September 16, 2025

finance  
Amazon, Microsoft, Google AI Investments Surge

The artificial intelligence sector continues to see massive investment and strategic moves from major tech players. Broadcom reported a 22% revenue increase to $16 billion in its fiscal third quarter of 2025, largely due to AI semiconductors, and anticipates $17.4 billion in the fourth quarter. Oracle, meanwhile, saw its fiscal first quarter of 2026 revenue grow 12%, but its contracted work backlog surged 359% to $455 billion, driven by significant AI contracts, leading to a 36% stock increase. Oracle's cloud growth projections are challenging Amazon, Microsoft, and Google, with its cloud infrastructure business expected to reach $144 billion by fiscal 2030 and potentially rival Google in the hyperscaler market, though reliance on OpenAI and capital needs for data centers are noted concerns. Nvidia, a key player in AI hardware, holds stakes in AI companies totaling $4.3 billion as of Q2 2025, with CoreWeave being its largest investment at approximately $3.96 billion. Other AI cloud providers like CoreWeave and Nebius are outperforming Nvidia and Palantir, with CoreWeave up 144% and Nebius up 377% this year. Microsoft has committed $17.4 billion to Nebius. Despite high growth, both CoreWeave and Nebius are currently unprofitable. In the startup funding arena, Anysphere raised $900 million and Anthropic raised $1 billion in 2025, though OpenAI CEO Sam Altman has voiced concerns about a potential investment bubble. Lila Sciences secured $235 million for its AI-powered research labs, aiming to automate the scientific method. In venture capital, Deedy Das has been promoted to partner at Menlo Ventures, recognized for his expertise in identifying AI startups. Meanwhile, enterprise AI software company C3.ai faces a class action lawsuit for allegedly misleading investors, with its Executive Chairman, Thomas M. Siebel, having recently sold a significant portion of his shares. The U.S. is also seeing a ramp-up in domestic AI infrastructure investment, with Nvidia planning up to $500 billion over four years, Apple investing $500 billion, Meta building a $10 billion data center, and Microsoft investing $3.3 billion in AI hubs, signaling a trend of reshoring critical AI development.

Key Takeaways

  • Broadcom's fiscal Q3 2025 revenue reached $16 billion, a 22% increase driven by AI semiconductors, with Q4 revenue projected at $17.4 billion.
  • Oracle's contracted work backlog (RPO) jumped 359% to $455 billion in fiscal Q1 2026, fueled by major AI contracts, and its cloud infrastructure business is projected to reach $144 billion by fiscal 2030.
  • Nvidia's AI investments totaled $4.3 billion as of Q2 2025, with CoreWeave representing its largest holding at approximately $3.96 billion.
  • AI cloud companies CoreWeave and Nebius have seen significant stock performance, up 144% and 377% respectively, with Microsoft agreeing to a $17.4 billion deal with Nebius.
  • Major U.S. tech companies are increasing domestic AI infrastructure investment: Nvidia plans up to $500 billion over four years, Apple is investing $500 billion, Meta is building a $10 billion data center, and Microsoft is investing $3.3 billion in an AI hub.
  • Anysphere raised $900 million and Anthropic raised $1 billion in startup funding rounds in 2025, though concerns about an investment bubble have been raised by OpenAI CEO Sam Altman.
  • Lila Sciences secured $235 million to expand its AI-powered autonomous research labs.
  • Enterprise AI software company C3.ai is facing a class action lawsuit for alleged investor misleads, and its Executive Chairman recently sold over half of his shares.
  • Oracle's cloud growth is positioning it to potentially rival Google in the hyperscaler market.
  • The AI market is projected to grow to over $1.81 trillion by 2030, with ETFs like AIQ, BOTZ, CHAT, ARTY, and IGPT offering diversified investment options.

Broadcom and Oracle: AI investment showdown

Broadcom and Oracle are competing in the AI market, with their recent earnings showing their strengths and weaknesses. Broadcom's fiscal third quarter of 2025 saw a 22% revenue increase to $16 billion, driven by AI semiconductors. They expect fourth quarter revenue of $17.4 billion. Oracle's fiscal first quarter of 2026 showed a 12% revenue increase and a significant 359% jump in contracted work backlog to $455 billion, fueled by four multi-billion-dollar AI contracts. Oracle's stock rose 36% after this announcement.

Broadcom vs Oracle AI stocks battle heats up

Broadcom and Oracle have both seen stock increases following their recent earnings reports. Broadcom's fiscal Q3 2025 revenue grew 22% to $16 billion, with AI semiconductors contributing significantly. Oracle's fiscal Q1 2026 revenue rose 12%, but its remaining performance obligations (RPO) surged 359% to $455 billion due to major AI contracts. While Broadcom shows current AI revenue, Oracle's massive backlog suggests future growth potential, making it a slightly more compelling, though still risky, investment.

Oracle's cloud gains challenge Amazon, Microsoft, Google

Oracle's stock surged after reporting strong cloud growth projections. The company's remaining performance obligations (RPO) jumped 359% to $455 billion, with its cloud infrastructure business expected to grow 77% to $18 billion this fiscal year and reach $144 billion by fiscal 2030. Analysts predict Oracle will gain market share, potentially rivaling Google in the hyperscaler cloud market. However, concerns remain about the sustainability of this growth, its reliance on OpenAI, and the significant capital needed for data center expansion.

Nvidia's top AI stock pick revealed

Nvidia holds stakes in six artificial intelligence companies totaling $4.3 billion as of Q2 2025. Among these, CoreWeave stands out as Nvidia's largest investment, valued at approximately $3.96 billion. While most of Nvidia's AI investments are currently unprofitable, CoreWeave shows strong revenue growth and attractive valuation metrics. Analysts project significant earnings growth for CoreWeave in 2026, making it Nvidia's most promising AI stock holding.

AI cloud stocks CoreWeave and Nebius outperform Nvidia

AI cloud companies CoreWeave and Nebius have outperformed Nvidia and Palantir this year, with CoreWeave up 144% and Nebius up 377% since resuming trading. Both companies provide AI infrastructure and computing power, experiencing triple-digit revenue growth. Microsoft has invested heavily in this sector, recently agreeing to a $17.4 billion deal with Nebius. Despite high growth, both companies are unprofitable, presenting significant risks alongside their potential.

Invest in AI with these 5 ETFs

The artificial intelligence market is projected to grow significantly, reaching over $1.81 trillion by 2030. For investors seeking exposure to AI without picking individual stocks, several Exchange Traded Funds (ETFs) offer diversified and cost-effective options. These include the Global X Artificial Intelligence & Technology ETF (AIQ), Global X Robotics and Artificial Intelligence ETF (BOTZ), Roundhill Generative AI & Technology ETF (CHAT), iShares Future AI and Tech ETF (ARTY), and Invesco AI and Nex Gen Software ETF (IGPT).

C3.ai faces class action lawsuit over alleged investor misleads

Enterprise AI software company C3.ai and its executives are facing a class action lawsuit for allegedly misleading investors about the company's financial health and growth prospects. The suit claims that C3.ai's projections downplayed risks related to CEO Thomas M. Siebel's health issues. The stock price dropped over 25% after the company announced preliminary first-quarter results that missed expectations and lowered its full-year revenue guidance on August 8, 2025.

C3.ai Executive Chairman sells shares

Thomas M. Siebel, the Executive Chairman of C3.ai, sold 92,000 shares of the company on September 12, 2025, for approximately $1,502,359. This sale represents about 51.4% of his holdings in that stock class, leaving him with 87,119 shares. In the past six months, C3.ai insiders have made 41 sales and zero purchases.

Top AI startup funding rounds of 2025

The year 2025 has seen record-breaking funding for artificial intelligence startups, with leading companies securing billions in investments. Anysphere, an AI coding research lab, raised $900 million in June, led by Thrive Capital. Anthropic also raised $1 billion. OpenAI CEO Sam Altman has cautioned that the AI investment frenzy may be entering bubble territory, despite the significant capital flowing into the sector.

Deedy Das: Silicon Valley's new AI venture capital star

Deedy Das, formerly an engineer at Facebook and Google and an early employee at Glean, has been promoted to partner at Menlo Ventures. He is recognized for his deep technical understanding of AI, infrastructure, and enterprise software, which helps him identify promising startups. Das played a key role in launching Menlo's Anthology Fund and has made significant investments in companies like OpenRouter, which provides developers access to multiple large language models.

US ramps up AI infrastructure investment

Major U.S. tech companies, including Nvidia, Apple, Meta, and Microsoft, are investing heavily in domestic AI infrastructure, signaling a trend of reshoring. Nvidia plans to invest up to $500 billion over four years in American AI infrastructure, including chip manufacturing in Arizona. Apple is investing $500 billion in the U.S., Meta is building a $10 billion AI data center in Louisiana, and Microsoft is investing $3.3 billion in a Wisconsin AI hub. This domestic buildout is seen as crucial for national security and economic prosperity.

Lila Sciences secures $235M for AI research labs

Lila Sciences, backed by Flagship Pioneering, has raised $235 million to expand its AI-powered autonomous research labs. This funding, led by Braidwell and Collective Global, will support the expansion of Lila's AI Science Factories in Boston, San Francisco, and London. The company aims to fully automate the scientific method using AI, which it claims has already led to thousands of discoveries in life sciences, chemistry, and materials science.

Sources

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