Microsoft Warns OpenAI Valuation is High While AMPP Secures $3.38 Million

McDonald's Netherlands recently removed its AI-generated Christmas advertisement from social media channels on December 11, 2025, following widespread negative feedback. Viewers found the 45-second ad, which depicted chaotic holiday scenes and a "twisted" version of a Christmas song, "creepy" and "unsettling." Melanie Bridge, CEO of The Sweetshop, which helped create the ad, noted that ten people worked on the project for five weeks, highlighting the human effort behind AI-assisted content despite public criticism about AI's impact on creative jobs. Meanwhile, AI continues to expand its reach into various sectors. Zoovu launched its MCP Server on December 11, 2025, in Boston, aiming to equip AI agents with comprehensive product knowledge for agentic commerce. This open protocol helps global brands and retailers provide AI agents with organized product data, allowing them to offer accurate recommendations and personalized shopping experiences. This innovation addresses the challenge of AI agents struggling with scattered product information. In the realm of personal connections, Justin McLeod, founder and CEO of Hinge, is stepping down to launch Overtone, a new AI and voice-powered dating app. Match Group, Hinge's owner, will lead Overtone's initial funding round in 2026 and retain a significant ownership stake. Additionally, the AMPP received an NSRP award on December 11, 2025, for a 12-month project using AI for workforce modeling in U.S. shipbuilding, part of over $3.38 million in government funding to address skill gaps, particularly in corrosion protection. The financial landscape for AI is also evolving. Bill Gates, Microsoft co-founder, warned that many AI company stock valuations are currently too high, predicting that many expensive tech stocks, including those of unprofitable startups like OpenAI, will lose significant value due to intense competition. This comes as a new report from AlixPartners indicates that investors are shifting away from traditional Annual Recurring Revenue (ARR) models, instead valuing software companies based on AI-driven usage and outcome-based metrics due to the high operational costs of running AI models. Furthermore, AI's rapid growth raises significant energy and environmental concerns. U.S. Energy Secretary Chris Wright identifies AI as America's top scientific priority, envisioning AI and nuclear fusion working together to meet the massive power demands of new data centers. The cost of computational power for training AI models doubles every nine months, and data centers could account for 35% of U.S. electricity demand by 2030, leading to approvals for natural gas and extended coal plant lifespans in areas like Virginia, despite renewable energy goals. IBM, under CEO Arvind Krishna, exemplifies a proactive approach, having rebuilt 490 workflows and created over 3,000 digital workers using AI, leading to billions in productivity gains and renewed growth.

Key Takeaways

• McDonald's Netherlands removed its AI-generated Christmas ad on December 11, 2025, due to negative public feedback, despite The Sweetshop CEO Melanie Bridge stating ten people worked on it for five weeks.
• Zoovu launched its MCP Server on December 11, 2025, in Boston, to provide AI agents with organized product knowledge for improved agentic commerce.
• Hinge founder Justin McLeod is leaving to launch Overtone, a new AI and voice-powered dating app, with Match Group leading its 2026 funding round.
• The AMPP received an NSRP award on December 11, 2025, for an AI project in U.S. shipbuilding workforce modeling, backed by over $3.38 million in government funding.
• AI is rapidly transforming clinical medicine, with the FDA approving over 1200 AI-powered medical devices since 1995, while CMS develops new payment policies.
• Investors are shifting from Annual Recurring Revenue (ARR) to AI-driven usage and outcome-based models for valuing software companies due to high AI operational costs.
• Microsoft co-founder Bill Gates warned that many AI company stock valuations, including those of OpenAI, are too high and likely to decrease due to intense competition.
• U.S. Energy Secretary Chris Wright declared AI as America's top scientific priority, linking its massive energy demands to the need for nuclear fusion.
• The AI boom raises environmental concerns, with data centers potentially consuming 35% of U.S. electricity by 2030, leading to reliance on traditional energy sources.
• IBM successfully integrated AI into its operations, redesigning 490 workflows and creating over 3,000 digital workers, resulting in billions in productivity gains.

McDonald's removes AI Christmas ad after backlash

McDonald's Netherlands removed its AI-generated Christmas advertisement from YouTube after many viewers disliked it. The 45-second ad, set to a twisted version of "It's the Most Wonderful Time of the Year," showed strange holiday scenes like an exploding Christmas tree. Social media users called the ad "creepy" and "awful," leading McDonald's to take it down. A spokesperson said this is an "important learning" as they explore using AI. The Sweetshop CEO Melanie Bridge, who helped create the ad, stated that ten people worked on it for five weeks.

McDonald's removes AI Christmas ad after complaints

McDonald's removed its AI-generated Christmas advertisement from its Netherlands social media channels on December 11, 2025, due to strong negative feedback. The 45-second video, titled "the most terrible time of the year," featured a reworked Christmas song and showed many holiday mishaps. Scenes included Santa's sled stuck in traffic and people having accidents. The ad suggested escaping the "festive madness" at McDonald's. Many social media users found the AI-created commercial "unsettling" and "cynical."

McDonald's pulls AI Christmas ad after public outcry

McDonald's Netherlands removed its AI-generated Christmas advertisement after many people criticized it online. The ad showed holiday chaos and was meant to highlight stressful moments during the festive season. However, viewers said it "ruined my Christmas spirit" and called it "AI slop." Melanie Bridge, CEO of The Sweetshop Films, which made the ad, defended the use of AI, stating ten people worked on it for five weeks. Critics, however, questioned the impact on human jobs like actors and choirs.

Zoovu releases MCP Server for smart AI shopping agents

Zoovu launched its new MCP Server to provide AI agents with the product knowledge needed for agentic commerce. This open protocol helps global brands and retailers improve how they use AI agents in online shopping. Many AI agents struggle with complex product questions because product information is often scattered and lacks context. The MCP Server connects AI agents to organized product data and expert knowledge, making them reliable advisors for customers. Jonathan Taylor, Zoovu's CTO, stated that this server helps AI agents make accurate recommendations without needing to rebuild data models. This technology supports internal sales, on-site shopping, and customer service agents, preparing businesses for the future of AI-powered commerce.

Zoovu introduces MCP Server for smarter AI shopping

Zoovu launched its MCP Server on December 11, 2025, in Boston, to give AI agents the product knowledge needed for agentic commerce. This new solution acts as a central hub, organizing large amounts of product data for AI agents like chatbots and virtual assistants. It allows them to understand and use product information in real-time, offering personalized recommendations and detailed comparisons. Zoovu believes this will make online shopping more intuitive and personalized for customers. The MCP Server aims to enhance AI capabilities, speed up agentic commerce, and improve the overall customer experience.

Hinge founder starts new AI dating app Overtone

Justin McLeod, the founder and CEO of Hinge, is leaving his role after more than ten years to launch a new dating app called Overtone. This new app will use AI and voice tools to help people connect in more meaningful ways. Overtone began as a project within Hinge but will now operate independently. Match Group, which owns Hinge, will lead Overtone's first funding round in 2026 and have a significant ownership stake. This move comes as many dating app users report "swipe fatigue" and difficulty forming real connections. McLeod stated he is eager for a fresh challenge and to lead a company again.

AMPP wins award for AI workforce modeling in shipbuilding

The AMPP received an NSRP award on December 11, 2025, to lead a project using AI for workforce modeling in U.S. shipbuilding and ship repair. This 12-month project, part of over $3.38 million in government funding, will create AI-enabled models to find and fix critical skill gaps, especially in corrosion protection. Companies like BAE Systems and Portsmouth Naval Shipyard support this initiative. Jennifer Rogers from AMPP stated that this will help prepare workers for future jobs. The project aims to improve workforce planning and strengthen readiness for both the Navy and its industry partners.

AI in healthcare faces new rules and payment plans

Artificial intelligence is quickly changing clinical medicine, helping with diagnoses, treatment plans, and predictions. As more AI tools are used, healthcare organizations face new rules from the FDA and changing payment policies from CMS. The FDA has approved over 1200 AI-powered medical devices since 1995, especially for clinical decision support. These devices help with radiology, cardiology, and pathology. Developers must work closely with the FDA and show strong data to prove their algorithms work well and are fair. CMS is also creating new payment rules for AI services, but keeping up with fast innovation is a challenge.

AI changes how investors value software companies

AI is changing how investors value software companies, moving away from traditional Annual Recurring Revenue, or ARR. A new report from AlixPartners states that ARR is becoming less important as AI-driven usage and outcome-based business models grow. Running AI models is expensive, which makes fixed subscription prices harder to offer. This means future revenue will depend more on how much customers use the AI, rather than fixed contracts. Investors are now looking at new measures like AI leverage ratios and how much customers benefit from the AI. Companies that show real productivity gains for customers and efficient operations will receive higher valuations.

Bill Gates warns about high AI stock prices

Microsoft co-founder Bill Gates warned on CNBC that many AI company stock valuations are too high. He believes the AI industry will be extremely competitive, and a significant number of today's expensive tech stocks will lose much of their value. The AI boom has driven the stock market for three years, but concerns about overspending and high valuations have recently caused a slowdown. Gates noted that even unprofitable startups like OpenAI have very high valuations. Despite these financial warnings, Gates remains confident that AI is a "deeply profound" technology that will reshape the world, especially in health, education, and agriculture.

Energy Secretary says AI is America's top science goal

U.S. Energy Secretary Chris Wright stated that artificial intelligence is America's top scientific priority. He believes AI and nuclear fusion will work together, with AI helping fusion become viable in a few years. This fusion energy will then help solve the massive power demands from building new data centers for AI. Wright explained that AI uses a huge amount of energy, especially when training its complex models. Researchers have found that the cost of computational power for training these models doubles every nine months.

IBM shows how AI can transform old businesses

IBM learned that playing it safe can hinder progress, especially with new technologies like AI. Under CEO Arvind Krishna, IBM chose to rebuild its operations using AI rather than just buying AI products. The company redesigned 490 workflows, created over 3,000 digital workers, and trained its entire staff. This led to billions in productivity gains and renewed growth. The article emphasizes that companies must be willing to change themselves to truly benefit from AI. In healthcare, "quiet AI" can prevent bottlenecks and improve patient flow by predicting problems before they happen. For example, Lucem Health used an AI model to detect early signs of Type 1 diabetes, which is often diagnosed too late.

AI boom raises climate and energy concerns

The rapid growth of AI is causing concerns about its environmental impact, as big tech companies spend heavily on data centers and semiconductors. These data centers require vast amounts of electricity, potentially accounting for 35% of U.S. demand by 2030. In Virginia, home to the world's largest data center cluster, the government approved adding natural gas and extending coal plant lifespans, despite a 2020 law aiming for 100% renewable energy. Critics argue that ignoring these environmental costs for the AI boom creates long-term health and climate problems. Angel Lopez, a Henry Luce Fellow, warns that relying on old fuels instead of new energy solutions will lead to avoidable environmental and health issues.

Sources

• McDonald's pulls 'creepy' AI-generated Christmas ad after viewer backlash
• Not lovin' it: McDonald's pulls AI-generated Christmas ad after social media backlash
• ‘Ruined my Christmas spirit’: McDonald’s removes AI-generated ad after backlash
• Zoovu Launches MCP Server to Give AI Agents the Product Intelligence Required for Agentic Commerce
• Zoovu Launches MCP Server to Give AI Agents the Product Intelligence Required for Agentic Commerce
• Hinge's founder and CEO is stepping down to start a new AI-first dating app
• AMPP Advances AI-Enabled Workforce Modeling With NSRP Award
• Akin, an Elite Global Law Firm
• Startups love to boast about 'ARR.' AI could bring this to an abrupt end.
• Microsoft Co-Founder Bill Gates Weighs in on AI Bubble Debate
• Trump administration's top 'scientific priority is AI,' energy secretary says
• AI Impact: The Cost of Playing It Safe
• America’s AI Gamble: How Big Tech is Trading Climate for Hype