AI Costs Rise as Tech Giants Shift Expenses to Consumers

The tech industry is abuzz with the latest developments in artificial intelligence (AI), from Microsoft's plans to make users carry AI costs to the rise of AI-powered creativity and productivity. In this news brief, we'll delve into the key stories and trends shaping the AI landscape.

CoreWeave Files Registration Statement for Proposed Initial Public Offering

CoreWeave, the AI Hyperscaler, has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering of shares of its Class A common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Morgan Stanley, J.P. Morgan, and Goldman Sachs & Co. LLC will serve as joint lead bookrunners for the proposed offering.

Microsoft Cuts Data Centre Plans and Hikes Prices in Push to Make Users Carry AI Costs

Microsoft is trying to recoup the costs of its AI investments by raising prices, putting ads in products, and shifting the cost to consumers. The tech giant has canceled some planned data center expansions and has integrated the Copilot generative AI chatbot into its products, leading to higher user costs. Generative AI is expensive, with OpenAI's financial figures highlighting the challenge of AI profitability.

Alibaba-Backed Zhipu Raises $140 Million as DeepSeek Heats Up AI

Chinese startup Zhipu has raised over $140 million in a financing round led by local government-backed firms, underscoring the growing interest in domestic AI following DeepSeek's ascent. Participants in Zhipu's latest funding included government-controlled firms, existing backers, and Zhipu, last valued at about $3 billion during a 2024 round.

The Hidden Cost of Generative AI: Are We Paying the Price?

The tech industry's shift towards generative AI brings significant costs alongside promised innovation. AI integration into products leads to higher user costs, and generative AI processes require substantial computational power, making both training and deployment of models expensive. Companies are exploring financial adaptations, like ad-supported models and shifting computations to user devices, to manage AI costs.

Lenovo at MWC 2025: Expanding the Boundaries of AI-Powered Creativity, Productivity, and Innovation

Lenovo has unveiled its latest lineup of AI PCs, innovative software, and groundbreaking proofs of concept, all designed to enhance creativity, productivity, and the user experience. The company has expanded its AI portfolio with more Copilot+ AI PCs, NVIDIA GPU-powered performance, and energy-efficient designs.

Nvidia Stock Slides Monday, Extending Post-Earnings Selloff

Nvidia shares slid Monday, extending last week's post-earnings losses amid concerns about AI spending and the potential impact of policies on tariffs and AI chip export restrictions.

Podcasting Platform Podcastle Launches a Text-to-Speech Model with More Than 450 AI Voices

Podcastle has launched a text-to-speech model with more than 450 AI voices, allowing users to narrate their text with a wide range of voices. The company has developed the technology and model in such a way that its training and inference costs are low, giving it an advantage against competitors.

Will Artificial Intelligence Change the Way Skate Contests Are Judged?

The use of AI in judging skate contests has sparked debate, with some arguing that it could lead to a more objective and fair judging system. However, others argue that AI lacks the ability to understand style and the importance of trick selection, which are key aspects of skateboarding.

DN Capital and CommerzVentures Lead $30m Investment in AI Firm Unique

Unique, a tech firm focused on creating a specialized agentic AI platform for financial firms, has raised $30m in a Series A funding round led by DN Capital and CommerzVentures. The platform supports customers to deploy agentic AI, through one of its 25 specialized 'off the shelf' use cases, or via customized agents.

Key Takeaways

  • Microsoft is trying to recoup the costs of its AI investments by raising prices, putting ads in products, and shifting the cost to consumers.
  • Generative AI is expensive, with OpenAI's financial figures highlighting the challenge of AI profitability.
  • Companies are exploring financial adaptations, like ad-supported models and shifting computations to user devices, to manage AI costs.
  • Lenovo has expanded its AI portfolio with more Copilot+ AI PCs, NVIDIA GPU-powered performance, and energy-efficient designs.
  • Nvidia shares slid Monday, extending last week's post-earnings losses amid concerns about AI spending and the potential impact of policies on tariffs and AI chip export restrictions.
  • Podcastle has launched a text-to-speech model with more than 450 AI voices, allowing users to narrate their text with a wide range of voices.
  • The use of AI in judging skate contests has sparked debate, with some arguing that it could lead to a more objective and fair judging system.
  • Unique, a tech firm focused on creating a specialized agentic AI platform for financial firms, has raised $30m in a Series A funding round led by DN Capital and CommerzVentures.

Sources

AI Adoption AI Chips AI Costs AI Creativity AI Export Restrictions AI Financing AI Innovation AI Investment AI Judging AI Productivity AI Profits AI Regulations AI Technology Artificial Intelligence Generative AI Lenovo Microsoft Nvidia Podcastle