Microsoft Commits $80 Billion While Oracle Builds OpenAI Centers

AI's pervasive influence continues to reshape various sectors, from tech giants' strategic investments to its ethical implications in creative industries and daily life. Companies like Oracle and Microsoft are pouring billions into AI infrastructure, signaling a long-term commitment despite immediate financial pressures. Oracle, led by Larry Ellison, is building numerous data centers for clients including OpenAI, a move expected to make its cash flow negative for years. Microsoft also plans an $80 billion capital expenditure for FY25 in AI and cloud, facing investor concerns about short-term returns and a recent 5% stock drop. The financial markets are reacting to this intense focus on AI. Asia-Pacific markets recently saw declines, mirroring a sell-off of AI-related stocks on Wall Street. South Korea's market led losses, and Korea Zinc shares plunged following a reported $1.9 billion share sale to a US government joint venture. This broader investor rotation out of the AI trade reflects a cautious sentiment despite the massive investments. Beyond market dynamics, AI's growing footprint is raising significant societal and regulatory questions. US Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal are investigating Amazon, Google, Meta, and Microsoft, among others, over concerns that AI data centers are driving up electricity costs for consumers. Utility companies have spent billions upgrading grids, contributing to a 7% increase in average household electricity bills by September 2025. Senators accuse firms of using NDAs and shell companies to obscure projects and lobby against regulations, prompting calls for new legislation. The impact of AI extends to the workforce and creative fields. A survey indicates 17% of companies boosting productivity with AI have also reduced their workforce, highlighting job displacement concerns. In creative sectors, Larian Studios, known for Baldur's Gate 3, uses generative AI for internal tasks like concept art and placeholder text, but CEO Swen Vincke assures no AI-generated content will appear in final games like the upcoming Divinity. Similarly, Princeton University's Class of 2026 changed its jacket design after accusations of AI use, underscoring the demand for human-created content and transparency. Yet, AI also presents opportunities for innovation and new forms of human interaction. Small newsrooms, like The Green Line, leverage AI for business development, securing $80,000 in grant funding and freeing up human staff for strategic tasks, always with transparent labeling for editorial content. In banking, experts predict AI will lead to autonomous agents handling complex customer requests, personalized experiences, and new financial products by 2026, with human bankers focusing on higher-value roles. On a more personal level, a 32-year-old woman in Japan even held a wedding ceremony with her AI-generated partner, Klaus, showcasing AI's evolving role in human emotional lives.

Key Takeaways

• Tech giants Amazon, Google, Meta, and Microsoft face a US Senate investigation into how their AI data centers contribute to rising electricity costs for consumers, with prices increasing up to 267% near some data centers.
• Oracle, led by Larry Ellison, is making massive AI investments, building data centers for clients like OpenAI, which is projected to make its cash flow negative for years despite securing $523 billion in backlogged sales.
• Microsoft plans an $80 billion capital expenditure for FY25 in AI and cloud infrastructure, but investor concerns about short-term returns and competition from Google led to a recent 5% stock drop.
• Larian Studios uses generative AI for internal tasks like concept art and placeholder text but assures no AI-generated content will appear in final games, including the upcoming Divinity title, emphasizing human creativity.
• Asia-Pacific markets, including Japan and South Korea, experienced declines following a sell-off of AI-related stocks on Wall Street, with Korea Zinc shares plunging after a reported $1.9 billion share sale.
• Princeton University's Class of 2026 changed its senior jacket design due to accusations of generative AI use, highlighting growing concerns about AI's role in creative fields and the demand for transparency.
• A survey revealed that 17% of companies improving productivity with AI have also reduced their workforce, indicating a direct impact of AI on job displacement.
• AI is predicted to transform banking by 2026, introducing autonomous AI agents for complex customer requests, highly personalized experiences, and increased regulatory scrutiny.
• Small newsrooms, like The Green Line, leverage AI for business development, such as generating $80,000 in grant funding, while maintaining human control and transparently labeling any AI-assisted editorial content.
• AI is increasingly influencing personal relationships, as exemplified by a 32-year-old woman in Japan holding a wedding ceremony with her AI-generated partner, Klaus, for companionship.

Larian uses AI for ideas but not in Divinity game

Larian Studios CEO Swen Vincke confirmed the company uses generative AI in game development. They use AI tools for exploring ideas, presentations, concept art, and placeholder text. However, Vincke stated that their new Divinity game will not have any AI-generated content in the final product. All content in Divinity will come from human actors and writers. Larian aims to reduce development time for Divinity compared to Baldur's Gate 3. Vincke also mentioned that while some internal pushback occurred, most employees are now okay with their AI use.

Larian CEO clarifies AI use after community backlash

Larian Studios CEO Swen Vincke responded to community backlash regarding the use of generative AI in game development. He clarified that Larian is not releasing a game with AI components nor replacing staff with AI. The studio uses AI for internal tasks like concept art and placeholder text to improve workflow. Vincke assured that the final Divinity game will feature only human-created content. Larian continues to hire concept artists, writers, and storytellers, showing their commitment to human creativity. He emphasized that AI is a tool to help creatives, not replace them.

Larian Studios uses AI for ideas but not in final games

Larian Studios, known for Baldur's Gate 3, uses generative AI for early ideas and content prototyping. CEO Swen Vincke stated that no AI-generated content will appear in finished games like the upcoming Divinity. He clarified that Larian employs 72 artists, including 23 concept artists, and is hiring more. The studio uses AI tools for exploring references and rough outlines, which artists then replace with original work. Vincke emphasized that AI is an additive tool to help creatives, not a replacement for their skills or staff. Larian aims to make games differently and better without sacrificing craftsmanship.

Senators question tech giants about rising electricity bills

US Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal are investigating how AI data centers affect electricity costs. They sent letters to Amazon, Google, and Meta, concerned that these companies pass data center operating costs to consumers. Utility companies have spent billions upgrading the electrical grid for AI data centers, which may lead to higher residential bills. The average household paid 7% more in electricity bills by September 2025 compared to the previous year. While some research suggests AI might lower rates by subsidizing upgrades, the trend shows increasing costs. Electricity demand is a major challenge for the growing AI industry in the US.

Senators investigate tech firms over rising energy costs

Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal launched an investigation into how tech companies' data centers increase electricity bills. They sent letters to Amazon, Google, Meta, Microsoft, Equinix, Digital Realty, and CoreWeave. The senators cited a study showing electricity prices increased up to 267 percent near data centers in five years. They accuse firms of using NDAs and shell companies to hide data center projects and avoid public scrutiny. Tech companies also lobby against regulations that would make them pay a higher percentage of upfront costs. Senators are exploring legislation to prevent these price increases, which burden average Americans.

Asia-Pacific markets fall as AI stocks decline

Asia-Pacific markets experienced declines on Tuesday, following a continued sell-off of AI-related stocks on Wall Street. Markets in Japan and South Korea fell, with South Korea stocks leading losses for a second day. Australia's S&P/ASX 200 also lost 0.29 percent, reversing earlier gains. Korea Zinc shares plunged after a reported $1.9 billion share sale to a US government joint venture. Medical company ADEL signed a drug development deal worth up to $1.04 billion with French pharma giant Sanofi. Investors are rotating out of the artificial intelligence trade in the US, impacting global markets.

Princeton class jacket changed after AI design accusations

Princeton University's Class of 2026 changed its senior class jacket design after accusations of generative AI use. Derek Geng '26 and Margaret Miao '26 raised concerns, with Miao starting a petition. Contest rules barred AI use, and artists had to sign forms confirming no AI content. The original design by Henriques was replaced by Zavier Foster '26's design, which was the highest-ranked eligible entry. Many students were happy with the change, believing AI undermines human effort and the class legacy. This incident highlights growing concerns about AI in creative fields and the need for transparency.

Larry Ellison leads Oracle's big AI investment

Larry Ellison, Oracle Corp.'s co-founder, is a key figure in the AI boom, leading the company's major AI investment. Oracle is building many data centers for clients like OpenAI, which will make its cash flow negative for years. The company's stock price surged in September but has since lost 44% of its value due to investor anxieties. Ellison, known for taking big risks, is making all the decisions for Oracle's AI strategy. Oracle has secured $523 billion in backlogged sales, and 2026 will test its ability to deliver on these promises. Ellison also has other ventures, including his son David Ellison's media mogul ambitions.

Microsoft AI investment sparks stock concerns

Discussions are ongoing about Microsoft's large investments in AI and cloud infrastructure, including an $80 billion capital expenditure for FY25. Some investors worry about short-term returns despite strong growth in Azure and cloud services. Microsoft's stock price recently dropped 5% in two weeks, possibly due to market concerns about AI regulation and competition from Google. However, some remain hopeful, pointing to Wall Street targets as high as $650 based on Azure expansion and AI potential. The debate highlights the tension between immediate financial challenges and long-term growth prospects for Microsoft.

Small newsrooms can win with AI says publisher

Anita Li, CEO of The Green Line, believes AI offers a big advantage for small, hyperlocal news outlets. She predicts AI will help these outlets survive and innovate by freeing up time for human-only tasks like strategy and relationships. The Green Line uses AI for business development, such as generating $80,000 in grant funding, saving significant time. The team uses AI sparingly for editorial content and always labels it for transparency. Li emphasizes an ethical framework focused on independence, accuracy, fairness, and transparency, not rigid rules. She sees AI supporting a future where journalism is service-oriented and mission-driven, with humans always in control.

Some companies cut jobs after AI boosts productivity

A recent survey shows that 17% of companies that saw productivity improvements from AI also reduced their workforce. This indicates a direct impact of AI on the labor market. "The Big Money Show" discussed how AI productivity affects jobs and its applications in the workplace. The findings raise questions about the future of employment as AI technology advances.

Japan woman marries AI partner Klaus in unique ceremony

Yurina Noguchi, a 32-year-old woman in Japan, held a wedding ceremony with her AI-generated partner, Klaus. Klaus is an artificial intelligence persona she created using AI software, displayed on a smartphone screen. The ceremony, attended by family and friends, showcased Noguchi's deep emotional bond with Klaus. While not legally recognized, this union highlights a growing trend of people seeking companionship through AI. Experts suggest such unconventional relationships can offer comfort and support in an increasingly isolated world. Noguchi's story demonstrates the changing nature of relationships and AI's role in human emotional lives.

Experts predict 13 ways AI will change banking by 2026

Experts predict 13 significant changes for the banking industry by 2026 due to AI. Autonomous AI agents will handle complex customer requests, moving beyond simple chatbots. Banks will use synthetic data more often to train AI models, improving privacy and reducing reliance on sensitive customer information. Trust in AI systems will become a measurable factor, and customer experiences will become highly personalized. Human bankers will work alongside AI, focusing on higher-value tasks, while regulators will increase scrutiny on AI's implications. New AI-powered financial products will emerge, but banks must address a growing talent gap and integrate AI with legacy systems.

Sources

• Larian is using generative AI, confirms CEO, but Divinity won't contain anything AI-generated
• Larian CEO Responds to Divinity Gen AI Backlash: 'We Are Neither Releasing a Game With Any AI Components, Nor Are We Looking at Trimming Down Teams to Replace Them With AI'
• Divinity Maker Is Uses Gen AI But Promises No Slop In Final Game
• Elizabeth Warren, other U.S. senators concerned about big tech pushing up electricity costs — demands explanation from Amazon, Google, Meta as AI data centers drive up residential energy bills
• Senators count the shady ways data centers pass energy costs on to Americans
• Asia-Pacific markets set for mixed open as AI sell-off on Wall Street continues
• Senior class jacket abruptly changed following accusations of AI design
• Larry Ellison Calls the Shots in Oracle’s AI Bet
• Microsoft Stock (MSFT) Opinions on AI Investment and Stock Decline
• The AI winners won’t be the biggest newsrooms
• Survey indicates 17% of companies benefiting from AI productivity boost cut jobs
• AI romance blooms as Japan woman weds virtual partner of her dreams
• Banking's AI reckoning: 13 expert predictions for 2026