The artificial intelligence landscape is rapidly evolving, marked by significant investment and transformative potential, yet also by growing concerns about inequality and ethical challenges. Microsoft's AI Diffusion Report highlights that AI is spreading faster than any previous technology, but billions are being excluded due to language barriers and disparities in infrastructure and digital skills, particularly impacting regions in Africa, South Asia, and Latin America. Meanwhile, Meta is actively defending itself against a lawsuit alleging the use of downloaded pornographic videos for AI training, arguing such claims are 'bogus' and that any downloads were for personal use, not AI development. In the financial sector, Goldman Sachs CEO David Solomon acknowledges AI as a major growth driver but warns of inherent risks and the likelihood of both winners and losers. The credit markets are bracing for a substantial surge in debt sales, estimated at $200 billion, to finance AI infrastructure, raising questions about the long-term profitability and potential overcapacity of these investments. Amazon's cloud division, AWS, is experiencing its fastest growth since 2022, exceeding 20%, fueled by substantial AI investments. The company's ad revenue has also seen a significant jump, reaching $17.7 billion in Q3 2025, boosted by AI tools and Prime Video content. Amazon's HR chief describes AI as the most transformative technology since the internet, impacting jobs and driving innovation, though this transformation has also been linked to layoffs. Beyond corporate applications, research suggests that empowering consumers directly, rather than relying solely on AI algorithms, leads to better purchasing decisions. Academically, educators face challenges with AI-generated student work, impacting the teaching of critical thinking and academic integrity. Furthermore, despite massive spending, AI still struggles with complex tasks like investment banking due to a lack of specialized training data and its tendency to 'hallucinate' errors in multi-step processes.
Key Takeaways
- Meta denies using downloaded pornographic videos for AI training, calling the lawsuit claims 'bogus' and suggesting any downloads were for personal use.
- Microsoft reports AI is spreading faster than any technology but is increasing global inequality, leaving billions behind due to language and infrastructure gaps.
- Amazon's AWS division is experiencing its fastest growth since 2022, exceeding 20%, driven by significant AI investments.
- Amazon's advertising revenue surged 24% year-over-year to $17.7 billion in Q3 2025, with AI tools playing a key role.
- Credit markets anticipate a $200 billion surge in debt sales to fund AI infrastructure, raising concerns about investment risks and potential overcapacity.
- Goldman Sachs CEO David Solomon sees AI as a major growth opportunity but cautions about risks and the uneven distribution of success.
- Research indicates that empowering consumer choice, rather than solely relying on AI, leads to better purchasing decisions and fewer returns.
- Educators are grappling with students submitting AI-generated work, posing challenges to academic integrity and the teaching of critical thinking skills.
- AI models still struggle with complex white-collar tasks like investment banking due to a lack of specialized training data and issues with accuracy.
- Amazon's HR chief views AI as the most transformative technology since the internet, impacting jobs and driving innovation.
Meta denies using porn downloads for AI training
Meta is fighting a lawsuit claiming it downloaded thousands of pornographic videos to train its AI models like Movie Gen and Llama. The company argues that any downloads were for personal use and occurred before its AI research began. Meta insists it does not want or use such content for training and has asked the court to dismiss the case, stating the plaintiffs lack evidence of intentional AI training.
Meta seeks dismissal of AI porn download lawsuit
Meta has asked a U.S. court to dismiss a lawsuit accusing it of illegally downloading pornographic videos for AI training, calling the claims 'bogus.' The company argues that the alleged downloads were minimal and sporadic, suggesting they were for personal use, not AI development. Meta also disputes the plaintiffs' claims about hidden IP addresses and states there's no proof of corporate knowledge or involvement in the downloads. This defense strategy denies data usage for training, potentially creating a loophole in copyright law for AI training data.
Microsoft: AI spreads fast but leaves billions behind
Microsoft's AI Diffusion Report reveals that artificial intelligence is spreading faster than any technology in history, but billions are being left out, increasing global inequality. Many AI models are trained primarily in English, excluding users of thousands of other languages. Nations like the UAE, Singapore, and Norway lead in AI adoption due to strong infrastructure and digital skills, while parts of Africa, South Asia, and Latin America lag significantly. Microsoft warns that without urgent investment in electricity, internet access, and digital education, this gap will persist for decades.
Consumer choice, not AI, drives better shopping, research finds
New research suggests that empowering consumers, rather than relying solely on AI algorithms, leads to better purchasing decisions and fewer returns. Studies show that AI often neglects the unique, personal factors influencing individual choices. When consumers feel their choices are self-determined, they make purchases that better fit their needs. This research, led by Paul A. Pavlou, indicates that AI should act as a partner, not a dictator, in commerce. This human-centered approach can build trust, loyalty, and a sustainable competitive advantage for businesses.
Professor battles AI-generated student work
A community college professor describes struggling with a student who submitted AI-generated text for an online course. The student, Delores, used sophisticated language and cited sources not covered in the syllabus, prompting the professor to suspect AI use. Despite discussions and attempts to guide the student, Delores continued to submit AI-influenced work, ultimately leading to a failing grade. The professor expresses frustration with the erosion of academic integrity and the challenge of teaching critical thinking skills in the age of AI.
AI struggles with investment banking due to data limits
Despite massive AI spending, AI models are not yet proficient in complex white-collar work like investment banking. This is primarily due to a lack of specialized, private training data, unlike the abundant public data available for language and coding. Generative AI's lack of control and tendency to 'hallucinate' cause errors to compound in multi-step tasks. Companies are now focusing on collecting domain-specific data with expert input, but AI still cannot learn on the job like humans, limiting its ability to fully replace white-collar roles.
Goldman Sachs CEO sees huge AI opportunity with risks
Goldman Sachs CEO David Solomon views artificial intelligence as a significant growth driver with enormous potential, but cautions that the path forward involves both winners and losers. He noted that while AI infrastructure buildout is a strong economic tailwind, not all capital invested will yield adequate returns. Solomon compared the current AI excitement to historical technological booms, suggesting it won't be a straightforward progression. He emphasized that the U.S. economy is currently in good shape, but growth is essential to manage the national debt.
Credit markets brace for $200bn AI debt surge
The credit markets are preparing for a significant increase in debt sales, estimated at $200 billion, to fund artificial intelligence infrastructure. Chipmakers, data center operators, and cloud computing providers are expected to issue this debt, potentially lowering bond prices and widening credit spreads. Analysts warn this trend could introduce new risks for investors, as the long-term profitability of AI investments remains uncertain. Concerns about overcapacity and the sustainability of current investment levels also exist, potentially leading to market volatility.
Amazon's AI push transforms jobs and boosts AWS
Amazon's cloud division, AWS, reported its fastest growth since 2022, exceeding 20%, following significant AI investments. Amazon's total revenue also beat estimates with record profit margins. CEO Andy Jassy stated that recent announcements, while not primarily financially or AI-driven yet, signal a major technological shift. The company's HR chief described AI as the most transformative technology since the internet, enabling faster innovation and impacting jobs, with 14,000 layoffs attributed partly to this transformation.
Amazon's ad sales soar with AI and Prime Video
Amazon's advertising revenue surged 24% year over year to $17.7 billion in Q3 2025, driven by strengths in its advertising platform (DSP), live sports on Prime Video, and new generative AI tools. The company's AI investments are becoming increasingly integrated into its ad infrastructure. Additionally, AI shopping assistant Rufus has seen significant user engagement. CEO Andy Jassy highlighted that all advertising offerings grew meaningfully, and the company is exploring partnerships with third-party agents for its AI tools.
Sources
- Meta says porn downloads were for ‘personal use,’ not training AI
- Meta Moves to Dismiss Porn-Piracy Suit, Calls AI-Training Claims 'Nonsensical'
- AI is the fastest tech in history, but billions left out: Microsoft
- Empowering consumers, not algorithms, can boost sales, reduce returns and redefine the future of AI
- Who Is the Monster? On AI and Online Learning (opinion)
- Why AI Models Suck At Investment Banking
- Goldman Sachs CEO: AI’s opportunity is enormous, but ‘there will be winners and losers’
- Credit market hit with $200bn ‘flood’ of AI-related issuance
- Watch out, workers: Amazon's AI flex this week shows how AI is transforming jobs.
- Amazon says DSP is now ‘fully featured’ as ad-sales boom continues