Anthropic told prospective investors at an investor day in San Francisco that third-quarter revenue reached $16.8 billion, up from $11.6 billion in the second quarter, and that it was profitable on an adjusted basis, two attendees told Reuters. The company is targeting a valuation above $2 trillion, and its listing is likely to slip until after the November midterm elections. CEO Dario Amodei stressed safety at the meeting but steered clear of human extinction risks, one attendee said. The company's prospectus had warned that advanced AI could pose "catastrophic or existential risks to humanity." Anthropic has committed at least $518 billion over a decade to cloud services, computing and infrastructure.
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GlobalFoundries plans two chip factories in Malta, N.Y., financed by up to $21 billion from Japan under the Trump administration's trade and investment agreement with Tokyo, AP reported. Roughly $10 billion will speed construction of a plant the company aims to open in 2029, and another $10 billion will pay for a second plant. President Trump posted that the U.S. government will receive shares in GlobalFoundries, as it did with Intel. Demand for chips has surged with the computing needs of AI data centers. Federal chip money the company received earlier will now go to other semiconductor investments, GlobalFoundries spokesperson Kenneth Craig said.
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TSMC Chairman and CEO C.C. Wei confirmed the chipmaker is negotiating with Elon Musk's Terafab chipmaking project, telling analysts on its earnings call that "the fab has got to be run by TSMC," per Bloomberg. Musk said Oct. 7 that his companies would build and operate the Texas plant, with TSMC at most leasing capacity. Wei also said TSMC has sent teams to Texas to assess expanding beyond Arizona, citing U.S. customer demand and government support, TrendForce reported. Third-quarter net income rose 69% to NT$763 billion (about $24 billion) on revenue of $47 billion. TSMC expects its second Arizona fab to start volume production in the third quarter of 2027.
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More than $3.5 trillion of AI infrastructure spending could be written down by 2030 because AI revenue is unlikely to cover the cost, research firm Gartner estimated, per Bloomberg. Gartner expects AI providers to put nearly $1 trillion into infrastructure this year and another $6 trillion from 2027 through 2030. Data center owners would need $8.5 trillion in revenue by 2030 to cover that outlay, financing costs and a 12% return, against no more than $3.6 trillion in AI revenue attributable to those facilities. Gartner analyst Will Sommer told TechTarget the firm expects 80% of neoclouds, companies that rent out AI specific computing, to stop operating independently by 2030 through acquisitions, partnerships or failures.
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Selling of AI shares spread across global markets as hotter U.S. inflation raised fears of interest rate increases among investors already wary of the sector's heavy borrowing, The Guardian reported. South Korea's Kospi 200 index, weighted toward memory chipmakers, fell more than 8% to a six month closing low, triggering circuit breakers (automatic trading halts). SoftBank dropped 10% and memory maker Kioxia 11%, following a 1.9% fall in the Nasdaq. Annual U.S. inflation reached 3.7% in September.
Read at The Guardian ↗
OpenAI alleged in a new filing in San Jose federal court that a former employee now at Apple forwarded more than 100 files on an unreleased product to a personal account, per Reuters. The filing says he later presented the product to senior Apple leadership and cites Apple's release this week of its HomeView product. The allegation delayed a scheduled hearing in the trade secrets suit Apple brought against OpenAI. OpenAI said it may file a countersuit, and Apple said it found no evidence to support the claims.
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A new McKinsey Global Institute report forecasts that AI will produce between 500,000 and 2 million novel jobs in coming years, among them robot trainers, deepfakeDeepfakeSynthetic audio, images or video that realistically depict a real person saying or doing something they did not. Non-consensual intimate deepfakes and election deepfakes are the two areas where states and Congress have actually passed laws. investigators and AI-risk underwriters, The Atlantic reported. MGI fellow María Jesús Ramírez likened the pattern to the combustion engine, which eventually yielded work for pilots and air traffic controllers that no one could have specified in advance. Laura Ullrich, director of economic research in North America at the Indeed Hiring Lab, said the fastest-growing Bay Area listings are for operations engineers, applied scientists and senior machine-learning engineers, alongside estheticians, Pilates instructors and massage therapists. Ullrich also pointed to rising hiring for house managers, cold-plunge installers and sauna technicians.
Read at The Atlantic ↗