Microsoft delivered some big numbers for the past quarter: Profits up 24%, and revenues up 18% from the same time last year. When it comes to cloud and AI, CEO Satya Nadella said: “The rate of innovation and the speed of diffusion is unlike anything we have seen.” Microsoft’s capex spending was big, too: $24.2 billion, with an emphasis on AI-first infrastructure. One other interesting tidbit from the quarterly call: Nadella mentioned that Microsoft is seeing a transformation in enterprise apps, as businesses lean into agentic AI. We see that play out in today’s news with the debut of Rakuten’s agentic AI platform debut. Read on!
Kelly Hill
Executive Editor
RCRTech
AI Infrastructure Top 3
Microsoft rises on cloud, AI: “Cloud and AI is the driving force of business transformation across every industry and sector,” said Microsoft CEO Satya Nadella, discussing robust quarterly results.
Rakuten debuts agentic AI: Rakuten has officially launched Rakuten AI, its new agentic AI platform, now available via Rakuten Link and a web app. An e-commerce rollout on Rakuten Ichiba is coming this autumn.
Foxconn, TECO target AI: Foxconn and TECO announce a strategic share swap and alliance to co-develop AI data centers, combining AI server expertise with electromechanical engineering to offer modular and cost-conscious solutions.
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AI Today: What You Need to Know
CHIPS Act update: Where does the CHIPS Act stand? There were tens of millions in awards made in the last months of the Biden administration, but it’s been pretty quiet since then. An update from IEEE.
New CHIPS leader: Bill Frauenhofer was announced this week as the new director of the CHIPS Program Office. He’ll take over implementation of the $39 billion program for domestic semiconductor manufacturing incentives.
AI at all hours: Want to work for an AI startup? You might be asked to keep a schedule exported from mainland China: 996. That’s 9 am to 9 pm, six days a week, for a total of 72 hours.
China boosts domestic AI: As the U.S. seeks to cut off China’s access to foundational AI tech, China is investing to become self-sufficient in AI. Will this be a repeat of what has played out with network equipment?
Cool AI tricks: GCP’s July round-up of customer-built AI tools includes a research firm using multiple, connected AI agents to assist analysts; and a hospital IoT device that uses sensor data combined with AI to detect patient distress.
AI by the Bay: Will the AI boom revitalize San Francisco? WaPo reports on tech workers and companies moving there to be part of the AI in-crowd. There’s already growth in downtown foot traffic and commercial leases.
I want my AI TV: Amazon has invested in “the Netflix of AI”: Showrunner, which lets people use AI to create entire television shows from scratch. The first show is a “biting animated satire of the Silicon Valley elite.” Hmmm.
Mode vs. Overviews: AI tools are changing how people search and discover information and brands. A look at how Google’s AI Mode and AI Overviews differ in their results when it comes to serving up brands.