Google CEO Sundar Pichai revealed that the company is willingly sacrificing Cloud revenue to push ahead in the AI race. Google Cloud revenue grew 82% to $24.8 billion in the second quarter, with a backlog nearing $514 billion. Pichai stressed that giving Google DeepMind enough computing power is non-negotiable, even if it means short-term tradeoffs. Alphabet plans to spend between $195 billion and $205 billion on capital expenditures this year, much of it directed at AI infrastructure.
Pichai also shared details on Google's internal coding agent Argon, which launched four weeks ago and now influences virtually all code at the company. He said asking what percentage of Google code is written by AI no longer makes sense. Argon led to a 30% increase in changelists and roughly a one-third decrease in rollbacks. The Gemini 4 Argon model processed nearly 25 trillion tokens in its first 72 hours, about three times the initial usage of Gemini 3.
NVIDIA took the stage at GTC Berlin to launch a set of local AI tools aimed at developers in Europe. The lineup includes RTX Spark, DGX Spark and DGX Station, designed to support coding, engineering and robotics. The DGX Spark 64GB version became available on October 23, and NVIDIA Sync will support up to eight DGX Sparks. The company also introduced a local coding model called Flint and added support for Nemotron and DeepSeek models.
BBVA partnered with NVIDIA to explore the OpenShell Reference Architecture, focusing on AI agent safety, security and governance. The bank wants to scale AI agents across its organization while maintaining oversight. ValentĂn Sánchez, BBVA Global CSO, said security remains a top priority as these systems grow more autonomous. The OpenShell secure runtime software is open source, and NVIDIA Global Banking Lead Aser Blanco emphasized that clear boundaries must accompany every step toward greater autonomy.
Otter raised $320 million in new financing to expand its AI-powered notetaker into a broader enterprise knowledge engine. The company now serves over 40 million users worldwide, including teams at more than 86% of Fortune 500 companies, and has transcribed over 1 billion meetings. CEO Joe Bommarano said the funding will go toward enterprise growth, international expansion and product innovation, with a focus on building enterprise agentic workflows.
Micron Technology's stock has dropped 26% since peaking in June as investors question whether AI spending and financing can sustain at current levels. Analysts say investors who grew used to rapid growth now need to rethink expectations. Oracle stock also fell amid similar AI spending concerns, though most analysts believe both companies could rebound over time, creating potential opportunities for long-term investors.
Lam Research reported a 54% jump in revenue to $8.22 billion for its fiscal first quarter, driven by strong AI chip demand from Asia. More than a third of revenue came from China, with Korea and Taiwan also contributing significantly. The company posted profit of $2.75 billion, or $2.19 a share, beating analyst expectations. Lam forecast revenue of $8.60 billion for the current quarter, with adjusted earnings per share projected at $2.33.
Researchers in Boston released FaceAge, a new public AI tool that estimates a person's biological age from a selfie. The tool analyzes facial features to produce its estimate. Separately, MIT composer Tod Machover debuted a new AI-powered symphony that explores themes of democracy, blending technology and music to examine societal ideas through a modern artistic lens.
A separate commentary pointed out that American financial markets pour hundreds of billions into AI even as its profits remain uncertain, while struggling to fund critical mineral production and industrial rebuilding. The author argues that a nation cannot remain an industrial superpower by financing ideas while abandoning manufacturing capacity.
Key Takeaways
- Google Cloud revenue grew 82% to $24.8 billion in Q2, with a backlog near $514 billion, but CEO Sundar Pichai says the company sacrifices Cloud revenue to lead the AI race.
- Alphabet expects capital expenditures between $195 billion and $205 billion this year, largely for AI infrastructure.
- Google's coding agent Argon led to a 30% increase in changelists and about a one-third decrease in rollbacks since launching four weeks ago.
- Gemini 4 Argon processed nearly 25 trillion tokens in its first 72 hours, roughly three times Gemini 3's initial usage.
- NVIDIA launched local AI tools at GTC Berlin including RTX Spark, DGX Spark and DGX Station, plus a local coding model called Flint with support for Nemotron and DeepSeek.
- BBVA partnered with NVIDIA to explore the OpenShell Reference Architecture for AI agent safety, security and governance, using open-source secure runtime software.
- Otter raised $320 million to expand its AI notetaker into an enterprise knowledge engine, serving 40 million users and teams at over 86% of Fortune 500 companies.
- Micron stock fell 26% since June as investors question AI spending sustainability; Oracle also dropped amid similar concerns but analysts see rebound potential.
- Lam Research revenue jumped 54% to $8.22 billion in Q1, driven by AI chip demand from Asia, with over a third of revenue from China.
- Boston researchers released FaceAge, a public AI tool that estimates biological age from a selfie, while MIT's Tod Machover debuted an AI-powered symphony on democracy.
New FaceAge AI tool lets you check your biological age from a selfie
Boston researchers created a new AI tool called FaceAge that is now available to the public. Users can upload a selfie to find out their biological age. The tool uses artificial intelligence to analyze facial features and estimate how old a person is biologically.
Tod Machover debuts new AI-powered symphony on democracy
MIT composer Tod Machover created a new symphony that uses AI in its performance. The piece reflects on themes of democracy. The work blends technology and music to explore important societal ideas through a modern artistic lens.
Google says it sacrifices cloud revenue to lead the AI race
Google CEO Sundar Pichai admitted that Google is giving up potential Cloud revenue to focus on AI research. Google Cloud revenue grew 82% to $24.8 billion in the second quarter, with a backlog near $514 billion. Pichai said ensuring Google DeepMind has enough computing power is non-negotiable. He also noted that the new Gemini 4 Argon model processed nearly 25 trillion tokens in its first 72 hours, about three times Gemini 3's initial usage.
Google CEO admits Cloud business sacrifices revenue for AI race
Alphabet CEO Sundar Pichai said Google is forgoing short-term Cloud revenue to support frontier AI development. Google Cloud revenue surged 82% to $24.8 billion in the second quarter, and its contracted backlog reached nearly $514 billion. Pichai said meeting new customer computing demands in 2027 would be incredibly difficult due to industry-wide shortages. Alphabet expects to spend between $195 billion and $205 billion on capital expenditures this year, much of it on AI infrastructure.
Otter raises $320 million to expand AI notetaker into enterprise tool
Otter secured $320 million in new financing to grow its AI-powered notetaker into an enterprise knowledge engine. The company now has over 40 million users worldwide, including teams at more than 86% of Fortune 500 companies, and has transcribed over 1 billion meetings. Otter plans to invest in enterprise growth, international expansion and product innovation. CEO Joe Bommarano said the funding will help build enterprise agentic workflows that bring more advanced AI to teams everywhere.
US financial markets favor AI over critical minerals and manufacturing
American financial markets pour hundreds of billions into artificial intelligence even though its profits are uncertain. Meanwhile, they struggle to fund the rebuilding of industrial capabilities and critical mineral production that are clearly needed. The author says this shows a weakness in how the financial system handles industrial policy. He believes AI is valuable but warns that a nation cannot stay an industrial superpower by financing ideas while abandoning manufacturing capacity.
Google CEO says AI now touches all code, not just a percentage
Google CEO Sundar Pichai says asking what percentage of Google code is written by AI no longer makes sense because AI deeply influences every part of code. He cited the internal coding agent Argon, which launched four weeks ago and led to a 30 percent increase in changelists and about a one third decrease in rollbacks. Pichai says engineers are writing more code productively and with fewer mistakes. He believes no one would want to code the way they did three years ago.
BBVA partners with NVIDIA to improve AI agent security
BBVA announced a collaboration with NVIDIA to explore the OpenShell Reference Architecture for AI agent safety, security, and governance. The bank wants to scale AI agents across the organization while keeping oversight and control. ValentĂn Sánchez, BBVA Global CSO, said security is a priority as these systems become more autonomous. Aser Blanco, NVIDIA Global Banking Lead, said clear boundaries need to accompany every step toward greater autonomy. The OpenShell secure runtime software is open source.
Micron investors must adjust to a new AI spending reality
Micron Technology stock has fallen 26 percent since peaking in June as investors question the sustainability of artificial intelligence spending and financing. Analysts say Micron investors have grown used to rapid growth but now need to rethink their expectations. The concerns about AI spending are not limited to Micron alone. The article suggests navigating this new AI landscape requires a shift in mindset for investors.
Oracle stock drops amid AI spending concerns but analysts see rebound potential
Oracle stock is falling as worries grow about artificial intelligence spending. The sell-off has raised concerns among investors about the company's financial outlook. However, most analysts believe Oracle could rebound over time. The article notes that the decline could create an opportunity for long-term investors despite the existing concerns.
Lam Research sales surge on AI chip demand from Asia
Lam Research reported a 54% jump in revenue to $8.22 billion for the fiscal first quarter, driven by strong AI demand in Asia. The company posted a profit of $2.75 billion, or $2.19 a share, beating analyst expectations. More than a third of revenue came from China, with Korea and Taiwan also contributing significantly. Lam forecast revenue of $8.60 billion for the current quarter, with adjusted earnings per share projected at $2.33.
NVIDIA launches local AI tools for European developers
At GTC Berlin, NVIDIA announced a suite of local AI systems including RTX Spark, DGX Spark and DGX Station to support coding, engineering and robotics. The DGX Spark 64GB version became available on October 23, and NVIDIA Sync will support eight DGX Sparks. New features include Wi-Fi Assistant, improved manageability integrations and three open source robotics workflows. NVIDIA also introduced a local coding model called Flint and added support for several new AI models including Nemotron and DeepSeek.
Sources
- Upload a selfie, find out your "biological age." New FaceAge AI tool available for anyone to use.
- Tod Machover’s new symphony plays with AI while reflecting on democracy
- Google Sacrifices Cloud Revenue to Prioritize AI Race, CEO Admits
- Google CEO Admits Cloud Business Is Sacrificing Revenue to Win AI Race
- Otter Secures $320 Million to Turn AI Notetaker Into Enterprise Knowledge Engine
- Artificial Intelligence, Critical Minerals, and the Financial Abandonment of American Manufacturing
- It’s Now Meaningless To Ask How Much Of Our Code Is Written By AI, Because AI Influences All Of Our Code: Google CEO Sundar Pichai
- BBVA explores new approaches to AI agent security with NVIDIA
- Time for a Micron mindset shift? Here’s how to navigate the new AI landscape.
- Oracle Stock Is Falling as AI Spending Worries Mount. Most Analysts Think ORCL Could Rebound.
- Lam Research 1Q Sales Pop With AI Demand from Asia
- Bringing the Spark to Europe: Local Intelligence Powers Next Wave of Agents
Comments
Please log in to post a comment.