February 10, 2025

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Unlocking AI Potential with Cloud Services: Balancing Benefits and Risks

Unlocking Potential, Managing Risk: The Cloud AI Conundrum

Imagine being able to tap into AI services without needing expensive infrastructure or software — just like borrowing a garden tool from a neighbor. A cloud (AI) service works this way. It is a pay-as-you-go service that lets companies access advanced AI capabilities over the internet to do such things as develop AI applications, analyze data and other tasks.

What Is the Cloud?
The “cloud” refers to computers — or servers — software programs and networks owned by third parties that purchase, store, maintain and rent out their use to clients. That means businesses do not have to buy, store and maintain these servers and software programs themselves.

The Rise of AI in the Cloud
As AI gained traction, so did its residency in the cloud. Building AI models often requires significant computing power and large datasets, which big cloud companies like AWS, Microsoft Azure and Google Cloud can offer but would be complex and expensive for many companies.

By offering access to AI models in the cloud, companies can budget their AI expenses through the cloud’s pay-as-you-go model. Cloud AI services make advanced AI tools available to everyone, from startups to multinationals.

Cloud AI Providers
There are several major cloud service providers that have developed robust platforms that support AI development:

  • Amazon Web Services (AWS)
  • Microsoft Azure
  • Google Cloud Platform (GCP)

Pros and Cons of Cloud AI Services
Using cloud-based AI services companies in the following ways:

  • Cost Efficiency: No need to invest in expensive hardware or maintain dedicated AI infrastructure.
  • Accessibility: Advanced AI tools are available to businesses of all sizes, leveling the playing field.
  • Flexibility: Companies can choose from pre-built models or develop custom solutions tailored to their specific needs.
  • Speed: Rapid deployment and scaling allow businesses to innovate faster and respond to market changes quickly.
  • Maintenance-free: The cloud provider manages the underlying infrastructure, including updates and security patches.

The of using cloud AI services include:

  • Vendor lock-in: Once a company has chosen a cloud vendor, it is locked into the pricing, services and policies.
  • Pay as-you-go costs can add up: High volume or complex tasks may mean that a company will need to use services more than expected.
  • Data privacy and security: A company’s data is processed externally and it is dependent on the cloud provider to keep it secure.
  • Network dependency: If a cloud provider’s network goes down, so will a company’s access. Latency is another factor as well.
  • Limited control and flexibility: The cloud provider owns, manages and monitors the infrastructure.

Focus on AI, Ties as PM Begins France, US Trips

A collaborative approach to the inclusive use of AI and strengthening the India-US partnership will be in focus during Prime Minister Narendra Modi’s two-nation visit to France and the US that began on Monday.

Modi has arrived in France, where he will co-chair the AI Action Summit along with French President Emmanuel Macron in Paris on Tuesday. The two leaders will hold bilateral talks before Modi travels to Washington on February 12 for his first meeting with US President Donald Trump in his second term.

In a statement ahead of his departure, Modi said he looked forward to co-chairing the AI Action Summit, where “we will exchange views on collaborative approach to AI technology for innovation and larger public good in an inclusive, secure and trustworthy manner.”

The summit in Paris, the third of its kind, will be attended by world leaders such as US vice president JD Vance and Chinese vice premier Zhang Guoqing and global tech CEOs such as OpenAI’s Sam Altman and Google’s Sundar Pichai. Besides the launch of an AI Foundation, the summit is expected to focus on collaboration to ensure the safe and trustworthy use of AI.

Following the AI Summit, Modi and Macron will travel to the port city of Marseille, where they will hold bilateral talks and inaugurate a new Indian consulate on February 12.

Modi said the bilateral segment of his trip to France will be an opportunity to review progress on the 2047 Horizon Roadmap for the India-France strategic partnership along with Macron.

“We will also travel to the historic French city of Marseille to inaugurate the first Indian consulate in France and also visit the International Thermonuclear Experimental Reactor project, in which India is a member of the consortium of partner countries including France, to harness energy for the global good,” Modi said.

People familiar with planning for the trip said on condition of anonymity that the two sides will unveil a bilateral AI road map, a partnership for collaboration on small modular reactors (SMRs) and other measures aimed at deepening civil nuclear cooperation.

Modi will also pay tribute to Indian soldiers who died during World Wars 1 and 2 at the Mazargues War Cemetery.

From France, Modi will travel to the US at the invitation of Trump.

“I look forward to meeting my friend, President Trump. Although this will be our first meeting following his historic electoral victory and inauguration in January, I have a very warm recollection of working together in his first term in building a Comprehensive Global Strategic Partnership between India and the US,” Modi said.

The visit will be an “opportunity to build upon the successes of our collaboration in his first term and develop an agenda to further elevate and deepen our partnership, including in the areas of technology, trade, defence, energy, and supply chain resilience,” Modi said.

“We will work together for the mutual benefit of the people of our two countries and shape a better future for the world,” he said.

Modi’s visit to the US will come a week after an American military flight brought back 104 illegal migrants to Amritsar. Images of deportees in handcuffs and shackles triggered a nationwide outcry and the Indian side is expected to bring up this issue in Washington.

Trade, investment and energy procurement are expected to figure in the talks between Modi and Trump, who asked India to buy more US-made defence hardware and move towards a “fair bilateral trading relationship” during a recent phone call between the two leaders.

During Trump’s first term, Modi visited the US in 2017 and 2019, and was one of the first world leaders to call Trump and congratulate him after his election victory last year. After Trump’s inauguration, Modi called him again to wish him and the two leaders agreed to meet soon during this conversation. India was represented at Trump’s inauguration by external affairs minister S Jaishankar.

Amazon.com (AMZN): RBC Raises Price Target Amid AWS Strength and AI Investment

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On February 7, RBC Capital analyst Brad Erickson raised the firm’s price target on the stock to $265 from $255 and kept an “Outperform” rating on the shares.

The analyst told investors in a research note that the company’s Q4 results were mixed with a slight miss on third-party seller services and advertising revenues. There is also an implied $100B+ capex guide. These factors outweigh the company’s solid figures from Amazon Web Services (AWS) and continued EBITDA outperformance.

Overall, AMZN ranks 1st on our list of AI news updates you should not miss. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.

Elon Musk and Investors Offering $97.4 Billion for Control of OpenAI, WSJ Reports

According to the Wall Street Journal, Elon Musk and a group of investors are offering $97.4 billion to take control of OpenAI.

Elon Musk, CEO of Tesla Inc., is leading a group of investors in offering to buy control of OpenAI for $97.4 billion. The offer is for the nonprofit that oversees the artificial intelligence startup behind ChatGPT.

The consortium of investors includes Musk, his startup xAI, and long-time investors in his other businesses. In a statement sent to CNBC, Musk’s attorney Marc Toberoff said he submitted the offer on Monday.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Toberoff wrote.

The statement from Toberoff said that the offer is “to purchase all assets of OpenAI, Inc.” with funds to be “used exclusively to further OpenAI, Inc.’s original charitable mission.”

OpenAI CEO Sam Altman declined the offer, saying “no thank you but we will buy Twitter for $9.74 billion if you want.” Musk then replied to Altman on X, with a series of tweets.

Musk and Altman have been involved in a heated legal and public relations battle, with Musk accusing OpenAI of antitrust violations and trying to keep it from converting into a for-profit corporation.

It’s Time to Worry About DOGE’s AI Plans

Donald Trump and Elon Musk's chaotic approach to reform is upending government operations. Critical functions have been impacted, tens of thousands of federal staffers are being encouraged to leave, and congressional mandates are being altered. The next phase: The Department of Government Efficiency wants to use AI to cut costs.

According to The Washington Post, Musk's group has started to integrate AI programs to analyze spending and determine what could be pruned. This may lead to the elimination of human jobs in favor of automation. The ultimate aim is to use AI to replace dedicated and principled civil servants.

Using AI to make government more efficient is a worthy pursuit, and this is not a new idea. The Biden administration disclosed more than 2,000 AI projects in development across the federal government. For example, has started using AI to help perform damage assessment in disaster areas. The has started using AI to look for fraudulent billing.

The civil service—the massive cadre of employees who operate government agencies—plays a vital role in translating laws and policy into the operation of society. New presidents can issue sweeping executive orders, but they often have no real effect until they actually change the behavior of public servants.

This is why Trump and Musk's actions are so significant. The more AI decision making is integrated into government, the easier change will be. If human workers are widely replaced with AI, executives will have unilateral authority to instantaneously alter the behavior of the government, profoundly raising the stakes for transitions of power in democracy.

Television Academy to Raise AI with Lawmakers: ‘We Want to Focus on Its Ethical Use’

The Television Academy has long existed to celebrate industry excellence, handing out Emmy Awards each fall. However, the nonprofit organization has been branching out to boost its role advocating for its diverse membership by taking a deeper look at public policy that affects the industry.

The academy leadership, including Chairman Cris Abrego and President Maury McIntyre, have traveled to Washington this week to meet with lawmakers to discuss potential legislation on AI. The trip marks the academy leadership’s first major foray into lobbying.

Writers, actors, and other artisans are concerned about the use of AI, fearing cost-conscious companies will turn to automated computer programs to wipe out jobs. The 2023 labor strikes stretched for months as the Writers Guild of America and the .

“Television is being impacted,” McIntyre said in an interview.

The issue comes as the Television Academy is trying to serve its nearly 30,000 members, not just the lucky few who take home the trophy of a winged woman lifting an atom. The statuette was designed in the early years of the Space Age, more than 70 years ago when television was the upstart medium roiling the Hollywood studio establishment.

Abrego, a veteran reality show producer who has led the academy for the last year, and McIntyre are scheduled to meet with , recently elected and . They also plan to visit staff members of Sen. Todd Young (R-Ind.), Sen. Mike Rounds (R-S.D.) and California Republican Rep. Jay Obernolte.

The Television Academy CEO Maury McIntyre, left, and Chairman Cris Abrego have traveled to Washington this week to meet with lawmakers. The trip marks the academy leadership’s first major foray into lobbying.

The interview was edited for length and clarity:

Media companies, trade groups, and unions already lobby in Washington. What is the goal of your trip?

McIntyre : We represent all aspects of television. There are issues that affect our members that we can approach in a completely nonpartisan way. AI [is] impacting our members significantly, and they need a voice because they are not being represented right now. We are absolutely focusing on issues that impact all of our members and representing them in a nonpolitical way.

How is thea*cademy approaching AI and the challenges presentedby it*?

Abrego: This industry has long embraced technology. We want to be at the table to figure out how to best bring AI into our industry as a tool that helps us create more content. And we want to be mindful to protect people’s individuals rights so they [can] create their art.

McIntyre: We absolutely understand AI is a tool and as a tool that’s going to be used, and we support its use. We are not going to Washington to try to say if there’s any concern about using AI. We want to focus on its ethical use, specifically around copyright and artist protections. We are clearly an academy of storytellers and content creators and we want to make sure that those stories and content are being protected.

California politicians set the stage for more AI regulation in 2024, but they’ll also face challenges as they try to place more guardrails around AI’s impact on jobs, safety, and discrimination.

What is your benchmark for success for this trip?

Abrego: We want to make an impact so [lawmakers] know the academy can bring added value to their process of writing legislation. We sit in a unique position of hearing from our members — stunt people to visual effects to makeup artists and directors. We’re not a union or a production company, but we want to create value for our membership, and we’re part of the global economy.

Is thea*cademy also advocating for measures to try?*

Abrego: One hundred percent. A majority of our membership resides here in California, and it’s crucial that production comes back. This is a massive effort, but one begins on the state level.

McIntyre: We’ve come out strongly in support of the expansion of the tax incentive that Gov. Newsom announced in his budget. We would be open to a conversation about a federal tax incentive to keep productions in the U.S. Productions are not just leaving California, they are leaving the U.S. So anything we can do to incentivize productions to stay domestic would be huge.

SoftBank Explores Debt-Heavy Financing for $500 Billion AI Push

SoftBank Group Corp. founder Masayoshi Son is figuring out how to pay for the Stargate Project, an artificial intelligence venture with OpenAI that could cost $500 billion or more. The Japanese billionaire is looking at a technique called project financing that is sometimes linked with oil and gas projects.

SoftBank is exploring ways to incorporate some aspects of that funding structure in Stargate, which would span multiple datacenter and power-generation projects. One scenario under discussion would have SoftBank, OpenAI and partners Oracle Corp. and Abu Dhabi's MGX contribute in equity about 10% of the overall cost and tap debt markets for much of the rest.

The plan is to spend $100 billion immediately, Son told US President Donald Trump. For much of Stargate, however, SoftBank has yet to settle on where the money needed would come from and is in discussions to bring additional stakeholders onboard.

The discussions — still early — are taking place as the rise of Chinese startup DeepSeek's low-cost and open-source AI raises the prospect of a far more competitive and less lucrative landscape for tech providers ahead. OpenAI is also fielding an unsolicited bid led by Elon Musk, sparking further uncertainty for Stargate's fundraising plans.

SoftBank — which is in charge of funding Stargate — may resort to preferred equity, mezzanine debt and senior bank loans to raise the sums needed. The proportion of preferred equity and debt will depend on the additional investors who sign on to each project, which may focus on just semiconductors or servers.

With project finance as a model, one possible breakdown might be 10% in common equity, 20% in preferred equity and mezzanine debt and 70% in senior debt. Another scenario might have preferred stock and mezzanine debt make up 40%, with senior debt accounting for 50%.

No decisions have been made, and discussions are in flux. SoftBank is reaching out to more partners, and the anchor investors may ultimately opt for other forms of financing, depending on market conditions, the people said. Whether this financing structure is viable remains in question: Terms for project financing are determined in part by the undertaking's cash flow projections, and cash from AI services remain hypothetical.

Son stood alongside OpenAI's chief Sam Altman in meetings with Japanese Prime Minister Shigeru Ishiba and Samsung Electronics Co. chairman Jay Y. Lee last week in a bid to rally support for Stargate.

Meta’s AI Randomly Tried to Throw a Weird Party for Me—I Never Asked for

Everyone has a favorite moment from Super Bowl LIX. Eagles fans likely will long cherish the decisive victory over the Chiefs. Some will discuss Kendrick Lamar’s game-changing halftime show. Me? I was happy to see Puppy Monkey Baby again.

The former Mountain Dew mascot, which made its disturbing debut in 2016 and was widely hated by pretty much everyone, was part of DoorDash’s, a spot that crammed in more corporate mascots than anyone thought possible. For some reason, that stirred some nostalgic feelings in me and I took to Facebook to post “I, for one, am THRILLED to see the return of Puppy Monkey Baby!!!” That’s when things got weird.

I made the post, basically, to amuse myself. A short while later, during a less interesting commercial break, I decided to see if any of my friends were equally excited about the weirdest of all possible mascots. (They were, for the most part, not.) However, I had received a notification from Meta saying I could manage invites to friends on and off Facebook by creating an event – and it had taken the liberty of choosing the time, date and informational copy for this event, which it dubbed “Puppy Monkey Baby Returns!”

“The wait is over!,” the page read. “Puppy Monkey Baby is back and better than ever! Join us for a fun-filled evening of laughter, joy, and excitement as we celebrate the return of our beloved Puppy Monkey Baby. With special performances, giveaways, and surprises, this is an event you won’t want to miss!”

“This preview,” it added in small print at the bottom, “was generated by AI.”

Ah. Yes. Of course it was.

On the one hand, this made sense. It looks like something an AI system would generate when it’s in the midst of a hallucinogenic fever dream. And perhaps keywords like “baby” and “thrilled” led the system to think I was about to become a father and wanted to celebrate.

Key Takeaways

  • Cloud AI services are becoming increasingly popular, offering cost efficiency, accessibility, flexibility, speed, and maintenance-free infrastructure.
  • However, using cloud AI services also comes with vendor lock-in, pay-as-you-go costs, data privacy and security concerns, network dependency, and limited control and flexibility.
  • The Indian government is focusing on AI and strengthening its partnership with the US during Prime Minister Narendra Modi’s two-nation visit to France and the US.
  • Elon Musk and a group of investors are offering $97.4 billion to take control of OpenAI.
  • SoftBank is exploring debt-heavy financing for its $500 billion AI push, including project financing and preferred equity.
  • Meta’s AI randomly tried to throw a weird party for me, highlighting the potential risks and challenges of AI-generated content.
  • The Television Academy is advocating for the ethical use of AI in the entertainment industry, focusing on copyright and artist protections.
  • The rise of Chinese startup DeepSeek's low-cost and open-source AI raises the prospect of a far more competitive and less lucrative landscape for tech providers ahead.

Sources

Cloud AI Artificial Intelligence AI Services Cloud Computing Amazon Web Services Microsoft Azure Google Cloud Platform AI in the Cloud Cloud AI Providers AI Ethics AI Regulation AI in Entertainment AI in Government SoftBank OpenAI Meta AI DeepSeek AI Financing Project Financing Preferred Equity Mezzanine Debt Senior Debt AI-generated Content AI-generated Events AI-generated Parties AI-generated Text AI-generated Content Risks AI-generated Content Challenges