The artificial intelligence sector continues to see significant investment and growth, with major players like Nvidia and Palantir Technologies driving innovation. Nvidia, a leader in AI hardware, has increased its stake in cloud company CoreWeave, which provides high-powered computing for AI workloads and saw its revenue triple to $1.2 billion in the second quarter. Meanwhile, Dutch company Nebius Group, also focused on AI data centers, has significantly outperformed Nvidia and Palantir with a 136% stock increase in 2025, driven by a 545% revenue surge to $156 million in the first half of the year. In a different area of AI, OpenAI's Startup Fund has invested $55 million in Adaptive Security, a company developing AI tools to combat social engineering attacks and AI-driven fraud. C3.ai has launched a new product, C3 AI Agentic Process Automation, which uses autonomous AI agents to manage business workflows, aiming to enhance efficiency. SoundHound AI reported strong second-quarter results with sales of $42.7 million, a 217% year-over-year increase, and has raised its full-year revenue outlook. Oracle's stock surged significantly, up to 42%, on strong guidance for its AI-driven cloud business, increasing its market value by approximately $270 billion. In quantum computing, PsiQuantum has raised $1 billion in a Series E funding round, valuing the company at $7 billion, with participation from Nvidia's venture arm. TeraWulf Inc., a Bitcoin mining and high-performance computing company, has seen its stock rally, partly due to investor optimism from AI advancements and an announced $3.2 billion investment from Google. However, not all AI strategies are purely expansionary, as Klarna is adjusting its approach, slowing AI chatbot use to improve customer service after an aggressive initial adoption for cost-cutting.
Key Takeaways
- Nvidia has increased its investment in CoreWeave, a cloud company that provides AI computing and reported $1.2 billion in revenue in Q2.
- Nebius Group, an AI data center company, has seen its stock rise 136% in 2025, with first-half revenue reaching $156 million, a 545% increase.
- OpenAI's Startup Fund invested $55 million in Adaptive Security to help combat AI-driven fraud and social engineering attacks.
- C3.ai has launched a new product, C3 AI Agentic Process Automation, utilizing autonomous AI agents for business workflows.
- SoundHound AI reported strong Q2 sales of $42.7 million, a 217% year-over-year increase, and raised its full-year revenue outlook.
- Oracle's stock jumped up to 42% following strong guidance for its AI-driven cloud business, adding approximately $270 billion to its market value.
- PsiQuantum, a quantum computing startup, raised $1 billion in Series E funding, valuing the company at $7 billion, with participation from Nvidia's venture arm.
- TeraWulf Inc. is experiencing stock gains driven by AI optimism and a planned $3.2 billion investment from Google.
- Palantir Technologies reported a 93% surge in U.S. commercial revenue, indicating strong growth in its AI software offerings.
- Klarna is re-evaluating its aggressive AI chatbot strategy, aiming to balance cost savings with improved customer service.
AI stocks Palantir and Nvidia offer big growth potential
Artificial intelligence is expected to boost global productivity by trillions, and companies like Palantir Technologies and Nvidia are key players. Palantir provides software that helps businesses improve efficiency and profitability, with its U.S. commercial revenue surging 93% year over year. Nvidia supplies essential hardware, particularly GPUs, for AI development, seeing its data center revenue grow 56% year over year. Both companies are poised for significant long-term growth as AI adoption expands across industries.
Nvidia increases stake in cloud company CoreWeave
Nvidia, a leader in AI chips, has increased its investment in CoreWeave, a cloud company that provides high-powered computing for AI workloads. Nvidia now owns over 91% of its investment portfolio in CoreWeave, which offers access to Nvidia GPUs. CoreWeave's revenue tripled to $1.2 billion in the second quarter, and it is expanding its data center capacity. While CoreWeave faces competition and is not yet profitable, Nvidia's increased investment signals strong confidence in its future growth potential.
Nebius Group stock soars past Nvidia and Palantir
Nebius Group, a Dutch company focused on AI data centers, has seen its stock price jump 136% in 2025, outperforming AI giants Nvidia and Palantir Technologies. The company offers GPU-powered cloud infrastructure for AI workloads, with revenue increasing 545% to $156 million in the first half of 2025. Nebius is rapidly expanding its data center capacity to meet high demand and has increased its revenue forecast for the year. Despite a growing net loss, its strong revenue growth and expansion plans suggest significant future potential.
Nebius Group stock outperforms Nvidia and Palantir
Nebius Group, a Dutch company specializing in AI-focused data centers, has significantly outperformed Nvidia and Palantir Technologies with a 136% stock increase in 2025. The company provides GPU-powered cloud infrastructure for AI workloads, experiencing a 545% revenue surge to $156 million in the first half of the year. Nebius is expanding its data center capacity and has raised its revenue forecast to $1 billion for 2025. While currently unprofitable, its rapid growth and expansion plans position it for future success in the cloud AI infrastructure market.
OpenAI Fund invests $55 million in Adaptive Security
Adaptive Security, a company focused on preventing AI-driven social engineering attacks, has received a $55 million investment from the OpenAI Startup Fund. This funding highlights OpenAI's confidence in Adaptive's approach to protecting individuals against evolving AI threats like deepfakes and impersonation. The company's platform uses AI simulations for training and risk assessment to combat sophisticated cyber threats. With this investment, Adaptive plans to scale its solutions and continue developing defenses against AI-enabled fraud.
OpenAI backs Adaptive Security with $55 million to fight AI fraud
Adaptive Security, which develops AI tools to prevent social engineering attacks, has secured $55 million in Series A funding, including a significant investment from the OpenAI Startup Fund. This backing makes Adaptive the sole cybersecurity company supported by OpenAI's venture arm, emphasizing its unique focus on human-centered protection against AI threats. The company's platform uses AI-powered simulations and personalized training to combat deepfakes and impersonation scams. This funding will help Adaptive scale its operations and enhance its defenses against AI-driven fraud.
C3.ai launches new AI automation product
C3.ai has introduced C3 AI Agentic Process Automation, a new product utilizing autonomous AI agents to manage business workflows. This technology aims to replace traditional robotic process automation with AI models capable of reasoning and executing predetermined steps. The product is designed to handle various enterprise processes, from order-to-cash to employee onboarding, enhancing efficiency and reliability. C3.ai CEO Stephen Ehikian stated this innovation marks a significant shift in how work is performed.
SoundHound AI stock surges on strong Q2 results
SoundHound AI experienced a significant 26% stock price increase in August, driven by strong second-quarter financial results. The company reported sales of $42.7 million, beating analyst expectations, and a year-over-year sales increase of 217%. Despite some initial pullbacks due to AI stock valuation concerns and broader economic reports, bullish momentum returned. SoundHound AI has raised its full-year revenue outlook to between $160 million and $178 million, indicating continued strong growth.
Klarna slows AI chatbot use to improve customer service
Swedish buy-now-pay-later company Klarna is adjusting its strategy after aggressively adopting AI to cut costs. CEO Sebastian Siemiatkowski stated the company may have overemphasized AI for cost savings at the expense of service and product improvement. While Klarna saved millions by reducing staff and vendors, it is now hiring again and focusing on enhancing customer and merchant experiences. Despite the shift, Klarna still sees AI as crucial for future growth and better services.
TSMC August sales jump due to AI demand
Taiwan Semiconductor Manufacturing Company (TSMC) reported a 24% year-over-year increase in August sales, reaching NT$335.77 billion. This strong performance places the chipmaker ahead of its third-quarter projections, with analysts noting robust AI demand as a key driver. Despite currency fluctuations, TSMC's consistent performance and positive outlook for AI and data center momentum lead analysts to maintain a constructive view. Wedbush reiterated an 'Outperform' rating with a $1,300 price target.
Oracle stock soars on AI-driven cloud outlook
Oracle Corp. experienced a record-breaking day with its stock jumping as much as 42% after announcing strong guidance for its cloud business, signaling high demand for AI. This surge cemented Oracle's position as a key provider of computing capacity for AI technologies. The company's market value increased by approximately $270 billion, making it the 10th most valuable U.S. company. The stock's performance also made Chairman Larry Ellison the world's richest person for the first time.
PsiQuantum raises $1 billion for quantum computing
PsiQuantum, a startup developing quantum computers, has raised $1 billion in a Series E funding round, valuing the company at $7 billion. The investment, led by BlackRock, Baillie Gifford, and Temasek, with participation from Nvidia's venture arm, NVentures, highlights growing investor confidence in quantum computing's potential. The funds will support PsiQuantum's development of a large-scale, photonics-based quantum computer. This significant funding round follows other major investments in the quantum computing sector.
TeraWulf stock hits new high on AI optimism
TeraWulf Inc., a Bitcoin mining and high-performance computing (HPC) company, saw its stock rally significantly, nearing its 52-week high. This surge was partly driven by investor optimism spilling over from other HPC companies benefiting from AI advancements. TeraWulf recently expanded a partnership with Google for IT capacity, with Google announcing intentions to invest $3.2 billion in the company. While AI stocks are generally promising, some analysts believe certain AI stocks may offer greater potential with less risk.
Sources
- Long-Term Investors Shouldn't Ignore These AI Growth Powerhouses @themotleyfool #stocks $PLTR $NVDA $GOOGL $AMZN $MS $GOOG
- Nvidia Quietly Boosted Its Stake in This AI Stock That's Climbed 120% in 5 Months. Should You Follow? @themotleyfool #stocks $CRWV $NVDA $GOOGL $AMZN $GOOG
- Meet the Artificial Intelligence (AI) Stock That Is Crushing Nvidia and Palantir on the Market
- Meet the Artificial Intelligence (AI) Stock That Is Crushing Nvidia and Palantir on the Market @themotleyfool #stocks $NBIS
- OpenAI Fund Extends Investment in Adaptive Security, Raising Total to $55 Million in Series A
- Adaptive Security: $55 Million Raised With Continued Backing From OpenAI To Combat AI-Driven Fraud
- 10 Hot AI Stocks to Keep on Your Radar
- Why SoundHound AI Stock Skyrocketed 26% Last Month and Has Kept Soaring in September
- Europe's AI poster child Klarna taps the brakes on chatbots
- Taiwan Semiconductor sees August sales surge on robust AI demand
- What Oracle’s AI-Fueled Stock Market Leap Means in Four Charts
- PsiQuantum hits $7 billion valuation as investors bet on quantum’s AI-style potential
- TeraWulf (WULF) Hits New High as Renewed AI Optimism Spills Over to Stock