SpaceX AI Spending Surge, OpenAI-Anthropic New Security Breach, More
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How is AI entering its most consequential phase with scale, safety and sovereignty?
AI is entering its most consequential phase where scale, safety and sovereignty will determine who leads and who lags. Join Bloomberg Tech in London on November 2nd and 3rd as global leaders across business, finance and policy examine the defining trade-offs shaping the future of AI. Thank you to our presenting sponsor, Salesforce, and supporting sponsors, IDA Ireland and Schneider Electric. Learn more at BloombergLive.com slash TechLondon.
News when you want it with Bloomberg News Now. I'm Dan Schwartzman. A lot of earnings after the bell. SpaceX's revenue exceeded Wall Street's estimates in the company's first quarterly financial report following its blockbuster initial public offering in June. Elon Musk's space company reported revenue of $7.8 billion. That's greater than the $6.81 billion analysts expected on average. But shares of SpaceX are lower in late trading after the company announced over $18 billion in spending on AI. Here's Bloomberg's Max Chafkin.
SpaceX dominates one part of what it does, the launch business. It launches a huge percentage of the total amount of mass into space. Elon Musk was just bragging about that. But a lot of these future businesses that he is talking about, renting out data center capacity, making large language models, they have nothing to do with that. So you're sort of wondering as an investor, are they going to be able to bring that same level of dominance to this other field where they are also in a lot of ways behind?
That was Bloomberg's Max Chafkin. The earnings report follows the announcement that SpaceX is partnering with NVIDIA to design the StarMind satellite compute payload. The company said each of the StarMind satellites will include NVIDIA Rubin GPUs and Vera CPUs. Advanced micro devices disappointed investors with its latest sales outlook, a sign that shareholders expected more of a return from the global expansion of AI data centers. Here's Bloomberg's Ed Ludlow.
It's a simple story with the third quarter revenue outlook, which was $13 billion, plus or minus $300 million, just wasn't good enough relative to the most bullish expectations of the street. You know, AMD is up 140% year to date going into this. But it's a simple story, like people want to see outperformance. AMD closing the gap on NVIDIA because NVIDIA's growth is still so high. And they just didn't clear that higher bar hurdle when you think about the sort of top end of estimates.
That's Bloomberg's Ed Ludlow. AMD shares fell about 7% in after hours trading. Dell, Marvell, Intel shares also lower in after hours trading following AMD's earnings report. Paramount Skydance posted a surprise surge in second quarter profits with cost cutting from its merger last year continuing to pay off. Artificial intelligence models from OpenAI and Anthropic were involved in previously unreported cybersecurity incidents. That's according to the UK government's AI Security Institute. The agency said those AI models had engaged in sustained, potentially harmful activity directed at real people and organizations. Separately, OpenAI said that another cybersecurity model incident occurred during an AI model evaluation with Irregular, an external cybersecurity company that also works with Anthropic.
What did SpaceX report in its first quarterly financials after the IPO and why did shares fall?
In this incident, OpenAI's models were undergoing a different cyber evaluation and took advantage of a, quote, misconfiguration in the testing environment to access the internet and exploit a website. The company said these new incidents are separate from a previously disclosed case involving Hugging Face. We got reaction from retired Lieutenant General Karen Gibson, former deputy director of national intelligence. She says technology is advancing faster than policy.
And this is an area where for a variety of reasons, we've been challenged collectively in coming up with the kind of policy safeguards that that would allow us to safeguard our nation, our critical infrastructure, and yet still be a leader in terms of innovation. There is a tension there between the two.
Retired Lieutenant General Karen Gibson, former Deputy Director of National Intelligence, speaking on Bloomberg's balance of power.
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