Alex Ossola

Tesla's revenue fell 3% as it lost its lead as the world's top electric vehicle maker to China's BYD.

While Meta said it had record sales and expects a massive increase in projected spending this year, a sign that its AI investments are still going strong.

And Microsoft reported better than expected earnings because of its new deal with OpenAI and continued growth in its cloud computing business.

For more details, visit WSJ.com.

And we'll be discussing those results on tomorrow morning's show.

Coming up, what's drawing investors to AI startups with no product or revenue?

And President Trump's ultimatum for Iran.

That's after the break.

There's a new kind of startup getting attention in Silicon Valley.

These companies don't have any products or any revenue, but they've got eager investors.

And some of these companies are valued at a billion dollars or more.

The industry is calling these startups Neolabs.

And Kate Clark, who covers startups for the journal, says that they're riding the AI wave in a different kind of way.

Kate, how do these companies differ from other kinds of AI startups?

Can you give us a couple of examples of the names of these companies and how they're thinking about approaching AI?

These valuations seem quite high.

And also, there's no plan for a product or any kind of revenue anytime soon.

Why are investors interested in these Neolabs?

Thanks, Kate.

Thanks.