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.
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.
Universal Music Group (UMG) has announced a partnership with Los Angeles-based AI music company KLAY Vision to create AI tools designed with an ethical framework for the music industry. According to Universal, the initiative focuses on exploring new opportunities for artists and creating safeguards to protect the music ecosystem as AI continues to evolve in creative spaces. Michael Nash, Universal’s chief digital officer, emphasised the importance of ethical AI use for artists’ rights in a rapidly changing industry.
The collaboration comes as Universal Music faces ongoing legal battles with other AI companies, including Anthropic AI, Suno, and Udio, over the use of its recordings in training music-generating AI models without authorisation. These cases highlight the growing concerns surrounding AI technology’s impact on the creative sector, particularly with respect to artists’ rights and intellectual property.
With this partnership, Universal Music aims to establish AI technologies that support artists’ needs while navigating the complex ethical questions surrounding AI-generated music. By working alongside US based KLAY Vision, Universal hopes to shape the future of AI in music responsibly and to develop solutions that ensure fair treatment of artists and their work.
Apple announced that its Apple Intelligence AI suite will be available in the European Union starting in April 2025, with localised language support to follow. The AI-powered feature set, which includes advanced tools such as Writing Tools, Genmoji, and a redesigned Siri with ChatGPT integration, has until now been limited to US English. The delay in the European rollout was previously attributed to compliance requirements under the EU’s Digital Markets Act (DMA), which applies to certain digital platforms to ensure competition and user privacy.
With iOS 18.1, Mac users in Europe can already access Apple Intelligence features by switching their language settings, while iPhone and iPad users must wait until next April. The release will come with support for a dozen languages throughout 2025, including French, German, Italian, and Spanish, broadening accessibility for EU users.
Apple’s phased rollout underscores the tech giant’s efforts to adapt its products to EU regulatory standards while maintaining a consistent experience for European users. Although some features, like notification summaries, may not be available initially, Apple has committed to bringing as many AI capabilities as possible to European devices in future updates.
In a landmark case for AI and criminal justice, a UK man has been sentenced to 18 years in prison for using AI to create child sexual abuse material (CSAM). Hugh Nelson, 27, from Bolton, used an app called Daz 3D to turn regular photos of children into exploitative 3D imagery, according to reports. In several cases, he created these images based on photographs provided by individuals who personally knew the children involved.
Nelson sold the AI-generated images on various online forums, reportedly making around £5,000 (roughly $6,494) over an 18-month period. His activities were uncovered when he attempted to sell one of his digital creations to an undercover officer, charging £80 (about $103) per image.
Following his arrest, Nelson faced multiple charges, including encouraging the rape of a child, attempting to incite a minor in sexual acts, and distributing illegal images. This case is significant as it highlights the dark side of AI misuse and underscores the growing need for regulation around technology-enabled abuse.
San Francisco-based startup Untether has unveiled a new artificial intelligence chip, the 240 Slim, tailored for energy-efficient use in edge applications like autonomous vehicles and agricultural equipment. Unlike the large-scale data center chips produced by giants like Nvidia and AMD, Untether’s product is optimised to run pre-trained AI models, which means it focuses on inference, the process of applying existing AI models rather than training new ones.
As AI becomes more embedded in everyday technologies, demand for inference-focused chips is skyrocketing. Untether’s VP of product, Bob Beachler, anticipates the inference chip market to expand to $102B by 2027, far surpassing the training sector. The 240 Slim chip is built on the open-source RISC-V architecture, positioning it as a competitor to chips using Arm Holdings’ technology. Early tests by nonprofit MLCommons have shown promising performance results for Untether’s hardware.
Untether has already gained traction in the automotive sector; Mercedes-Benz plans to use Untether’s chips in its future autonomous vehicles. With these chips, the company aims to deliver cutting-edge performance with minimal power demands, a combination that could help drive innovation in autonomous tech, agriculture, and select data center applications.
The surge in AI exchange-traded funds (ETFs) reflects the growing investor enthusiasm for AI as fund managers launch new options to capture market interest. According to Morningstar, over a third of the AI-focused ETFs on the market were introduced in 2024, raising total assets in this category to $4.5 billion—close to the $5.5 billion held by nuclear-themed ETFs and far outpacing the $1.37 billion in cannabis funds. This growth is partially driven by high-profile gains, like chipmaker Nvidia’s stock surge of over 200% in the last year, which underscores AI’s profit potential, said Morningstar senior analyst Daniel Sotiroff.
BlackRock has added two new actively managed AI ETFs to its lineup, aiming to capture emerging opportunities in AI as the technology evolves. “The AI market is going to change dramatically,” noted Tony Kim of BlackRock, highlighting that what AI represents today will continue to shift. Bank of America analysts agree, describing the competition in AI among tech giants like Microsoft and Amazon as an “arms race.” This year, capital spending on AI by these firms is expected to total $206 billion, marking a 40% increase over last year, while venture capital funding for AI startups is projected to rise 27%, reaching $79.2 billion.
Despite the enthusiasm, AI-focused funds haven’t consistently outperformed the broader market; for instance, the Global X Artificial Intelligence & Technology ETF has gained about 20% in 2024, trailing the S&P 500’s 22% rise. Amplify ETFs recently shifted an existing cloud-computing ETF to focus on AI opportunities, illustrating the industry’s shift toward differentiating AI investment strategies. Nathan Miller of Amplify said that capturing the potential of AI-related capital spending remains a priority for long-term growth.
Meta has launched NotebookLlama, an ‘open’ version of Google’s NotebookLM generate-a-podcast tool, but using Meta’s Llama AI models. NotebookLlama processes uploaded text files, such as PDFs or blog posts, creating a podcast-style summary with dramatisation and interruptions, followed by conversion to speech through open text-to-speech models. However, early feedback highlights a robotic, less natural sound, with voices sometimes overlapping awkwardly.
Meta’s researchers acknowledge the audio limitations and suggest that quality could improve with better text-to-speech models. They also propose evolving the format to feature two AI agents debating topics rather than a single model handling the outline.
Despite various efforts to replicate NotebookLM’s podcast capabilities, all still struggle with AI ‘hallucinations,’ making the generated content prone to inaccuracies.
Google is working on a new AI technology that can take control of web browsers to perform tasks like research and online shopping, according to a report by The Information. The project, code-named ‘Project Jarvis,’ is expected to be showcased in December alongside Google’s upcoming Gemini large language model.
This initiative is part of a growing trend, with competitors like Microsoft-backed OpenAI also aiming to develop AI agents capable of navigating the web autonomously. Unlike current AI models, Google’s new software is designed to interact directly with a person’s computer or browser, potentially handling complex tasks more seamlessly.
The development reflects a broader industry push to create AI systems that can perform internet-based tasks independently, potentially transforming how users interact with technology. Google has not yet commented on the report, but the anticipated December demonstration could offer a glimpse into the future of automated online assistance.
