Salesforce’s AI tools drive growth

Salesforce shares soared to a record high of $368.7 on Wednesday, climbing 11% after surpassing quarterly sales estimates and offering an optimistic outlook for its AI-driven products. The company’s newly launched Agentforce platform, designed to autonomously handle tasks, has become a key driver of this growth, with Salesforce banking on its potential to transform enterprise operations.

In a post-earnings call, executives highlighted Agentforce’s initial success, noting 200 deals closed since its late October release. Analysts expressed confidence in its long-term potential, predicting significant gains by 2026. The positive results prompted at least 20 analysts to raise their price targets, with the new median estimate sitting at $380—indicating a further 15% potential upside.

Salesforce’s market valuation surged by over $35 billion, reaching $316.85 billion. Third-quarter revenue grew by 8% to $9.44 billion, surpassing expectations. The momentum also lifted other US cloud companies, including Oracle, ServiceNow, Datadog, and Snowflake, which posted gains of 3% to 4%.

The company now forecasts fiscal year 2025 revenue of $37.8 billion to $38 billion. Analysts remain optimistic about Salesforce’s strategic push into AI and the revival of enterprise spending, positioning the firm for continued success heading into 2026.

Open source (still) means innovations

There is no need to explain the importance of the global network innovation we enjoy today. Many lines have been written on the possibilities and the marvels the network delivers daily. After an initial couple of decades of admiration, the same thing happened with many other wonders of the world we witnessed throughout civilization. We took it for granted. We do not discuss its structure, backbone, and the incentive structure behind it. Unless it interferes with our daily life and freedom.

This is true for any network user, being a state actor, cloud computing company, or everyday end user. When we look at the backbone of the internet, almost everything is open source. What does this mean? Basic protocols and ways we connect over the internet are documented and open for everyone to observe, copy, and build upon. They are agreed upon as a set of transparent public instructions that are free of proprietary obligations. 

Industry and innovation 

To distinguish innovation from the industry (which might be important to go forward), we can introduce a simple correlation: The industry is an ecosystem that emerged on the need to make the invention more available. The vision of utility is in the industry, and the value of innovation is proven with every iteration of utility. Following this correlation, we can indeed say that the more transparent innovation, the greater its value (or we tend to give it such a position).

When we look at the internet industry, we observe that companies and strategies that followed openness have benefited massively from the invention. This system of benefits from the open source approach can work in depth for both the invention and the consequential industry. To name a couple of the greatest examples: Alphabet (Google, YouTube, or Maps), Linux (used to run almost the entire internet backbone infrastructure), Android (revolutionising the app market, levelling the entry field, and reducing the digital divide). All of them are open source, built on the open-source innovation of the internet.

 Architecture, Building, Diagram, CAD Diagram

A closer look at resiliency

Let’s look at one example that may illustrate this precisely: bitcoin. It started as an open-source project and is still one of the most maintained public databases on the internet. Bitcoin brings back the idea of private money after 100 years of the nation’s monopoly on money. Although it is pointed out as a danger to the international financial system, there is no possible coordinated action by such entities to take down this system and/or ban it permanently. Why? The simple answer is in the trade-off. 

Stopping bitcoin (or any digital information online) is not impossible per se but would require massive resources. This would require full control of all communication channels towards the internet, including banning satellites from orbiting above your geolocation and persistent efforts to ensure no one is breaching the ban. But in 2024, such a ban would create a tear in the fabric of society. Societal consequences would widely overcome the possible benefits.

Instead, as long as it is neutral, bitcoin does not present a threat but rather an opportunity for all. All other competitors built on bitcoin principles are not the same for that particular reason: they are not open source and transparent. No Central Bank Digital Currency (CBDC), privately issued stablecoin, or any of the thousand cryptocurrency impersonators have proven to hold any of the bitcoin’s value. Following the earlier distinction, innovation is open source, but the industry around it is not so much.

Open source is the right way, not the easy one

Does the above mean that when an industry is not based on open source, it cannot make great discoveries and innovate further? No, not at all. Intellectual property is a large part of the portfolio of the biggest tech companies. For example, Apple’s IP revenues culminated in around USD 22.6 billion in research and development expenditures (in 2022) The proprietary industry moves the needle in the economy and creates wealth, while open source creates opportunities. We need both for a healthy future. All of our opportunities may not result in imminent wealth, but rather in inspiration to move forward rather than oppose the change. 

In simple terms, open source empowers the bottom-up approach to building for the future. It helps expand the base of possible contributors, and maybe most importantly, reduces the possibility of ending up in ‘knowledge slavery’. It can create a healthy, neutral, starting point. The one most will perceive as a chance rather than a threat. 

If all of you had one particular innovation in mind while reading all this, you are right!

Artificial intelligence (AI) is a new frontier. AI is actually a bit more than just a technology, it is an agent. Anyhow, it is an invention, so chances are high it will follow the path we described above, enabling an entirely new industry of utility providers.

No need to be afraid

We hear all the (reasonable) concerns about AI development. Uncertainties on whether AI should be developed beyond human reach and concerns regarding AI in executive positions, all are based on fear of systems with no overview.  

In the past, the carriers of the open source (openness and transparency) approach were mostly in academia. Universities and other research institutions contributed the most to the open source approach. It is a bit different in the AI field. For that, companies are leading the way.  

The power to preserve common knowledge is still in the hands of states, and under the set of business and political circumstances, the private sector is also the biggest proponent of the open source approach. With the emergence of large language models and generative AI, the biggest open source initiatives came from Meta (LLaMa) and Alphabet (T5). They align with the incentive to statute open source as a standard for the future. We might be in an equilibrium moment in which both sides agree on the architecture for the future. Nations, international organisations, and the private sector should seize this opportunity. This new race toward more efficient technology of the future should evoke optimism, but there cannot be one without the bottom- up and open source approach to innovation. 

The open source approach is still the way forward for innovation. and can build neutral ground, or at least will not be perceived as a threat.

Read more of our ideas about the way forward in AI governance on the humAInism page

China and Russia push forward in semiconductor equipment development

In recent years, China and Russia have significantly ramped up efforts to advance their semiconductor equipment industries, aiming to secure competitive positions in the global market. While the US, Netherlands, Japan, and South Korea dominate the semiconductor equipment sector, China’s aggressive R&D investments in etching, CVD, PVD, and packaging technologies are helping it make strides in domestic substitution. However, the country still lags in high-end lithography equipment, especially EUV machines.

Despite challenges, China’s semiconductor equipment market is expected to see record-high purchases in 2024, surpassing $40 billion. Experts attribute this growth to localisations, new fabs, and global supply chain concerns. However, demand is expected to stabilise in 2025 once production lines are up and running, although long-term growth remains promising, fueled by applications in 5G, AI, and automotive electronics.

Meanwhile, Russia has accelerated its efforts to develop domestic semiconductor equipment, receiving over $2.5 billion in government funding. With a focus on manufacturing 200mm wafers for chips with nodes from 180nm to 90nm, Russia aims to reduce reliance on imports. The country’s ambitious goal is to replace 70% of imported equipment with domestically produced alternatives by 2030. Despite progress, Russian manufacturers like Angstrem and Mikron are still constrained to mature process nodes, depending on imported lithography systems.

Louisiana to host Meta’s largest AI data centre

Meta, the parent company of Facebook, plans to invest $10 billion to construct a state-of-the-art AI data centre in Richland Parish, Louisiana. Once completed, it will be the largest data centre in Meta’s global portfolio, designed to manage the vast data needs of AI and digital infrastructure. The facility is set to begin construction in December and is expected to take until 2030 to complete.

The company is working with Entergy, a utility provider operating in Louisiana, to ensure the centre’s energy consumption is fully matched by renewable sources. Entergy already supports similar projects, including Amazon’s upcoming cloud services facility in Mississippi, and operates two nuclear power plants in Louisiana.

As AI computing drives a surge in energy demand among tech giants like Meta, Amazon, and Microsoft, companies are increasingly exploring nuclear power to supplement renewable energy. However, challenges such as an ageing reactor fleet, regulatory hurdles, and supply chain limitations for uranium fuel may slow the adoption of nuclear energy.

Meta recently sought proposals from nuclear power developers to support its AI and environmental goals, aiming for 1 to 4 gigawatts of new US nuclear capacity by the early 2030s. The Louisiana data centre is part of Meta’s broader strategy to integrate sustainability with cutting-edge AI technology.

Musk’s xAI plans major supercomputer expansion in Memphis

Elon Musk’s AI company, xAI, is preparing to expand its Memphis-based supercomputer, Colossus, to accommodate over one million graphics processing units (GPUs). Currently housing 100,000 GPUs, Colossus plays a central role in training xAI’s chatbot, Grok, as the company accelerates efforts to rival OpenAI in the AI landscape.

Nvidia will supply the GPUs, while Dell and Super Micro are tasked with assembling the server infrastructure in Memphis, according to the Greater Memphis Chamber. The expansion highlights xAI’s commitment to AI innovation, as Musk intensifies competition with OpenAI and its CEO, Sam Altman. Recently, Musk escalated his legal battle with OpenAI, alleging monopolistic practices in the AI sector.

Concerns about environmental impact loom large with the supercomputer’s planned growth. Colossus’s massive energy demands have drawn scrutiny from environmental groups. The Southern Environmental Law Center urged Tennessee authorities to investigate whether xAI was using unpermitted gas turbines to power the facility.

The Memphis project underscores Musk’s ambitions to reshape the AI industry. With Colossus’s tenfold expansion, xAI positions itself as a formidable challenger in the rapidly evolving AI arms race.

TSMC and Nvidia in talks for Blackwell chip production in Arizona

Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly in discussions with Nvidia to produce its Blackwell AI chips at TSMC’s new facility in Arizona, according to sources familiar with the matter. This move would mark a significant expansion of Nvidia’s chip production outside Taiwan, where the Blackwell series has been manufactured since its unveiling in March. The chips, celebrated for their generative AI and accelerated computing capabilities, are in high demand and boast speeds 30 times faster than previous models for tasks like chatbot responses.

The Arizona facility, set to begin volume production next year, represents a major US investment by TSMC, which is building three plants in Phoenix with substantial US government subsidies. If finalised, Nvidia would join Apple and AMD as plant customers. However, sources indicate that the chips would still need to be sent back to Taiwan for advanced packaging due to the lack of chip-on-wafer-on-substrate (CoWoS) capacity in Arizona. All of TSMC’s CoWoS operations remain centralised in Taiwan.

TSMC’s expansion into the US aligns with Washington’s push to bolster domestic semiconductor manufacturing amid geopolitical concerns over Taiwan. Neither TSMC nor Nvidia has commented on the talks, emphasising the confidentiality of the ongoing discussions.

New AI tools from Amazon aim for faster text and video creation

Amazon has unveiled a series of advanced AI platforms, dubbed Nova models, at its AWS conference in Las Vegas. The tools enable users to generate text, images, and videos, representing a major leap in the company’s AI offerings. The announcement places Amazon in direct competition with Adobe, Meta, and other tech giants vying to dominate AI-driven automation.

The new Nova Reel software is designed to create videos from single images or text prompts, offering six-second clips initially, with longer formats to follow. Amazon CEO Andy Jassy highlighted developers’ need for improved latency, lower costs, and customisation capabilities as key drivers behind the innovations. These features aim to meet growing demand from businesses seeking efficient AI-powered solutions.

Amazon’s leadership emphasised the competitive edge of the new models. Rohit Prasad, head of artificial general intelligence, pointed to the platform’s speed and affordability as factors expected to attract users. Prasad described the current AI landscape as ‘very early,’ suggesting Amazon has significant potential to establish itself as a leader.

Nova models mark Amazon’s attempt to shed perceptions of lagging behind in AI advancements. The tools come at a critical time when interest in video generation and automation is surging across industries, with companies like OpenAI and ByteDance also introducing competitive applications.

Senator Cruz questions foreign influence on US AI policy

Republican Senator Ted Cruz has called for an investigation into whether European governments have improperly influenced US policies on AI. Cruz’s concerns stem from growing international collaborations on AI regulation, including treaties and partnerships initiated by the Biden administration.

Cruz criticised European regulations as overly restrictive, claiming they target American AI companies and could shape US policies unfairly. He also accused the Centre for the Governance of Artificial Intelligence (GovAI), a UK-based nonprofit, of political activities without registering as a foreign agent, though GovAI has denied any wrongdoing.

The European Union has taken a leading role in AI regulation, recently passing the AI Act, the world’s first comprehensive law for governing technology. Cruz has framed these efforts as part of what he describes as ‘radical left’ interference, urging transparency about foreign involvement in shaping US AI laws.

Meta eyes nuclear energy to power AI and data centres

Meta has announced plans to harness nuclear energy to meet rising power demands and environmental goals. The company is soliciting proposals for up to 4 gigawatts of US nuclear generation capacity, with projects set to commence in the early 2030s. By doing so, it aims to support the energy-intensive requirements of AI and data centre operations.

Nuclear energy, according to Meta, offers a cleaner, more reliable solution for diversifying the energy grid. Power usage by US data centres is projected to triple by 2030, necessitating about 47 gigawatts of new capacity. However, challenges such as regulatory hurdles, uranium supply issues, and community resistance may slow progress.

The tech giant is open to both small modular reactors and traditional large-scale designs. Proposals are being accepted until February 2025, with a focus on developers skilled in community engagement and navigating complex permitting processes. An official statement highlighted nuclear’s capital-intensive nature, which demands a thorough request-for-proposals process.

Interest in nuclear power among tech firms is growing. Earlier agreements by Microsoft and Amazon have set precedents for nuclear-powered data centres. Meta’s latest initiative underscores a broader shift towards innovative energy solutions within the industry.

Surreal Elderhood fuses creativity and AI

Photographer Eugenio Marongiu has harnessed the power of OpenAI’s unreleased text-to-video model, Sora, to create Surreal Elderhood, a project blending absurdity and vivid realism. As an alpha tester for the model, Marongiu explored its potential to transform his artistic workflow, which traditionally involved animating images manually after creating them.

The Sora model enabled Marongiu to accelerate this process, although the bulk of his time remained devoted to conceptualising, testing, and editing. The project took about two days to complete, showcasing Sora’s potential to streamline complex creative tasks. Despite its promise, the technology remains challenging to use and has drawn controversy for its broader implications.

While critics highlight the limitations and ethical concerns of such AI tools, artists like Marongiu continue to push creative boundaries, exploring the intersections of technology and imagination. The ongoing experimentation with AI like Sora hints at its transformative possibilities in art and beyond.