Top Business and AI Stories for August 5, 2025

AI Infrastructure Wars: Meta and Microsoft Lead Record-Breaking Investment SurgeMeta’s Unprecedented $72 Billion AI Infrastructure Commitment

The AI infrastructure arms race reached new heights last week as Meta announced staggering investment plans. “We currently expect 2025 capital expenditures, including principal payments on finance leases, to be in the range of $66-72 billion…up approximately $30 billion year-over-year at the midpoint,” Meta said Meta, Microsoft, and the Slipstream Into the World’s Biggest ROI | InvestorPlace, as reported by TechCrunch. This represents more than a doubling of AI infrastructure spending from the previous year.

The company said it expects a similarly large increase in spend on AI infrastructure next year as the company continues to “aggressively [pursue] opportunities to bring additional capacity online to meet the needs of [its] artificial intelligence efforts” Meta, Microsoft, and the Slipstream Into the World’s Biggest ROI | InvestorPlace. CEO Mark Zuckerberg’s vision for “personal superintelligence” is driving this massive investment, with Meta has announced two major AI “titan clusters.” The first is Prometheus in Ohio, which is poised to be among the first AI superclusters to hit 1 gigawatt Meta, Microsoft, and the Slipstream Into the World’s Biggest ROI | InvestorPlace.

Microsoft’s Nuclear-Powered AI Future

Microsoft is taking an unconventional approach to powering its AI ambitions by turning to nuclear energy. “If we continue to see the kind of prices Microsoft is willing to pay for nuclear power from Three Mile Island, these type of deals become a solid economic proposition,” said Carly Davenport, a utilities analyst at Goldman Sachs Microsoft’s newest deal uses AI to untangle nuclear red tape, as reported by The Washington Post.

The tech giant has secured a historic 20-year deal to restart the Three Mile Island nuclear plant. 100 percent of the power will go to Microsoft, to match the power used by its data centers in the state as well as Chicago, Virginia, and Ohio OpenAI Secures $8.3 Billion, Aiming $40 Billion by 2025, as reported by DCD. estimates show the tech company is paying as much as twice the going rate on the open market, and locking in for a 20-year contract Microsoft’s newest deal uses AI to untangle nuclear red tape.

This nuclear strategy extends beyond Three Mile Island. New Jersey power company PSEG told investors in February that it is in talks with tech firms about selling large amounts of power directly from its nuclear reactors Microsoft’s newest deal uses AI to untangle nuclear red tape. The AI boom has created unprecedented energy demands, with Global electricity consumption from data centers, artificial intelligence and the cryptocurrency sector is expected to double from an estimated 460 terawatt-hours (TWh) in 2022 to more than 1,000 TWh in 2026 OpenAI raises $8.3 billion as paid ChatGPT business users reach 5 million, as reported by CNBC.

OpenAI’s Massive $8.3 Billion Funding Round Signals AI Market ConfidenceRecord-Breaking Investor Demand

OpenAI has completed a landmark funding round that demonstrates unwavering investor confidence in AI’s future. ChatGPT-maker OpenAI has raised $8.3 billion at a $300 billion valuation, reports The New York Times OpenAI raises over $8 billion in latest funding round, reaching $300 billion valuation, as reported by TechCrunch. The round was five times oversubscribed, according to the NYT—which meant many early investors participating in the new round were reportedly frustrated by getting smaller allocations so OpenAI could prioritize new backers OpenAI Raises New Funding to Hit $300 Billion Valuation | PYMNTS.com, as reported by Fortune.

Dragoneer wrote a massive $2.8 billion check, which means OpenAI now represents roughly 10% of the firm’s funds OpenAI Raises New Funding to Hit $300 Billion Valuation | PYMNTS.com. Other major participants included Blackstone, TPG, T. Rowe Price, Fidelity, Founders Fund, Sequoia, Andreessen Horowitz, Coatue, Altimeter, D1 Capital, Tiger Global, and Thrive Capital OpenAI closes $40 billion funding round, largest private tech deal on record, as reported by CNBC.

Explosive Revenue Growth

The investment enthusiasm is backed by remarkable business performance. According to the Times, the artificial intelligence provider’s annualized recurring revenue recently topped $13 billion New funding to build towards AGI | OpenAI, as reported by SiliconANGLE. This represents a dramatic increase from $10 billion in June OpenAI closes $40 billion funding round, largest private tech deal on record, with projections suggesting revenue could pass the $20 billion mark by year’s end OpenAI Raises New Funding to Hit $300 Billion Valuation | PYMNTS.com.

paid ChatGPT business users climbing to five million OpenAI closes $40 billion funding round, largest private tech deal on record, demonstrating strong enterprise adoption. The funding is part of OpenAI’s broader strategy to secure $40 billion this year, positioning the company for continued dominance in the AI market.

Apple Faces AI Reckoning as Stock PlummetsWall Street Loses Patience with Apple’s AI Strategy

Apple’s struggles with artificial intelligence have reached a critical juncture, with the stock experiencing its worst performance in years. Apple stock is down 15% this year, even as other Big Tech firms like Nvidia rally to new all-time highs Apple (AAPL) Stock: Investors Call for Big AI Acquisition as Shares Slump – Bloomberg, as reported by Axios. The company has lost over $640 billion in market value this year, prompting urgent calls for strategic changes.

Wall Street consensus is that the company is behind on artificial intelligence and running short on time to do something about it Apple (AAPL) Stock: Investors Call for Big AI Acquisition as Shares Slump – Bloomberg. As Dave Mazza, CEO of Roundhill Investments, told Axios: “Until that changes, I think they’re gonna be looked at…as a loser” Apple (AAPL) Stock: Investors Call for Big AI Acquisition as Shares Slump – Bloomberg.

Pressure Mounts for Major AI Acquisition

Investors are increasingly vocal about the need for dramatic action. Dan Ives, an analyst at Wedbush who is a long-time Apple bull, called buying Perplexity a “no brainer,” and said even if Apple paid $30 billion, that sum would be “a drop in the bucket relative to the monetization opportunity Apple can achieve on AI” Apple plans to ‘significantly’ grow AI investments, Cook says | TechCrunch, as reported by Yahoo Finance.

Despite facing these challenges, CEO Tim Cook remains committed to internal development. In last week’s earnings call, “We see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments,” CEO Tim Cook said Behind Microsoft’s plans to ramp up ‘carbon free’ nuclear energy to power AI and data centers | Trellis, as reported by TechCrunch. The company revealed it is “reallocating a fair number of people” to focus on AI Behind Microsoft’s plans to ramp up ‘carbon free’ nuclear energy to power AI and data centers | Trellis.

Google Revolutionizes Search with AI Mode LaunchAI Mode Reaches 100 Million Users

Google’s aggressive AI strategy is paying dividends with rapid user adoption. AI Mode — a way to use Google Search via an AI chat experience to get more in-depth answers — has over 100 million monthly active users, Pichai said, as reported by TechCrunch during the company’s Q2 earnings call. This milestone was achieved despite the service being available only in the U.S. and India.

The broader AI integration into Google Search has been even more successful. AI Overviews — a Google Search feature offering an AI summary of search results available in 200 countries and territories — now has 2 billion monthly users, up from 1.5 billion in May 2025.

Deep Search Capabilities Transform Research

Google’s AI Mode represents a fundamental shift in how search works. With AI Mode, you’ll be able to ask complex, multi-part questions and ask follow-ups to dig deeper Google Search’s new ‘AI Mode’ lets users ask complex, multi-part questions | TechCrunch, as reported by Google’s blog. The technology uses a sophisticated approach: It uses a “query fan-out” technique, issuing multiple related searches concurrently across subtopics and multiple data sources and then brings those results together to provide an easy-to-understand response Google Search’s new ‘AI Mode’ lets users ask complex, multi-part questions | TechCrunch.

The Deep Search feature takes this even further. Deep Search uses the same query fan-out technique but taken to the next level. It can issue hundreds of searches, reason across disparate pieces of information, and create an expert-level fully-cited report in just minutes, saving you hours of research Google AI – How we’re making AI helpful for everyone, as reported by Google.

AI Job Displacement Accelerates Across IndustriesRising Unemployment Linked to AI Adoption

A troubling trend has emerged in the U.S. job market, with AI directly contributing to significant layoffs. For the first seven months of 2025, rising adoption of generative AI technology by private employers accounted for more than 10,000 job cuts, according to a report released this week by Challenger, Gray & Christmas Google I/O 2025: 100 things Google announced, as reported by CBS News.

The impact is broader than just AI-specific cuts. Through July, companies have announced more than 806,000 private-sector job cuts, the highest number for that period since 2020 Google I/O 2025: 100 things Google announced. This comes amid new labor data on Friday showed that employers added only 73,000 jobs in July — well short of analyst forecasts Google I/O 2025: 100 things Google announced.

Major AI Developments and Industry UpdatesOpenAI’s GPT-5 Launch Expected This Month

The AI community is anticipating the imminent release of OpenAI’s most advanced model yet. OpenAI is expected to release its next big model — GPT-5 — in August, Axios has learned OpenAI to launch GPT-5 in August, plus smaller models & Sora 2. CEO Sam Altman has been dropping hints, having posted on X on July 19 that GPT-5 would be released “soon” OpenAI to launch GPT-5 in August, plus smaller models & Sora 2.

The new model promises significant advances: In addition to being better at coding and more powerful overall, GPT-5 is expected to combine the attributes of both traditional models and so-called reasoning models such as o3 OpenAI to launch GPT-5 in August, plus smaller models & Sora 2. GPT-5 is believed to be the “unified” model, which means it combines the breakthroughs from the reasoning and multi-modal models OpenAI Is Reportedly About to Release GPT-5, as reported by BleepingComputer.

White House Unveils Comprehensive AI Action Plan

The Trump administration has released a sweeping AI strategy document. The White House today released “Winning the AI Race: America’s AI Action Plan” The latest AI news we announced in June, as reported by The White House. The plan focuses on several key areas:

Promoting Rapid Buildout of Data Centers: Expediting and modernizing permits for data centers and semiconductor fabs The latest AI news we announced in JuneEnabling Innovation and Adoption: Removing onerous Federal regulations that hinder AI development and deployment The latest AI news we announced in JuneUpholding Free Speech in Frontier Models: Updating Federal procurement guidelines to ensure that the government only contracts with frontier large language model developers who ensure that their systems are objective The latest AI news we announced in JuneGoogle’s Pixel 10 Event Set for August 20

In consumer tech news, Made by Google 2025 is officially taking place on Wednesday, August 20 Technology – The Washington Post, as reported by 9to5Google. The event will showcase “Pixel phones, watches, buds, and more.” We expect Google to unveil the Pixel 10, Pixel 10 Pro, Pixel 10 Pro XL, and Pixel 10 Pro Fold Technology – The Washington Post.

Looking Ahead: The AI Market at a Crossroads

As we enter the second week of August 2025, the AI industry stands at a critical juncture. The massive infrastructure investments by Meta and Microsoft signal unwavering corporate commitment to AI’s future, while OpenAI’s successful funding round demonstrates continued investor confidence despite market volatility.

However, challenges loom large. The job displacement numbers reveal the real human cost of AI adoption, while Apple’s struggles highlight that even tech giants can be left behind in this rapidly evolving landscape. Energy concerns are driving unusual partnerships between tech companies and nuclear power providers, suggesting that sustainable AI growth will require innovative solutions to fundamental infrastructure challenges.

With GPT-5’s launch imminent and Google’s AI Mode gaining rapid adoption, August 2025 may prove to be a pivotal month in determining which companies will lead the next phase of the AI revolution. The stakes have never been higher, and the pace of change shows no signs of slowing.

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