Amazon ChatGPT and $13.0 Million lead AI news

Key Takeaways

• Recursion Pharmaceuticals posted Q3 revenue of $13.0 million, up 69% from Q2's $7.7 million
• HSBC plans to launch an AI institute in Hong Kong in Q1 2027 and train its full 200,000-person workforce on AI
• Tutor Intelligence raised $75 million in Series B funding to deploy robot fleets in factories and warehouses
• DigitalOcean may need about $4 billion in incremental capital through mid-2029 to support AI infrastructure demands
• Cipher Digital signed 493 megawatts of AI data-center leases, including deals with Amazon Web Services and Fluidstack
• Upstart saw September origination volumes of $1.378 billion, up 44.2% year-over-year
• Major tech companies plan to spend $660 billion to $690 billion on AI infrastructure in 2026
• AI stocks rallied over 500% since ChatGPT launched in November 2022 before a sharp recent decline
• Bank of America warns a lasting AI sell-off could hurt the US and global economy
• The UN Security Council called for AI tools to protect maritime shipping routes amid rising piracy

Recursion Pharmaceuticals reports earnings as AI drug platform faces growth test

Recursion Pharmaceuticals reported third-quarter results with analysts expecting a loss of 22 cents per share on revenue of $13.0 million. Revenue is forecast to jump 69 percent from the second quarter's $7.7 million. The company earned a $10 million milestone from Sanofi and has over $300 million in additional milestones lined up. Recursion also has Phase 2 data for REC-4881 and plans to start a Phase 1/2 trial for REC-7735 in the second half of 2026.

Xometry earnings report will test whether AI marketplace can keep growing

Xometry is set to report third-quarter results with analysts expecting earnings of 19 cents per share on revenue of $235.5 million. That would represent 74 percent year-over-year growth in EPS and 30 percent growth in revenue. A key focus is whether Services revenue returns to year-over-year growth. Siemens invested $50 million and is integrating Xometry tools into its design software. Management guided toward adjusted EBITDA of $60 million to $62 million for the full year.

DigitalOcean earnings arrive as AI funding needs come under scrutiny

DigitalOcean reported third-quarter earnings with analysts expecting $0.32 per share on revenue of $306.66 million. Revenue is forecast to grow 33.3 percent year-over-year but EPS is expected to fall 41 percent due to heavy infrastructure investment. UBS analysis suggests DigitalOcean may need about $4 billion in incremental capital through mid-2029. Management has guided to 50 percent-plus revenue growth for 2027. Major tech companies plan to spend $660 billion to $690 billion on AI infrastructure in 2026.

Cipher Digital earnings test AI data-center transition plan

Cipher Digital is set to report third-quarter results with analysts expecting a loss of 24 cents per share on revenue of $38.1 million. Revenue would rise 53 percent sequentially from the second quarter's $24.8 million but fall 47 percent year-over-year. Investors are watching whether Cipher collects rent from its Barber Lake facility in Texas, which has over $9 billion in contracted revenue. The company has signed 493 megawatts of AI data-center leases, including deals with Amazon Web Services and Fluidstack. Initial data hall deliveries are expected from late 2026 through early 2027.

Upstart earnings will show if AI lender can sustain loan growth

Upstart is set to report third-quarter earnings with analysts expecting $0.21 per share on revenue of $365.9 million. September origination volumes reached $1.378 billion, up 44.2 percent year-over-year. The company received preliminary conditional approval from the OCC for a national bank charter in July. Upstart is expanding into home equity lines of credit and indirect auto lending. The stock has fallen 50 percent over the past year but analysts maintain a consensus Buy rating with a mean price target of $37.94.

Dreame pushes forward with next generation home-help robots

Dreame Technology is leading efforts to bring humanoid robots into homes for everyday chores. At the World Humanoid Robot Games in Beijing, robots showed off skills like making beds and folding laundry. The company is best known for robot vacuums that compete with Dyson and iRobot. China is already ahead in factory robots and now aims to lead in home robots too.

Tutor Intelligence raises $75 million to expand robot workforce

Tutor Intelligence raised $75 million in Series B funding led by Andreessen Horowitz. The company deploys internet-connected robot fleets in factories and warehouses where remote operators train them through real tasks. Each completed job generates data that improves the AI models for the entire fleet. Tutor plans to have over 1,000 robots under contract by the end of 2027, all built and deployed in the United States.

BofA warns lasting AI sell-off could hurt the economy

Bank of America Global Research warns that a long-lasting drop in AI stock prices is one of the biggest risks to the US and global economy. AI-related spending added more than one percentage point to third quarter GDP growth of 3.4 percent. Without AI spending, the economy still grew more than 2 percent last quarter. Hedge funds have already pulled back from AI stocks, and the richest 10 percent of households own 88 percent of stocks.

AI data centers appear on ballots in 10 states

AI data centers are showing up on ballots across 10 states in upcoming elections. Americans are expressing frustration about data centers through their votes. The issue has become a political concern as communities debate the impact of these facilities. Seven stocks are considered at risk based on voter sentiment.

HSBC to open Hong Kong AI Institute next year

HSBC plans to launch an AI and emerging technology institute in Hong Kong in the first quarter of 2027. The institute will partner with Hong Kong University of Science and Technology. This follows a similar AI center launch in Singapore where HSBC hired over 100 AI specialists. HSBC is also rolling out AI training for its entire global workforce of about 200,000 people.

AI investment worries test Korean economy

Concerns about the global AI investment boom are creating financing pressure on major tech companies like Google, Meta and Amazon. These companies are relying heavily on debt to fund AI infrastructure spending, leading to negative free cash flow. If hyperscaler investment slows, memory chip orders for Korean companies like Samsung Electronics and SK hynix could also decline. Rising memory chip prices have already caused global smartphone shipments to drop 20 percent in the third quarter of 2026.

Market experts split on AI stock drop

After AI stocks fell sharply, market experts divided into two camps over whether it signals a bigger problem or normal volatility. Some see opportunity in the selloff, while others warn retirees should review their portfolio risk. The S&P 500 fell 1.8 percent on Friday, marking its 22nd drop over 1 percent this year, below the historical average of 29. AI stocks had rallied over 500 percent since ChatGPT launched in November 2022 before the recent decline.

Plexo Capital's Toney on AI compute shortage

Lo Toney of Plexo Capital discussed the tech trade and AI spending boom on CNBC's Squawk Box. The main challenge identified was a lack of compute power available in the marketplace. The discussion also covered Apple's upcoming earnings results and other technology topics.

AI use causes privacy breach at WA facilities

Patients at two Washington state mental health facilities may have had private health information exposed after staff used unauthorized AI tools. At Lake Burien Transitional Care Facility, an employee used ChatGPT to draft patient case notes in July, potentially exposing names, diagnoses and medications. About a dozen patients were notified, and a similar breach affected four patients at Western State Hospital. State policy requires staff to get approval before using AI tools with patient information.

UN Security Council turns to AI for shipping safety

The UN Security Council called for using AI to protect maritime shipping routes amid rising piracy concerns. The International Maritime Organisation reported 56 piracy incidents between January and July 2026, mostly in the Malacca Strait and Gulf of Aden. France and the United States supported AI tools for detecting threats and improving navigation awareness. Yemen warned that advanced military technologies used by non-state actors, including Houthi militias, threaten international shipping safety.

Sources

• Recursion Pharmaceuticals earnings in focus: AI platform faces test
• Xometry earnings loom: Can AI marketplace sustain growth surge?
• DigitalOcean earnings on deck as AI funding questions loom
• Cipher Digital earnings ahead as investors eye AI transition
• Upstart earnings loom: Can AI lender sustain origination surge?
• The woman breathing life into next generation home-help robots
• Tutor Intelligence Raises $75 Million Series B Led by Andreessen Horowitz to Scale Frontier Robotics Model Training, Manufacturing and Deployment
• A lasting AI sell-off is one of the biggest risks to the economy, BofA warns
• AI Data Centers Are on the Ballot. 7 Stocks That Are at Risk.
• HSBC to open Hong Kong AI Institute following Singapore launch
• Doubts on AI investment to test Korean economy
• Market Pros Split on AI Selloff: Opportunity or Warning Sign for Retirees?
• AI challenge is lack of compute in the marketplace: Plexo Capital's Toney
• AI use leads to potential privacy breach at WA mental health facilities
• Security Council Turns to AI to Safeguard Maritime Shipping Routes