The week in AI

Hi, it’s Lynn in New York. It’s insane to think that anything — much less the froth over AI — could prove a mightier force for the stock mar [View in browser]( [Bloomberg]( Hi, it’s Lynn in New York. It’s insane to think that anything — much less the froth over AI — could prove a [mightier force]( for the stock market than the hawkish saber rattling of the Federal Reserve. And yet, here we are. What’s behind the AI stock boom? Microsoft Corp. hit a [record high](, becoming the third mega-cap technology firm (after Nvidia Corp. and Apple Inc.) to scale new heights as it bakes generative AI into all things. To understand why the software giant is plowing billions of dollars into the technology, read our [Big Take]( in Bloomberg Businessweek. For the same magazine issue, we sat down with Google Chief Executive Officer Sundar Pichai to talk about his own [company’s efforts]( to [stake a claim]( in the AI boom. Brad Stone wrote about how enthusiasm for AI is a [rare bright]( spot for San Francisco, instilling a new sense of purpose across Silicon Valley. We also chronicled how AI is [reshaping]( tech’s hiring practices. And don’t miss our in-depth [profile]( of Nvidia and its rise to join the club of companies worth $1 trillion. Oracle Corp. also hit a stock [record]( this week, after forecasting rapid growth in its cloud-computing business thanks to AI. Chipmaker Taiwan Semiconductor Manufacturing Co. [regained]( a $500 billion market value — again, riding the AI wave — and Adobe reached a 1-year [high](, too. BlackRock Inc.’s Larry Fink joined the hype this week, saying AI could very well be the technology that [tamps down]( inflation. And Citigroup Inc. [raised]( the production of a new Beatles song using AI as an example of the opportunities the technology presents for companies like Universal Music Group NV. The frenzy had one veteran investor [warning]( in an interview with Bloomberg that “the market has got a little bit over its skis.” It certainly hasn’t worked out for everyone. Read our feature on how robot- and AI-equipped vertical farms that firms poured billions of dollars into are going [bust](. The online homework-help company Chegg Inc. also [blamed AI for layoffs](bbg://news/stories/RW5T31T1UM0W), announcing this week that it would cut 4% of its staff as part of an AI strategy. Accenture Plc went the other direction, saying it’ll [double]( its AI staff to 80,000 to take advantage of “unprecedented interest in all areas of AI.” That’s after shedding 19,000 jobs in a cost-cutting effort just three months earlier. The consultancy McKinsey & Co. estimated that AI tools could result in economic benefits of as much as $4.4 trillion — but it also warned that the transformation will challenge higher-wage [knowledge workers]( whose activities “were previously considered to be relatively immune.” AI chatbots are already [helping]( some of India’s poorest people access government aid. We had the scoop on Snap Inc., the maker of the Snapchat app, testing ways its chatbot could [boost]( the company’s advertising business. And Advanced Micro Devices Inc. showcased an upcoming line of processors that will help data centers handle a [crush]( of AI traffic. France’s Mistral AI, a new startup from former DeepMind and Meta Platforms Inc. researchers, announced it had [raised]( $113 million in financing just as French President Emmanuel Macron [pledged](to support AI startups. It’s a move that stakes out his country’s response to the European Parliament’s advancing raft of new AI regulations and [stokes]( a rivalry with the UK for tech dominance. US regulators and lawmakers meanwhile continued to warn against emerging AI technologies, with the US Securities and Exchange Commission [moving]( to introduce new rules governing brokers using AI and the Office of the Comptroller of the Currency [warning]( that the technology poses “significant challenges” to the financial system. Maxine Waters, the top Democrat on the House Financial Services Committee, [called]( for a hearing on Wall Street’s embrace of generative AI tools. Relatedly, watch our latest [episode]( of the Bloomberg Originals AI IRL video series on governance and investing. And check out our What Goes Up [podcast](featuring a fund manager and his take on the AI opportunity. —[Lynn Doan](mailto:ldoan6@bloomberg.net) One to watch On this week’s episode of [The Circuit](, Emily Chang goes inside OpenAI and speaks with with CTO Mira Murati, one of the chief architects of ChatGPT. The week ahead US Senate Majority Leader Chuck Schumer is scheduled to [speak](on the role of Congress in examining the future of AI on Wednesday. A US House committee will hold a [hearing](on advancing AI “towards the national interest” on Thursday. That same day, the [Bloomberg Tech Summit]( in San Francisco will feature interviews with some of the most influential people in AI. 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