Artificial Intelligence

SoftBank Group will acquire ABB’s robotics division for $5.4 billion, abandoning ABB’s spin-off plan. SoftBank aims to fuse AI and robotics, driving a new era of “Physical AI.” The acquisition strengthens SoftBank’s AI portfolio, including Arm and OpenAI, and expands its robotics capabilities alongside investments like AutoStore and Agile Robots. ABB will use the proceeds from the sale to invest in its electrification and automation businesses. The deal is seen as beneficial for both companies.

Thoma Bravo’s Orlando Bravo warns of an AI valuation bubble, drawing parallels to the dot-com era. He questions high valuations relative to current revenue, citing examples like OpenAI and Palantir. While acknowledging AI’s potential, Bravo emphasizes realistic cash flow projections. He notes the presence of established companies with strong balance sheets differentiates this era from the dot-com bubble, but their strategic investments may create market distortions. He advises investors to exercise caution and due diligence.

Dell Technologies’ shares rose 5% after unveiling increased long-term financial targets, driven by the burgeoning AI market. The company now projects annual revenue growth of 7-9% and diluted EPS growth of at least 15%, exceeding previous forecasts. Dell attributes this to strong demand for AI compute, storage, and networking solutions, emphasizing its end-to-end AI infrastructure offerings and strategic partnership with Nvidia. Dell anticipates shipping $20 billion in AI servers in fiscal 2026, serving clients like CoreWeave and xAI, highlighting its commitment to AI innovation.

VIP Play, Inc. CEO Les Ottolenghi will deliver the opening keynote at the Chief AI Officer Exchange, focusing on the crucial role of CAIOs in today’s AI-driven enterprise. His address will provide a blueprint for CAIOs to effectively translate AI complexities into actionable business strategy and build boardroom confidence. Ottolenghi will outline a framework for navigating AI development through 2030 and highlight essential responsibilities for CAIOs to drive adoption and establish trust. VIP Play’s participation underscores their commitment to AI-driven experiences and thought leadership in the sports entertainment sector.

Cerebras Systems, an AI chipmaker challenging Nvidia, has withdrawn its IPO plans despite recently securing $1.1 billion in funding. The company, valued at $8.1 billion, stated it “does not intend to conduct a proposed offering ‘at this time.'” While the initial IPO filing revealed a dependency on G42, it received CFIUS clearance. Cerebras has shifted towards a cloud-based service model for its Wafer Scale Engine. CEO Feldman believes the original prospectus is outdated due to the rapidly evolving AI landscape. Analysts suggest concerns over customer concentration and competition may have influenced the decision.

Speaking at Italian Tech Week 2025, Amazon founder Jeff Bezos cautioned that AI is currently operating within an “industrial bubble,” characterized by inflated valuations and a disconnect between stock prices and underlying business fundamentals. He drew parallels to past speculative investment periods. However, Bezos also emphasized the “real” transformative potential of AI, predicting significant societal benefits, similar to the biotech boom of the 1990s. His remarks echo concerns from other business leaders like OpenAI’s Sam Altman and Goldman Sachs CEO David Solomon about the sustainability of AI valuations.

While the US dominates AI funding, Europe sees potential in practical AI applications. European startups face challenges including conservative investors and market fragmentation but have advantages in talent acquisition. Companies like Mistral, Synthesia, and ElevenLabs (an AI voice generation startup) are building specialized AI solutions, some developing their own LLMs. The key to success lies in rapid iteration, securing capital, and fostering a more ambitious mindset among European entrepreneurs. Building independent AI infrastructure is also crucial.

Meta is expanding beyond advertising with Business AI, an AI-powered platform for businesses to enhance customer engagement. Launched at the 2025 Meta Connect conference, it enables personalized recommendations and faster purchasing via conversational interactions across Facebook, Instagram, and retailer websites. Integrations with CRM systems (Salesforce, Microsoft, etc.) are planned. Business AI will initially be a free add-on to Meta ad campaigns, with pricing for website integration. WhatsApp and Messenger integration are coming soon.

Hugging Face’s Thomas Wolf argues current AI models, like those from OpenAI, are unlikely to drive major scientific breakthroughs. Speaking at the Web Summit, he contrasted his view with the optimistic projections of AI leaders, emphasizing the limitations of predicting the “most likely next token” versus uncovering “unexpected truths.” He sees AI as a helpful “co-pilot” for scientists but believes their core architecture lacks the contrarian thinking needed for paradigm-shifting discoveries. While AI can assist in research, the human element of critical thinking remains essential.

Google has laid off over 100 design team employees, primarily within Google Cloud’s user experience research and platform services groups. This reduction aligns with Google’s strategic shift to prioritize AI investments amid increasing competition from companies like Microsoft. The layoffs, impacting U.S.-based roles, follow previous cost-cutting measures and a streamlining of Google’s organizational structure. It suggests a leaner, potentially AI-driven design approach as Google focuses on efficiency and data-driven design. This move reflects a broader industry trend of workforce reductions and resource realignment towards AI and emerging technologies.