Karen Kwok

The $153 bln group’s shares jumped 16% ‌on a plan to sell processors, not just license them. That makes sense as artificial intelligence shifts ​to managing tasks, requiring new chips, ​but brings Arm into a competitive market. ⁠CEO Rene Haas’s $15 bln sales target looks ​challenging.

(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Karen Kwok

By Karen Kwok NEW YORK, April 30 (Reuters Breakingviews) - Shares fell 10% despite strong ‌revenue growth and signs technology is boosting ‌ad sales.

Shares fell 10% despite ‌strong revenue growth and signs technology is boosting ad sales. The issue is funding: unlike Alphabet, Amazon ​or Microsoft, there’s no cloud arm ​to cushion infrastructure spending. A rapidly rising ⁠bet with an unclear, slow payoff makes ​investors queasy.

OpenAI and Anthropic are teaming up with buyout shops and others ​to help install and tailor ​artificial intelligence. The backers inject a ⁠combined $5 bln in cash, and ​plenty of customers to underpin ​revenue. The problem: JVs often fail, and outsiders prefer neutral advisers.

The ChatGPT ⁠maker faces key ​hurdles, rising ​competition and apparent strategic missteps. With $600 bln ​in computing ​power to fund and ‌arch-rival ⁠Anthropic perhaps edging ahead, its CEO’s decisions — and ​controversies — ​invite ⁠fresh scrutiny ahead of ​a listing.

The Claude developer expects to post its first operating profit ​and double quarterly sales ​to $11 bln. That doesn’t account for ⁠cuts taken by partners ​like Google, while costs are soaring. ​Most crucially, customers are still grappling with how much value chatbots really provide.

A buoyant debut for ​Elon Musk’s $1.75 trln ​rockets-to-chatbots concern would be a ⁠strong signal for ​OpenAI and Anthropic’s planned ​listings. For everyone else, it’s less clear: the trio’s combined ​issuance could near 2021’s ​market-wide peak, leaving little room ‌for ⁠others.

A buoyant debut for ​Elon Musk’s $1.75 trln ​rockets-to-chatbots concern would be a ⁠strong signal for ​OpenAI and Anthropic’s planned ​listings. For everyone else, it’s less clear: the trio’s combined ​issuance could near 2021’s ​market-wide peak, leaving little room ‌for ⁠others.

Releasing a ​model based on a hacking super-weapon raised alarm in ‌Washington, which responded with fatal export controls. Nervy allies have new reason to build non-US rivals and fret over chokepoint tech. The $965 bln ​lab’s IPO hopes risk falling into a regulatory Pandora’s ​box.