Nvidia Leads India AI Investment While Palantir Remains Confident

The artificial intelligence sector is currently navigating a complex landscape, marked by significant investments, innovative partnerships, and emerging challenges. Nvidia, a key player, is expanding its global footprint by joining the India Deep Tech Alliance as a founding member. This $2 billion investment group aims to mentor new deep tech companies in India, a rapidly growing AI market and the world's third-largest startup hub. Nvidia plans to offer technical talks and training through its Deep Learning Institute, aligning with the Indian government's over $1.1 billion in AI funding and its plan to host the Global AI Summit in 2026. This move comes as some tech stocks, including Palantir, Oracle, Nvidia, and Amazon, have recently seen pullbacks, suggesting that the initial AI hype might be facing real-world limitations and investor scrutiny. However, Palantir CEO Alex Karp remains confident in his company's lasting success, citing its strong business model and technology, with current valuations at 28 times sales and 54 times net profit. Meanwhile, new partnerships are bringing AI capabilities directly to consumers. Snap Inc. announced a $400 million deal with Perplexity to integrate Perplexity's AI search engine into Snapchat's Chat feature globally, starting in early 2026. This will allow Snapchat's nearly 1 billion monthly users to ask questions and receive quick, sourced answers within the app, complementing the existing My AI chatbot. Snap CEO Evan Spiegel aims to make AI more personal and fun, a strategy that saw Snap's shares jump by about 15% following the announcement, alongside strong third-quarter results of 477 million daily active users and $1.51 billion in revenue. Agentic AI, which can perform tasks beyond just gathering information, is also making strides, particularly in the travel industry. Perplexity Comet, for instance, has demonstrated the ability to book flights directly, while ChatGPT, Google with its Project Mariner, and Hopper with its Assist tool are all developing similar capabilities. Hopper's Assist tool can already handle thousands of customer service transactions simultaneously, indicating a profound shift in how travel will be booked in the coming years. Despite these advancements, the AI sector faces significant hurdles. AI web browsers are encountering blocks from many websites, with OpenAI's ChatGPT unable to summarize New York Times articles due to content disputes. Amazon is also concerned that AI agents could bypass ads, potentially impacting its advertising revenue and challenging traditional web business models. Furthermore, the increasing demand for AI necessitates more large data centers, which strain power grids and contribute to air pollution, raising public health concerns and significant future costs. There are also instances of AI bots providing incorrect information, such as denying that Leo XIV was a pope. On a positive note, AI is being leveraged for humanitarian efforts, including protecting over 200 endangered Indigenous languages, assisting doctors by summarizing patient visits, improving weather prediction by 20% with 1,000 times less energy, and ethically restoring historic art. Europe is also stepping up its game, announcing new public and private investments, including a new AI science institute, to compete globally with the US and China, with companies like Nvidia and Deutsche Telekom investing in the region's large market. Even traditional advertisers like MilkPEP are exploring purchasing ad spots within AI search results, indicating a broader industry shift.

Key Takeaways

• Nvidia is a founding member of the India Deep Tech Alliance, a $2 billion investment group aimed at mentoring AI startups in India, a fast-growing market.
• Snap Inc. partnered with Perplexity in a $400 million deal to integrate Perplexity's AI search engine into Snapchat's Chat feature, rolling out globally in early 2026 for nearly 1 billion monthly users.
• The initial AI hype is facing reality, leading to recent stock pullbacks for companies like Palantir, Oracle, Nvidia, and Amazon.
• Palantir CEO Alex Karp expresses confidence in the company's long-term success, citing its strong business model and technology.
• Agentic AI, capable of performing tasks like booking travel, is transforming industries, with developments from Perplexity Comet, ChatGPT, Google's Project Mariner, and Hopper's Assist tool.
• AI is being used for significant positive impacts, including protecting endangered Indigenous languages, assisting doctors, improving weather prediction, and restoring historic art.
• Challenges for AI include websites blocking AI browsers (e.g., OpenAI's ChatGPT and New York Times content disputes) and concerns from companies like Amazon about AI agents bypassing ads and affecting revenue.
• The proliferation of AI data centers poses public health risks due to high electricity consumption, strain on power grids, and increased air pollution.
• Some AI bots have been observed providing incorrect information, such as denying historical facts like Leo XIV being a pope.
• Europe is investing in AI science, including a new institute, to enhance its global competitiveness, with investments from companies like Nvidia and Deutsche Telekom.

Nvidia Joins $2 Billion India Alliance to Mentor AI Startups

Nvidia is joining the India Deep Tech Alliance, a $2 billion investment group, as a founding member. This move helps Nvidia expand its presence in India, which is a fast-growing AI market and the world's third-largest startup hub. Nvidia will offer technical talks and training through its Deep Learning Institute to new deep tech companies. The Indian government also supports AI with over $1.1 billion in funding and will host the Global AI Summit in 2026. This partnership aims to create many globally recognized Indian deep tech companies in the next five years.

AI Hype Faces Reality as Tech Stocks Pull Back

The excitement around artificial intelligence is starting to face real-world limits, causing some tech stocks to drop. Companies like Palantir, Oracle, Nvidia, and Amazon saw their shares pull back recently. This suggests investors might be too focused on AI. Separately, Nvidia is also expanding its global reach by joining the India Deep Tech Alliance. This alliance has $2 billion to invest in and mentor new deep tech companies in India, covering areas like AI, robotics, and semiconductors.

Snap and Perplexity Bring AI Search to Snapchat Users

Snap Inc. and Perplexity have partnered to add Perplexity's AI search engine to Snapchat. This new feature will let Snapchat's nearly 1 billion monthly users ask questions and get quick, accurate answers directly within the app. Perplexity's engine gives direct answers with sources, making it a reliable tool for learning. Snap aims to make information more engaging and accessible for its young audience. This integration will roll out in the coming months.

Snap Stock Jumps After $400 Million Perplexity AI Deal

Snap Inc. shares increased by about 15% after announcing a $400 million deal with Perplexity. This partnership will bring Perplexity's AI-powered answer engine to Snapchat's Chat feature globally, starting in early 2026. Snapchat's nearly 1 billion monthly users can ask questions and receive clear, sourced answers within the app. Snap CEO Evan Spiegel stated the goal is to make AI more personal and fun. This integration will work alongside the existing My AI chatbot, providing users with real-time, credible information. Snap also reported strong third-quarter results, with 477 million daily active users and $1.51 billion in revenue.

AI Bots Incorrectly State Leo XIV is Not Pope

Artificial intelligence bots are reportedly giving incorrect information about historical figures. Specifically, these AI bots deny that Leo XIV is a pope. The article does not provide further details on which AI bots or the context of these denials.

MilkPEP Discusses AI Search Ads and 2026 Investment Plans

MilkPEP's media leader shared insights on purchasing advertising spots within AI search results. The discussion also covered how the organization plans to invest its funds in 2026. MilkPEP keeps part of its media budget flexible to react to new trends, such as celebrity moments. This strategy helps them stay current in their advertising efforts.

AI Data Centers Pose Public Health Risks

Artificial intelligence is changing many industries and helping solve big problems. However, the growing demand for AI means more large data centers are being built. These centers use a lot of electricity, putting a strain on power grids. They also cause air pollution, including tiny particles that can harm people's breathing. These respiratory health issues are expected to lead to significant costs.

Agentic AI Books Travel and Transforms Industry

Agentic AI is a new technology that can perform tasks, not just gather information. It is changing the travel industry by completing bookings and suggesting travel plans based on user interests. For example, Perplexity Comet can book flights directly, as shown with a Southwest.com booking. Other companies like ChatGPT, Google with Project Mariner, and Hopper with its Assist tool are also developing agentic AI for travel. Experts believe this technology will profoundly change how people book travel in just a few years. Hopper's Assist tool can even handle thousands of customer service transactions at once.

Five Ways Artificial Intelligence is Helping Humanity

Artificial intelligence is being used in many positive ways to help people and the planet. It is helping protect over 200 endangered Indigenous languages by building speech recognition models. AI also supports doctors by taking notes and summarizing patient visits, which helps reduce burnout and improves care. The European Centre for Medium-Range Weather Forecasts uses an AI system that predicts weather 20% better and uses 1,000 times less energy than old methods. Additionally, AI is being used to restore historic art, making the process more ethical and less costly.

Palantir's Alex Karp Believes AI Success Will Last

Alex Karp, the CEO of Palantir, believes his company's success will continue long after the current excitement around artificial intelligence fades. Palantir is currently valued at 28 times its sales and 54 times its net profit. The article suggests that Palantir's business model and technology are strong enough to ensure lasting success.

AI Browsers Face Blocks and Threaten Web Business Models

AI web browsers are facing issues as many websites block them from accessing content. For example, OpenAI's ChatGPT cannot summarize New York Times articles due to a dispute over content usage. While users can manually copy and paste text, this highlights a growing problem for AI tools. Amazon is also worried that AI agents, which act for users, could bypass ads and hurt its advertising revenue. This situation challenges how the internet traditionally works and how businesses make money online.

Europe Invests in AI Science to Compete Globally

Europe is working to catch up in the global artificial intelligence race by announcing new public and private investments. The European Commission revealed plans for a new AI science institute. This institute aims to help Europe compete better with the US and China in AI development. Europe's government-funded programs are filling a gap where private companies invest heavily in the US and China. Major tech companies like Nvidia and Deutsche Telekom are also investing in Europe's large market.

Sources

• Nvidia deepens India footprint with $2 billion deep tech alliance to mentor AI startups
• CNBC Daily Open: When AI hype hits gravity
• Snap and Perplexity Partner to Bring Conversational AI Search to Snapchat
• Snap Shares Soar On $400 Million Perplexity AI Deal
• Artificial intelligence bots deny Leo XIV is pope
• MilkPEP’s media lead on buying AI search placements and how to invest in 2026
• Mitigating the Public Health Impacts of AI Data Centers
• Agentic AI turns searches into sales
• Tired of AI slop? Here are 5 ways artificial intelligence is actually being used for good
• Why Palantir’s success will outlast the AI exuberance
• AI is Breaking the Browser's Back
• Europe funds AI science institute to close gap with US and China