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Good morning Reader, Microsoft slows AI spending despite an 18% profit increase, while Meta and Microsoft boost AI-related stocks. IT may see a 35-45% rise in AI roles by FY26 as deployments grow.
Meanwhile, US watchdogs warn of risks from AI companions for young users. Cast AI raises $108 million for cloud automation, and OpenAI rolls back its controversial GPT-4o update. Notable speakers, including Satya Nadella, are set for TiEcon 2025. In today's newsletter:
- Microsoft puts brakes on AI spending as profit increases 18%
- Meta, Microsoft reports lift AI-related stocks
- Saying 'thank you' to ChatGPT is costly but maybe it's worth the price
- IT may add 35-45% more AI roles in FY26 as deployments rise
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Microsoft puts brakes on AI spending as profit increases 18% 
Microsoft’s Q1 2025 results showed strong growth with $70.1 billion revenue and $25.8 billion profit, driven by 33% Azure growth and AI services. Capital spending fell slightly to $21.4 billion but remains high, with $85 billion forecast for the year. CEO Nadella cited efficiency and strong cloud demand. Read full article here |
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Meta, Microsoft reports lift AI-related stocks 
Following strong earnings reports from Meta and Microsoft, shares in AI and cloud computing companies surged on Wednesday. Microsoft's shares jumped over 6% due to strong Azure cloud growth, while Meta's rose more than 4% as AI-powered tools boosted advertising revenue. Nvidia increased 2.8%, Advanced Micro Devices increased 2%, and Amazon increased 3%. Read full article here |
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| Microsoft and Meta Boost AI Stocks Amid Profit Growth and Job Surge  The Pulse The AI landscape is witnessing a dynamic shift as major players like Microsoft and Meta report robust earnings, driving stock surges in AI and cloud sectors. This growth reflects a broader trend of increasing AI adoption, yet raises concerns about ethical implications and market competition. How its happening Microsoft's Azure cloud services saw a 33% growth, contributing to an 18% profit increase. Meta's AI tools enhanced advertising revenues, while companies like Cast AI secured significant funding. Meanwhile, regulatory scrutiny on AI companions for minors highlights the need for responsible innovation. Key takeaways
- Microsoft's Q1 2025 profits rose 18%, driven by Azure and AI services.
- Meta's AI tools boosted advertising revenue, contributing to stock gains.
- AI job growth in India projected to surge by 45% in FY26.
- US watchdog warns against AI companions for minors, calling for bans.
- Investment in AI startups continues, with Cast AI raising $108 million.
Notable actions Microsoft forecasts $85 billion in capital spending for the year, while Meta's stock rose over 4%. The US watchdog's report on AI companions emphasizes the need for regulatory frameworks. Watch for ongoing developments in AI ethics and job market dynamics. |
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IT may add 35-45% more AI roles in FY26 as deployments rise 
AI job growth in India is projected to surge by 45% in FY26, defying the tech sector's overall slowdown. Demand for roles like ML engineers, GenAI developers, and AI consultants is booming, though talent shortages persist. Companies offer high salaries to attract niche talent, especially in GCCs over IT services. Read full article here |
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AI companions present risks for young users, US watchdog warns 
AI companions powered by generative artificial intelligence present real risks and should be banned for minors, a leading US tech watchdog said in a study published Wednesday. The watchdog, Common Sense, tested several of these platforms, namely Nomi, Character AI, and Replika, to assess their responses. Read full article here |
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 Around the web
- Microsoft’s most capable new Phi 4 AI model rivals the performance of far larger systems
- Sam Altman’s World unveils a mobile verification device
- World partners with Tinder, Visa to bring its ID-verifying tech to more places
- WhatsApp Is Walking a Tightrope Between AI Features and Privacy
- AI Is Using Your Likes to Get Inside Your Head
- A Philosopher Released an Acclaimed Book About Digital Manipulation. The Author Ended Up Being AI
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