OpenAI Revenue Cut by $18 Billion Weighs on AI Stocks as Google Debuts Gemini Assistant
OpenAI told investors its revenue was $18 billion lower than previously stated, pressuring AI stocks. Google launched an autonomous Gemini assistant, and funding continued for AI drug discovery and quantum computing. Microsoft and other companies were barred from a federal green-card program.
SiliconANGLE reported that $50 billion in revenue remains substantial, but the market is driven by expectations and investors are growing increasingly wary. It said some frontier AI model companies, including Anthropic, may be facing pushback from their biggest customers. The report also asked whether the focus on annual recurring revenue will fade, or whether upcoming IPOs with real disclosures will make that debate moot.
Google this week debuted a one-stop Gemini assistant that can act autonomously, generate code and complete work across web, mobile and desktop devices, according to SiliconANGLE. OpenAI, Anthropic and other companies also released new models.
Mathematicians called for OpenAI to withdraw from math research, SiliconANGLE reported, but the argument they offered this week sounded weak. Pradeep Viswanathan of Neowin asked why anyone would need permission from professional mathematicians to work on open mathematical problems. SiliconANGLE added that chatbots had trouble with multiplication only a couple of years ago, and they still do not always do a good job on papers.
Alphabet spinoff Isomorphic Labs received another large investment at a reported valuation of up to $50 billion, SiliconANGLE reported, to prove that AI can accelerate drug development. Quantum computing drew more funding as well: Oratomic raised $475 million and Universal Quantum raised more than $100 million, representing two different approaches.
Microsoft and other companies are now barred from further participation in a federal program that enables U.S. companies to apply for green cards for employees, according to SiliconANGLE. The report said there is reason to think many companies abuse the H-1B system, but whatever they are doing, they have done for decades.
Separately, Microsoft slashed internal Claude spending by a third, according to The Information as cited by SiliconANGLE. SAP agreed to acquire TechWolf, giving enterprises an evidence-based view of work in the age of AI. Mecka, which describes itself as a data engine for physical AI, raised $60 million in a Series B round led by Sequoia Capital. Healthleap raised $38 million for AI that flags hospital patients who may need a closer look, according to TechCrunch as cited by SiliconANGLE. Turba Labs raised nearly $52 million in combined seed and Series A rounds, aiming to double the world's available compute with data center digital twins.
Sam Altman said people need to accept that "some bad things" will happen if they want AI, SiliconANGLE reported. Fired OpenAI researchers asked the company to preserve visibility into AI reasoning, according to The Wall Street Journal as cited by SiliconANGLE. At WebexOne, Cisco's Jeetu Patel argued that the agent era will be won on context, cost and control, according to SiliconANGLE coverage.
In personnel moves, Boston Dynamics named Rohit Prasad, a 12-year Amazon veteran who most recently was senior vice president and head scientist for Alexa and artificial general intelligence, as CEO. Pinterest appointed James Dibbo, former CFO of Amazon's global entertainment, advertising and corporate development, as chief financial officer. Margaret Hamilton, the computing pioneer who led software development for the Apollo program, died Sept. 30 at age 90.
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