News

AI Industry Fueled by FOMO Amid Massive Spending and Uncertain Returns

Big‑tech firms such as Amazon, Google, Microsoft and Meta are pouring record capital into artificial‑intelligence initiatives, promising ever‑larger budgets. Meanwhile, AI‑focused companies like OpenAI are generating impressive revenue while simultaneously burning through billions in expenses. Investors are questioning whether the surge of spending will translate into solid returns, citing capacity constraints, high compute costs and the risk of a bubble. Executives acknowledge both the hype and the financial challenges, leaving the market to watch closely for signs of sustainable growth versus speculative over‑investment.

Japanese IP Groups Demand OpenAI Halt Use of Their Content in AI Training

The Content Overseas Distribution Association (CODA), representing Japanese intellectual‑property owners such as Studio Ghibli, Bandai Namco and Square Enix, has sent a formal letter to OpenAI urging the company to stop using its members’ works to train the Sora 2 image‑generation model. CODA argues that the replication process involved in machine learning may constitute copyright infringement and that the opt‑out policy offered by OpenAI could violate Japanese law. The association is seeking a sincere response and an immediate cessation of any further use of its members’ content for training purposes.

OpenAI signs massive AI compute deal with Amazon - Ars Technica

Dia AI Browser Integrates Arc’s Popular Features After Atlassian Acquisition

The AI‑driven web browser Dia is incorporating several of Arc’s most‑liked functionalities, such as a sidebar mode, vertical tabs and picture‑in‑picture support for video calls. The move follows Dia’s purchase by Atlassian, which will also enable deeper integration with tools like Jira and Linear. Company leadership notes that Dia’s architecture is better suited for AI, speed and security, while retaining the user‑experience innovations that made Arc a cult favorite. The strategy aims to blend Arc’s experimental strengths with a more streamlined, AI‑native platform.

Napster View AI Introduces Holographic Avatars and Digital Twins

Napster View AI combines a small holographic screen with a suite of avatar‑based assistants that run on MacBooks and other computers. The $99 hardware mounts above a laptop display and shows floating avatars powered by models from OpenAI, Google Gemini and Eleven Labs. Users can share screens, enable webcam analysis, and even create a personalized digital twin by uploading a photo and LinkedIn profile. While the design is praised for its sleekness and the avatars are intriguing, reviewers note the constant visual presence and the need for spoken interaction can feel intrusive. The service costs $49 a month for ongoing avatar and digital twin access.

OpenAI Secures $38 B Amazon Cloud Deal to Accelerate AI Infrastructure

OpenAI announced a multi‑year agreement with Amazon to purchase $38 billion in cloud computing services. The partnership will see the company shift immediately to Amazon Web Services, with full capacity expected by the end of 2026 and the option to expand beyond 2027. The deal follows OpenAI’s recent restructuring that removed the need for Microsoft’s approval on such purchases and aligns with its broader plan to spend over $1 trillion on computing power in the next decade. Analysts note the massive spending may signal an emerging AI investment bubble.

LG Heir and AI Studio Launch Joint Venture to Power AI-Driven Film Production

Brian Koo, the grandson of LG Group’s founder, and Cecilia Shen of Utopai Studios have formed a 50-50 joint venture called Utopai East with investment firm Stock Farm Road. The partnership will build AI infrastructure for movie and TV production, co‑produce Korean content, and expand Korean intellectual property to international audiences. While the venture aims to lower costs and boost efficiency, its leaders stress that AI will augment, not replace, human creators. The first AI‑enhanced project is slated for release next year.

Microsoft Commits $15.2 Billion to Accelerate AI in the United Arab Emirates

Microsoft announced a multi‑year $15.2 billion investment in the United Arab Emirates, including the first shipment of advanced Nvidia GPUs to the region. The deal, backed by a U.S. export‑license, will fund data‑center expansion, equity stakes in the sovereign AI firm G42, and a broad AI ecosystem that leverages models from OpenAI, Anthropic and other providers. Microsoft also pledged extensive talent‑development programs, aiming to train a million residents by 2027 and position Abu Dhabi as a regional AI hub.

Microsoft signs $9.7 B five‑year AI cloud capacity deal with Australia’s IREN

Microsoft has entered a five‑year, $9.7 billion agreement with Australian data‑center operator IREN to secure additional AI cloud capacity. The partnership will tap IREN’s Nvidia GB300 GPU infrastructure, slated for deployment at a Texas facility capable of delivering 750 megawatts of power. IREN is also investing in Dell‑supplied equipment worth about $5.8 billion. The deal positions Microsoft to meet rising demand for AI services on Azure and reflects a broader shift of compute assets from cryptocurrency mining to artificial‑intelligence workloads.

Google Removes Developer AI Model Gemma After Senator Accuses It of Fabricating Allegations

Google announced that its Gemma family of AI models has been withdrawn from the AI Studio platform after Republican Senator Marsha Blackburn claimed the model fabricated a serious criminal allegation about her. The company said Gemma is intended for developers, not for answering factual questions by the public, and will remain accessible via API. Google reiterated its commitment to reducing hallucinations in its models while addressing the defamation concerns raised by the senator.

Apple Said to Turn to Google Gemini for Major Siri AI Upgrade

Apple is reportedly planning a significant AI overhaul for Siri by partnering with Google’s Gemini model. Insider Mark Gurman says Apple will pay Google to create a custom Gemini‑based model that runs on Apple’s private cloud, offering features such as AI‑powered web search and deeper integration with Apple apps. The move follows an internal bake‑off between Anthropic and Google, with Apple choosing Gemini for financial and strategic reasons. If true, the upgrade could bring a more capable voice assistant to iPhone users, aligning Siri with the capabilities seen in Android’s top AI assistants.

Meta, Google, and Microsoft Triple Down on AI Spending

Three of the largest U.S. technology firms—Meta, Google (Alphabet), and Microsoft—reported record quarterly profits alongside unprecedented capital outlays for artificial‑intelligence infrastructure. Meta forecast capex of $70‑$72 billion, up from its prior range, while Alphabet lifted its 2025 spending outlook to $91‑$93 billion. Microsoft’s quarterly capex rose to $34.9 billion, a 74 percent year‑over‑year jump. All three companies highlighted strong revenue growth in cloud and advertising segments, aggressive AI talent recruitment, and strategic partnerships, even as analysts warn of a possible AI market bubble.