#ai-investment

#ai-investment

As the Washington Post observed in newreporting on the AI bubble, speculative investment into AI development is now the dominant force driving the US economy. By the numbers, the US GDP has grown at a rate of 1.6 percent so far this year, on pace to hit the 2.8 percent growth it achieved in 2024. That's all well and good on paper, except for the troubling fact that two-thirds of that growth came from AI, per WaPo 's analysis.

Meta Platforms financial results have been impressive in the first half of the year. Its strong growth has been fueled by robust advertising demand and an engaged user base across its social media apps. The company, which owns Facebook, Instagram, WhatsApp, Messenger, and Threads, is making significant investments in artificial intelligence (AI) and innovative ad formats -- all while revenue and earnings are soaring. No wonder the Street has been buying up the stock.

In 2021, global femtech investment peaked at before plunging to just €1.1bn the next year, amid a tech funding apocalypse and capital making a headlong dash towards AI. Several factors contributed to this decline - broader market conditions, withering investor risk appetite, and natural sector maturation. But the surge in AI funding coinciding with a plunge in femtech investment highlights serious issues with capital allocation.

ASML is reportedly becoming the main shareholder of French AI company Mistral AI through a €1.3 billion investment in the new €1.7 billion financing round. The new valuation of €10 billion makes Mistral the most valuable AI company in Europe. ASML's €1.3 billion should help Mistral as a European AI player in a battle dominated by American parties. Only China's DeepSeek has managed to break the hegemony of OpenAI, Google, Anthropic, and Meta.

Technologies from AI to advanced robotics have been celebrated for their ability to lighten people's workload. But despite their promises, these technologies aren't being used to improve workers' lives or keep them safe. In 2023, 385 workers died every day due to hazardous working conditions, with over 3 million more work-related injuries and illnesses reported that year in the United States.

Tesla's integration of Grok into its vehicles demonstrates the tangible benefits of collaboration with xAI. As Tesla pivots toward AI-driven technologies, including Full Self-Driving and robotics, a strategic investment in xAI would secure access to advanced AI capabilities, enhance product innovation, and drive shareholder value. The board, which often suggests investors vote against shareholder proposals, is neutral on this one.

"Thank you for being such a pro-business, pro-innovation president. It's a very refreshing change,"

It could also be seen as reflecting a collective insanity in the world of finance. While the company boasted impressive growth and claimed its run-rate revenue has increased from $1 billion to $5 billion so far in 2025 alone, $13 billion is still a significant bet to place on a technology more notable for burning cash rather than generating profits.

The UK is emerging as one of the world's most attractive destinations for technology businesses, outpacing rivals in the US, Europe and Asia-Pacific, according to new research from Barclays. The bank's latest Business Prosperity Index found that 62 per cent of UK tech leaders see their home market as a better place to grow and scale a business than mainland Europe, with 61 per cent preferring the UK to Asia-Pacific and 60 per cent favouring it over the US.

When President Trump returned to the White House his intention was clear: Make America Great Again. But the United States's economic partners, and some of its rivals, are also benefitting from having the unorthodox showman back in the Oval Office. Investors are watching the U.S. stock market with both enthusiasm and trepidation: The S&P 500 is up 15% over the past year, Treasuries have remained relatively steady, and the Fed's monetary policy is expected to begin a downwards trajectory.

Sam Altman remarked that he believes AI could be in a "bubble," suggesting that investors are overexcited about AI, yet expects OpenAI to invest trillions in data centers.

This week, tech companies are spending amounts of money that stretch the limits of the imagination, with significant investments in AI leading the charge.

Only 7.2% of teams rate their AI strategy as "super effective" with strong ROI. 91% of workers use just 1-4 AI tools weekly, despite companies investing in dozens.

Confidence in corporate AI strategy among C-suite leaders has dropped 11 percentage points in the past year - down to 58 percent in 2025 from 69 percent in 2024.

The Professional and Business Services sector, vital for the UK's economy, is set to receive transformative AI funding exceeding £150 million to enhance growth.