Tesla is undergoing a significant strategic shift towards artificial intelligence and robotics, following a challenging financial year in 2025. The company reported its first annual revenue drop of 3% and a substantial 46% decline in annual profit to $3.8 billion. Fourth-quarter profits also fell sharply by 61% to $840 million, with revenues down 3.1%. This pivot involves halting production of Model S and Model X cars, repurposing the Fremont plant for Optimus humanoid robot manufacturing, and investing $2 billion in Elon Musk's xAI venture.
Looking ahead, Tesla plans to invest over $20 billion in 2026, focusing on building factories for batteries, robots, and AI chips, alongside increasing production of Optimus humanoid robots and Robotaxis. Elon Musk anticipates widespread robotaxi service by late 2026. Despite delivering a record 1.8 million vehicles in 2023, Tesla expects slower growth in 2024 due to market competition and increased spending on these new AI and robotics initiatives.
Meanwhile, Samsung Electronics reported record-high quarterly revenue of KRW 93.8 trillion and an operating profit of KRW 20.1 trillion for the fourth quarter of 2025. This success was largely driven by its Device Solutions Division, which saw a 33% sales increase, with strong demand for high-bandwidth memory (HBM) and other high-value AI products. Samsung plans to expand its AI-related DRAM and NAND offerings, including HBM4 products, in 2026, supported by record R&D investments of KRW 37.7 trillion in 2025.
Meta is also making substantial commitments to AI, with CEO Mark Zuckerberg announcing plans to invest between $115 billion and $135 billion in AI projects and infrastructure in 2026. Zuckerberg believes AI will dramatically transform Meta's operations, enabling smaller teams to achieve large projects, noting a 30% rise in engineer output since early 2025 due to AI coding tools. Meta aims for "superintelligence," expecting these investments to boost products, attract talent, and increase operating income.
Other major players are advancing in the AI space as well. Microsoft is set to deploy its new Maia 200 AI chip in the second half of 2026, potentially benefiting partners like Broadcom and Marvell Technology. Former Google CEO Eric Schmidt co-founded Hologen, an AI biotech startup seeking $150 million to develop "large medicine models" for drug development. Nvidia and Micron are identified as top AI stocks, with Nvidia dominating AI training and inference, and Micron's HBM memory sold out through 2026. BigBear.ai acquired Ask Sage for $250 million, expanding its national security AI solutions, while Figma focuses on AI-powered collaboration tools. However, fears of AI disruption have pushed software stocks into a bear market, with the iShares Expanded Tech-Software Sector ETF down 21%, despite some companies like ServiceNow emphasizing AI integration as a gateway.
Key Takeaways
- Tesla is shifting its focus to AI and robotics, halting Model S/X production to build Optimus robots and investing $2 billion in xAI.
- Tesla plans over $20 billion in capital spending for 2026 on AI, robots, and battery factories, aiming for widespread robotaxi service by late 2026.
- Tesla's 2025 annual revenue fell 3%, and profits dropped 46% to $3.8 billion, with Q4 profits down 61%.
- Samsung Electronics reported record Q4 2025 revenue of KRW 93.8 trillion and profit of KRW 20.1 trillion, driven by strong AI memory (HBM) demand.
- Samsung plans to lead the AI era in 2026 by expanding HBM4 and other AI-related memory offerings, backed by KRW 37.7 trillion in R&D.
- Meta plans to invest $115 billion to $135 billion in AI infrastructure in 2026, aiming for "superintelligence" and predicting significant changes in employee productivity.
- Microsoft will deploy its new Maia 200 AI chip in H2 2026, potentially boosting Broadcom and Marvell Technology.
- Former Google CEO Eric Schmidt co-founded Hologen, an AI biotech startup seeking $150 million for AI-driven drug development.
- Nvidia dominates AI training/inference, and Micron's HBM memory is sold out through 2026, highlighting their critical roles in AI infrastructure.
- Fears of AI disruption have led to a 21% drop in the iShares Expanded Tech-Software Sector ETF, despite some companies like ServiceNow positioning AI as an integration gateway.
Tesla shifts to AI and robots after first revenue drop
Tesla's annual revenue fell for the first time in 2025, dropping 3%, with profits down 61% in the last quarter. The company, led by Elon Musk, is now focusing on artificial intelligence and robotics. Tesla will stop making Model S and Model X cars, using the California plant to build Optimus humanoid robots instead. It also invested $2 billion in Musk's xAI venture. Tesla plans to spend over $20 billion next year on these new projects.
Tesla profits fall as company invests heavily in AI
Tesla's annual profit dropped 46% to $3.8 billion in 2025, and its revenue fell 3% for the first time. The company faces tough competition and reduced EV tax incentives. CEO Elon Musk is shifting focus from car sales to AI and energy storage, which saw a 25% revenue increase. Tesla plans to invest $2 billion in Musk's xAI company. Despite profit declines, Tesla's stock rose, showing investor confidence in Musk's long-term vision.
Tesla profits drop as company invests big in AI and robots
Tesla's fourth-quarter profits fell 61% to $840 million, with revenues down 3.1%. CEO Elon Musk announced major investments in technology, planning over $20 billion in capital spending for 2026. Tesla will stop making Model S and Model X cars, converting its Fremont plant to build Optimus humanoid robots. The company is transitioning to an AI company, with Musk predicting widespread robotaxi service by late 2026. Tesla also agreed to invest $2 billion in Musk's xAI venture.
Tesla profits fall as company invests big in AI and robots
Tesla's fourth-quarter profits fell 61% to $840 million, with revenues down 3.1%. CEO Elon Musk announced major investments in technology, planning over $20 billion in capital spending for 2026. Tesla will stop making Model S and Model X cars, converting its Fremont plant to build Optimus humanoid robots. The company is transitioning to an AI company, with Musk predicting widespread robotaxi service by late 2026. Tesla also agreed to invest $2 billion in Musk's xAI venture.
Elon Musk announces $20 billion Tesla investment in AI and robots
Elon Musk announced Tesla will invest over $20 billion in 2026 to build factories for batteries, robots, and AI chips. The company plans to increase production of Optimus humanoid robots and Robotaxis. Tesla will stop making Model S and Model X vehicles, using those facilities in Fremont, California, for Optimus production. This significant investment follows a 3% drop in Tesla's 2025 revenue.
Tesla profits fall 61 percent amid AI investments
Tesla's fourth-quarter profits dropped 61% to $1.07 billion, and revenue fell 9% to $25.17 billion. This decline is due to lower car sales, price cuts, and increased spending on AI and robotics. CEO Elon Musk is making big investments to lead in autonomous driving and humanoid robots. Despite delivering a record 1.8 million vehicles in 2023, Tesla expects slower growth in 2024 due to market challenges and competition.
Samsung Electronics reports record profits driven by AI memory
Samsung Electronics announced record-high quarterly revenue of KRW 93.8 trillion and operating profit of KRW 20.1 trillion for the fourth quarter of 2025. The Device Solutions Division saw a 33% sales increase, with its Memory Business achieving record revenue and profit due to strong demand for HBM and other high-value products. Samsung plans to lead the AI era in 2026 by expanding AI-related offerings in DRAM and NAND, including delivering HBM4 products. The company also made record R&D investments totaling KRW 37.7 trillion for the full year.
Samsung achieves record revenue with booming AI memory demand
Samsung reported record-high fourth-quarter revenue of KRW 93.8 trillion and operating profit of KRW 20.1 trillion, driven by strong demand for AI chips. Its Device Solutions division, which includes semiconductors, saw a 33% sales increase. Samsung is investing heavily in high-value AI products like HBM and DDR5 memory, aiming to lead the AI semiconductor market in 2026. The company also made record R&D investments of KRW 37.7 trillion in 2025 to develop next-generation memory and AI chip designs.
Samsung Electronics reports record profits driven by AI memory
Samsung Electronics announced record-high quarterly revenue of KRW 93.8 trillion and operating profit of KRW 20.1 trillion for the fourth quarter of 2025. The Device Solutions Division saw a 33% sales increase, with its Memory Business achieving record revenue and profit due to strong demand for HBM and other high-value products. Samsung plans to lead the AI era in 2026 by expanding AI-related offerings in DRAM and NAND, including delivering HBM4 products. The company also made record R&D investments totaling KRW 37.7 trillion for the full year.
Mark Zuckerberg envisions AI-powered workforce at Meta
Meta CEO Mark Zuckerberg plans to nearly double the company's AI spending in 2026, with capital expenditures reaching up to $135 billion. He believes AI will significantly change how Meta employees work, allowing smaller teams to accomplish large projects. Since early 2025, engineer output has risen 30% due to AI coding tools. Zuckerberg expects these investments to improve products, attract talent, and lead to higher operating income for Meta.
Meta to invest $135 billion in AI, Zuckerberg predicts big changes
Meta CEO Mark Zuckerberg announced plans to invest up to $135 billion in artificial intelligence projects and infrastructure in 2026. He believes AI will "dramatically change" how Meta operates this year, allowing smaller teams to complete large projects. This massive spending follows a period where Meta's expenses grew faster than revenues. Despite some industry warnings about an AI bubble, Meta's shares rose after the announcement.
Broadcom and Marvell benefit from Microsoft Maia 200 AI chip
Microsoft announced its new Maia 200 AI chip, expected to deploy in the second half of the year. This development could boost Broadcom and Marvell Technology. Broadcom, a leader in custom AI chips, is currently down 20% from its highs, with most analysts recommending a buy. Marvell Technology, which also makes custom AI accelerators and networking equipment, reported strong earnings and trades at a discount to its historical averages.
Eric Schmidt's AI biotech Hologen seeks $150 million funding
Hologen, a new AI biotech startup co-founded by former Google CEO Eric Schmidt, aims to raise $150 million in a Series A funding round. The company, which spun out of University College London and King's College London, focuses on using AI for drug development and diagnostics. Hologen plans to create "large medicine models" to improve late-stage clinical trials and reduce risks in costly drug development.
BigBear.ai acquires Ask Sage for $250 million
BigBear.ai acquired Ask Sage, an AI provider for national security, for $250 million on December 31, 2025. This acquisition expands BigBear.ai's AI solutions and helps customers maintain control over data and security. While the deal has boosted BigBear.ai's stock, the company has reported significant net losses in recent quarters. Investors are advised to watch for improved profitability before making investment decisions.
Figma focuses on AI collaboration tools
Figma, now trading as NYSE:FIG, is shifting its focus to AI-powered collaboration tools built on its design platform. The company aims to enhance its cloud-based design and workflow software with artificial intelligence. Despite a quieter presence on Wall Street, Figma's management emphasizes strong revenue retention alongside these new AI releases.
Nvidia and Micron are top AI stocks for young investors
Nvidia and Micron are highlighted as top AI stocks for young investors. Nvidia dominates the AI training and inference markets, expecting significant revenue and earnings growth in fiscal 2026. Micron's memory chips are vital for the AI boom, with its high-bandwidth memory (HBM) sold out through 2026 and memory prices soaring. Both companies are making large investments to meet the surging demand for AI infrastructure.
Meta boosts AI spending for superintelligence goal
Meta Platforms Inc. plans a significant increase in its annual capital expenditure, expecting to spend between $115 billion and $135 billion. The company is investing heavily in building artificial intelligence infrastructure to achieve "superintelligence." Meta's advertising platform continues to drive its growth, also supporting its metaverse ambitions.
AI fears push software stocks into bear market
Software stocks have entered a bear market, with the iShares Expanded Tech-Software Sector ETF down 21%, due to investor fears that artificial intelligence will disrupt business models. ServiceNow Inc. shares plunged 11% despite solid earnings, as analysts questioned if AI tools could reduce demand for traditional software. ServiceNow CEO Bill McDermott argued that AI will not replace software vendors, stating that his company acts as a "gateway" to embed AI into business workflows for consistent results.
Sources
- Tesla sees first annual revenue drop as it shifts to AI and robots
- Tesla profit slumps amid lower EV sales, AI spending surge
- Tesla profits tumble on lower EV sales, AI spending surge
- Tesla profits tumble on lower EV sales, AI spending surge
- Elon Musk unveils $20bn Tesla investment in AI and robots
- Tesla Profits Tumble On Lower EV Sales, AI Spending Surge
- Samsung Electronics Announces Fourth Quarter and FY 2025 Results
- Samsung Hits Record $65B Revenue as AI Memory Boom Ignites
- Samsung Electronics Announces Fourth Quarter and FY 2025 Results
- Zuck's vision for an AI-powered workforce
- Meta: Company to 'dramatically change' with AI, Zuckerberg says
- 2 Stocks to Buy as Microsoft Announces Its New Maia 200 AI Chip (Hint, Neither Is MSFT)
- AI biotech founded by ex-Google CEO Eric Schmidt is raising $150 million
- Does This Recent Acquisition Make BigBear.ai Stock a Good Buy?
- Figma Transitions To AI Collaboration Underdog As Investor Expectations Reset
- 3 Top AI Stocks for Gen Z Investors to Consider Buying Now
- Meta expects annual capital expenditures to rise on superintelligence push
- Software stocks enter bear market on AI disruption fear with ServiceNow plunging 11% Thursday
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