Microsoft is anticipated to report its slowest revenue growth in a year as investors focus on AI-related earnings and the impact of heavy investments in the technology. While Microsoft has led the way in generative AI, helped by its significant stake in ChatGPT creator OpenAI, adoption of its enterprise AI assistant, Copilot, has lagged. Recent reports suggest a hesitant market for Copilot’s $30-per-month subscription, with many companies still in pilot phases.
Analysts from Morgan Stanley and Visible Alpha expect Microsoft’s capital expenditures in the September quarter to have surged nearly 72% year-on-year, driven by high AI and cloud computing costs. Azure, Microsoft’s cloud unit, likely grew by 33% for the quarter, although that marks a slight dip from prior growth. Despite this, Microsoft hopes for stronger AI-driven revenue in Azure and is targeting faster growth in the second half of the fiscal year.
In the wake of a financial reorganisation in August, Microsoft’s earnings have become harder to predict. With high AI-related costs weighing on margins, Microsoft’s shares have seen minimal growth since July, underperforming the S&P 500. Meanwhile, analysts anticipate a revenue rise of around 14% to $64.5 billion, a modest improvement amid investor concerns over Microsoft’s AI strategies.
Scepticism around Microsoft’s 365 Copilot assistant remains, though some analysts believe recent AI upgrades could drive demand. Microsoft’s productivity unit, including LinkedIn and Office, is expected to maintain steady growth, and the company remains optimistic about AI’s potential to strengthen its productivity suite.
At TechCrunch Disrupt 2024, Ashton Kutcher, co-founder of Sound Ventures, shared his belief that every company will eventually incorporate AI, though he doubts there will be a single “winner” in the space. Kutcher emphasised the transformative potential of foundational AI models, which he views as essential to future innovation across industries. “There will not be a company in the world that is not, in some way, using AI,” he noted, adding that foundational companies in AI could become some of the most valuable in history.
Kutcher, alongside Sound co-founders Guy Oseary and Effie Epstein, explained that Sound Ventures is betting heavily on AI, with a $265 million fund backing major AI firms like OpenAI and Anthropic. Kutcher also shared that OpenAI’s CEO, Sam Altman, supported Sound’s multi-company AI investments, with the firm carefully maintaining confidentiality across its portfolio.
While some are apprehensive about AI’s rapid growth, Kutcher compared the technology’s potential impact to transformative past innovations like personal computers and cars. Advising founders, he highlighted the importance of strong teams over polished pitch decks, noting that real value lies in people, market insight, and breakthrough ideas.
Brazil’s net imports of crypto assets have surged by over 60% in the first nine months of 2024 compared to the same period last year, according to the country’s central bank. Total imports reached $12.9 billion through September, already exceeding the $11.7 billion recorded for all of 2023. Fernando Rocha, head of the central bank’s statistics department, noted a slight month-to-month decline from August to September but stressed that year-on-year growth remains strong.
Demand for stablecoins, digital assets pegged to real-world assets such as the United States dollar, has been the primary driver behind this increase, making up nearly 70% of all crypto transactions in Brazil this year, according to tax revenue data. Central bank chief Roberto Campos Neto recently announced plans to regulate stablecoins in 2025, citing concerns about their links to tax evasion and illicit activities.
As the world’s tenth-largest crypto market, according to blockchain analytics firm Chainalysis, Brazil continues to see stablecoins grow in popularity, largely due to their price stability and ease of international transfer. Unlike cryptocurrencies with fluctuating values, stablecoins such as Tether (USDT) and USDC offer Brazilians a reliable way to move funds quickly and securely.
Meta is working on a new AI search engine to lessen its reliance on Google and Microsoft’s Bing. The move places Meta among other tech giants, such as OpenAI, Google, and Microsoft, in the race to dominate the evolving AI-powered search landscape.
The new search tool aims to enhance Meta’s chatbot on WhatsApp, Instagram, and Facebook by offering conversational responses to real-time queries about news and events. Meta currently depends on Google and Bing to provide users with information on topics like news, stock markets, and sports.
As competition intensifies, Google is pushing its Gemini AI model into core services, including Search, to offer more interactive and intuitive experiences. OpenAI, meanwhile, continues to use Bing, leveraging its close partnership with Microsoft for topical queries.
The use of web data to train AI systems and build search engines has sparked debates about copyright and fair compensation. Meta recently announced that its chatbot would incorporate Reuters content to provide up-to-date answers to questions related to news and current events.
JP Morgan Chase has initiated lawsuits against customers accused of exploiting a glitch to withdraw large sums from its ATMs. The viral ‘infinite money glitch’ trend on TikTok involved users writing large cheques to themselves, depositing them, and withdrawing the money before the cheques were returned as invalid.
The lawsuits target two individuals and two businesses, demanding the return of funds with interest, reimbursement of overdraft fees, and coverage of legal expenses. In a court filing, JP Morgan revealed that one incident involved a $335,000 cheque deposited on 29 August, with over $290,000 still owed after the cheque was deemed counterfeit.
Bank officials stressed their commitment to fraud prevention, describing bank fraud as a serious crime in court documents. The total amount linked to the defendants in the lawsuits exceeds $660,000. Typically, banks permit customers to withdraw only part of a cheque’s value until it clears.
The Wall Street Journal recently reported that the bank closed the loophole shortly after the glitch went viral. An ongoing investigation by JP Morgan is reviewing thousands of potential fraud cases tied to the incident.
Sierra, a young AI software startup co-founded by former Salesforce co-CEO Bret Taylor, has secured $175 million in new funding led by Greenoaks Capital. This latest round gives the company a valuation of $4.5 billion, a significant jump from its earlier valuation of nearly $1 billion. Investors such as Thrive Capital, Iconiq, Sequoia, and Benchmark have also backed the firm.
Founded just a year ago, Sierra has already crossed $20 million in annualised revenue, focusing on selling AI-powered customer service chatbots to enterprises. It works with major clients, including WeightWatchers and Sirius XM. The company claims its technology reduces ‘hallucinations’ in large language models, ensuring reliable AI interactions for businesses.
The rising valuation reflects investor enthusiasm for applications in AI that generate steady revenue, shifting from expensive foundational models to enterprise solutions. Sierra operates in a competitive space, facing rivals such as Salesforce and Forethought, but aims to stand out through more dependable AI performance.
Bret Taylor, who also chairs OpenAI’s board, co-founded Sierra alongside former Google executive Clay Bavor. Taylor previously held leadership roles at Salesforce and oversaw Twitter’s board during its takeover by Elon Musk. Bavor, who joined Google in 2005, played key roles managing Gmail and Google Drive.
AT&T has announced a $1 billion, multi-year agreement with Corning to procure fibre, cable, and connectivity solutions as it ramps up efforts to expand high-speed internet services. Facing a slowdown in the United States wireless market, AT&T and other telecom firms like Verizon are increasingly focusing on high-speed internet, traditionally dominated by broadband providers such as Comcast. The telecom giant aims to attract customers by bundling high-speed fibre with its wireless phone services at a discount.
The deal with Corning is expected to support AT&T’s network expansion by improving service performance and reducing deployment costs. AT&T reported that by the end of the third quarter, its fibre network was passing 28.3 million potential customer locations, with a target to exceed 30 million by 2025.
AT&T‘s fibre service added 226,000 new customers in the third quarter, short of forecasts due to a work stoppage affecting fibre installations in the southeast. Despite the challenges, the company remains focused on expanding fibre services to meet growing demand.
Alphabet’s recent earnings report showcases a robust 35% surge in Google Cloud revenue for the third quarter, signalling a strong demand for AI-driven cloud computing and setting a promising tone for competitors Microsoft and Amazon. The jump, the fastest pace of growth in two years, has sent Alphabet’s shares up by 5.5%, reflecting investor optimism about the company’s expanding foothold in the cloud sector. Analysts had anticipated growth of around 29%, making this an even stronger-than-expected outcome for Google’s cloud division.
While Alphabet’s cloud segment remains smaller than Amazon’s AWS and Microsoft’s Azure, its performance has been noteworthy, accounting for 13% of Alphabet’s third-quarter revenue, up from 11% a year prior. This consistent growth aligns with Google’s continued investment in AI-powered tools and custom chips, like the Tensor Processing Unit (TPU), which have set it apart from competitors by enhancing cloud capabilities for AI applications. Analysts like Angelo Zino of CFRA Research believe Google may deliver the most impressive cloud growth numbers this quarter.
Google has been pouring resources into AI advancements across its cloud and search businesses, including its chatbot Gemini, which offers AI-generated code, data processing, and cybersecurity tools. These innovations, combined with the Vertex AI platform that enables custom model creation, have made Google Cloud a compelling choice for organisations seeking advanced AI solutions.
Investments in AI are also fueling Alphabet’s core advertising business, which rose 10% in the quarter, and supporting its broader cloud infrastructure expansion. Google has announced plans to invest billions in new data centres worldwide to strengthen its market presence and technological capabilities.
In its latest earnings call, Alphabet’s new CFO, Anat Ashkenazi, confirmed that capital expenditures in 2025 are expected to surpass this year’s, underlining the company’s commitment to scaling its AI and cloud capabilities. Analysts like Gil Luria of D.A. Davidson emphasise that Google Cloud’s outstanding performance in recent quarters showcases Alphabet’s success in turning AI investments into substantial revenue growth, solidifying its position in a competitive market.
Leaked details about Google’s upcoming Pixel 10 and Pixel 11 smartphones hint at significant upgrades powered by an advanced Tensor G5 chip, according to Android Authority. The Pixel 10, expected in late 2025, may introduce new AI-driven features, including ‘Video Generative ML’ for on-device video editing and a ‘Sketch-to-Image’ tool that turns hand-drawn sketches into fully rendered images. The chip could also allow users to run advanced AI models, like Stable Diffusion, locally through the Pixel’s image app.
A standout feature rumoured for the Pixel 11 is an ‘Ultra Low Light video’ mode that builds on Google’s Night Sight technology to improve video quality in dark settings. This feature could enable higher-quality low-light recording with better exposure control and image stabilisation, allowing clearer and more vibrant videos shot in near darkness.
Both devices are expected to support recording 4K HDR video at up to 60 frames per second, enhancing video quality. Google’s move to incorporate more powerful on-device AI tools, paired with upgraded hardware, points to a continued focus on image and video processing innovation, likely to appeal to users who prioritise smartphone photography and creative applications.
Nigerian fintech company Moniepoint has raised $110 million in new funding, backed by investors like Google, to expand digital payments and banking services across Africa. Since its 2015 inception as a payment infrastructure provider for banks, Moniepoint has grown to offer personal banking services, becoming a major player in Nigeria’s rapidly growing fintech market.
The funding round, supported by existing investors such as Development Partners International and Lightrock, and new entrants Google’s Africa Investment Fund and Verod Capital, values Moniepoint above $1 billion, marking its entry into “unicorn” status. The company plans to use the funds to develop an integrated business platform offering digital payments, banking, credit, and business management tools.
With a customer base in Nigeria‘s vast, underserved financial market, Moniepoint says it processes over 800 million transactions each month, valued at more than $17 billion. This new funding will help accelerate its mission to provide accessible financial solutions across Africa.
