Artificial intelligence

Alphabet moonshots are ready for launch

29 Aug 2023

Google’s parent lost $6 bln last year on experimental ventures, such as health-data cruncher Verily and self-driving outfit Waymo. As CFO and former tech banker Ruth Porat takes charge of the unit, it’s probably a good time to consider carving out some and refocusing on others.

Arm’s changing business model is wildcard for IPO

24 Aug 2023

As well as jumping on the AI bandwagon, SoftBank’s soon-to-float chip designer has altered the way it charges big customers to boost growth and smooth out revenue. If it works, a valuation north of $60 bln looks slightly less implausible. But investors lack evidence so far.

AI frenzy’s feedback loop stuffs Nvidia

23 Aug 2023

The $1.2 trln semiconductor designer’s second-quarter revenue doubled. Tech giants’ valuations are soaring on AI hype, so naturally companies are pouring money into it, including by buying Nvidia's chips. As long as investors quack for more, Jensen Huang's firm gets fed.

Big Tech is mostly leaping a low bar

10 Aug 2023

The stock market’s mood increasingly hinges on the vagaries of tech giants like Meta, Amazon and Apple. In this Viewsroom podcast, Breakingviews columnists discuss how most of their recent earnings held up – even if only compared to muted expectations for their core businesses.

America’s new China curbs eschew scale for smarts

10 Aug 2023

The Biden administration’s plan for screening US investments in the People’s Republic is not the wide-ranging proscription many expected. It targets only a handful of deals, would ban even fewer and isn’t retroactive. That’s a relief for most investors – and for diplomacy, too.

Chinese AI arrives by stealth, not with a bang

28 Jul 2023

Beijing’s new rules for the technology are less onerous than expected. Armed with vast data troves, giants from Alibaba to Baidu are leading the industry’s development. But President Xi Jinping’s focus on national security and censorship, plus US chip curbs, will slow progress.

Capital Calls: KKR’s reluctant bidding war

30 Jun 2023

Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.

Alphabet threats show up everywhere but its shares

29 Jun 2023

The Google-owner’s valuation has powered ahead as it touts its prowess in artificial intelligence, in spite of mounting menaces. A report questioning Google's video ad sales compounds ongoing antitrust threats, and even AI might not be an unalloyed good.

LinkedIn ages like fine wine in Microsoft’s cellar

28 Jun 2023

In contrast to souring Meta and Twitter, the drier social media app is flourishing. Although veiled by its parent’s cloud dominance, the 2016-vintage acquisition has tripled in value from its $26 bln price tag. Business-related data also will help it keep maturing in the AI era.

AI’s deflationary winds will blow away profits

27 Jun 2023

Artificial intelligence could add $8 trln a year to world GDP, McKinsey estimates, defying the gloom about robots replacing humans. Though companies should benefit from lower costs, consumers could use the technology to find better deals. It all adds up to lower prices.

Big Tech backlash swells the AI gold rush

26 Jun 2023

Cloud provider Databricks is buying a machine learning startup for $1.3 bln, almost six times its valuation earlier this year. Models backed by Microsoft and Google dominate artificial intelligence. But a bet that companies want to control their data is pumping up smaller rivals.

Masayoshi Son’s new AI push merits a pinch of salt

22 Jun 2023

The SoftBank founder said he would place further bets on artificial intelligence after taking a pause. Some of his investments may pay off. But Arm is his only real AI win from a $112 bln portfolio, his credibility has taken a knock, and his war chest is smaller than it looks.

AI’s regulation naysayers protest too much

21 Jun 2023

Lawmakers in the European Union and elsewhere are scrambling to draft artificial intelligence rules. Industry leaders like OpenAI boss Sam Altman warn the approach is too onerous. Yet the risks of pandering to special pleading exceed the dangers of stifling a nascent industry.

SoftBank’s Arm IPO set for double stroke of luck

13 Jun 2023

The chip designer may score Intel as an anchor investor in its planned US float. Meanwhile, customers like $975 bln Nvidia have soared amid an artificial-intelligence frenzy. It makes the company’s puffy valuation hopes slightly less implausible – but not necessarily sustainable.

‘Reverse CFIUS’ threat will be deterrent enough

8 Jun 2023

Team Biden is nearly ready to unveil a plan to restrict some $15 bln of US investment in Chinese tech. The process probably will be even messier than one used to review inbound capital aimed at sensitive domestic sectors. Extra red tape alone, however, should serve its purpose.