AI: Weekly Summary. RTZ #983

1. Microsoft Results & AI initiatives: Four of the ‘Mag 7’ reported this week, and there were lots of AI implications (others beyond Microsoft discussed below). Microsoft results were inline with expectations, especially on Cloud division Azure metrics. AI capex investments remain high here as they do for the others except Apple. Investors were concerned over returns on those investments, with the stock down almost 5%. Microsoft’s Copilot efforts across its Windows, Office 365, Github and other platforms, remain strong, with strong conviction by Microsoft CEO Satya Nadella on further traction there. Microsoft also continues to proactively work hard with its AI products on the enterprise side, vs competition from partners and ‘frenemies’ OpenAI, Anthropic and others. Satya is also focused on newly viral AI open source initiatives like Clawdbot, now renamed OpenClaw, a set of open source AI Agent tools, that have virally captured millions of developers’ attention in a few short weeks. Separately, Microsoft also signed a $750 million Cloud Deal with wonder-AI firm Perplexity via its Azure service. More here.

   

2. Meta’s Quarter & Evolving AI Org: Meta’s Q4 and full year earnings report was received more positively by investors with the stock up over 10%. This despite founder/CEO Mark Zuckerberg almost doubling AI capex commitments for 2026 to $135 billion. CFO Susan Li highlighted how Meta’s AI investments and AI tools are leveraging ad sales across its 3 billion plus daily user platforms, with notable jumps in advertising efficacy. Zuck also made a strong case for the need to invest in AI infrastructure and talent ahead of anticipated AI products and services across the board. This includes AI wearables, where Meta remains laser focused on AI smart glasses and other wearables this year and beyond. Meta also continues to lean into aggressive investments in Power to enable its AI Data Centers on a timely schedule. Meta is also reorganizing its Meta Superintelligence efforts into Meta Compute for AI infrastructure, and a host of other initiatives. And building on its recent $3 billion Manus/China acquisition across its core properties. More here.

   

3. Apple Strong Quarter & Q.AI acquisition: Apple’s results were also positively received by investors, especially on ‘staggering’ iPhone sales overall, and particularly in China vs previously encroaching competitors. The company also continues to be focused on an AI enabled Siri later this year, powered by a proprietary version of Google Gemini, via its recently announced partnership. Apple of course does not have the heavy AI capex likes its peers in Gigawatt powered AI Data Centers, but those investments do continue in the billions. Just not hundreds of billions for now. Apple also announced its second largest acquisition ever after Beats Electronics in 2014 for $3 billion, in Israeli stealth startup Q.AI for $2 billion. (As a side note, it’s extraordinary that those two are the largest acquisitions for a 50 year old, $3.7 plus trillion dollar global company). The co-founder there has a pedigree of already selling an earlier startup PrimeSense to Apple for $350 million. That technology led to Apple Face ID, which is a global success on iPhones. (And still leads competitive offerings by Android OEMs and Google). Q.ai’s tech reportedly allows quiet reading of facial characteristics as input for AI Wearables like Airpods, smart glasses, and more. The acquisition is reminiscent of Meta’s 2019 acquisition of CTRL-Lab for almost one billion dollars, which led to the innovative wrist input device accompanying its latest AI display powered Smart Glasses. Apple is also reported to be working on an AI Wearable Pin to counter OpenAI/Jony Ive devices later this year, and of course competing products by Meta, Google, et al. Separately, on the Apple design front, it’s also notable that Apple hired Sebastiaan de With, co-founder of photo app Halide for it’s Apple design team. This post Meta hiring Apple Design Chief Alan Dye a few weeks ago. More on Apple ‘AI Bounce’ gathering steam here.

   

4. Tesla’s quarter and Elon AI initiatives: Tesla’s quarterly results indicated a flattening of its core auto business, with a surprising winding down of its decade plus Model S and X lines. This leaves the company with the E and Y lines globally. The younger Cybertruck line, which is not selling well, is being transitioned to a ‘robotaxi for deliveries’ future. Discontinued in all but name. Founder/CEO Elon Musk highlighted moving the production facilities for the S & X for production of its Gen 3 Optimus humanoid robots, with anticipated sales into the market next year. (Side note, with this move Tesla goes from ‘S3XY’ as the acronym for its cars to just ‘EY’!). Additionally, Tesla is also leaning on its cybercab/robotaxi business, with more launches planned across cities this year and next. Investors have shifted their expectations for Tesla beyond its EV portfolio, with attention focused on the long-term market for robotaxis and humanoid robots. Both will likely take longer than currently expected as a viable mainstream market. Especially given robust competition from China. As will AI Space Data Centers, a third major ‘future AI market’ Elon is also focused on as an investor narrative for its anticipated SpaceX IPO later this year, with a valuation over a trillion dollars. Elon also publicly suggested Tesla needing to build its own ‘TeraFabs’, to make AI Chips. A move beyond peers wo rely on multi-billion dollar Taiwan’s TSMC fabs to make their chips. There are also new reports of a possible SpaceX/xAI merger ahead of the IPO. This is consistent with Tesla now investing $2 billion in xAI’s latest private round, much like SpaceX did with the same amount a few weeks ago. (Side note: My take, he should just take SpaceX public via a reverse merger with Tesla and be done with it. His investors would likely support the move. And make it easier for him to achieve his trillion dollar payout marks). More here.

   

5. Anthropic’s Rising AI Profile: Anthropic continues to make headway into the AI Coding and Enterprise market, with rising expectations for investors in an upcoming round, and ahead of an expected IPO later this year. Founder/CEO Dario Amodei also penned an updated AI Essay on the opportunities and challenges with AI ahead. It’s a detailed report with over 46 footnotes. The piece continues to highlight AI concerns as its exponentially scales in capabilities, an approach Anthropic has turned into a core part of its brand since its founders split from OpenAI a few years ago. The sibling companies are increasingly competing aggressively on AI into the enterprise market, as well as AI products for millions of Developers. Anthropic’s recent innovations with Claude 4.5, Claude Code, and Claude CoWork continue to build its reputation and business momentum. Both OpenAI and Anthropic are in a race to be the first major LLM AI IPO in 2026. More here.

   

Other AI Readings for weekend:

1. OpenAI ChatGPT Health reviewed as not ready for prime-time while eyeing a cut of AI-aided drug discoveries. More here

   

2. Trends from PTC 2026, the AI Data Center ‘Davos in Hawaii’: More here.

   

(Additional Note: For more weekend AI listening, have a new podcast series on AI, from a Gen Z to Boomer perspective. It’s called AI Ramblings. Now 39 weekly Episodes and counting. More with the latest AI Ramblings Episode 39. Co-hosted with my Gen Z nephew Neal Makwana):

Up next, the Sunday ‘The Bigger Picture’ tomorrow. Stay tuned.

(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)