Tech Giants Set to Boost AI Investment to $320 Billion in 2025
Feb 8, 2025
Consumer Tech News Overview (Feb 3-Feb 7)
Between February 3 and February 7, the world of consumer technology witnessed significant developments. The federal appeals court in San Francisco expressed doubts about Alphabet Inc.'s efforts to overturn a jury decision favoring Epic Games, the creator of Fortnite.
Additionally, a federal judge ruled that parts of Elon Musk's lawsuit against OpenAI would proceed to trial. This case revolves around Musk's attempts to stop OpenAI from shifting to a for-profit model.
Earnings Reports
Spotify Technology reported its fourth-quarter earnings, which came in at $1.88 per share, falling short of analyst expectations at $2.06. However, its revenue of $4.53 billion (about 4.24 billion euros) marked a 16% year-on-year increase, surpassing estimates of $4.15 billion.
Take-Two Interactive Software, Inc. posted third-quarter revenue of $1.37 billion, slightly below the anticipated $1.39 billion, but its adjusted earnings of 72 cents per share exceeded the expected 57 cents.
Palantir Technologies Inc. achieved a fourth-quarter revenue of $827.52 million, beating predictions of $775.91 million. The company also reported adjusted earnings of 14 cents, surpassing the expected 11 cents.
Smartphone Developments
Apple Inc. users voiced their dissatisfaction over the limited variety of watch faces available for the Watch Series 10, despite the device's impressive features. In other news, Apple announced a price increase for its AppleCare+ subscription service across all iPhone models in the U.S.
Anticipation is building for five new product launches from Apple planned for March, including the iPhone SE 4, a redesigned M4 MacBook Air, and a new iPad Air.
Samsung Electronics Co.'s Galaxy S25 Ultra is being sold at a competitive price, making it an attractive alternative to Apple Inc.'s iPhone 16 Pro.
Technology and Online Retail Innovations
Nvidia Corp faced high demand for its GeForce RTX 5090 and 5080 graphics cards, which quickly sold out following their release. Nonetheless, gamers can still find these cutting-edge GPUs in premium prebuilt gaming computers.
Microsoft quietly removed a workaround that allowed the installation of Windows 11 on unsupported PCs, indicating a stricter approach towards its operating system.
Additionally, Microsoft hired talented individuals from Google DeepMind, part of an initiative by Mustafa Suleyman to enhance its AI lab located in Zurich.
Meta Platforms Inc. announced that it will not adhere to the European Union's AI Code of Practice. This statement was made by Joel Kaplan, the newly appointed head of global affairs at Meta, further straining relations with European regulators.
Alphabet CEO Sundar Pichai hinted at plans to potentially monetize the Gemini AI platform through advertisements in the future.
Amazon.com, Inc. is set to unveil a major AI update for its Alexa voice assistant during a press event scheduled in New York on February 26.
Artificial Intelligence Updates
OpenAI recently introduced a feature for ChatGPT called "Deep Research," which autonomously carries out multi-step data searches. This new feature enables users to ask questions through text, images, and files, including PDFs and spreadsheets.
OpenAI is also embarking on a comprehensive rebranding initiative that includes a new logo and typeface.
Due to increasing competition from Chinese firms like DeepSeek, OpenAI is considering adjustments to its open-source strategy.
Advanced Micro Devices Inc. (AMD) CEO Lisa Su has commented on the advancements made by DeepSeek and their implications for the semiconductor industry.
During this time, Sundar Pichai acknowledged DeepSeek's rapid progress but maintained that Google's Gemini continues to outperform in terms of efficiency, costs, and overall performance.
Aravind Srinivas, of Perplexity AI, backed by Jeff Bezos, noted that many founders stumble by chasing market trends instead of focusing on meaningful problems.
Palantir has advised clients to steer clear of AI models coming from DeepSeek.
The firm’s chief technology officer, Shyam Sankar, highlighted that the U.S. is in an "AI arms race" with China, urging rapid actions to sustain dominance as competition in the AI field intensifies.
Tech, Legal, Earnings, AI, Smartphones