A senior editorial director at Vox, responsible for overseeing the climate teams and producing the podcasts Unexplainable and The Gray Area, is also the editor of the Future Perfect section and authors the Good News newsletter. Previously, he spent 15 years with Time magazine as a foreign correspondent in Asia, a climate-focused writer, and an international editor, in addition to authoring a book on existential risk.

On April 7, 2015, a ceremony was held at the Warner Theater in Washington, DC, to unveil the Maya Angelou Forever Stamp. This occasion highlighted Angelou as one of several late celebrities whose voices are now being synthesized for artificial intelligence applications.

Franz Kafka’s dying wish in 1924 was for his friend Max Brod to destroy all of his unpublished works. Fortunately, Brod disregarded these instructions, allowing us to enjoy notable pieces like The Castle and The Trial and introducing the term “Kafkaesque” into our lexicon. Kafka’s situation prompts essential questions regarding the rights of artists, musicians, writers, and celebrities over their creations after death—issues that gain significance as AI technology evolves, enabling not only the continuation of their work but also the mimicry of their voices.

ElevenLabs, a startup specializing in AI-generated voice technology, has launched an “Iconic Voices” marketplace, allowing companies to license AI-replicated versions of various notable voices—many of whom are deceased—for commercials and other ventures.

Among the living voices available are actors Matthew McConaughey and Michael Caine. McConaughey, who is an investor in ElevenLabs, intends to use his synthetic voice to translate his “Lyrics of Livin’” newsletter into Spanish, demonstrating the potential for global content localization. Caine, a highly regarded actor in the UK, has joined as a prominent voice and emphasizes that this initiative should enhance human storytelling rather than replace it.

While the concept of an AI imitating Caine’s unique Cockney accent is intriguing, Caine has actively chosen to participate. Conversely, ElevenLabs has established agreements with the estates of historical figures such as Judy Garland, James Dean, Maya Angelou, and Alan Turing, allowing their voices to be utilized for narration despite being beyond the realm of consent. Turing, who once remarked on the humbling prospect of computers surpassing human intelligence, will now lend his voice to digital creations.

The development represents a shift from the mere holographic projections seen with Tupac Shakur’s posthumous performance at Coachella in 2012, as it raises ethical complexities regarding the use of voices without consent from the original individuals.

The appeal for these synthetic voices is evident: they are less expensive compared to organizing hologram performances and are easier to distribute than hiring top narrators. With a limited catalog, it is possible to create extensive multilingual audio content that sounds convincingly like the original voices. In defense of its practices, ElevenLabs claims it collaborates with rights holders to mitigate ethical concerns, ensuring that the estates receive compensation. However, this transition turns voices into assets, with estates acting as managers for a digital representation of their departed loved ones.

This raises a significant legal question. Artists, especially those of renown, should make their preferences clear regarding posthumous AI content. It is wise to consult an estate lawyer to outline the specific permissions for creating synthetic voices after death. Will archival revivals and documentaries be acceptable, while advertisements, political uses, or interactive chatbots are not? Who will ultimately control these decisions—a literary executor, family members, or an independent trustee? If the intent is to prevent any AI use of your voice in distant future technologies, it’s critical to formalize these preferences now, rather than risk leaving such matters to discussions after you are memorialized at the Oscars.

Kafka’s legacy illustrates that sometimes, disregarding an artist’s last wishes can serve a greater good. However, individuals in the public eye who want to regulate their posthumous representation can take a lesson from British author Terry Pratchett, who, in accordance with his wishes, had a hard drive containing his unfinished manuscripts crushed by a steamroller in 2017—an act that makes reconstruction impossible.

AI is bringing back the voices of deceased celebrities.

In a shadowy recording studio bathed in flickering crimson and amber light, a vintage ribbon microphone stands center stage. Wisps of ghostly sound waves spiral outward, coalescing into smoky silhouettes of iconic figures—Marilyn Monroe, Martin Luther King Jr., Beethoven—while a dark AI server rack looms behind, its red indicator lights pulsing ominously as the voices of the dead come back to life.

AI is resurrecting the voices of dead famous people - vox.com

- ElevenLabs has launched a marketplace for licensing AI-generated voices of famous figures.  
- Celebrities like Matthew McConaughey and Michael Caine are participating in the initiative.  
- Ethical considerations arise regarding posthumous use of voices without consent, addressing artist rights.

is a senior editorial director at Vox overseeing the climate teams and the Unexplainable and The Gray Area podcasts. He is also the editor of Vox’s Future Perfect section and writes the Good News newsletter. He worked at Time magazine for 15 years as a foreign correspondent in Asia, a climate writer, and an international editor, and he wrote a book on existential risk.

The Maya Angelou Forever Stamp is unveiled on April 7, 2015, at a ceremony at the Warner Theater in Washington, DC. Angelou is one of several deceased celebrities whose voice is being synthesized for AI. Nicholas Kamm/AFP via Getty Images

Before Franz Kafka died in 1924, he had a simple wish for his friend and literary executor Max Brod: burn all of Kafka’s unpublished writing and papers.

Fortunately for the rest of the world, Brod largely ignored what Kafka had said, which is why today we have works like The Castle and The Trial, not to mention the word “Kafkaesque.” But Kafka’s story does raise the question of what rights artists, musicians, writers, and celebrities more generally should have over their work once they die. And those questions are going to be more important in the age of AI, when it’s not just someone’s work that could live on after them, but their actual voice.

Michael Caine talks like this

The AI audio startup ElevenLabs, which generates amazingly realistic synthetic speech, just rolled out an “Iconic Voices” marketplace that lets companies legally license AI versions of well-known voices — some living, many deceased — for ads and other content.

On the living side, the actors Matthew McConaughey and Michael Caine have both signed on. McConaughey — an investor in the company — plans to use his synthetic voice to translate his “Lyrics of Livin’” newsletter into Spanish, which shows how the technology can be used to localize content across the world. (Muy bien, muy bien, muy bien, as Spanish AI McConaughey might put it.) Caine, one of the most celebrated actors in England, is joining the marketplace as a marquee voice and has argued that the move should be seen as amplifying human storytellers, not replacing them.

As weird as it is to imagine an AI speaking with Caine’s inimitable Cockney accent — and frankly, no AI can do Caine better than these two guys in The Trip — at least he made the active choice while alive to sign it away. But ElevenLabs has also struck estate deals that let users hear narration in the voices of historical figures, like Judy Garland, James Dean, Maya Angelou, and AI pioneer Alan Turing. (That’s right, the genius who once said that if computers became smarter than humans, “we should, as a species, feel greatly humbled,” will now be lending his posthumous voice to the machines.)

This is a long way from projecting a holographic Tupac Shakur for a “duet” with Snoop Dogg at Coachella in 2012. We’re generating new readings in the vocal style of someone who can’t consent today.

The incentives are obvious. Synthetic voices are cheaper than staging a hologram tour and more scalable than booking an A-list narrator. With a modest archive, you can generate hours of multilingual audio that sounds plausibly like the original. In the company’s defense, ElevenLabs says its marketplace routes everything through deceased figures’ rights holders to address ethics and misuse concerns. That means heirs get paid, and it’s better than a deepfake AI-for-all, but the core fact remains: Once a voice is an asset, the estate becomes a product manager for a digital ghost.

Send in the lawyers

This is where the Kafka lesson comes in. If you’re a famous person who wants control over posthumous AI content based on yourself — or really anyone who works in creative fields — get an estate lawyer to write those demands down now. Do you permit the creation of a synthetic voice after death? If so, for what? Are archival restorations and documentaries okay, but not ads, political content, or interactive chatbots? Who holds the kill switch: a literary executor, a family council, an independent trustee? If you don’t want your AI voice talking on ChatGPT 55.7 in 2060, don’t leave that decision to a board meeting taking place well after you’ve ended up on the Oscars “In Memoriam” segment.

Kafka’s fame is a standing argument that, sometimes, betraying an artist’s last wish serves the world. But if you, famous person, absolutely don’t want to leave the fate of your voice to chance, learn from the example of British fantasy novelist Terry Pratchett. Per his very specific wishes, a hard drive containing his unfinished books was ceremoniously flattened by a steamroller in 2017. Try reconstructing that.

A version of this story originally appeared in the Future Perfect newsletter. Sign up here!

AI is resurrecting the voices of dead famous people

DigitalOcean, a cloud computing service provider, has become a go-to choice for small businesses eager to embrace artificial intelligence (AI) without breaking the bank. While it may not rival heavyweights like Amazon, Microsoft, and Google in the cloud sector, DigitalOcean serves a vital niche by offering accessible and budget-friendly solutions. 

The company’s on-demand infrastructure platform, along with its development tools, is tailored for start-ups, developers, and small to medium enterprises. It allows clients to lease computing hardware tailored to their specific needs, eliminating the necessity for significant upfront investments in costly equipment. Additionally, its software-as-a-service (SaaS) offerings empower users to create and deploy customized applications. The flexibility to scale services up or down depending on demand is another compelling feature attracting customers.

As AI technology continues its rapid rise, many smaller companies are increasingly investing in DigitalOcean’s services. The company expertly segments its clientele into four groups: learners, builders, scalers, and scalers+. Learners spend less than $50 monthly on the platform, while builders' expenditures range from $50 to $500. Scalers, on the other hand, spend between $500 and $8,333, and scalers+ represent larger clients who exceed that threshold.

A significant proportion of DigitalOcean’s users fall into the learner and builder categories, which together account for over 450,000 and 147,000 customers, respectively, as of the end of 2024. This impressive figure stems from the company’s commitment to clear pricing, user-friendly services, and an appealing price-to-performance ratio compared to the industry giants.

DigitalOcean stands poised to support the burgeoning ecosystem of AI start-ups, gaining traction from clients focused on AI integration. The company recently launched a comprehensive AI platform featuring Nvidia hardware and managed services that help businesses implement generative AI technologies. This offering enables users to construct AI agents, tap into widely-used large language models (LLMs), and personalize models to their specifications. According to management, there is significant demand for these services, with AI-related revenue doubling year-over-year in the third quarter of 2025.

This momentum shows no signs of slowing, as DigitalOcean’s revenue from AI clients has consistently doubled for five consecutive quarters. The company is witnessing growing demand for its AI inference solutions and plans to amplify its graphics processing unit (GPU) orders accordingly, indicating a strong pipeline of new clients in the AI sector. 

As for performance metrics, DigitalOcean reported a revenue increase of 16% year-over-year, hitting $230 million in its third-quarter results released on November 5. The firm raised its full-year revenue growth projections to 18% to 20% for 2026, up from its previous forecast for 2027. This increase is supported by a 41% jump in clients generating over $100,000 in annual recurring revenue, with those surpassing $1 million seeing an even more impressive 72% growth.

Amidst a global AI market expected to grow at nearly 31% annually over the next decade, it’s clear why analysts are optimistic about DigitalOcean's growth trajectory. The company currently trades at a bargain 4.6 times its sales, significantly lower than the technology sector’s average price-to-sales ratio of 9.2. Should its growth continue to accelerate, market sentiment could favorably shift, leading to substantial gains on the stock.

Investors interested in capitalizing on a cloud computing stock that supports AI advancements should consider DigitalOcean, which appears well-positioned for robust long-term growth.

DigitalOcean: Might This Cloud Service Subtly Foster a Decade of AI Startups?

A sunlit, airy coworking loft with floor-to-ceiling windows overlooking a city skyline. Warm natural light spills onto a large wooden table where a diverse group of professionals huddles over a laptop displaying AI model training charts. Behind them, a subtle wall mural of cloud icons and a bold DigitalOcean logo anchors the scene. On a glass partition, a faint decade-long timeline (2023–2033) is sketched, dotted with tiny startup icons. Potted greenery and minimalist design complete the inspiring tech incubator vibe.

DigitalOcean: Could This Cloud Platform Quietly Enable a Decade of AI Startups? - The Motley Fool

- DigitalOcean attracts small businesses with affordable cloud solutions amid growing AI adoption.  
- Company revenue increased 16% year-over-year, with significant growth in high-spending customers.  
- DigitalOcean's AI-driven revenue has doubled for five consecutive quarters, boosting growth expectations.  

This cloud computing provider's affordable solutions are in solid demand from small companies looking to jump onto the AI bandwagon.

DigitalOcean (DOCN 6.59%) may be leagues behind the likes of Amazon, Microsoft, and Google in the cloud computing market, but there is no doubt that it is playing a critical role in this space. Not everyone may have the budget to use the cloud computing services offered by the hyperscalers mentioned here. This is where DigitalOcean steps in. The company provides an on-demand cloud infrastructure platform and software tools that are used by start-ups, developers, and small and medium-sized businesses.

Customers can rent hardware from DigitalOcean according to their needs for running workloads in the cloud without the need to invest in expensive equipment and incur other overheads. Meanwhile, its software-as-a-service (SaaS) solutions enable customers to build, customize, and deploy applications. Importantly, DigitalOcean customers can scale up or reduce their usage based on their requirements.

Not surprisingly, the smaller companies that DigitalOcean caters to are now spending more on its cloud computing platform, driven mainly by the growing adoption of artificial intelligence (AI). Let's see why DigitalOcean could become a key enabler of companies looking to jump onto the AI bandwagon.

DigitalOcean's pricing explains why it is attracting AI companies at an impressive pace

DigitalOcean classifies its customers into four categories -- learners, builders, scalers, and scalers+.

Learners are those customers who spend less than $50 on DigitalOcean's platform in a month and have been using its services for over three months. The monthly revenue of builders ranges from $50 to $500. Scalers spend more than $500 and up to $8,333 in a month, while scalers+ are larger customers that spend more than that.

The important point worth noting is that a large chunk of DigitalOcean's customer base is in the first two categories. The company had more than 450,000 learners at the end of 2024, while the number of builders stood at over 147,000. The reason why there are so many learners and builders on DigitalOcean's platform is because of its predictable and transparent pricing, simplicity, and a better price-to-performance ratio compared to the large cloud service providers.

All this puts DigitalOcean in an ideal position to fuel the next decade of AI start-ups. The company is already getting a significant boost from the adoption of its cloud services by AI native customers. That's not surprising, as DigitalOcean offers a full-stack AI platform that includes powerful hardware from the likes of Nvidia, along with fully managed services offered by the company that customers can use to integrate generative AI tools into their business.

DigitalOcean customers can use its platform to build AI agents, access popular large language models (LLMs), and create and customize their own models, among other things. Management says that these services are in hot demand. DigitalOcean's revenue from AI native customers doubled on a year-over-year basis in the third quarter of 2025.

In fact, DigitalOcean's AI-driven revenue has doubled for five straight quarters. What's more, the company points out that the demand for its AI inference solutions continues to increase, which is why it is ordering more graphics processing units (GPUs) to shore up its capacity. As a result, it won't be surprising to see DigitalOcean attracting more AI customers in the future, and that should allow it to further accelerate its growth.

Expand NYSE : DOCN DigitalOcean Today's Change ( -6.59 %) $ -3.19 Current Price $ 45.18 Key Data Points Market Cap $4B Day's Range $ 44.85 - $ 48.31 52wk Range $ 25.45 - $ 52.20 Volume 118K Avg Vol 2.8M Gross Margin 59.54 % Dividend Yield N/A

The company's growth rate has picked up

DigitalOcean released its third-quarter results on Nov. 5. Its revenue increased by 16% from the year-ago period to $230 million, an improvement of 4 percentage points over the growth it clocked in the same period last year. Even better, the company has raised its full-year guidance and is expecting revenue to grow by 18% to 20% in 2026. It was earlier hoping to achieve 18%-20% growth in 2027.

The company's improving growth profile is a result of higher spending on its platform. Customers with more than $100,000 in annual recurring revenue (ARR) jumped by 41% in the previous quarter. Meanwhile, those with more than $1 million in ARR shot up by a remarkable 72%. DigitalOcean can continue to win more business from its existing customers -- apart from attracting new ones -- as the global AI market is expected to clock an annual growth rate of almost 31% over the next decade.

As such, it is easy to see why analysts have raised their growth expectations for DigitalOcean.

Finally, this cloud stock trades at a very attractive 4.6 times sales as of this writing. That's a discount to the U.S. technology sector's average price-to-sales ratio of 9.2. The market could put a higher valuation on DigitalOcean owing to its accelerating growth, and that could translate into solid gains on the stock market.

So, investors looking to buy an AI stock that could fuel the adoption of this technology for the next decade should take a closer look at DigitalOcean, as it seems capable of growing at a stronger pace in the long run.

DigitalOcean: Could This Cloud Platform Quietly Enable a Decade of AI Startups?

On Friday, Alibaba's cross-border e-commerce division unveiled a new subscription service powered by artificial intelligence, designed to enhance revenue for the unit. Kuo Zhang, president of Alibaba.com, shared insights with CNBC, highlighting plans to explore stablecoin-like technology for international payments. This initiative reflects a broader adoption of "tokenisation" technology by major players in the tech and banking sectors, with potential collaborations involving partners like JPMorgan.

Alibaba is establishing itself as a leading force in artificial intelligence in China, utilizing its Qwen models across various sectors, including its B2B platform, Alibaba.com. Last fiscal year, Alibaba.com generated over $3 billion in revenue, providing businesses with a platform to find global suppliers and purchase products. The recent launch of "AI Mode" represents a significant enhancement in their search capabilities, enabling users to conduct more comprehensive searches and compare suppliers based on various factors such as pricing, logistics, and production capabilities. Zhang noted a notable trend toward AI-driven search engines and emphasized the imperative to harness AI to redefine global trade practices. "We feel the urgency that we need to use AI to redesign how people do global trade," he told CNBC. "We think it's going to be a paradigm shift for e-commerce for B2B."

While Alibaba's B2B segment is among the fastest-growing branches of the company, it still lags behind its domestic e-commerce and cloud computing subsidiaries. Alibaba.com generates revenue from marketing services and other cross-border activities, and the introduction of AI Mode aims to create a new stream of income through subscriptions. Although the pricing structure is under review, Zhang mentioned possible costs of $20 per month or $99 annually.

Founded in 1999 by Jack Ma and his co-founders, Alibaba initially focused on connecting Chinese sellers to the global market. Since then, it has diversified significantly to become a powerhouse in consumer e-commerce and cloud computing, expanding its offerings to include services like food delivery and logistics. According to Zhang, Alibaba.com has seen a 50% increase in the number of active suppliers globally from March to October of this year compared to last year. "There are a lot of good products worldwide that can contribute on the global supply chain, and we are investing heavily in that part," he said.

On the payments front, Zhang revealed plans for a feature called "agentic pay," expected to launch in December. This new tool will allow the company's AI to automatically draft contracts between buyers and suppliers, streamlining a process that previously required offline negotiations and uploads to the platform. This automation is particularly beneficial in the global B2B landscape, where transactions often involve multiple currencies and can take several days to process, typically requiring various intermediaries. To streamline these transactions, Zhang noted that Alibaba would implement "tokenization," which refers to a digital representation of currency. Unlike stablecoins, which are pegged to traditional fiat currencies but often issued by non-bank entities, tokenized deposits are backed by the fiat currency held on a bank's balance sheet. 

Zhang indicated that Alibaba.com plans to utilize tokenized euro and U.S. dollar versions, which could significantly expedite the payment process by eliminating multiple intermediaries. "So when U.S. buyers or euro buyers pay a certain amount of euros, it doesn't need to go through different banks around the world, but instead uses tokenization and blockchain," he explained, highlighting the potential for faster funds transfer to locations like Hong Kong or Singapore and back to China. In collaboration with JPMorgan, which has developed its own tokenization technology, Alibaba.com aims to explore the benefits of stablecoins after implementing tokenized payment solutions.

Alibaba's cross-border division intends to introduce AI subscription services and payments resembling stablecoins in collaboration with JPMorgan.

A bright, sunlit conference room with floor-to-ceiling windows overlooking a city skyline at dawn. In the center, two executives in business attire lean over a large interactive touchscreen table displaying a world map streaked with glowing digital tokens and icons for AI subscription tiers. On the glass wall behind them, the Alibaba cross-border arm logo appears crisply etched; on the table’s metal edge, the JPMorgan logo is embossed. Warm natural light floods the space, casting realistic shadows on sleek surfaces, conveying a sense of global fintech collaboration.

Alibaba cross-border arm plans AI subscriptions and stablecoin-like payments with JPMorgan - CNBC

- Alibaba's new AI subscription service aims to boost revenue in cross-border e-commerce.  
- The company plans to implement tokenization technology for faster global payments processing.  
- "AI Mode" enhances supplier comparisons and aims to redesign B2B global trade efficiency.  

Alibaba 's cross-border e-commerce unit on Friday announced a new artificial intelligence subscription service aimed at boosting the division's revenue. Kuo Zhang, president of Alibaba.com, told CNBC the division is also looking to use stablecoin-like technology to facilitate global payments, in a move that underscores how major tech and banking players are adopting so-called "tokenisation" technology. This could include partnerships with its banking partners like JPMorgan, Zhang added. Alibaba has emerged as one of China's leading AI players with its Qwen models , which are being used across its businesses, including at Alibaba.com, its business-to-business arm. Alibaba.com, which brought in more than $3 billion of revenue in Alibaba's last fiscal year, allows businesses to source suppliers and products from around the world and purchase goods. On Friday, Alibaba.com launched "AI Mode," a more advanced version of search. AI mode allows users to do deeper searches that could compare suppliers across different metrics like pricing, logistics and production capabilities. There has been a huge shift toward using AI-powered search engines, Zhang said. The aim of all of this is to boost global trade and efficiency on Alibaba's platform. "We feel the urgency that we need to use AI to redesign how people do global trade," Zhang told CNBC. "We think it's going to be a paradigm shift for e-commerce for B2B." Alibaba's B2B business is among its fastest-growing but still is smaller than its Chinese domestic e-commerce arm and cloud computing division. Alibaba.com generates sales from marketing and other cross-border related services. But with AI Mode, the company is hoping to open a new revenue stream with subscriptions. Zhang said that Alibaba is considering charging $20 per month or $99 per year for the service, though the pricing is not finalized. When Alibaba was founded in 1999 by Jack Ma and his co-founders, the company was focused on cross-border B2B sales. Since then, the firm has expanded to become one of China's biggest consumer e-commerce players and a cloud computing giant. Its business spans everything from food delivery to logistics. Initially, the aim was to connect Chinese sellers to buyers around the world. But Alibaba.com has expanded its supplier base. The company said on Friday that the number of active suppliers worldwide has grown by 50% in the March to October period versus the same time last year. "There are a lot of good products worldwide that can contribute on the global supply chain as well, and we are investing heavily on that part," Zhang said. Tokenized payments Zhang told CNBC Alibaba.com is also planning to launch a feature called "agentic pay" in December. The company's AI will be able to automatically create contracts between a buyer and supplier, documents that until now were drafted offline and then uploaded to Alibaba.com. Instead, the AI can take the conversations happening over messaging between the two parties and turn it into a contract. Both sides will then confirm that the contract is in order. The B2B business is global and often involves multiple currencies with buyers in one country paying suppliers in another. This can be costly as well as slow with payments sometimes taking several days to settle and requiring various intermediaries. To address this, Zhang said Alibaba is turning to "tokenization," a term that broadly denotes a digital representation of money. Tokenized deposits are backed by fiat currency on a bank's balance sheet. They're different to stablcoins, which are a type of digital currency pegged to a fiat currency like the U.S. dollar, but often issued by non-bank companies. Stablecoins are backed by various assets such as bonds or fiat. Zhang said Alibaba.com is looking to use tokenzied versions of the euro and U.S. dollar. This could have the ability for payments to skip several intermediaries meaning money can be moved faster across the world. "So when the U.S. buyers or euro buyers pay certain amount of euros, it doesn't need to go around different banks around the world, but it actually is using tokenization and blockchain," Zhang said, meaning the money can be transfered "simultaneously" to Hong Kong or Singapore and back to China. Zhang told CNBC that Alibaba.com would work with JPMorgan, which has its own tokenization technology. JPMorgan this year launched JPMD this year, a token designed for cross-border B2B payments. On the topic of stablecoins, Zhang said that Alibaba will "evaluate" their potential use after using tokenized money transfers.

Alibaba cross-border arm plans AI subscriptions and stablecoin-like payments with JPMorgan

European stock markets are anticipated to start the day on a downward trend, facing renewed investor concerns regarding a potential artificial intelligence bubble alongside worries about the global economy. 

Futures for the FTSE 100 in London indicated a decrease of 0.5%, while Germany's DAX index futures saw a modest rise of 0.2%. In France, the CAC 40 futures dipped by 0.4%, and Swiss SMI index futures declined by 0.8%.

China's economic troubles deepened in October, highlighted by a contraction in fixed asset investment, which notably includes the pivotal real estate sector. Additionally, retail sales showed signs of weakening, and industrial output growth experienced a slowdown.

Investors are also processing the significant losses on Wall Street from Thursday, driven by rising fears about AI valuations and the potential path of U.S. interest rates. The Nasdaq Composite, heavily weighted with tech stocks, dropped 2.3% by the time markets closed.

Recent remarks from officials at the Federal Reserve have led financial markets to reassess the likelihood of a rate cut in December. As of Friday morning, traders were estimating a 52.1% chance that the Fed would lower rates by 25 basis points at its next meeting. This is a dramatic shift from just a month ago when expectations for a year-end rate cut were as high as 95%.

In Europe, the focus remains on corporate earnings, with German insurer Allianz set to release its results on Friday. The company reported record achievements for the first nine months of the year, driven by a robust 12.6% increase in operating profit in the third quarter, reaching 4.4 billion euros ($5.1 billion), largely thanks to its Property-Casualty segment.

Allianz forecasts an operating profit of at least 17 billion euros for the year, positioning itself at the upper end of its annual guidance range.

In the United States, stock futures showed little movement on Friday following the previous day's downturn. Meanwhile, Asian markets experienced declines as investors reacted to the state of Wall Street and the newly released data from China.

European stocks set to decline as AI valuations undermine confidence

Dark trading floor of a European exchange, red digital tickers flicker with plunging stock values as a massive AI circuit-chip looms overhead like a storm cloud. A single EU flag hangs limply on the wall; sparse, industrial lighting casts deep shadows and a sense of looming uncertainty.

European stocks poised to lose ground as AI valuations shake confidence - CNBC

- European stocks expected to open lower due to concerns over AI bubble and economy.  
- China's economic slowdown worsens, with declines in investment, retail sales, and industrial output.  
- Allianz reports record profits, achieving 12.6% operating profit growth in the third quarter.  

A member of staff walks beneath a trading board at the London Stock Exchange on April 25, 2025 in London, England.

European stocks look set to open lower on Friday, as worries about an artificial intelligence bubble and the global economy shake investor confidence.

Futures tied to London's FTSE 100 were seen trading 0.5% lower, while those tied to Germany's DAX index were up 0.2%. French CAC 40 futures, meanwhile, were down by 0.4%, and futures tied to Switzerland's SMI index lost 0.8%.

China's economic slowdown ramped up in October, with data showing fixed asset investment – which includes the country's closely watched real estate sector – contracted in the first 10 months of the year. Retail sales softened, meanwhile, and industrial output growth also slowed.

Investors are also reeling from big losses on Wall Street on Thursday, as concerns about AI valuations and the U.S. interest rate trajectory mounted. Big Tech stocks were hit particularly hard, with the tech-heavy Nasdaq Composite shedding 2.3% by the closing bell.

Comments from Federal Reserve officials in recent weeks have prompted money markets to reconsider the likelihood of a December rate cut from the central bank. By Friday morning, markets were pricing in a 52.1% chance of the Fed cutting by 25 basis points at its next meeting. A month ago, the market had assigned a 95% probability to an end of year cut.

Back in Europe, corporate earnings continue to hold the spotlight, with German insurer Allianz among the companies reporting on Friday.

Allianz said it had achieved record results in the first nine months of the year, bolstered by double-digit growth in operating profit in the third quarter. Operating profit for the three months to September jumped 12.6% to 4.4 billion euros ($5.1 billion), largely driven by the firm's Property-Casualty division.

The company said it expects to achieve an operating profit of at least 17 billion euros this year, which sits in the upper end of its full-year guidance range.

Across the Atlantic, U.S. stock futures were little changed on Friday morning following Wall Street's Thursday sell off.

Overnight in Asia, stocks fell as investors monitored Wall Street moves and reacted to the Chinese data.

European stocks poised to lose ground as AI valuations shake confidence

In Portugal's capital, Lisbon, prominent leaders in technology voiced their apprehensions about a potential bubble in the artificial intelligence (AI) sector during discussions with CNBC. These sentiments reflect a broader anxiety within the industry concerning rapidly increasing valuations. Recently, financial markets have begun to contemplate the prospect of excessive investments fueling the AI surge, which could distort revenue predictions and raise questions about sustainable profits. Historically, warnings surrounding inflated valuations have emerged from the finance sector, with executives like David Solomon from Goldman Sachs and Ted Pick from Morgan Stanley cautioning about possible corrections as the valuations of major tech players reach unprecedented heights.

Investor Michael Burry, known for his role in the financial crash portrayed in "The Big Short," has added to these concerns by alleging that major AI-driven companies and cloud service providers are downplaying the depreciation of their hardware investments. He cautions that profits at companies such as Oracle and Meta could be significantly overstated, recently indicating that he has taken put options against Nvidia and Palantir.

During interviews at the Web Summit tech conference, CEOs from AI development firms also expressed their worries. Jarek Kutylowski, the CEO of German startup DeepL, remarked on the inflated valuations prevalent in the industry, suggesting that signs of a bubble are indeed emerging. Similarly, Hovhannes Avoyan, CEO of Picsart, noted that many AI companies are garnering substantial valuations despite lacking revenue, a phenomenon he characterized as "concerning." He pointed out that smaller startups are attracting investment with minimal sales, a trend he described as "vibe revenue," referencing a concept where AI is leveraged for coding with minimal technical know-how.

Despite these valuation concerns, industry leaders maintain an optimistic long-term vision for AI's potential. Lyft's CEO David Risher emphasized the transformative nature of AI technology, albeit acknowledging the presence of a financial bubble. He distinguished between this bubble and the robust industrial prospects tied to AI, noting that advancements in data centers and model development are poised for enduring relevance. Risher highlighted the positive changes AI can facilitate in everyday life, while expressing caution about the current financial landscape.

As companies grapple with AI adoption, Kutylowski pointed out that while there's significant interest, many organizations still face challenges fully integrating AI solutions. He anticipates gradual progress but believes most enterprises have not yet mastered complete AI implementation.

DeepL, known primarily for its AI translation service, has launched a versatile "agent" tool aimed at assisting employees with various tasks. Cohere’s CFO, Francois Chadwick, confirmed that demand in the AI space remains strong.

Amid these valuation concerns, investment in AI continues to accelerate. A recent Accel report indicates that new AI data center capacity is projected to expand to 117 gigawatts by 2030, resulting in estimated capital expenditures of about $4 trillion over the next five years. To recoup that investment, approximately $3.1 trillion in revenue will be necessary. This year alone, several major deals worth billions were reached by companies like Nvidia and OpenAI to expand data center capacity globally in response to escalating demand. According to Philippe Botteri of Accel, three key factors will drive revenue in this sector: the development of more robust AI models, the growing integration of AI services, and the rise of "agentic" AI tools capable of autonomously performing tasks for users.

AI firms express concern over a potential bubble regarding 'vibe revenue.'

A moody twilight city skyline under heavy clouds, a giant translucent bubble labeled “AI Vibe Revenue” hovers above glass skyscrapers, inside it swirl golden dollar signs; shadowy silhouettes of suited executives stand on rooftops staring up in apprehension, low‐key dark theme lighting, no blue AI tones.

‘Vibe revenue’: AI companies admit they’re worried about a bubble - CNBC

- Tech executives express concerns about a potential bubble forming in the AI sector.  
- High valuations questioned as AI companies raise funds without significant revenue.  
- Despite worries, long-term AI demand is expected to remain strong and transformative.

Eakarat Buanoi | Istock | Getty Images

LISBON, Portugal — Top tech executives told CNBC they're concerned about a bubble forming in the artificial intelligence sector, underscoring growing unease within the industry over soaring valuation. In recent weeks, markets have been reckoning with the notion that too much capital is pouring into the AI boom, clouding the outlook on revenue and actual profit and putting high valuations into question. Up to now, warnings around overstretched valuations have mostly come from investors and leaders in the world of finance. Goldman Sachs' David Solomon and Morgan Stanley's Ted Pick have warned of potential corrections as valuations of some major tech firms reached historic highs. The concerns have been crystallized by famed 'Big Short' investor Michael Burry, who this week accused major AI infrastructure and cloud providers, or 'hyperscalers' of understating depreciation expenses on chips. Burry warned that profits at the likes of Oracle and Meta may be vastly overstated. He recently disclosed put options that bet against Nvidia and Palantir . However, CEOs of companies who are themselves developing AI, expressed their concerns this week during interviews with CNBC at the Web Summit tech conference in Lisbon. "I think the evaluations are pretty exaggerated here and there, and I think there is signs of a bubble on the horizon," Jarek Kutylowski, CEO of German AI firm DeepL, told CNBC on Tuesday.

watch now

The sentiment was echoed by Picsart CEO Hovhannes Avoyan. "We see lots of AI companies raising ... tremendous valuations ... without any revenue," Avoyan told CNBC on Tuesday, adding that it is a "concern." The market values smaller startups with "just some noise and vibe revenue," he said, referring to companies being backed even though they have minimal sales. Vibe revenue is a play on "vibe coding," a term that refers to using AI to code without needing deep technical expertise.

AI demand growing

Even with concerns over valuations, the technology industry remains bullish on the long term potential of AI. Lyft CEO David Risher said there are reasons to be optimistic given the potential impact of AI but acknowledged the risks. "Let's be clear, we are absolutely in a financial bubble. There is no question, right? Because this is incredible, transformational technology. No one wants to be left behind." Risher went on to argue that there is a difference between the financial bubble and the industrial outlook. "The data centers and all the model creation, all of that is going to have a long, long life, because it's transformational. It makes people's lives easier. It makes people's lives better… On the other hand, you know, the financial side, it's a little risky right now." The tech CEOs also addressed their outlook on AI demand for 2026 from businesses, as investors look for any clues as to what this will look like. "I think there's a lot of demand, and there's a lot of interest. I think everybody understands that AI can do magical things to businesses, and... we can all operate on another level when it comes to efficiency," Kutylowski said. Still, businesses are "strugging in adopting" AI. "We're going to get further, but I don't think we're that we're going to be in a place where we can say, like every enterprise, every organization, has it figured out totally," Kutylowski said.

watch now

DeepL's core product is an AI translation tool but it recently launched a more general purpose "agent" designed to be able to carry out tasks on behalf of employees. Francois Chadwick, the chief financial officer of Cohere, a company that is also focused on enterprise AI, told CNBC on Tuesday that "demand is definitely there."

$4 trillion capex outlook

Despite the concerns over overstretched valuations and huge capex spend, the investment into artificial intelligence doesn't appear to be slowing down. A report from venture capital group Accel released this week showed that the buildout of new AI data center capacity is forecast to reach 117 gigawatts by 2030 which translates into about $4 trillion worth of capital expenditure over the next 5 years. About $3.1 trillion worth of revenue is required to pay back that capex, according to the Accel report. Already this year, there have been a slew of deals worth billions announced by the likes of Nvidia and OpenAI as they look to develop data center capacity around the world in a bid to keep up with demand. Philippe Botteri, a partner at Accel, said that three major factors will drive that revenue — more powerful AI models that require capacity to be trained, the use of new AI services and the "agentic revolution in the enterprise." "Agentic" is often a term used to describe a type of AI tool that can automatically carry out tasks on behalf of users.

watch now

‘Vibe revenue’: AI companies admit they’re worried about a bubble

This piece is a localized edition of our Europe Express newsletter. Premium subscribers can register here for weekday and biweekly Saturday morning deliveries. Standard subscribers may upgrade to Premium here or check out all FT newsletters.

Good morning.

In today’s update, Laura highlights that the EU's budget for developing new weaponry primarily channels resources into traditional arms rather than groundbreaking battlefield innovations. Additionally, she reports on US funding reductions jeopardizing essential migration-monitoring tools.

Wishing you a fantastic weekend.

Following the Funding

According to data on defence financing from the EU budget shared with the European parliament, Laura Dubois reveals that Europe is still largely committing funds to conventional weaponry. 

Background: Following Russia's invasion of Ukraine in 2022, EU nations have embarked on a significant rearmament initiative. Consequently, the EU's budget for defence has seen increased allocations and the initiation of various programs aimed at rejuvenating its previously stagnant arms sector.

While EU countries are interested in the advanced technologies utilized in the Ukraine-Russia conflict—such as drones, anti-drone systems, and artificial intelligence that are reshaping warfare—Brussels' investments largely focus on established defense assets. The European Commission’s numbers submitted to the parliament’s budget control committee show that.

Since 2021, less than €400 million in grants from the European Defence Fund (EDF), which is meant for research, has been allocated to AI and drone technology projects, according to the Commission. In stark contrast, the EDF has dedicated €1.49 billion towards more traditional defense assets, including ground, aerial, and naval combat systems, as well as air defence.

Lawmakers like Daniel Freund, a member of the Green Party leading budget negotiations in parliament, expressed surprise over these figures. "Given the dynamics on the battlefield in Ukraine, where drones and AI solutions are critical, it's concerning that Europe continues to allocate substantial funds to outdated weapon systems," Freund remarked.

The Commission asserts that while traditional methods dominate funding, cutting-edge technologies are integrated into many projects, aligning with EDF's overarching goals.

The budget filings also indicate an increase in defence spending across various programs, including the EDF and the ASAP initiative aimed at ramping up ammunition production.

The EU budget dedicated to defence and security surged from €1.24 billion in 2021 to €2.29 billion in 2024, with France benefiting the most from these funds, followed by Spain, Germany, and Italy.

Chart of the Day: A Curious Case in Hungary

4iG, once a small IT services provider in Hungary, has transformed into a key player in national defense, closely tied to both Viktor Orbán and Donald Trump. How did this happen?

Struggling Without Data

A crucial resource for migration policymakers and humanitarian efforts is under threat following budget cuts in the US, as warned by the International Organization for Migration (IOM). Laura Dubois reports the organization urges the EU to address the shortfall.

Background: European nations are devising new strategies to manage immigration into the bloc. The IOM’s displacement tracking matrix (DTM), which monitors migration in 91 countries, plays a vital role in shaping EU migration policies.

However, recent cuts to US foreign aid have put the DTM at risk, according to Lukas Gehrke, head of the IOM’s global office in Brussels. "Our forecasts rely heavily on this data. Without reliable statistics, we are operating in the dark," Gehrke stated.

He forewarned that funding for the DTM related to Ukraine would cease next year, emphasizing the tool’s importance not just for migration specialists but also for global humanitarian efforts to identify crises.

The IOM is currently in discussions with the EU regarding potential funding, though the program’s capacity may not remain as extensive as it was.

“The EU may not cover the gaps left by the US but will pursue its strategic priorities. Our discussions in Brussels focus on what support we can provide,” Gehrke noted.

Officials speculate that any EU funding would emphasize areas of strategic relevance, possibly sidelining regions like Latin America that might be deemed lesser priorities by EU leaders.

The European Commission acknowledged the IOM's financial challenges, including its data-related needs, and stated it is “assessing various options” for the DTM.

Currently, the EU contributes to the IOM’s data initiatives with a €9 million program focused on Asia and €15 million for sub-Saharan Africa, according to the Commission.

Looking Ahead

Today, Berlin will host a meeting of E5 defence ministers addressing the situation in Ukraine. Meanwhile, EU finance ministers will convene in Brussels to discuss the bloc’s budget for 2026. European Parliament President Roberta Metsola is set to meet with French President Emmanuel Macron in Paris, and European Commission President Ursula von der Leyen will talk with Belgian Prime Minister Bart De Wever regarding Russia’s frozen assets.

Additional Reading

UniCredit in Russia: The CEO of the Italian bank has warned that its Russian division faces increasing risks of Kremlin takeover.

A New Landscape: The European Parliament’s center-right coalition has aligned with far-right members to dilute the EU’s corporate sustainability reporting regulations.

Generali Leadership: Philippe Donnet, CEO of the Italian insurance firm, is striving to establish his legacy amid mounting pressure for his removal. 

For more insights, you might consider subscribing to newsletters like Free Lunch, your guide to global economic policy discussions, or The AI Shift, where John Burn-Murdoch and Sarah O’Connor explore how AI is reshaping the workforce.

EU allocates greater funds to 'traditional' weapons development compared to drones and AI.

In a dimly lit military armory, massive tanks, artillery shells and fighter jets dominate the foreground while a handful of dusty reconnaissance drones and a dormant AI robot sit neglected in the shadows behind them. A worn EU flag hangs overhead, casting deep, dramatic shadows across the scene. Dark, moody lighting, cinematic angle.

EU invests more in ‘traditional’ weapons development than drones and AI - Financial Times

- EU defense spending primarily targets traditional arms, neglecting innovative battlefield technologies like drones and AI.  
- US funding cuts threaten essential migration-monitoring systems despite EU's ongoing immigration policy efforts.  
- The EU plans to increase defense budgets, but it's unclear how migration data collection will be supported.  

This article is an on-site version of our Europe Express newsletter. Premium subscribers can sign up here to get the newsletter delivered every weekday and fortnightly on Saturday morning. Standard subscribers can upgrade to Premium here, or explore all FT newsletters

Good morning.

Today, Laura reports that EU budget spending on developing new weapons is mainly focused on legacy arms, not innovative battlefield technologies, and is told that US funding cuts have imperilled key migration-monitoring systems.

Have a great weekend.

Follow the money

The old continent is still mostly investing in old-fashioned guns, according to figures on defence investments funded by the EU budget sent to the European parliament, writes Laura Dubois.

Context: EU countries have launched a generation-defining rearmament drive since Russia invaded Ukraine in 2022. The EU budget has increased its allocations for defence and launched a number of new programmes to fund its previously languishing arms industries.

EU countries have also been interested in the innovative technologies deployed in the conflict between Ukraine and Russia, as drones, anti-drone tech and artificial intelligence increasingly change the nature of war.

But when it comes to investing in new defence tech, Brussels is mostly spending money from the shared budget on traditional gear, according to European Commission figures sent to the parliament’s budget control committee.

Since 2021, the EU has spent less than €400mn in grants on projects related to AI and drone technologies from its European Defence Fund (EDF) which is dedicated to research, according to the commission.

In comparison, the EDF had funded projects worth €1.49bn on more “traditional defence equipment” such as ground, air and naval combat or air defence, the commission said.

“We were surprised by the figures. If you look at the battlefields in Ukraine, drones and AI solutions play a major role there,” said Daniel Freund, a Green lawmaker who is leading parliament negotiations on discharging the commission’s 2024 budget.

“Europe still seems to be spending a lot on traditional weapon systems. We will have to see whether this is still appropriate in this day and age,” Freund added.

The commission states that “new technologies are included across projects as this is the main purpose of EDF”.

The filings also confirm that the EU budget has increased spending on defence from various programmes, including the EDF but also others such as the ASAP programme to boost ammunition production.

In 2021, €1.24bn from the EU budget was earmarked for defence and security, which rose to €2.29bn in 2024, according to the figures. France was the country with the highest number of beneficiaries from defence funds, followed by Spain, Germany and Italy.

Chart du jour: Hungarian headscratcher

4iG has transformed itself from a small Hungarian IT services company to a national defence champion with intimate linkages to both Viktor Orbán and Donald Trump. How?

‘Flying blind’

A key tool for migration policymakers and humanitarians is at risk after US funding was cut, the International Organization for Migration (IOM) has warned, urging the EU to plug the hole, writes Laura Dubois.

Context: European countries are working on additional policies to curb immigration to the EU. Data from the IOM’s displacement tracking matrix (DTM), mapping the movement of people in 91 countries, has been used by the EU to help make decisions on migration policy.

However, as a result of US cuts to foreign aid, the data platform was at risk, Lukas Gehrke, head of the IOM’s global office in Brussels, told the FT.

“We base all our predictions and foresight on this data. Without good data, we are flying blind,” Gehrke said.

“Ukraine funding for DTM will run out next year,” he warned, adding that this data was “not only used by migration experts but also by humanitarian communities globally to detect where crises are.”

The IOM is now in talks with the EU to provide more funding, but it is unclear if the programme will be able to cover as many countries as it has been.

“The EU will not fill gaps left by the US but will take its own strategic decisions. In Brussels, we are in discussions with the EU on what we can offer,” said Gehrke.

Officials believe that the EU funding would focus on areas that are strategically important to the bloc, meaning that regions such as Latin America, arguably less relevant to EU policymakers, could fall short.

“The EU has been made aware of IOM’s financial difficulties, including on data,” said a spokesperson for the European Commission. It said that it was “currently considering different options” specifically on the DTM.

The EU already supports the IOM’s data collection with a €9mn programme covering Asia and €15mn covering sub-Saharan Africa, according to the commission.

What to watch today

Berlin hosts a meeting of E5 defence ministers on Ukraine. EU finance ministers meet in Brussels to debate the bloc’s 2026 budget. European parliament president Roberta Metsola meets French President Emmanuel Macron in Paris. European Commission president Ursula von der Leyen meets with Belgian Prime Minister Bart De Wever to discuss Russia’s frozen assets.

Now read these

UniCredit Russia: The Italian bank’s Russian subsidiary is at growing risk of being taken over by the Kremlin, its chief executive has warned.

New normal: The European parliament’s centre-right allied with far-right lawmakers to weaken the EU’s corporate sustainability reporting rules.

Generali succession: The CEO of the Italian insurer Philippe Donnet is seeking to secure his legacy in the face of an escalating campaign to oust him.

Recommended newsletters for you Free Lunch — Your guide to the global economic policy debate. Sign up here The AI Shift — John Burn-Murdoch and Sarah O’Connor dive into how AI is transforming the world of work. Sign up here

EU invests more in ‘traditional’ weapons development than drones and AI

In a recent discussion, Microsoft CEO Satya Nadella provided a balanced perspective on the emerging issue of artificial general intelligence (AGI) at a time when global conversations are heating up around its implications. For those unfamiliar, AGI refers to a theoretical AI that can learn, understand, and operate with a level of intelligence comparable to that of humans.

Nadella expressed enthusiasm for AGI's transformative potential during his dialogue with Dwarkesh Patel and Dylan Patel, the founder of SemiAnalysis. However, he repeatedly emphasized familiar concepts associated with technological advancements—tools, productivity enhancement, integration into the real economy, and the necessity for diversified models instead of reliance on a single, overarching framework.

When prompted about AGI's significance in relation to the industrial revolution, Nadella did not deny its potential impact but maintained a cautious optimism, stating, “I start with the excitement that perhaps this is the biggest thing since the Industrial Revolution. However, it’s essential to remember that we are still in early innings.” He believes that while impressive advancements have been made and certain patterns are showing promise, the journey is just beginning, suggesting we might be in the initial stages of this technology's evolution.

Nadella also shared a memorable definition of AI from computer scientist Raj Reddy, which he found particularly relatable. Reddy described AI as either a "guardian angel" or a “cognitive amplifier,” a metaphor Nadella appreciates as a straightforward way to conceptualize what AI represents.

Addressing the potential of achieving AGI, Nadella shifted the focus from whether AGI is attainable to understanding its practical applications for humanity. "Ultimately, what is its human utility? It’s meant to serve as a cognitive amplifier and a guardian angel. Viewing it as a tool is crucial for understanding its purpose," he explained.

While the interviewers sought a unified vision of AGI development—envisioning a single, all-encompassing model that learns and performs across numerous sectors—Nadella offered a more nuanced view. When asked about the implications of a dominant model monopolizing value, he acknowledged that it could be true under specific circumstances, saying, “If there's only one model serving everywhere, then, yes: that's game over. The playing field would be dramatically limited.”

Yet, he is confident that the reality is more complex. “Despite the prominence of any single model, the landscape is becoming increasingly diverse. Take coding as an example; there are various models thriving at the same time. The narrative of one dominant model being widely deployed is becoming less likely,” he remarked.

Nadella believes that limitations imposed by specific domains, geographic factors, and varied use cases will hinder the emergence of a singular 'god model.' He expressed skepticism about whether such dominance could occur across all sectors simultaneously.

When it comes to the distribution of value in an AGI-driven future, Nadella indicated that both model companies and those creating supporting infrastructures, tools, and workflows would be crucial players. He noted that model creators might face a ‘winner’s curse,’ warning that even with significant innovation, they risk being just one step away from commoditization. Those who possess contextual data could potentially leverage this to advance their advantages.

Ultimately, Nadella suggests that the winners in this evolving landscape will be powerful open-source models, as well as various advanced models that effectively merge with data, tools, and workflows. Furthermore, he envisions a future not limited to human interaction or chat interfaces alone but one where autonomous agents seamlessly integrate across corporate infrastructures.

Satya Nadella enthusiastic about AGI while prioritizing human utility and challenging the 'one-model-for-all' concept.

A sunlit stage in a modern glass-walled auditorium. Satya Nadella stands center-stage in business attire, gesturing toward a softly glowing orb labeled “AGI.” Around him, diverse professionals collaborate over tablets and notebooks, embodying human utility. Behind him, a large Microsoft logo is mounted on a minimalist white wall. To one side, a looming dark monolith representing a “one-model-for-all” AI fades into shadow as Nadella points away from it. Warm natural light streams through floor-to-ceiling windows, casting optimistic highlights.

Satya Nadella excited for AGI, but puts human utility first and pushes back on the ‘one-model-for-all’ idea - The Indian Express

- Satya Nadella believes we are in the early stages of AGI development and utility.  
- He emphasizes that multiple models will likely compete rather than a single dominant model.  
- Future success will depend on integrating models with data, tools, and workflows, not just AI.  

At a time when the world is debating the arrival of artificial general intelligence (AGI), Microsoft CEO Satya Nadella offered a surprisingly grounded view of the technology. For the uninitiated, AGI is a conceptual AI that has the ability to understand, learn, and apply intelligence much like humans do.

While he is clearly excited about its potential, in his interview with Dwarkesh Patel and SemiAnalysis founder Dylan Patel, Nadella kept going back to the usual themes – tools, productivity, diffusion through the real economy, and the growing need for multiple models and ecosystems rather than one model ruling everything.

Is AGI the biggest thing after the industrial revolution?

Though Nadella does not entirely dismiss that AI could be as important as the industrial revolution, he somehow leans more towards the premise, adding a qualifier that we are still early. “I start with the excitement that I also feel for the idea that maybe after the Industrial Revolution this is the biggest thing. I start with that premise.”

Story continues below this ad

“At the same time, I’m a little grounded in the fact that this is still early innings. We’ve built some very useful things, we’re seeing some great properties, and these scaling laws seem to be working. I’m optimistic that they’ll continue to work,” Nadella said.

Nadella asserts that AI has the potential to be transformative, but he acknowledges that we are still in the early stages, perhaps even in the first or second innings.

During the conversation, Nadella also shared that his favourite definition of AI came from computer scientist Raj Reddy, which he claimed was very human-centric. “He had this metaphor for AI: it should either be a guardian angel or a cognitive amplifier. I love that. It’s a simple way to think about what this is.”

Will we get AGI?

For the Microsoft chief, the key question is not ‘will we get AGI’ but ‘what is its human utility?’. “Ultimately, what is its human utility? It is going to be a cognitive amplifier and a guardian angel. If I view it that way, I view it as a tool,” he said.

Story continues below this ad

He also acknowledged that people may even go ‘mystical’ about AI, meaning they may say that it is a tool that does things that only humans did before so far. However, he also added that this has been the case with many technologies in the past.

During the conversation, the interviewers pushed for a common AGI vision, such as a single model that gets deployed everywhere, continuously learning, and doing almost every job in the economy.

When asked if that happens, will it let the leading model company capture almost all the value? Nadella responded, saying, “If there’s literally one dominant model, deployed everywhere, ingesting all the data and continuously learning, then yes: that’s game, set, match. You’d basically stop shop.”

However, he also believes that is not how things are playing out actually. “For all the dominance of any one model, that is not the case. Take coding; there are multiple models. In fact, every day it’s less the case. There is not one model that is getting deployed broadly.”

Story continues below this ad

Nadella feels that constraints by domain, geography, and use case will prevent one single ‘god model’ from owning everything. “Is it going to happen in all domains? I don’t think so. Is it going to happen in all geos? I don’t think so. Is it going to happen in all segments? I don’t think so. It’ll happen in all categories at the same time? I don’t think so.”

The CEO asserts that “design space” is too big for a single winner.

Where does AGI’s value go?

When asked who gets the margins in an AGI world, the model companies or the ‘scaffolding companies’ that build tools, platforms and workflows around these models, Nadella said that both would matter and models alone are vulnerable to commoditisation.

He also went on to suggest that model companies may even face a ‘winner’s curse’. “You may have done all the hard work, done unbelievable innovation, except it’s one copy away from being commoditised. Then the person who has the data for grounding and context engineering… can then go take that checkpoint and train it.”

Story continues below this ad

His answer to who wins in all these is that there will be powerful open-source models, multiple frontier models, and the real advantage would be combining models with data, tools, and workflows.

Meanwhile, the Microsoft CEO also thinks that the future would not be simply about humans and chat UI. He hopes for a world with autonomous agents working across a company’s infrastructure.

Satya Nadella excited for AGI, but puts human utility first and pushes back on the ‘one-model-for-all’ idea

During a technology event, Russia unveiled its inaugural humanoid robot powered by artificial intelligence, but the presentation took an unexpected turn when the robot stumbled and fell on stage. This incident highlights the growing trend of countries worldwide stepping into the realm of humanoid robotics. NBC News correspondent Raf Sanchez provides insights into the rise of these AI-driven machines. November 14, 2025.

Russia's inaugural AI humanoid robot tumbles on stage

A sleek humanoid robot clad in brushed metal falters and collapses onto a darkened stage under a single warm spotlight. The Russian tricolor flag hangs solemnly in the background. A lone technician in a dark suit hurries forward from the shadows. Moody, cinematic lighting, dark theme, no blue AI tones.

Russia's first AI humanoid robot falls on stage - NBC News

- Russia unveiled its first artificial intelligence humanoid robot at a tech event.  
- The robot experienced a fall on stage during its debut demonstration.  
- Multiple countries are actively entering the humanoid robotics market globally.

Russia's first-ever artificial intelligence humanoid robot fell on stage while making it's debut at a technology event. This comes as many countries all over the world are entering the market of humanoid robots. NBC News' Raf Sanchez has more on the emergence of AI empowered bots. Nov. 14, 2025

Russia's first AI humanoid robot falls on stage

Picture this: you’re browsing through your social media feed one evening, and the advertisements start resembling your personal tastes eerily well. They incorporate your favorite colors, feature music you enjoy, and use language that feels just like your everyday speech. This is the new frontier of advertising, made possible by artificial intelligence. For instance, the advertising firm Cheil UK is collaborating with the startup Spotlight to leverage large language AI models to analyze users’ online behaviors and tailor content based on interpreted personality traits.

This technology enables a nuanced understanding of how to communicate with individuals—adjusting the tone, phrasing, and tempo of the ad's text, while also selecting music and color schemes that align with the AI's assessment of the person, such as whether they are more introverted or extroverted, or if they have a preference for vibrant music over calming tunes. The goal? To inundate countless users with ads that are uniquely created for them.

Various sectors including retail, consumer electronics, automotive, insurance, and banking are harnessing this AI-driven methodology to design deeply personalized advertisements aimed at online consumers. The AI’s capabilities extend to analyzing users’ public posts on social media platforms, their search histories, and even interactions with tools like ChatGPT, allowing it to layer this insight over traditional demographic data such as geographic location, age, family status, hobbies, vacation habits, and fashion choices. This explains why you might notice ads for jeans you searched online appearing in your inbox or why travel options you looked at online keep resurfacing.

According to Cheil UK's CEO, Chris Camacho, this advanced AI does more than deliver targeted ads based on broad demographics; it delves into the emotional and psychological aspects of consumers by exploring their entire digital presence. "We are progressing from relying on surface-level data like gender and age to a more profound understanding of individuals' emotional states and situations," he explains.

Interestingly, advertisers may not even need tailor-made AI solutions to achieve this level of personalization. Research conducted in the U.S. observed that consumers responded more favorably to ads for an iPhone that featured text customized by ChatGPT according to their personality traits. This demonstrates that personalized content is often more compelling than generic messages, even when created by AI. Jacob Teeny, an assistant professor at Northwestern University's Kellogg School of Management, who spearheaded the research, emphasizes that while AI excels at targeting, the journey toward fully personalized creative ad copy is still developing. He predicts this approach will significantly shape the future of digital advertising, potentially mitigating the issue of 'advertising wastage,' where 15% of expenditures on digital marketing go unnoticed.

However, skepticism exists about the merit of such personalization. Alex Calder, a chief consultant at the AI-focused firm Jagged Edge, cautions against over-customization. He argues, "An AI may have tailored an ad that only one person sees, and they've likely forgotten it already. The real potential lies in harnessing AI to amplify compelling, widely appealing ideas instead of diluting them into forgettable micro-ads." Ivan Mato from the brand consultancy Elmwood shares similar concerns regarding consumer acceptance, regulatory scrutiny, and the ethical implications of such targeted marketing strategies. He comments on the growing discomfort among consumers about the extensive use of data, suggesting that while AI has the power to unlock fresh creative avenues, the more pressing question is whether brands should opt for hyper-personalization and what they might sacrifice in doing so.

Will AI lead to improved advertisements or 'unsettling mishmash'?

A bustling urban street split down the middle: on the left, bathed in warm, golden-hour sunlight, a sleek digital billboard elegantly morphs around a smiling adult passerby—subtle streams of glowing code feed into its interface, showcasing a dynamic, friendly ad; on the right, under a dark, neon-tinged shadow, a broken screen drips gooey “slop” with glitchy eyes and garbled slogans, its oozing pixels forming unsettling shapes. The stark light-and-dark contrast poses the question: better adverts or creepy slop?

Will AI mean better adverts or 'creepy slop'? - BBC

- AI is personalizing ads by analyzing users' online activity and inferred personalities.  
- Some experts warn that hyper-personalized ads may seem "creepy" and forgettable.  
- Concerns about privacy and whether brands should heavily personalize their marketing strategies remain.  

Will AI mean better adverts or 'creepy slop'?

11 hours ago Share Save MaryLou Costa Technology Reporter Share Save

Getty Images Advertisers are using AI to personalise online advertising

Imagine one night, you're scrolling through social media on your phone, and the ads start to look remarkably familiar. They're decked out in your favourite colours, are featuring your favourite music and the wording sounds like phrases you regularly use. Welcome to the future of advertising, which is already here thanks to AI. Advertising company Cheil UK, for example, has been working with startup Spotlight on using large language AI models to understand people's online activity, and adapt that content based on what the AI interprets an individual's personality to be. The technology can then mirror how someone talks in terms of tone, phrase and pace to change the text of an ad accordingly, and insert music and colours to match, say, whether the AI deems someone to be introverted or extroverted, or have specific preferences for loud or calm music, or light or dark colours. The aim is to show countless different ads to millions of people, all unique to them.

Brands in retail, consumer electronics, packaged goods, automotive, insurance and banking are already using the technology to create AI-enhanced, personality-driven ads to target online shoppers. The AI is able to read what people post on public platforms - Facebook, Instagram, Reddit and other public forums - as well as someone's search history, and, most importantly, what people enter into ChatGPT. Then, with what it deduces about an individual's personality, the AI overlays that on top of what advertisers already know about people. For example, what part of the country you live in, what age bracket you're in, whether you have children or not, what your hobbies might be, where you go on holiday and what clothes you like to wear - information brands can already see through platforms like Facebook or Google. That's why the jeans you've been searching online for magically appear in your inbox as a sponsored ad, or the holiday you've been searching for seems to follow you around the internet.

Cheil AI ads will attempt to discover and use your emotional state says Chris Camacho

The difference is now AI can change the content of those ads, based on what it thinks your personality is, thanks to what it's been reading about you. It targets individual people, rather than the demographic segments or personas advertisers would traditionally use. "The shift is that we are moving away from what was collected data based on gender and age, and readily available information, to now, going more into a deeper emotional, psychological level," says Cheil UK CEO Chris Camacho. "You've now got AI systems that can go in and explore your entire digital footprint - your entire online persona, from your social media interests to what you've been engaging in. "That level is far deeper than it was previously, and that's when you start to build a picture understanding that individual, so whether they're happy, whether they're sad, or what personal situation they're going through."

An added bonus for advertisers is that they might not even need a bespoke AI system to personalise their output. Researchers in the US studied the reactions of consumers who were advertised an iPhone, with tailored text written by ChatGPT based on how high that person scored on a list of four different personality attributes. The study found the personalised text was more persuasive than ads without personalised text - and people didn't mind that it had been written by AI. "Right now, AI is really excelling on that targeting piece. Where it's still in nascent stages, is on that personalisation piece, where a brand is actually creating creative copy that matches some element of your psychological profile," explains Jacob Teeny, an assistant professor of marketing at Northwestern University's Kellogg School of Management, who led the AI research. "It still has some development to go, but all roads point to the fact that this will become the way [digital advertising is done]," he adds. Personalised AI ads could also provide a solution to the problem of digital advertising 'wastage' - the fact that 15% of what brands spend on digital advertising goes unseen or unnoticed, so it generates no value to their business.

Alex Calder Alex Calder warns that adverts could turn into "creepy slop"

Not everyone is convinced that personalisation is the right way to go. "Congratulations - your AI just spent a fortune creating an ad only one person will ever see, and they've already forgotten it," says Brighton-based Alex Calder, chief consultant at AI innovation consultancy Jagged Edge, which is part of digital marketing company Anything is Possible. "The real opportunity lies in using AI to deepen the relevance of powerful, mass-reach ideas, rather than fragmenting into one-to-one micro-ads that no one remembers. Creepy slop that brags about knowing your intimate details is still slop." Ivan Mato at brand consultancy Elmwood agrees. He is also questioning whether people will accept it, whether regulators will allow it, and whether brands should even want to operate this way. "There's also the surveillance question. All of it depends on a data economy that many consumers are increasingly uncomfortable with," says London-based Mr Mato. "AI opens new creative possibilities, but the real strategic question isn't whether brands can personalise everything - it's whether they should, and what they risk losing if they do."

Elmwood "Should brands personalise everything?" asks Ivan Mato

Will AI mean better adverts or 'creepy slop'?

On November 13, a federal judge rejected motions from Apple and OpenAI to dismiss a legal case initiated by Elon Musk’s X Corp. The lawsuit accuses both companies of seeking to monopolize the smartphone and generative AI chatbot markets.

U.S. District Judge Mark Pittman, based in Fort Worth, Texas, allowed the lawsuit to proceed, marking an initial victory for Musk in his efforts to challenge the leading positions in artificial intelligence. However, Judge Pittman emphasized that his ruling does not assess the actual validity of the allegations presented by X Corp, indicating he will address factual disagreements at a later phase of the lawsuit.

OpenAI responded to the lawsuit by labeling it as part of Musk’s persistent harassment, expressing confidence in their ability to defend against the claims in court.

At this time, neither Apple nor X Corporation provided immediate comments regarding the ruling.

The lawsuit, which was filed by Musk’s companies in August, alleges that Apple has breached antitrust laws by exclusively integrating ChatGPT into its Apple Intelligence features across its devices. The complaint asserts that Apple's collaboration with OpenAI has unfairly blocked access for competing chatbots.

Additionally, X and xAI claim that Apple has reinforced this exclusivity by prominently featuring ChatGPT on its “Must-Have Apps” list while neglecting to promote rival offerings in the App Store.

In its motion to dismiss, Apple contended that its arrangement with OpenAI is not exclusive and argued that the lawsuit does not provide evidence of any agreement preventing the company from collaborating with other AI platforms. Apple maintained, "Choosing one partner first is not unlawful," and highlighted that other chatbots are still accessible through different channels.

OpenAI countered the lawsuit by suggesting that Musk is engaging in a "campaign of lawfare" against both OpenAI and ChatGPT, as Musk is concurrently pursuing legal action against OpenAI and its executives in a separate federal case in California.

Since its debut in late 2022, OpenAI's ChatGPT has quickly become the fastest-growing consumer application ever. In March, Musk's xAI purchased X for $33 billion to bolster its capabilities in training chatbots, and he has also implemented the Grok chatbot into Tesla vehicles. 

This article was reported by Mike Scarcella and edited by David Bario, Leslie Adler, and Rod Nickel in accordance with the Thomson Reuters Trust Principles.

US judge decides Apple and OpenAI must confront X Corp's lawsuit for the time being.

A moody, dimly lit U.S. courtroom interior with heavy wooden benches and a raised judge’s bench in shadow. On one wall, a large Apple logo is carved into dark mahogany; on the opposite side, a bold X Corp logo banner hangs. In the center spotlight, a polished chestnut table holds an open legal brief stamped with “OpenAI” text (no logo) beside a judge’s gavel. Dramatic, warm natural light streams through a high window, casting long shadows to underscore the tension.

Apple and OpenAI must face X Corp's lawsuit for now, US judge rules - Reuters

- A federal judge allowed Musk's X Corp to proceed with its antitrust lawsuit against Apple.  
- Musk alleges Apple violated antitrust laws by favoring ChatGPT in its devices' features.  
- Apple claims its partnership with OpenAI is non-exclusive and denies any anticompetitive behavior.  

Nov 13 (Reuters) - Apple (AAPL.O) , opens new tab and ChatGPT maker OpenAI on Thursday failed to convince a federal judge to dismiss a lawsuit by Elon Musk ’s X Corp accusing them of conspiring to monopolize markets for smartphones and generative AI chatbots.

In his ruling , opens new tab , U.S. District Judge Mark Pittman in Fort Worth, Texas, said Musk’s social media platform X and startup xAI can move forward for now with their lawsuit, in a preliminary victory for the billionaire entrepreneur in a battle over artificial intelligence dominance.

Sign up here.

Pittman said in his brief order that his ruling should not be seen as a judgment on the merits of X's allegations, and that he will look at disputes over fact at a later stage in the case.

MUSK COMPANIES SAY APPLE BREACHED ANTITRUST LAW

OpenAI in a statement on Thursday called the lawsuit "consistent with Mr Musk's ongoing pattern of harassment and we look forward to proving this in court."

Apple and X did not immediately respond to requests for comment.

Musk’s companies claimed in the lawsuit filed in August that Apple has violated antitrust law by exclusively integrating ChatGPT into Apple Intelligence features on iPhones and other Apple devices. The lawsuit alleged Apple had illegally shut out rivals in its partnership with OpenAI.

X and xAI also alleged Apple reinforced the exclusivity by featuring ChatGPT on its “Must-Have Apps” list while sidelining rivals in the App Store.

Apple, in seeking dismissal of the lawsuit, said its OpenAI deal is not exclusive and that the complaint fails to allege any agreement barring Apple from working with other chatbots.

“Choosing one partner first is not unlawful,” Apple told the court.

Apple denied any anticompetitive conduct, telling the court that other chatbots remain available through browsers and apps, and X and Grok rank high in App Store charts.

OpenAI, in responding to the lawsuit, accused Musk of waging "a campaign of lawfare" against OpenAI and ChatGPT. Musk is separately suing OpenAI and its leaders in a federal court in California.

OpenAI's ChatGPT became the fastest-growing consumer application in history in the months following its launch in late 2022.

Musk's xAI acquired X in March for $33 billion to enhance its chatbot training capabilities. Musk has also integrated the Grok chatbot into vehicles made by his electric vehicle company, Tesla (TSLA.O) , opens new tab

Reporting by Mike Scarcella; Editing by David Bario, Leslie Adler, Rod Nickel

Our Standards: The Thomson Reuters Trust Principles. , opens new tab

Today's News