Nvidia is reportedly in talks with Hugging Face, an open-source AI model layer, for a $12.9 billion deal. This deal would strengthen Nvidia's connection to the model layer that runs on its GPUs. Meanwhile, Dell reported a record $60.9 billion in AI orders, with AI-optimized server revenue doubling year over year to $16.4 billion.
OpenAI demoed ChatGPT Work skills, which can debate marketing briefs with synthetic buyer personas built from past research and Salesforce data. The skill can pressure-test a brief, surface scorecards, and simulate meetings. This comes as AI regulation is becoming increasingly politicized, with some calling for faster AI model releases and others for a pause.
California lawmakers passed two bills aimed at strengthening safety protocols for AI chatbots, including one that requires companies to conduct rigorous testing of their chatbots before releasing them to the public. Another bill bans the sale of AI-powered chatbot toys for children under 16.
AI outages hit OpenAI, Anthropic, and xAI, disrupting customers of the three leading US AI model makers. The outages were reported through user reports and company status pages. In other news, Zscaler reported its tenth consecutive earnings beat, with revenue growing 24.9% year over year to $898.18M.
Accenture leads on AI monetization and ROIC, with 22.9% ROIC and 13.7x forward P/E. The consulting sector is cautiously constructive, rewarding AI monetization and punishing weak growth.
Key Takeaways
['Nvidia is in talks with Hugging Face for a $12.9 billion deal to strengthen its connection to the model layer that runs on its GPUs.', 'Dell reported a record $60.9 billion in AI orders, with AI-optimized server revenue doubling year over year to $16.4 billion.', 'OpenAI demoed ChatGPT Work skills, which can debate marketing briefs with synthetic buyer personas built from past research and Salesforce data.', 'California lawmakers passed two bills aimed at strengthening safety protocols for AI chatbots, including one that requires companies to conduct rigorous testing of their chatbots before releasing them to the public.', 'Another California bill bans the sale of AI-powered chatbot toys for children under 16.', 'AI outages hit OpenAI, Anthropic, and xAI, disrupting customers of the three leading US AI model makers.', 'Zscaler reported its tenth consecutive earnings beat, with revenue growing 24.9% year over year to $898.18M.', 'Accenture leads on AI monetization and ROIC, with 22.9% ROIC and 13.7x forward P/E.', 'The AI regulation debate is becoming increasingly politicized, with some calling for faster AI model releases and others for a pause.', 'Washington is considering two industry-run options for AI regulation: a FINRA-style body funded by firms it oversees and an MPA-style voluntary ratings scheme.']Zscaler's AI boom lifts stock
Zscaler reported its tenth consecutive earnings beat, with shares surging double digits. The company's cloud security platform uses AI to help businesses protect against threats. CEO Jay Chaudhry said Zscaler is well-equipped to combat AI-created threats. The company's revenue grew 24.9% year over year to $898.18M. Zscaler's guidance for the next quarter and full year was above expectations.
Dell's $60.9B AI order
Dell reported a record $60.9 billion in AI orders, but its stock fell 6.8% due to margin concerns. The company's AI-optimized server revenue doubled year over year to $16.4 billion. Dell's full-year fiscal 2027 revenue guidance was raised to $192 billion, with AI-optimized servers revenue guided to $74 billion. The company's free cash flow fell 47.22% year over year.
NVIDIA up on Hugging Face deal
NVIDIA's stock rose 4% on reports of a $12.9 billion deal with Hugging Face, an open-source AI model layer. The deal would tighten NVIDIA's connection to the model layer that runs on its GPUs. Dell's stock also jumped 8% after its guidance beat. Dell reported fiscal second-quarter revenue of $46.97 billion, up 57.8% year over year.
California's chatbot safety bill
California lawmakers passed a bill aimed at strengthening safety protocols for AI chatbots that interact with teenagers. The bill, known as Adam's Law, requires companies to conduct rigorous testing of their chatbots before releasing them to the public. The bill also establishes a new state agency to oversee the development and use of AI technology.
California bans AI chatbot toys
California lawmakers passed a bill that would ban the sale of AI-powered chatbot toys for children under 16. The bill aims to protect children from potential risks such as data collection and unhealthy behaviors. The bill now awaits the signature of Governor Gavin Newsom.
OpenAI's ChatGPT Work skills
OpenAI demoed ChatGPT Work skills, which can debate marketing briefs with synthetic buyer personas built from past research and Salesforce data. The skill can pressure-test a brief, surface scorecards, and simulate meetings. The demo showed the system's potential to improve marketing efforts.
Washington's AI regulator options
Washington is considering two industry-run options for AI regulation: a FINRA-style body funded by firms it oversees and an MPA-style voluntary ratings scheme. The debate is over the degree of self-regulation rather than the principle. Mark Zuckerberg raised concerns about a national AI regulator in a call with Donald Trump.
Accenture leads on AI monetization
Accenture leads on AI monetization and ROIC, with 22.9% ROIC and 13.7x forward P/E. The consulting sector is cautiously constructive, rewarding AI monetization and punishing weak growth. Accenture's AI strategy and Google Cloud partnership are key growth drivers.
Netlist's Samsung alliance
Netlist's alliance with Samsung has reshaped its AI memory ambitions and litigation-driven strategy. The partnership addresses a long-running legal overhang and secures supply from a top-tier memory maker. Netlist's stock has seen a large year-to-date move.
AI regulation showdown
Mark Zuckerberg wants faster AI model releases, while Bernie Sanders calls for a pause. The debate over AI regulation has become increasingly politicized. The White House is involved in the debate, with some officials calling for faster AI model releases and others calling for a pause.
Bessent blasts US hyperscalers
Treasury Secretary Scott Bessent criticized US companies for not building ties with communities amid concerns over AI and data centers. Bessent's comments come as the US sees a surge in investment in AI.
DocuSign stock rises
DocuSign's stock rose overnight after the company reported a Q2 beat. The company's AI platform is turning agreement data into a new growth engine. DocuSign's Intelligent Agreement Management adoption gained in the second quarter.
AI outage hits OpenAI, Anthropic, and xAI
OpenAI, Anthropic, and xAI were hit by outages that disrupted customers of the three leading US AI model makers. The outages were reported through user reports and company status pages.
Sources
- Zscaler Beat, Raised, and Jumped Double Digits While AI Agents Attack Its Customers
- Dell's Record $60.9 Billion AI Order Quarter Leaves Stock Investors Unimpressed—Here's Why
- NVIDIA Rises 4% on Reported $12.9B Hugging Face Deal, Dell Jumps 8% After Guidance Beat
- California lawmakers just passed Adam’s Law, a new chatbot safety bill. Here’s what it would do — Transparency Coalition. Legislation for Transparency in AI Now.
- California moves to ban AI chatbot toys for kids under 16
- OpenAI ChatGPT Work skills pressure-test briefs
- Washington's two AI regulator options are both industry-run
- Consulting sector outlook: Accenture leads on AI monetization and ROIC
- Is Netlist’s (NLST) Samsung Alliance Reshaping Its AI Memory Ambitions And Litigation-Driven Strategy?
- AI Regulation Showdown: Zuckerberg Wants Speed, Sanders Calls for a Pause
- Bessent Blasts US Hyperscalers for Failure to Tout AI Benefits
- DOCU Stock Rises Overnight After Q2 Beat: DocuSign's AI Platform Is Turning Agreement Data Into A New Growth Engine
- OpenAI Anthropic xAI outage today hits US
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