AI Pulse #117: IBM CEO Doubts ROI on AI Data Centers, AI Legal Startup Harvey Secures $160M For Expansion, +MORE
Hello everyone! 👋 Lots of movement in AI this week, and we’ve pulled the biggest stories together for you.
Dive in to discover more!
Latest Funding News
This week’s news highlight both optimism and caution. IBM’s CEO shared a strong view that spending trillions on AI data centers won’t make financial sense with today’s infrastructure costs. Meanwhile, the legal AI startup Harvey secured $160M to expand its tools and help more companies use AI in everyday legal work. Keep reading for the rest of this week’s updates and insights!
Top Trending AI News
1. IBM CEO Doubts AI Data Center Investment Returns at Current Costs
Publisher: Business Insider
IBM’s CEO doubts data centers’ profitability and AGI’s near-term feasibility, citing $8T in costs vs. speculative future gains.
Published: 12/2/2025
TAKEAWAYS
1️⃣ IBM CEO doubts profit in data center spend.
2️⃣ Krishna skeptical on tech reaching AGI.
3️⃣ AI firms face high costs in AGI race.
4️⃣ Data centers’ ROI questioned by IBM’s head.
5️⃣ Krishna sees no return on $8T AI investment.
2. Anthropic Set to Launch One of the Biggest IPOs, Competing With OpenAI
Publisher: CNBC
Published: 12/2/2025
Anthropic, creator of Claude chatbot, eyes a major IPO possibly next year, engaging Wilson Sonsini for legal advice and discussing with investment banks.
TAKEAWAYS
1️⃣ Anthropic plans big IPO next year.
2️⃣ Firm hires top law firm for IPO prep.
3️⃣ AI startup eyes $300B+ valuation.
4️⃣ Talks with banks for IPO are early.
5️⃣ Aims to beat OpenAI to market.
3. Microsoft AI Edge Wanes as Google Gemini Soars and OpenAI Sounds Code Red
Publisher: Windows Central
Published: 12/2/2025
Microsoft’s AI efforts falter as OpenAI hits “code red” amid Google Gemini’s rise, challenging their partnership and dominance in AI.
TAKEAWAYS
1️⃣ Microsoft’s AI edge fades as Google advances.
2️⃣ OpenAI hits “code red” amid AI race.
3️⃣ Microsoft integrates OpenAI into products.
4️⃣ Google’s Gemini 3 outperforms ChatGPT-5.
5️⃣ Microsoft’s mobile AI efforts lag behind.
4. Microsoft Stock Dips as AI Product Sales Fall Short of Growth Targets
Publisher: CNBC
Published: 12/3/2025
Microsoft refutes report of lower AI sales goals, saying AI product quotas unchanged despite some sales lags in Azure’s Foundry product.
TAKEAWAYS
1️⃣ Microsoft denies lowering AI sales goals.
2️⃣ Microsoft stock falls over 2% on report.
3️⃣ AI sales miss targets at Microsoft.
4️⃣ Quotas for AI product sales unchanged.
5️⃣ AI adoption lags in traditional businesses.
5. Whitmer Backs Michigan’s Largest Investment: Multi-Billion Dollar AI Data Center
Publisher: wzzm13
Published: 12/4/2025
Michigan Gov. Whitmer backs OpenAI’s Stargate project, to create jobs and compete globally without harming the environment.
TAKEAWAYS
1️⃣ Michigan’s largest business investment supports 2,500 jobs.
2️⃣ Governor fights for AI project against global rivals.
3️⃣ New data center to use eco-friendly cooling system.
4️⃣ Local communities benefit from $14 million investment.
5️⃣ AI facility near universities boosts local talent pool.
6. Independent Group Claims AI Key to Breaking Two-Party Hold in Congress
Publisher: NPR
Published: 12/1/2025
AI’s rise aids in routine tasks and could reshape U.S. politics by electing independent candidates, targeting specific districts and voters.
TAKEAWAYS
1️⃣ AI reshapes daily life and politics.
2️⃣ AI aims to boost independent candidates.
3️⃣ Rise in independents may change politics.
4️⃣ AI tool targets potential political shifts.
5️⃣ Strategy challenges two-party system dominance.
7. Sam Altman Targets Rocket Company to Challenge Elon Musk in Space Race
Publisher: Fox Business
Published: 12/4/2025
OpenAI CEO Sam Altman explores entering the space race, potentially competing with Elon Musk, to support space-based AI data centers.
TAKEAWAYS
1️⃣ Altman eyes rocket venture to rival Musk.
2️⃣ OpenAI CEO explores space for AI power.
3️⃣ Talks with rocket makers for AI’s future.
4️⃣ Altman, Musk’s rivalry enters space race.
5️⃣ OpenAI may invest in off-world data centers.
8. James Cameron Bans AI in Avatar Sequel, Celebrates Actors
Publisher: Variety
Published: 12/2/2025
James Cameron emphasizes no AI was used in “Avatar: Fire and Ash,” valuing real actors and expressing concerns over AI replacing human creativity in filmmaking.
1️⃣ Cameron says “Avatar” sequel free of AI-made content.
2️⃣ “Avatar” champions real actors’ performances, Cameron notes.
3️⃣ Saldaña emphasizes empowerment in “Avatar” acting process.
4️⃣ Oscars should recognize Saldaña’s “Avatar” role, Cameron argues.
5️⃣ Cameron explores AI in VFX but keeps actors human.
9. Philadelphia Doctors Use AI for Patient Visit Records
Publisher: WHYY
Published: 12/3/2025
AI listening tools in healthcare allow doctors to focus more on patients by automating note-taking, saving time and improving care quality.
TAKEAWAYS
1️⃣ AI helps doctors save time on notes.
2️⃣ Doctors see more patients with AI help.
3️⃣ AI brings joy back to medicine for doctors.
4️⃣ Some doctors skeptical of AI accuracy.
5️⃣ AI could change how nurses work.
10. EU Probes Meta for Antitrust Over Blocking AI Rivals on WhatsApp
Publisher: Reuters
Published: 12/4/2025
EU investigates Meta for antitrust violations over WhatsApp AI, possibly halting its rollout to protect competition.
TAKEAWAYS
1️⃣ EU probes Meta over AI in WhatsApp.
2️⃣ Meta may halt AI rollout amid probe.
3️⃣ Europe’s firm stance on Big Tech.
4️⃣ WhatsApp AI blocks could harm competition.
5️⃣ Meta faces fines for antitrust breaches.
AI Image of the Week
Prompt: Claymation-style 3D data center, soft textured clay servers, charming robot made of molded clay inspecting glowing investment graphs, whimsical lighting, handcrafted look.
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