Cathie Wood Buys More Nvidia Shares

Banks Rely on Few AI Providers

Banks are using AI to automate tasks and help with operations. More than 75% of City companies now use AI. They use it to process insurance claims and assess customers' creditworthiness. This matters because it creates a systemic dependency. A problem at one provider could spread quickly across customers and sectors. Regulators may increase their focus on operational resilience and third-party concentration in the AI model stack. The AI race also risks creating vendor dependence risk, meaning a few providers could control the price of AI services. Banks will try to offset these risks by negotiating contracts and using open-source AI models. Banks will continue to invest in AI to cut costs and increase revenues.

Israeli Startup Corma Raises $60 Million to Fight AI Cyberattacks

Corma has raised $60 million to build AI designed to fight AI-powered cyberattacks. The company is developing a foundation model for defensive cybersecurity. The company is working with Fortune 100 and Fortune 500 companies. Its systems reduced threat-response times by more than 94% in early deployments. Corma's AI agents operate across an organization's existing security tools and processes. Corma will use the funding to continue developing its AI models for defensive cybersecurity. The company will keep working to protect organizations from cyberattacks.

JPMorgan Raises S&P 500 Target

JPMorgan strategists raised their S&P 500 Index forecast to 8,000 points. They cited strong corporate earnings and payoff from artificial intelligence spending. The team expects cloud growth to remain strong due to high demand. The S&P 500 has already reclaimed record highs with corporate earnings surging 32%. AI spending is projected to account for over half of total capex of $1.5 trillion this year. The S&P 500 is expected to keep rising.

AI Boom Fueled by Investor Money

The AI boom is being funded by investors rather than customer demand. This means companies making AI models and applications are operating at a loss. The profit margins for companies making AI chips are high, at 41 percent. In contrast, companies making AI models and applications have a -59 percent operating margin. This disparity is a risk to the stability of the AI industry. Goldman Sachs projects AI investments to reach over $1 trillion in 2026. The industry will need to show a return on investment to sustain its growth.

Tech Workers Log Long Hours Despite AI Promises

Tech leaders say AI will mean less work for people. But staff at these companies work up to 90 hours a week. Their companies spend hundreds of billions of dollars on AI tools. These tools are meant to speed up human labor. This could mean people work less. But workers say they have a grueling work culture. They have to work on weekends and attend many meetings. Workers at tech companies are well paid. But they work long hours. They work 70 hours a week or more. This is not just at one company. Many tech workers have this problem. They will likely keep working long hours.