OpenAI $1 Trillion Deals, AMD AI Chips, Anthropic $1.5B Settlement

The artificial intelligence sector is experiencing rapid expansion and significant investment, alongside growing legal and financial scrutiny. OpenAI and its competitor Anthropic are reportedly exploring the use of investor funds to cover potential multibillion-dollar lawsuits related to the use of copyrighted material in training their AI models. While OpenAI has secured up to $300 million in insurance, it's considered insufficient for the scale of potential claims. Separately, Anthropic has reached a preliminary $1.5 billion settlement in a copyright class action. In the hardware space, AMD is gaining favor among analysts over Intel as an AI chip supplier, particularly after securing a major deal with OpenAI to provide chips for its AI development. OpenAI's overall computing deals this year are valued at an astounding $1 trillion, involving partners like AMD, Nvidia, Oracle, and CoreWeave, though concerns exist about the alignment of these commitments with OpenAI's current revenue. Meta Platforms is seeing analyst confidence rise due to the successful rollout of its AI-powered advertising tools, with an estimated 2 million advertisers already utilizing these capabilities. Meanwhile, Dell anticipates substantial revenue growth driven by demand for its AI servers, a critical component for AI infrastructure. Legence, a company specializing in engineering and construction for data centers, is also attracting strong analyst interest, with a significant portion of its revenue already tied to data center needs. On the security front, Realm.Security has raised $15 million to enhance its AI-native Security Data Pipeline Platform, which helps enterprises manage vast data volumes and reduce SIEM costs. However, the broader AI market faces questions about a potential bubble, highlighted by Oracle's recent cloud profit disappointment, which led to a significant stock drop, serving as a cautionary tale for the sector.

Key Takeaways

• OpenAI and Anthropic are considering using investor funds to settle potential multibillion-dollar lawsuits over AI training data copyright infringement.
• Anthropic has agreed to a preliminary $1.5 billion settlement in a copyright class action lawsuit.
• AMD is favored by analysts over Intel for AI chip supply, especially after securing a significant deal with OpenAI.
• OpenAI has entered into computing deals valued at $1 trillion this year with partners including AMD, Nvidia, Oracle, and CoreWeave.
• Meta Platforms is experiencing increased analyst confidence due to the successful deployment of its AI-generated advertising tools, used by approximately 2 million advertisers.
• Dell expects significant revenue growth driven by sales of AI servers, crucial for AI infrastructure development.
• Legence, a provider of engineering and construction services for data centers, is attracting strong analyst interest due to the AI boom.
• Realm.Security has raised $15 million in Series A funding to advance its AI security data pipeline platform.
• Concerns about a potential AI market bubble are surfacing, exemplified by Oracle's lower-than-expected cloud profits.
• C3.ai shares have seen a recent surge, prompting investor evaluation of its current stock value.

OpenAI, Anthropic explore investor funds for AI lawsuits

OpenAI and Anthropic are looking into using money from investors to settle large lawsuits over AI training data. Copyright holders have sued tech companies, claiming their material was used without permission. OpenAI has some insurance coverage, but it may not be enough for potential multibillion-dollar claims. The companies are considering setting up their own insurance funds. A recent settlement with Anthropic was for $1.5 billion.

OpenAI, Anthropic may use investor funds for AI lawsuits

OpenAI and Anthropic are considering using investor funds to settle potential multibillion-dollar lawsuits concerning AI training data. Copyright owners have filed lawsuits against tech firms like OpenAI, Microsoft, and Meta Platforms, alleging unauthorized use of their material. OpenAI has secured up to $300 million in insurance for AI risks, though this amount is seen as insufficient for potential losses. The companies are exploring options like self-insurance through investor funding and captive insurance vehicles.

OpenAI, Anthropic may use investor funds for AI copyright suits

OpenAI and Anthropic are thinking about using investor money to settle potential multibillion-dollar copyright lawsuits. These suits claim that copyrighted material was used without permission to train AI models. OpenAI has insurance coverage up to $300 million, but sources say it's not enough for the potential legal claims. Companies are discussing self-insurance options, like setting up a captive insurance vehicle. Separately, Anthropic agreed to a preliminary $1.5 billion settlement in a copyright class action.

Realm.Security raises $15M for AI security data pipelines

Realm.Security announced it has raised $15 million in Series A funding to improve its AI-native Security Data Pipeline Platform. The company aims to help enterprises manage overwhelming data volumes and high SIEM costs. Their platform uses AI to filter and analyze security data in real-time, allowing security operations centers to focus on important information. Early users have reported significant reductions in data volume and cost savings, with deployments happening in days instead of months.

Realm.Security secures $15M for AI security data tools

Startup Realm.Security has raised $15 million in Series A funding to enhance its AI-driven security data pipeline platform. The company addresses the challenge of security operations teams being overwhelmed by data noise and rising SIEM costs. Realm.Security embeds AI to filter and analyze data in real-time, ensuring SOCs process only relevant information. This approach leads to faster investigations, lower costs, and more resilient security operations. The funding will support product development and market expansion.

Legence (LGN) stock favored by Wall Street for AI data centers

Wall Street analysts are showing strong interest in Legence (LGN), a company acquired by Blackstone in 2020. Analysts from major firms like Barclays and Bank of America have initiated coverage with Buy ratings, believing Legence is well-positioned to benefit from the AI boom. The company provides engineering and construction services for data centers, which are crucial for AI development. Last year, 23% of Legence's revenue came from data center demands, and its backlog has grown significantly.

AMD or Intel: Analysts favor AMD for AI chips after OpenAI deal

Analysts are favoring AMD over Intel as a superior AI chip stock, especially after AMD's recent multibillion-dollar deal with OpenAI. This agreement positions AMD to supply chips for OpenAI's AI development. While Intel has also made significant partnerships, including with Nvidia, the OpenAI deal is seen as a major boost for AMD's AI ambitions. Analysts note AMD's potential to challenge Nvidia's dominance in the AI chip market with its upcoming MI400 series accelerators.

OpenAI's computing deals reach $1 trillion this year

OpenAI has secured computing deals worth $1 trillion this year through partnerships with major tech companies like AMD, Nvidia, Oracle, and CoreWeave. These agreements are crucial for acquiring the massive computing power needed to run its AI models. While OpenAI's revenue is growing, the cost of these infrastructure deals significantly exceeds its current earnings. Some analysts express concern about the gap between OpenAI's commitments and its financial capacity, noting potential risks for partners.

Meta Platforms gains confidence from AI advertising tools

Meta Platforms (META) is seeing increased confidence from analysts due to the scaling of its AI-generated advertising tools. An analyst reiterated a Market Outperform rating and a $900.00 price target for the stock. The firm's positive outlook is reinforced by Meta's progress in developing AI tools that assist advertisers. An estimated 2 million advertisers are reportedly using these advanced capabilities.

Is AI rally a bubble? Oracle's cloud profits questioned

Concerns are rising about a potential bubble in the artificial intelligence market, despite significant investments by tech companies. Oracle's cloud computing business recently reported lower-than-expected profits, with gross margins around 14%. This news caused Oracle's shares to fall significantly after a previous rally. While the internet survived the dot-com bubble, many weaker companies did not, suggesting a similar outcome may occur with AI.

C3.ai stock: Is it a buy after recent surge?

C3.ai (AI) shares experienced a notable surge, clearing their 50-day moving average after a six-day winning streak. However, the stock had previously fallen significantly in August and September following preliminary and official financial results. Investors are now evaluating whether C3.ai stock presents a buying opportunity following its recent upward movement.

Dell's revenue growth to be driven by AI server sales

Dell, a major player in personal computers, servers, and storage arrays, is expected to see significant revenue growth in the coming years. This growth will be primarily driven by sales of AI servers. While the PC market is consolidated, Dell holds a leading position in servers and storage. The company primarily serves enterprise clients, and the increasing demand for AI infrastructure is anticipated to catalyze its financial performance.

Sources

• OpenAI, Anthropic eye investor funds to settle AI lawsuits, FT reports By Reuters
• OpenAI, Anthropic eye investor funds to settle AI lawsuits, FT reports
• OpenAI and Anthropic Consider Using Investor Funds to Cover AI Copyright Suits
• Realm.Security Redefines Security Data Pipelines with AI, Raises $15M to Accelerate Next-Gen SOC Operations
• Realm.Security raises $15M to redefine security data pipelines with AI
• Why Is Legence (LGN) Wall Street’s Fresh Favorite Stock to Benefit from the AI Boom?
• AMD or Intel: Analysts Pick the Superior AI Chip Stock to Buy After Recent Major Partnerships
• OpenAI has now done $1 trillion of computing deals this year
• Meta Platforms (META) Gains Confidence from Citizens as AI Advertising Tools Scale
• XX YY
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• AI Server Sales Will Catalyze Dell’s Revenue Growth Over the Next Few Years