Meta, Microsoft Invest Heavily as Nvidia Hits $5T Valuation

The U.S. economy is experiencing a significant boost, with artificial intelligence accounting for over half of the nation's 1.6% growth in the first six months of 2025. This expansion is largely driven by substantial business investments in AI technologies, including the construction of new data centers by tech giants like Meta, Microsoft, and Alphabet (Google). Nvidia has emerged as a key player, reaching a $5 trillion valuation due to its essential hardware for AI development. This AI-driven economic surge is also influencing consumer spending through a rising stock market, though concerns about a potential bubble persist. Beyond economic growth, AI is being integrated into various sectors: Getty Images has partnered with Perplexity AI to enhance visual content in AI search tools, while westernwear brand Tecovas is using AI for improved inventory management. Educational initiatives are also expanding, with Palm Beach County launching a Mark Cuban AI Bootcamp for students. However, the rapid advancement of AI also brings challenges, including potential job market threats, as noted by Federal Reserve Chair Jerome Powell, and security vulnerabilities, such as a data theft flaw discovered in Anthropic's Claude AI. Meanwhile, Amazon's AWS is seeing significant demand for its AI services, with its managed AI service Bedrock potentially rivaling EC2 in scale, and a projected tripling of power consumption in five years due to AI demand.

Key Takeaways

• Artificial intelligence is responsible for over half of the U.S. economic growth in the first six months of 2025.
• Major tech companies like Meta, Microsoft, and Alphabet are investing heavily in AI infrastructure, including data centers.
• Nvidia has achieved a $5 trillion valuation, underscoring its critical role in powering AI technologies.
• Getty Images has entered a multi-year licensing agreement with Perplexity AI to integrate visual content into its AI search tools.
• Tecovas is implementing AI for inventory management to improve stock allocation and replenishment.
• Palm Beach County has launched a free AI Bootcamp for high school students, supported by Mark Cuban.
• Federal Reserve Chair Jerome Powell acknowledges AI's potential to impact the job market but sees low immediate risk.
• Amazon's AWS head suggests its AI service Bedrock could reach the scale of its compute service EC2.
• A security flaw in Anthropic's Claude AI could allow attackers to steal enterprise data via its code interpreter.
• The Hanna Center saved an average of 4.13 hours per user weekly by implementing ChatGPT Enterprise for operational tasks.

AI fuels US economic growth, driving over half of expansion

Artificial intelligence is significantly boosting the US economy, accounting for more than half of the nation's 1.6% growth in the first six months of 2025. This growth is driven by increased business investment in AI-related equipment and software, alongside soaring construction of data centers. Major tech companies like Meta, Microsoft, and Google are investing billions in these facilities. The stock market, influenced by AI optimism, also contributes to economic activity through consumer spending. While some experts warn of a potential bubble, the AI boom is currently a key engine for US economic expansion.

AI boom powers US economy, boosting growth and stock prices

Artificial intelligence is a major driver of US economic growth, contributing over half of the nation's expansion in the first half of 2025. This surge is fueled by significant business investments in AI technology, including the construction of new data centers by tech giants like Meta, Microsoft, and Alphabet. Consumer spending is also rising due to a stock market rally driven by AI investments. While the long-term impact and potential for an AI bubble are debated, the current AI boom is clearly stimulating economic activity and increasing stock values.

AI boom lifts US economy, driving growth and spending

Artificial intelligence is significantly boosting the US economy, with investments in AI accounting for over half of the nation's growth in the first half of 2025. This trend is evident as major tech companies like Meta, Microsoft, and Alphabet report substantial capital spending. The AI boom also stimulates consumer spending through a rising stock market, though concerns about a potential bubble exist. Ultimately, AI is providing a substantial lift to economic growth, with its full impact on productivity and jobs still unfolding.

Getty Images stock jumps on Perplexity AI content deal

Getty Images shares surged after announcing a multi-year agreement with Perplexity AI. Perplexity will now feature Getty Images' creative and editorial content within its AI-powered search tools. This partnership aims to enhance the quality and accuracy of information presented to users. Perplexity will also improve its image display by including credits and links to the original sources. The financial details of the deal were not disclosed, but it allows Perplexity to use Getty's vast library of visuals.

Getty Images and Perplexity AI strike visual content deal

Getty Images and Perplexity AI have signed a multi-year licensing agreement to enhance AI-powered search visuals. Under the deal, Perplexity will integrate Getty's API, allowing users access to premium images while improving attribution. This collaboration is part of a growing trend where digital platforms partner with AI content providers to expand access and respect intellectual property. Perplexity will also display image credits and source links, promoting legal content use. This follows Getty's efforts to support AI creativity with licensed content.

Parents teach kids AI ethics amid growing technology use

As artificial intelligence becomes more common, parents are teaching their children about AI ethics at home. Experts suggest using simple conversations and interactive activities to foster curiosity and critical thinking about AI. Discussions cover both the benefits, like AI in healthcare, and drawbacks, such as privacy concerns. The goal is to help children become informed users of AI, which influences everything from smart toys to online recommendations. Parents are encouraged to maintain a balanced perspective, focusing on fairness, privacy, and responsibility.

Nvidia reaches $5 trillion valuation amid tech layoffs

Nvidia has become the first company to reach a $5 trillion valuation, driven by its crucial role in powering the artificial intelligence revolution. The company's hardware is essential for AI technologies like ChatGPT and AI image generators. This milestone occurs as many other tech companies, including Amazon, announce significant layoffs, highlighting a growing divide. While Nvidia's success is celebrated, concerns rise about the concentration of power and the potential for AI to displace human workers across various industries.

Fed Chair Powell sees AI job threat but downplays immediate risk

Federal Reserve Chair Jerome Powell acknowledged that artificial intelligence could threaten the job market but stated the immediate risk is low. He noted that while AI investments contribute to economic growth, its impact on job creation or destruction is still unclear. Powell emphasized the Fed's monitoring of AI's economic effects and commitment to broad-based growth. He suggested that AI might create new jobs, similar to past technological shifts, rather than causing mass unemployment.

Tecovas uses AI for better store inventory management

Westernwear brand Tecovas is implementing Invent.ai's AI solutions across its stores to improve inventory management. Following a successful pilot, the system will help Tecovas make faster, data-driven decisions about stock allocation and replenishment. Invent.ai predicts demand at a detailed level, ensuring the right products are available in the right stores. This AI integration aims to increase in-stock rates, boost sales, reduce excess inventory, and streamline planning processes for the company.

Palm Beach County launches Mark Cuban AI Bootcamp for students

Palm Beach County has launched the Mark Cuban Foundation Artificial Intelligence Bootcamp for high school students, offering free training in AI and emerging technologies. This initiative aims to build a future-ready workforce by providing students with foundational knowledge in machine learning, data science, and ethical AI development. Local business leaders and educational institutions strongly support the program, recognizing its potential to foster innovation and prepare students for future careers in STEM. The bootcamp will offer hands-on projects and insights from industry experts.

AWS leader sees AI service Bedrock rivaling EC2's scale

Matt Garman, head of AWS, suggested that Amazon's managed AI service, Bedrock, could become as significant as EC2, AWS's main compute service. He noted that most usage on Bedrock already runs on AWS's custom Trainium chips. Amazon CEO Andy Jassy also highlighted the potential of AI services like AgentCore, comparing its foundational building blocks to early AWS offerings. Jassy also predicted that AWS's power consumption will triple in five years due to high demand for AI services.

Claude AI vulnerability allows data theft via code interpreter

A security flaw in Anthropic's Claude AI assistant allows attackers to steal enterprise data using its code interpreter feature. Researcher Johann Rehberger demonstrated how indirect prompt injection could trick Claude into exfiltrating chat histories and uploaded documents. The exploit uses Claude's API infrastructure to send data to attacker-controlled accounts, bypassing default security settings. While Anthropic classified it as a safety issue, the researcher argues it's a security vulnerability due to network access controls.

Legal ops use AI effectively with practical playbook

The Hanna Center successfully integrated AI into its operations by focusing on practical workflow challenges rather than just hype or fear. They implemented ChatGPT Enterprise for 50 staff members, resulting in an average weekly time saving of 4.13 hours per user, valued at approximately $22,767 monthly. This approach involved starting with small, high-value pilots to automate tasks like data extraction and report drafting. The strategy led to increased staff autonomy, faster turnaround times, and generated over 50 new ideas for AI applications.

Sources

• AI-led investments are driving US economic growth
• AI-Led Investments Are Driving US Economic Growth
• AI Boom Is Driving GDP Growth in the US
• Getty Images stock pops 25% on deal with Perplexity AI
• Getty, Perplexity sign multi-year licensing deal to boost AI-powered search visuals
• Parents turn to home lessons to teach kids AI ethics amid tech boom
• Nvidia hits $5 trillion valuation as layoffs sweep tech industry
• Jerome Powell says the AI hiring apocalypse is real: ‘Job creation is pretty close to zero’
• Tecovas partners with AI firm for store inventory management
• Palm Beach County Launches Mark Cuban AI Bootcamp with Strong Backing from Local Business Leaders
• Matt Garman: Bedrock could be as big as EC2
• Claude AI vulnerability exposes enterprise data through code interpreter exploit
• AI That Works In The Real World: Lessons From A Legal Ops Playbook