Anthropic, Google Cloud Deal, Nvidia, Microsoft AI Growth

The artificial intelligence sector continues to see significant developments, with AI company Anthropic reportedly in talks with Google for a cloud computing deal potentially valued in the high tens of billions of dollars. This agreement would provide Anthropic with substantial computing power from Google Cloud, a move that comes as Anthropic aims to meet an internal goal of $9 billion in annual revenue run rate by the end of 2025. Google has already invested approximately $3 billion in Anthropic. Meanwhile, Wall Street analysts are optimistic about the future of AI stocks, identifying Nvidia and Microsoft as top picks for significant growth in the coming year. Nvidia is recognized for its data center accelerators, while Microsoft is positioned strongly in enterprise software and cloud computing. The CEO of Alger Funds, Dan Chung, views the current AI boom as substantial, not a bubble, citing strong fundamentals for companies like Microsoft and Nvidia, though he notes the rapid capital spending by hyperscalers on AI infrastructure warrants attention regarding return on investment. In other tech news, Amazon is investing heavily in robotics, with plans to automate a significant portion of its warehouse operations, potentially saving billions annually by 2027. Adobe's stock is showing signs of a possible rebound, with technical indicators suggesting an upward trend. NetApp is enhancing its data security and cyber resilience with new AI-powered features and partnerships, including with Google Cloud, aiming to support AI-driven demand and protect data across hybrid and multicloud environments. On the wearable front, Sesame has raised $250 million to advance its voice-driven AI smart glasses, positioning voice as the next major computing interface. However, the broader market is experiencing some pressure, with AI stocks facing headwinds, as seen in mixed earnings reports from companies like Tesla.

Key Takeaways

• Anthropic is in discussions with Google for a cloud computing deal potentially worth tens of billions of dollars to secure additional computing power.
• Google has already invested approximately $3 billion in Anthropic.
• Anthropic is projected to reach a $9 billion annual revenue run rate by the end of 2025.
• Wall Street analysts see significant growth potential for AI stocks Nvidia and Microsoft over the next year.
• Nvidia leads in data center accelerators, and Microsoft is strong in enterprise software and cloud computing.
• The CEO of Alger Funds believes the current AI boom is real and not a bubble, citing strong company fundamentals.
• Amazon aims to save between $2 billion and $4 billion annually by 2027 through increased use of robots in its warehouses.
• Adobe's stock is showing technical indicators that suggest a potential rebound.
• NetApp is integrating AI-powered features to enhance data security and cyber resilience, partnering with Google Cloud among others.
• Sesame has secured $250 million in funding to develop voice-driven AI wearables, specifically smart glasses.

Anthropic and Google in talks for multi-billion dollar cloud deal

AI company Anthropic is in discussions with Google for a cloud computing deal potentially worth tens of billions of dollars. This agreement would provide Anthropic with more computing power from Google Cloud. The talks are still in their early stages, and the deal's terms could change. Google is already a cloud provider for Anthropic, which has recently raised significant funding and is projected to generate substantial revenue this year.

AI startup Anthropic in talks with Google for cloud deal

AI startup Anthropic is in discussions with Google to secure additional computing power valued in the high tens of billions of dollars. The deal has not yet been finalized, and Alphabet's Google declined to comment. Anthropic is on track to meet its internal goal of $9 billion in annual revenue run rate by the end of 2025. The potential agreement highlights the growing demand for AI computing resources.

Google and Anthropic discuss major cloud computing deal

AI lab Anthropic is in early talks with Google for a cloud computing deal potentially worth tens of billions of dollars. This arrangement would give Anthropic more computing power through Google's cloud services. Google, a unit of Alphabet Inc., has already invested about $3 billion in Anthropic. Anthropic, known for its Claude large language models, is seeking funding to advance its AI technology.

Wall Street sees big gains for AI stocks Nvidia and Microsoft

Wall Street analysts predict significant growth for Nvidia and Microsoft shareholders in the next year, viewing them as top AI stocks to buy. Nvidia leads in data center accelerators with its comprehensive approach to computing, while Microsoft is well-positioned in enterprise software and cloud computing. Analysts have raised price targets for both companies, suggesting substantial upside potential. Both companies have massive market capitalizations and are key players in the AI infrastructure buildout.

Wall Street sees big gains for AI stocks Nvidia and Microsoft

Wall Street analysts predict significant growth for Nvidia and Microsoft shareholders in the next year, viewing them as top AI stocks to buy. Nvidia leads in data center accelerators with its comprehensive approach to computing, while Microsoft is well-positioned in enterprise software and cloud computing. Analysts have raised price targets for both companies, suggesting substantial upside potential. Both companies have massive market capitalizations and are key players in the AI infrastructure buildout.

Adobe stock shows potential for a rebound

Adobe (ADBE) stock is showing signs of a potential rebound, presenting an interesting investment setup. Technical indicators like the 9-month support zone near $330, a bullish MACD crossover, and an RSI bounce suggest a possible upward movement. A specific trade strategy involves a 340-345 bull call spread, risking $2,500 for a potential $2,500 gain if Adobe closes at or above $345 by expiration. The author holds an ADBE bull call spread expiring November 14.

NetApp enhances AI and cybersecurity features

NetApp is improving its data security with new AI-powered features and cyber resilience services, including partnerships with Google Cloud, Cisco, and OPSWAT. These updates aim to support AI-driven demand and protect data across hybrid and multicloud environments. While these enhancements bolster NetApp's value proposition, the company still faces competition from hyperscalers and pricing pressures. NetApp anticipates $7.5 billion in revenue and $1.4 billion in earnings by 2028.

AI boom is real, not a bubble says Alger Funds CEO

Dan Chung, CEO of Alger Funds, believes the current AI boom is not a bubble, comparing it favorably to the dot-com era. He points to strong market momentum, solid fundamentals of leading companies like Microsoft and Nvidia, and a more supportive macro environment. Chung notes that while companies like Microsoft and Nvidia have strong financials, the rapid capital spending by hyperscalers on AI infrastructure raises questions about return on investment. He sees the AI trend having significant room to grow.

Match Group uses AI and safety features to boost user engagement

Match Group is enhancing its dating apps like Tinder and Hinge with AI-powered features and a stronger focus on safety. This strategy aims to reverse declining user engagement and attract younger users who prioritize secure online interactions. By implementing advanced verification and new matching algorithms, Match Group seeks to create more meaningful connections and increase user retention. Analysts are watching closely to see if these initiatives improve user growth and justify the company's valuation.

Amazon robots could save billions annually

Amazon's shift towards using robots in its warehouses could save the company between $2 billion and $4 billion annually by 2027, according to Morgan Stanley. The e-commerce giant plans to replace a significant number of human jobs with robots, aiming to automate 75% of its operations. Amazon is adding new robotic warehouses and upgrading existing ones, which could lead to substantial cost reductions per order. The company is also developing new robotic systems like 'Blue Jay' to improve efficiency.

Sesame raises $250 million for voice AI wearables

Sesame has secured $250 million in funding to advance its voice-driven AI wearables, specifically lightweight smart glasses for all-day use. Sequoia Capital led the investment, believing voice will become the next dominant computing interface. Sesame's technology combines custom hardware, software, and conversational intelligence to create a seamless, human-like interaction. This funding will support the beta rollout, hardware development, and expansion of developer partnerships, positioning Sesame at the forefront of voice-first AI.

Tesla earnings mixed, AI stocks face pressure

Dow Jones, S&P 500, and Nasdaq futures saw slight declines in after-hours trading. Tesla reported mixed earnings, with CEO Elon Musk expected to be a focus on the conference call. The broader stock market rally faced pressure, although major indexes pared earlier losses. Vertiv and GE Vernova experienced downside reversals. AI stocks are also under pressure in the current market environment.

Sources

• Anthropic and Google in Talks to Strike Multi-Billion Dollar Cloud Deal
• Anthropic, Google in talks on cloud deal worth tens of billions, Bloomberg News reports
• Google and Anthropic in talks for multi-billion dollar cloud deal, Bloomberg says By Investing.com
• 2 Trillion-Dollar Artificial Intelligence (AI) Stocks to Buy Before They Soar in 2026, According to Wall Street
• 2 Trillion-Dollar Artificial Intelligence (AI) Stocks to Buy Before They Soar in 2026, According to Wall Street
• There's a rare AI stock that is not 'overbought' like the rest
• How NetApp's (NTAP) AI and Cybersecurity Launches Have Changed Its Investment Story
• This Is an AI Boom, Not a Bubble, Says Alger Funds CEO Dan Chung
• AI-Powered Features and Safety Push Might Change the Case For Investing In Match Group (MTCH)
• Amazon's switch to robots over human warehouse employees will save it up to $4 billion a year, Morgan Stanley says
• Sesame Attracts $250 Million in Funding To Advance Voice-Driven AI Wearables
• Futures: Tesla Earnings Miss, Elon Musk Due; AI Pressured