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Google's stock dipped by approximately 4 percent after Nobel Prize-winning AI pioneer Demis Hassabis stepped aside from his leadership role in the company's AI division. Hassabis, who previously headed Google's AI efforts following the rise of ChatGPT, will now focus on using AI for scientific breakthroughs like drug development. Koray Kavukcuoglu will succeed him, while another executive, Jeff Dean, is also departing.
Meta Platforms saw its stock surge 15% last week, the best run since early 2024, following the unveiling of "Meta Compute." This new initiative aims to monetize Meta's extensive AI infrastructure by selling computing capacity and models to external clients, addressing investor concerns over massive AI spending. While Wall Street embraced the potential for significant EPS growth, Meta faces challenges, including its lack of experience in the cloud market and competition from entrenched hyperscalers.
IBM experienced a $40 billion stock drop after Anthropic unveiled AI tools for COBOL translation. However, industry experts and IBM argue that this reaction stems from a misunderstanding: translating COBOL code is distinct from comprehensive mainframe modernization, which involves complex architectural redesign and ensuring critical system reliability. Enterprises are advised to approach new AI tools with caution, conducting pilots to assess actual ROI for modernization efforts.
