainties.

The Federal Reserve closely monitors labor market trends to determine the extent of interest rate cuts this year.
Last year’s rising unemployment rate was key
to the Fed’s decision to cut interest rates by a percentage point in 2024.
However, Fed Chair Jerome Powell recently described the labor market as “very stable.”

A survey by 22V Research found that:

24% of participants believe Friday’s report will be “a risk indicator.”

30% see it as a “low-risk indicator.”

46% think it will have “little to no impact”

According to Dennis DeBusschere of 22V Research,
investors are now focusing on average hourly earnings,
shifting away from payroll numbers and unemployment rates were last month’s key concerns.

 

Wall Street Rises, Overcoming AI Concerns

Indonesia Nears Agreement with Apple to Lift iPhone 16 Sales Ban

Indonesia Nears Agreement with Apple to Lift iPhone 16 Sales Ban:
Indonesian Minister of Investment Rosan Roeslani announced that the country
is close to reaching an agreement with Apple regarding an investment
plan to lift the ban on iPhone 16 sales in the Indonesian market.

 

Content

Indonesia nears an agreement with Apple

Trump announces a historic initiative

Cryptocurrency regulations

 

 

 

 

Indonesia Nears Agreement with Apple to Lift iPhone 16 Sales Ban

Indonesian Minister of Investment Rosan Roeslani announced that the country
is close to reaching an agreement with Apple regarding an investment
plan to lift the ban on iPhone 16 sales in the Indonesian market.
Roeslani expressed hope in a Bloomberg TV interview on Tuesday
that the crisis would be resolved within a week or two,
highlighting progress in negotiations with the American company.

Indonesia banned iPhone 16 sales last year due to Apple’s failure to comply with local regulations
requiring devices to have at least 40% local components.
Despite Indonesia’s massive population of 280 million,
Apple has yet to establish local factories, prompting the government to impose these restrictions to boost domestic production.

 

Trump Announces Historic $500 Billion AI Investment Initiative

On his first working day after returning to the White House,
U.S. President Donald Trump unveiled a massive initiative to strengthen the country’s artificial intelligence (AI) position.

At a press conference attended by leading tech executives,
Trump announced plans to establish a new U.S.-based company, ”
Stargate,” which will invest at least $500 billion to develop AI infrastructure.

Trump described the project as “the largest in AI history,”
emphasizing that this initiative would place the U.S. at the forefront of technological innovation.

Notable attendees included Larry Ellison, Chairman of Oracle, Masayoshi Son,
CEO of SoftBank, and Sam Altman, CEO of OpenAI, praised the initiative as “the most significant project of this era,”
expressing gratitude to Trump for this achievement.

This initiative is part of a larger strategy to reinforce U.S. leadership
in future technologies and foster public-private sector collaboration.

 

 

 

 

Trump Administration Takes Steps to Regulate Cryptocurrencies by Announcing New Task Force

Just one day after his inauguration, President Donald Trump’s administration launched Its
first initiative is to support the cryptocurrency industry
by removing regulatory barriers in a move widely anticipated by the market.

On Tuesday, the U.S. Securities and Exchange Commission (SEC) announced it created a task force led by Acting Chairman Marc Uyeda
to develop a comprehensive regulatory framework for crypto assets.

Commissioner Hester Peirce will lead the team,
focusing on creating clear rules and addressing issues related to cryptocurrency registration.

Commenting on the initiative, Peirce stated,
“We are excited to work with the public to promote a regulatory environment that ensures investor protection,
supports capital formation, enhances market integrity, and encourages innovation.”

This initiative is part of the Trump administration’s efforts to reshape laws
and regulations to keep pace with developments
in the digital asset industry and strengthen the U.S.’s global position in this field.

 

Indonesia Nears Agreement with Apple to Lift iPhone 16 Sales Ban

Microsoft Announces $3 Billion AI Investment in India

Microsoft Announces $3 Billion AI Investment in India: On Tuesday,
Microsoft CEO Satya Nadella announced that the company plans to invest $3 billion
in India over the next two years to enhance cloud infrastructure, artificial intelligence (AI), and training.

 

Content

Microsoft

Factory Orders in Germany

Producer Prices in the Eurozone

 

 

 

 

Microsoft Announces $3 Billion AI Investment in India

On Tuesday, Microsoft CEO Satya Nadella revealed the company’s plan
to invest $3 billion in India over the next two years to strengthen cloud infrastructure, artificial intelligence, and training programs.
This investment comes amid increasing competition in the AI market in India,
which has become a key destination for major tech companies due to its vast population and promising tech talent.

Nadella highlighted that the investment will include establishing new data centers,
emphasizing that India is quickly emerging as a leader in AI innovation, opening new avenues for development across the country.

This announcement follows less than a week after Microsoft President Brad Smith
stated that the company plans to invest $80 billion globally in AI this year,
focusing on building data centers and advancing technological infrastructure.

The AI sector in India has garnered significant attention from global companies.
Senior officials from Nividia and Meta recently visited the country, underscoring India’s growing stature as a hub for technological development.

 

Factory Orders in Germany Record Biggest Contraction in 3 Months

Data from Germany’s Federal Statistical Office (Destatis) on Wednesday showed a continued contraction in factory orders,
with a 5.4% decline in November compared to October.
This marks the largest monthly drop in three months and is significantly
worse than market expectations of a slight 0.3% decline after a 1.5% contraction in October.

Factory orders fell by 1.7% in November compared to last year’s month, following a 5.7% growth in October.
This reflects ongoing pressures on the industrial sector in the Eurozone’s largest economy.

 

 

 

 

Eurozone Producer Prices Record Annual Decline and Monthly Increase Due to Energy Prices

Data released by Eurostat on Wednesday indicated that producer prices
in the Eurozone’s industrial sector recorded a 1.2% annual decline in November, compared to a 3.3% drop in October.

Every month, producer prices rose by 1.6% in November after a 0.4% increase in October,
primarily driven by a 5.4% surge in energy prices. In contrast, durable consumer goods prices fell by 0.2%,
while non-durable goods prices remained unchanged.

The data also showed that energy prices in the Eurozone dropped by 5.3% year-over-year,
while intermediate goods prices fell by 0.3%, offsetting the impact of rising prices in other categories.

On a country level, Slovakia recorded the most significant annual drop in industrial producer prices at 18.7%,
followed by Luxembourg at 6.6% and France at 5.2%.

These figures highlight ongoing economic pressures in the Eurozone,
with significant energy price volatility affecting overall pricing trends in the industrial sector.

Microsoft Announces $3 Billion AI Investment in India

 

AI Chatbots Threaten Google’s Search Engine Dominance

AI Chatbots Threaten Google’s Search Engine Dominance: Matthew Berman was planning a camping trip
when he remembered a tip suggesting that pitching a tent on top of a car rather than on the ground
could protect against animal attacks.
In the past, he would have turned to Google’s search engine to verify such information,
but now he relies on a chatbot called “Perplexity.”

Perplexity, which markets itself as an “AI-powered answer engine,”
provides concise and direct answers instead of a list of links (though it does include links to sources).
Berman, the founder of a startup called “Sonar,” which helps businesses manage text messages, commented: “It’s simply about saving time.”

 

Content

Moving Away

Tech Giants Respond

Shifts in the Online Search Model

Challenges with AI

The Road Ahead

 

 

 

 

 

Moving Away from Traditional Search Engines

Berman estimates that AI-powered search tools have reduced his use of Google by over 90%.
He explained: “Searching on Google can waste a lot of time navigating links,
and it’s frustrating not to find what you’re looking for immediately.
On the other hand, with tools like (Perplexity) or (ChatGPT),
you’re much more likely to get the answer you need on the first try.”

Returning to his camping trip, Berman found that pitching a tent on top of the car wasn’t worthwhile,
even though it might provide extra protection against predators.

While the number of users of AI-powered chatbots is still relatively limited compared to traditional search engines,
these early adopters are paving the way for broader acceptance of new technologies.
They also influence how companies design their products.

 

Tech Giants Respond

Major search engine companies like Alphabet (Google’s parent company) and Microsoft
have recognized the importance of integrating AI into their products.
Google, for instance, has introduced a feature called “AI Overviews” to generate direct answers within its search results.
In October, Google CEO Sundar Pichai revealed that this feature
now serves a billion users monthly, with plans to expand to over 100 countries.

 

 

 

Shifts in the Online Search Model

Searching for information on Google has long been one of the most common activities online,
and many companies have built their business models around this behavior.
However, users are now starting to pay for AI-powered search services.

For example, Perplexity Pro and ChatGPT Plus offer advanced search features for a $20 monthly subscription.
The big question remains: How will Google adapt to this new reality?

 

Challenges with AI: “Hallucinated Answers”

AI chatbots rely on artificial intelligence to provide answers, but they can sometimes offer inaccurate information,
a phenomenon known as “AI hallucination.”
For instance, when ChatGPT was asked for hiking trails in Palo Alto,
it generated a map with clear errors, which could have caused a problem if the user hadn’t noticed beforehand.

John Bailey, a fellow at the American Enterprise Institute,
advises treating AI-generated results cautiously and reviewing them thoroughly before relying on them.
While Google can also deliver inaccurate information,
users are generally more experienced in assessing website credibility than AI chatbots.

 

The Road Ahead

While chatbots like Perplexity and ChatGPT are improving their accuracy,
they still face challenges regarding reliability and cost.
Early adopters may tolerate these flaws, but most internet users may still prefer traditional search engines.

Ultimately, the key question remains: can chatbots redefine online search habits, or will Google maintain its dominance?

 

AI Chatbots Threaten Google’s Search Engine Dominance

SoftBank’s OpenAI Investment and Goldman Sachs’ Oil Forecasts

SoftBank’s OpenAI Investment and Goldman Sachs’ Oil Forecasts:
Recent developments in rapid economic and technological transformations
 have highlighted significant trends in artificial intelligence and energy markets.
SoftBank Group announced its acquisition of $1.5 billion shares in OpenAI,
strengthening its position in the AI sector.
Meanwhile, Goldman Sachs has predicted that
Brent crude oil prices could reach $78 per barrel by mid-next year,
driven by multiple factors impacting the global oil market.
This article delves into the details of these two topics and their implications for the worldwide economy.

 

Contents

SoftBank

Goldman Sachs

 

 

 

SoftBank Acquires $1.5 Billion in OpenAI Shares.

OpenAI has allowed its employees to sell $1.5 billion worth of shares to Japan’s SoftBank Group,
which aims to enhance its stake in the company behind the AI-powered chatbot ChatGPT.

According to sources cited by CNBC,
the deal has garnered strong support from OpenAI’s CEO, Sam Altman, and SoftBank’s CEO, Masayoshi Son.

This comes after SoftBank’s $500 million investment in OpenAI’s
most recent funding round, which valued the company at $157 billion.

Employees have until December 24 to decide whether to participate in this round,
with an offer of $210 per share, aligning with the company’s latest valuation.

Sources revealed that this funding is not tied to OpenAI’s plans to transition into a profit-driven company,
particularly as it has sufficient liquidity following Microsoft’s $13 billion
backing and the closing of a $6.6 billion funding round in October.

 

 

 

Goldman Sachs: Brent Crude May Reach $78 by June

Dan Struyven, co-head of commodities research at Goldman Sachs,
predicts Brent crude oil will peak at $78 per barrel by June before dropping to $71 in 2026.

Struyven explained that current oil prices are undervalued by approximately $5
due to a market deficit of 500,000 barrels per day last year,
increased demand from the U.S. and China, and ongoing production cuts by OPEC+.

He added that risks related to Iranian supplies and stricter U.S. sanctions could push prices higher in the short term.

Martin Rats of Morgan Stanley echoed this sentiment,
noting that low inventory levels support forecasts for rising oil prices.

 

SoftBank’s OpenAI Investment and Goldman Sachs’ Oil Forecasts