OpenAI Anthropic Show Growth as Google Nvidia Drive AI Spending

The artificial intelligence sector continues to draw significant investment and demonstrate robust growth, though experts are emphasizing the need for profitability. Glen Kacher from Light Street Capital notes the strong usage and revenue growth from companies like OpenAI, Anthropic, and Google, but he cautions that many AI firms must prove their ability to generate profits within the next one to three years. Kacher advises investors to favor profitable entities, such as semiconductor companies and Google, over speculative ventures. Echoing this sentiment of strength, Tom Lee of Fundstrat Global Advisors highlights substantial AI spending and ongoing developments, asserting that even leading AI companies like Nvidia are not overvalued compared to other successful businesses. Lee also draws a parallel between Palantir and early Tesla, suggesting Palantir's unique technology could drive considerable expansion. Underpinning this growth, companies are actively enhancing their platforms for AI workloads. Red Hat recently launched OpenShift version 4.20, its enterprise Kubernetes platform, which integrates powerful AI features, enhanced security with quantum-resistant encryption, and expanded virtualization options for hybrid clouds. This update includes the LeaderWorkerSet API for managing large AI tasks and an improved AI assistant, OpenShift Lightspeed. Similarly, SUSE introduced updates to SUSE Rancher Prime and SUSE AI, aiming to simplify and secure AI workloads. These enhancements feature a Universal Proxy for managing AI model connections and faster AI inference through tools like vLLM, with SUSE also partnering with NVIDIA and Red Hat and introducing Liz, an AI agent for Kubernetes management. For developers, Moonshot AI released Kosong, a new Python library designed to streamline the creation of AI applications by acting as an intermediary layer between an AI agent's logic and various large language model providers. AI's influence is rapidly expanding into diverse applications, from healthcare to financial compliance. Medicare is set to cover over $1,000 for AI-driven analysis of heart scans, a service currently costing patients around $850, provided by companies such as Heartflow, Cleerly, and Elucid. This move, while promising better patient care, raises concerns among some medical groups about rising healthcare costs. In a significant medical advancement, MIT computer science professor Regina Barzilay, a breast cancer survivor, developed an AI tool that could potentially reduce the need for annual mammograms by analyzing electronic medical records. Furthermore, researchers at the University of Central Florida are combining ultrasound technology with AI to develop more personalized and faster treatments for back pain, with plans for clinical trials. On the business front, Sovos announced that its Sovi AI Tax Compliance Cloud platform now automatically classifies product tax codes and maps data using machine learning, helping global businesses like those using SAP and Oracle to accurately determine sales, use tax, and VAT, with early access slated for December 2025. However, the rapid integration of AI also brings challenges. An Accenture report reveals a significant gap in the UK, where 78% of professionals use generative AI weekly, yet only 24% have received training, potentially hindering productivity and creating security risks. Despite this, 91% of workers are eager to acquire new AI skills. Ethical considerations are also paramount; a "60 Minutes" report highlighted how AI systems, such as GM OnStar, can share private data, impacting personal choices and leading to consequences like higher insurance costs. Experts advocate for robust ethical and regulatory frameworks, suggesting AI be treated as a public utility to ensure fairness, safety, and user control. These critical discussions on AI, cryptocurrency, and the broader economy are central to events like the Yahoo Finance Invest conference, bringing together leaders to explore future market trends.

Key Takeaways

• AI investment remains strong, but experts like Glen Kacher emphasize the need for AI companies, including OpenAI, Anthropic, and Google, to demonstrate profitability within 1-3 years.
• Tom Lee of Fundstrat Global Advisors maintains a positive outlook on the AI market, noting substantial spending, comparing Palantir's growth to early Tesla, and stating Nvidia is not overpriced.
• Red Hat's OpenShift 4.20 introduces advanced AI features, quantum-resistant security, and enhanced virtualization for hybrid clouds, including the LeaderWorkerSet API and OpenShift Lightspeed.
• SUSE updated Rancher Prime and SUSE AI to simplify secure AI workloads, featuring a Universal Proxy, faster AI inference with vLLM, and a partnership with NVIDIA and Red Hat.
• Medicare will begin paying over $1,000 for AI-powered heart scan analysis from companies like Heartflow, Cleerly, and Elucid, with private insurers following next year.
• Sovos's Sovi AI Tax Compliance Cloud automates product tax code classification and data mapping for sales, use tax, and VAT, with early user access in December 2025.
• Moonshot AI released Kosong, a Python library, to simplify the development of AI applications by providing a consistent layer for managing large language models and tools.
• The UK faces a significant AI training deficit, with 78% of professionals using generative AI weekly but only 24% receiving training, according to an Accenture report.
• Ethical and regulatory frameworks are deemed vital for AI, with calls to treat AI as a public utility to safeguard human choice and privacy, as exemplified by GM OnStar's data sharing.
• MIT professor Regina Barzilay developed an AI tool for improved breast cancer screening, and UCF researchers are using AI with ultrasound for personalized back pain treatment.

Glen Kacher says AI trade is strong but needs profit

Glen Kacher from Light Street Capital believes AI investment is still very strong. Companies like OpenAI, Anthropic, and Google show huge growth in AI usage and revenue. However, Kacher warns that many AI companies still need to prove they can make a profit over the next one to three years. Big tech companies are spending a lot on AI infrastructure. He advises investors to focus on profitable companies like semiconductor firms and Google, and to avoid speculative meme stocks.

Tom Lee says AI market is strong despite concerns

Tom Lee from Fundstrat Global Advisors believes the AI market is still very strong. He says there is a lot of AI spending and constant new developments. Lee points out that even top AI companies like Nvidia are not overpriced compared to other successful businesses like Costco. He also compares Palantir to early Tesla, suggesting its unique technology could lead to big growth. Lee thinks recent market ups and downs are due to fund managers trying to catch up, not because AI is weak.

Red Hat boosts OpenShift with AI security and virtualization

Red Hat released OpenShift version 4.20, its enterprise Kubernetes platform. This new version adds powerful AI features, stronger security, and more virtualization options for hybrid clouds. It includes quantum-resistant encryption to protect against future threats and tools like LeaderWorkerSet API to manage large AI workloads. Red Hat also improved its AI assistant, OpenShift Lightspeed, and made virtualization more efficient with Arm architecture support. These updates help organizations modernize applications and meet data location requirements.

SUSE enhances platforms for simpler secure AI workloads

SUSE launched new updates for SUSE Rancher Prime and SUSE AI to make AI workloads simpler and more secure. These platforms help businesses use AI effectively, track their investments, and keep data safe. New features include a Universal Proxy to manage AI model connections and faster AI inference with tools like vLLM. SUSE AI also offers better ways to watch how AI systems perform. SUSE is working with partners like NVIDIA and Red Hat and introduced Liz, an AI agent for Kubernetes management.

Sovos AI automates product tax codes and data mapping

Sovos announced that its Sovi AI Tax Compliance Cloud platform now automatically classifies product tax codes and maps data. This new feature uses machine learning to quickly and accurately determine sales and use tax and VAT. It helps global businesses avoid manual errors and speeds up their tax compliance. The Sovi AI platform can analyze product details from systems like SAP and Oracle to suggest correct tax codes. It also automates data mapping for VAT filing services. These new tools will be available to early users starting in December 2025.

Moonshot AI launches Kosong for easier LLM development

Moonshot AI released Kosong, a new Python library that simplifies building AI applications. Kosong works as a layer between an AI agent's logic and different large language model providers. This makes it easier for developers to manage various models and tools as they change. The library offers key functions like generate for chat completion and step for agents that use tools. Kosong also provides consistent ways to handle messages, streaming, token usage, and tool integration.

Ethical rules are vital for AI and human behavior

AI is changing how people behave and interact, often by forcing consent and reducing personal choice. A '60 Minutes' report showed how systems like GM OnStar can share private data, leading to higher insurance costs. Experts say AI needs strong ethical and regulatory rules to protect human freedom. They suggest treating AI like a public utility, similar to electricity or water, to ensure fairness, safety, and user control. This layered approach helps preserve people's ability to make independent choices in an AI-driven world.

Medicare to pay over $1000 for AI heart scans

Medicare will soon pay over $1,000 for artificial intelligence to analyze heart scans. Currently, patients pay around $850 for this AI plaque analysis, which helps doctors understand heart disease better. Companies like Heartflow, Cleerly, and Elucid provide this technology. While AI firms say the cost is worth it due to better patient care and avoiding expensive procedures, some medical groups worry about the rising costs of AI in healthcare. Private insurance companies will also begin covering these AI algorithms next year.

UK AI training lags behind high demand

A new report from Accenture warns that AI training in UK businesses is far behind the actual demand. The study found that 78% of UK professionals use generative AI weekly, but only 24% have received any training for it. This gap could prevent the UK from reaching its AI productivity goals and might even create security risks. However, 91% of workers are eager to learn new AI skills. Accenture suggests leaders should create environments where learning AI is part of everyday work.

MIT professor creates AI tool to improve breast cancer screening

MIT computer science professor Regina Barzilay, a breast cancer survivor, created an AI tool that could help people avoid annual mammograms. After her own cancer diagnosis, she found the US healthcare system lacked good data analysis from electronic medical records. Her background in natural language processing helped her develop this innovative AI solution. Barzilay is recognized on the MarketWatch 25 list for her work in changing how we live.

Yahoo Finance Invest discusses AI crypto and economy

Yahoo Finance is holding its yearly Invest conference, bringing together important leaders from business, politics, and finance. The event will feature special talks about key topics shaping the future of markets. These topics include the fast growth of artificial intelligence, the changing world of cryptocurrency, and the overall economic situation. Attendees will get expert insights and discussions on the opportunities and challenges in these dynamic areas.

UCF uses AI and ultrasound to treat back pain

Researchers at the University of Central Florida are combining ultrasound technology with artificial intelligence to improve back pain treatment. Dr. Colby Mangum's READY Lab collects many ultrasound images to teach AI how to recognize healthy and unhealthy back muscles. Dr. Laura Brattain aims for the AI to quickly identify and measure muscles, and tell the difference between normal and problem conditions. This could help doctors create faster, more personalized treatment plans for low-back pain, which affects millions worldwide. The team plans to move their AI-powered ultrasounds to clinical trials.

Sources

• AI Trade Endures, But Profitability Remains the Ultimate Test
• Tom Lee: AI Trade Fundamentals Remain Robust Amidst Market Scrutiny
• Red Hat strengthens OpenShift with AI, security and virtualization upgrades
• SUSE Delivers Simplicity, Security and Deeper Observability for AI Workloads
• Sovi AI Now Automates Product Tax Code Classification, Sovos Says
• Moonshot AI Releases Kosong: The LLM Abstraction Layer that Powers Kimi CLI
• AI's Impact on Social Psychology: Ethical Guardrails Matter
• Medicare will pay more than $1,000 for AI to analyze a heart scan. Is that too much?
• AI training is falling far behind demand, report warns
• She survived breast cancer. Now her AI tool could help you skip annual mammograms.
• Yahoo Finance Invest features exclusive conversations on AI, crypto, and the economy
• UCF researchers marrying ultrasound with AI to better treat back pain