UPDATED 01:20 EDT / MARCH 01 2024


The AI funding race continues unabated, even as challenges grow – especially for OpenAI

It was a bit of a turbulent week, as investors continued pouring money into artificial intelligence companies such as Glean even as it’s not yet apparent when the AI money gusher will arrive — assuming it will.

Just Friday, Elon Musk threw in a haymaker, suing OpenAI for — get this — trying too hard to make a profit. The SEC joined in too.

Meantime, enterprise technology earnings reports came in largely positive this week, as Dell Technologies and NetApp knocked it out of the park, while a few exceptions such as Snowflake, Elastic and Thoughtworks missed estimates and saw their shares plunge.

TheCUBE, SiliconANGLE Media’s video studio, was onsite at Mobile World Congress in Barcelona all week, interviewing the likes of Michael Dell, HPE CEO Antonio Neri and Broadcom Semiconductor Solutions Group President Charlie Kawwas, among others. MWC wasn’t just about 5G as it has been recently, not least because there isn’t really a killer app for it, SiliconANGLE CEO John Furrier says. Rather it’s all about the silicon. Check out the coverage for more on why.

You can read about this and other news on theCUBE Pod, John Furrier’s and Dave Vellante’s weekly podcast, out now on YouTube from Barcelona. And don’t miss Dave Vellante’s weekly deep dive into technologies and trends, Breaking Analysis, coming out this weekend.

Here’s a sampling of this week’s news:

Big bucks, new challenges for AI

Tony Baer’s two-part dissection of generative AI’s challenges (mainly it’s crazy expensive) and its potential (hint: it’s not all about those huge models): 

Is that giant sucking sound generative AI?

How will generative AI pay off?

OpenAI fights back: OpenAI to court: New York Times’ lawsuit used evidence obtained through hacking

But then on Thursday, Elon Musk sued OpenAI for breach of contract, allegedly violating the company’s principles and becoming a “closed-source de facto subsidiary” of Microsoft: Elon Musk sues OpenAI and Sam Altman over alleged breach of contract

That came just a couple of days after the Securities and Exchange Commission reportedly (via the Wall Street Journal) is looking into whether the company misled investors, based on internal communications from CEO Sam Altman.

Yet the big bucks keep on coming into AI:

AI-powered enterprise search startup Glean raises $200M+ at $2.2B valuation

Humanoid AI-driven robotics startup Figure raises $675M at $2.6B valuation

Ideogram raises $80M as it releases text-to-image model

AI app startup FlowGPT raises $10M in funding

Intenseye, which uses AI computer vision to enhance workplace safety, raises $61M

Startup Slice, which uses generative AI to ensure equity compliance, raises $7M in seed funding

AI chip startup Groq acquires Definitive Intelligence to scale its cloud platform

Along with all the new models:

Now a Microsoft partner, Mistral AI challenges OpenAI with three new LLMs

Writer announces Palmyra-Vision, a multimodal LLM capable of understanding image

SambaNova debuts ‘composition of experts’ AI model with 1T+ parameters

StarCoder2 AI code generator released with support for 619 programming languages

And new products: 

Look out, Sora: Lightricks launches LTX Studio to advance realism in text-to-video generation

Salesforce launches Einstein Copilot AI assistant into beta

ServiceNow and Nvidia bring powerful generative AI tools to telecom providers

GitHub’s enterprise-grade Copilot tool is now generally available

Stack Overflow inks AI partnership with Google Cloud

Couchbase’s database gets support for vector search and retrieval-augmented generation

And… new troubles:

Google CEO Sundar Pichai calls inaccurate Gemini responses ‘unacceptable,’ promises fix

Mozilla research reveals AI-generated content labeling falls short

Peace, not war: Tumblr and WordPress are gearing up to sell their data to AI companies

The big news and analysis from MWC

TheCUBE was onsite in Barcelona all week at the mobile industry’s biggest event. Here’s what our analysts learned, along with the most important news from the event on SiliconANGLE:

Telecom’s tipping point: Monetization, AI and the power of partnership at MWC

AI networking and silicon synergy shape the future of telecom: theCUBE day one analysis at MWC

Navigating the evolving landscape of telecommunications: theCUBE’s day 2 keynote analysis from MWC

Analysts discuss Open RAN: Challenges, promises and AI in telecom

Analysts dissect Cisco’s challenges and its path toward AI networking

Collaboration at MWC: Industry analyst sees cloud and telco companies forming closer ties

The rise of AI, edge computing and the future of connectivity: Final insights from Mobile World Congress

A different take from Intellyx’s Jason Bloomberg: Beyond the buzz: IoT and AI innovation at Mobile World Congress

Michael Dell shares his vision of AI-powered connectivity and innovation at MWC

Antonio Neri on HPE’s blueprint for AI networking, edge-to-cloud and data insights

Juniper Networks’ CEO Rami Rahim weighs in on AI, edge opportunity for telcos and HPE acquisition

Nvidia’s lightweight RTX 500 and 1000 GPUs to power new generation of AI-accelerated laptops

Intel unveils Sierra Forest and Granite Rapids-D Xeon processors to support ‘AI Everywhere’

Intel’s new Intel vPro platform to power the next generation of AI PCs

At MWC, AI and wireless vendors come together to form the AI-RAN Alliance

Qualcomm debuts new wireless networking chips and AI model bundle

Broadcom/VMware targets telecom network modernization and security at the edge And analysis from Zeus Kerravala: VMware, as part of Broadcom, releases new 5G, SD-WAN, SASE and edge compute solutions at MWC 2024

ServiceNow and Nvidia bring powerful generative AI tools to telecom providers

Google integrates generative AI features into Messages, Maps, Android Auto and more

Around the enterprise and cloud

Regulatory watch

EU launches investigations into Microsoft over security software practices, Mistral AI investment

Google is facing $2.3M lawsuit from dozens of European media companies over ad practices

SEC investigating whether OpenAI investors were misled (from the Wall Street Journal)


Dell shares soar on strong earnings and growth forecasts

Snowflake’s stock tumbles as CEO Frank Slootman announces he’s stepping down

Salesforce reports earnings beat, shares hold steady after-hours

Okta shares surge after reporting strong earnings and revenue growth

HPE’s stock drops on big revenue decline, while NetApp heads upward

HP shares drop after falling short on revenue in first quarter

Pure Storage’s shift to AI and cloud subscriptions pays off with strong earnings beat

Nutanix comfortably beats forecasts despite uncertain macroeconomic backdrop

Zoom reports revenue and earning beats, shares rise in late trading

Workday squeezes past the Street’s expectations and acquires AI talent recruitment startup

Thoughtworks shares plunge 28%+ on fourth-quarter earnings miss

Zscaler shares dip despite outperforming earnings expectations

Autodesk’s fiscal 2024 ends on a high note, as earnings exceed analysts’ predictions

Elastic TK…

Splunk reported positive fourth-quarter results, but since it also said the deal to be acquired by Cisco is likely to close late this quarter or early next, investors yawned.

Artificial intelligence play C3.ai climbs almost 13% on earnings report, outlook (from Investor’s Business Daily)

Duolingo’s stock soars more than 20% after ‘record’ bookings, quarterly profit for company (from MarketWatch)

Zuora’s Q4 earnings results: Revenue in line with expectations (from Yahoo Finance)

In other news

Broadcom to offload VMware’s remote access computing business to KKR in $3.8B deal

Intel launches standalone FPGA business and previews upcoming chips

Oracle’s autonomous database goes distributed and global

Cox Enterprises buys gov tech leader OpenGov for $1.8B

Submarine data cables in Red Sea reportedly damaged by Houthi Rebels

Case study: Geofencing helps construction firm avoid $2.5M in equipment theft

IPOs warming, slowly? Cloud storage service Egnyte hires banks for IPO, sources say (from Reuters)

MongoDB expands global availability of MongoDB Atlas to six additional cloud regions

Cyber beat

That didn’t take long: LockBit ransomware gang returns after being temporarily disrupted by law enforcement

Surge in high-risk open-source vulnerabilities found in commercial codebases

Researchers find security flaw in multiple smart doorbells

US launches ‘unprecedented’ investigation into Chinese connected cars, citing national security concerns

Biden issues executive order protecting Americans’ data from countries of concern 

Elsewhere around tech

That’s a big crash: Apple reportedly scraps ‘Project Titan’ electric car project

US Supreme Court seems split over landmark social media laws

Comings and goings

Dbt Labs names former Rubrik Exec Austin Stefani chief revenue officer

What’s next

Enterprise earnings reports show down, but there will be a few bellwethers next week:

Monday, March 4: GitLab

Tuesday, March 5: Box, CrowdStrike, Couchbase and HashiCorp

Thursday, March 7: Broadcom, Marvell Semi, MongoDB and DocuSign

Image: SiliconANGLE/Google Gemini

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