Generative AI

As the 2025 holiday season arrives, generative AI expands into consumer hardware, including smart glasses (Meta, Oakley), AI-enabled speakers (Amazon’s Alexa+ Echo, Google Home), and pendant-style AI companions (Friend). While tech giants like Amazon, Alphabet, and Meta dominate, smaller players like Plaud are also emerging. These devices offer personalized interactions and functionalities, like AI-powered assistants and real-time translation. Despite mixed initial reception, advancements in edge computing and AI chips drive the market’s potential, with Black Friday deals available on many devices.

Meta’s WorldGen system generates interactive and traversable 3D worlds from text prompts in minutes, drastically accelerating spatial computing development. Unlike many text-to-3D solutions prioritizing visual fidelity, WorldGen focuses on functional interactivity and game engine compatibility by generating navigable environments with features like navmeshes. This enables applications from gaming to industrial digital twins. The system uses a four-stage process, allowing for editorial control and integration into existing workflows, positioning generative AI as a force multiplier for 3D content creation.

Google has launched Nano Banana Pro, an AI image editing and generation tool powered by Gemini 3 Pro. The new capabilities include infographic creation, character consistency across multiple images, and visualization of non-visual data. The tool is available in the Gemini app with limited free quotas, and wider access for subscribers. Google is also introducing a feature to verify AI-generated images, addressing misinformation concerns, as competition with OpenAI’s ChatGPT intensifies. Google aims to scale its AI offerings, exploring potential in creative and other industries.

Nvidia’s Q3 FY26 revenue surged 62% to $57.01 billion, exceeding expectations, driven by AI demand. Earnings per share also beat estimates, sending shares up 5% after-hours. Management’s guidance for Q4 projects $65 billion in revenue, surpassing consensus. CEO Jensen Huang highlighted the shift to GPU-accelerated computing, the AI tipping point, and the emergence of agentic AI as growth drivers. Strong demand for Blackwell chips and a $500 billion order backlog for Blackwell and Rubin architectures support future growth.

Google has launched Gemini 3, its latest AI model, intensifying competition with OpenAI’s ChatGPT. Gemini 3 aims to provide more nuanced and efficient responses with less user input, integrating across Google’s services like the Gemini app and AI-powered search. It’s designed to be more intuitive and understand complex contexts. Google reports strong user engagement across its AI platforms, while also introducing “Google Antigravity” for developers and generative interfaces for users. Gemini 3 will cater to various business needs, and is driving substantial capital investments in AI infrastructure among tech giants.

Asset management firms are rapidly adopting generative and agentic AI to optimize operations and enhance investment decision-making. Franklin Templeton’s partnership with Wand AI exemplifies this trend, deploying agentic AI across its operations to accelerate data-driven insights. Goldman Sachs is also implementing AI at scale, with CEO David Solomon highlighting its economic potential. Both firms emphasize the importance of responsible AI management and workforce adaptation, reflecting a broader industry shift towards AI-driven productivity and innovation.

A recent investigation highlights the business risks of using AI for web searches due to persistent data accuracy issues. While AI offers efficiency gains, a gap exists between user trust and technical precision, impacting compliance, legal defensibility, and financial forecasting. A study of six AI tools revealed accuracy varying from 55% to 71%, with all tools exhibiting errors, particularly in legal and financial advice. The lack of source transparency and potential for algorithmic bias further exacerbate risks. The report recommends companies implement governance frameworks, enforce prompt specificity, mandate source verification, and prioritize human oversight.

Radware (RDWR) launched its LLM Firewall, an addition to its Cloud Application Protection Services, on November 18, 2025. The LLM Firewall is designed to protect enterprises integrating Large Language Models (LLMs) by securing LLM prompts and responses against attacks like prompt injection and sensitive data exfiltration. It uses real-time, AI-based protection at the prompt level and a model-agnostic design to integrate across platforms and help comply with data protection standards. It addresses OWASP Top 10 Risks for LLMs and Gen AI Apps.

This Monday’s focus is on Salesforce (CRM) and Goldman Sachs (GS). Analysts have mixed views on Salesforce’s future due to concerns about AI’s impact, despite reaffirming “Buy” ratings. CRM’s stock is down 29% YTD, highlighting investor uncertainty. Goldman Sachs is dominating M&A, capturing a 34% market share and advising on significant deals. GS is on track for its best M&A performance in 25 years, with its stock up nearly 35% YTD. The key is if GS can maintain dominance amidst evolving economic conditions.

SoftBank sold its entire Nvidia stake for $5.83 billion in October, not necessarily due to valuation concerns. Instead, the move signals a strategic shift, with proceeds reinvested into generative AI, specifically OpenAI. This reallocation underscores SoftBank’s confidence in generative AI’s long-term potential over a diverse tech portfolio. The decision highlights a concentrated approach, prioritizing transformative AI solutions and reflecting their conviction that substantial investment is needed to unlock these technologies.