OpenAI CEO Sam Altman wrote in a memo to staff that he will draw the same red lines that sparked a high-stakes fight between rival Anthropic and the Pentagon : no AI for mass surveillance or autonomous lethal weapons. Why it matters: If other leading firms like Google follow suit, this could massively complicate the Pentagon's efforts to replace Anthropic's Claude , which was the first model integrated into the military's most sensitive work. - It would also be the first time the nation's top AI leaders have taken a collective stand about how the U.S. government can and can't use their technology. The flipside: Altman made clear he still wants to strike a deal with the Pentagon that would allow ChatGPT to be used for sensitive military…
The company reported a strong holiday quarter on Thursday. But its big spending on things like artificial intelligence and satellites is starting to make investors nervous.
Microsoft had one of its worst selloffs in history after it increased its AI spending plans. Meta did the same, but it was rewarded by investors. Why it matters: The wildly different market reactions to Meta and Microsoft earnings reveal the new calculus investors are using to evaluate AI winners and losers. State of play: Microsoft reported solid earnings , with revenue and profit beating expectations, but its stock fell nearly 12%. - Cloud revenue was up 39% from a year ago, but that was driven by non-AI workloads. Capital expenditure hit $37 billion for the quarter, a 65% jump. - That mismatch is the issue: If a company is spending a lot, fine, but it needs to be spending on AI investments that will make it money now. - Meta beat on…
The company said on Wednesday that revenue in the most recent quarter was $81.3 billion, but its share price dropped more than 5 percent in after-hours trading.