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Jordan Novet | CNBC

During last week’s chatbot hype, with Microsoft and Google attempting to outduel each other in showcasing early versions of artificial intelligence-powered search, more than 1 million people signed up to try Microsoft’s tool in the first 48 hours, the company said.

Microsoft CEO Satya Nadella told CNBC that the technology, which can spit out complete answers that read like they were written by a human, was “perhaps the industrial revolution brought to knowledge work.”

But for those concerned about accuracy, the AI leaves plenty to be desired.

In Microsoft’s demo in front of reporters, the ChatGPT-like technology embedded in the company’s Bing search engine analyzed earnings reports from Gap and Lululemon. In comparing its answers to the actual reports, the chatbot missed some numbers. Others appear to have been made up.

“Bing AI got some answers completely wrong during their demo. But no one noticed,” wrote independent search researcher Dmitri Brereton in a Substack post on Monday. “Instead, everyone jumped on the Bing hype train.”

Brereton identified possible factual issues in the Microsoft demo in its responses about vacuum cleaner specifications and travel plans to Mexico in addition to the financial errors. He told CNBC he wasn’t initially looking for errors, and only discovered them when he looked more closely to write a comparison of the AI unveilings from Microsoft and Google.

AI experts call the phenomenon “hallucination,” or the propensity of tools based on large language models to simply make stuff up. Last week, Google introduced a competing AI tool that also included factual errors — although the mistakes were quickly called out by viewers.

Both companies are rushing to incorporate new kinds of generative AI into search engines and are eager to show their advancements following the explosion of ChatGPT, which OpenAI introduced to the public in November. OpenAI has raised billions from Microsoft, while competing startups like Stability AI and Hugging Face also have ballooned to billion-dollar valuations in private funding rounds.

While Google has been reluctant to add AI-generated responses into search engines, citing reputational risk and safety concerns, Microsoft, in its announcement last week, stressed the short-term potential of releasing the technology to some of the public.

“I think it’s important not to be in a lab,” Nadella said. “You have to get these things out safely.”

When it came time to demo Bing AI’s response to a query on corporate earnings, there were some problems.

Yusuf Mehdi, a marketing executive at Microsoft, navigated to Gap’s investor relations site, and asked the Bing AI to summarize the “key takeaways” from the retailer’s third-quarter earnings release in November.

“Very cool. A massive time savings,” Mehdi said.

These are screen shots from Microsoft’s demo:

Kif Leswing/CNBC

Kif Leswing/CNBC

Here are some mistakes in the summary:

  • Gap’s reported gross margin was 37.4%. But after excluding charges related to Yeezy, the adjusted gross margin was 38.7%.
  • Gap operating margin was 4.6%, not 5.9%, a number that can’t be found in the company’s report.
  • Adjusted diluted earnings per share was $0.71 adjusted, instead of $0.42, a number that’s not in the report. The figure Gap reported included an adjusted income tax benefit of about $0.33.
  • Gap pulled its full-year outlook in August and said in the third-quarter report that “net sales could be down mid-single digits year-over-year in the fourth quarter.” That would imply a decline in revenue for the full year as opposed to “growth in the low double digits.” There is no forecast for operating margin or EPS.

Microsoft said it knows about the errors and that it expects Bing AI to make mistakes.

“We’re aware of this report and have analyzed its findings in our efforts to improve this experience,” a Microsoft spokesperson told CNBC. “We recognize that there is still work to be done and are expecting that the system may make mistakes during this preview period, which is why the feedback is critical so we can learn and help the models get better.”

Microsoft then asked Bing AI to compare Gap’s earnings with Lululemon’s report. Mehdi wanted Bing to pull the information from the two reports into a table.

“Look how amazing this is,” he said. “Just like that, in one table, I can get an answer to this question. Think how much time that would’ve taken otherwise.”

Here’s what the Bing AI tool returned:

Kif Leswing/CNBC

Kif Leswing/CNBC

There are several errors in the table, starting with margins.

  • Lululemon’s gross margin was 55.9%, not 58.7%.
  • The company’s operating margin was 19%, not 20.7%.
  • Lululemon reported diluted EPS of $2, and adjusted EPS of $1.62. Bing showed a diluted EPS number of $1.65.
  • Gap had $679 million in cash and cash equivalents, not $1.4 billion.
  • Gap had $3.04 billion in inventory, not $1.9 billion.

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Google says Fox channels to go dark on YouTube TV if agreement isn’t reached

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Google says Fox channels to go dark on YouTube TV if agreement isn't reached

Nurphoto | Nurphoto | Getty Images

Google-owned YouTube on Monday said it may remove channels including Fox Broadcast Network, Fox News and Fox Sports from its TV streaming platform if it doesn’t reach an agreement with Fox Corporation.

YouTube TV’s renewal date with Fox is coming on Wednesday, and while the two companies have been in ongoing negotiations, they’ve been unable to reach a deal, the YouTube team wrote in a blog post. The company also emailed YouTube TV subscribers about the potential fall out with Fox.

“Fox is asking for payments that are far higher than what partners with comparable content offerings receive,” YouTube wrote in the blog. “Our priority is to reach a deal that reflects the value of their content and is fair for both sides without passing on additional costs to our subscribers.”

If YouTube is unable to reach a new agreement by 5 p.m. Eastern on Wednesday, the Fox channels will become unable on YouTube TV, the Google company said. YouTube pays broadcasters like Fox to carry their channels, and a blackout could have implications on advertisers and millions of viewers who cut their cords to stream Fox’s various channels on YouTube TV.

“While Fox remains committed to reaching a fair agreement with Google’s YouTube TV, we are disappointed that Google continually exploits its outsized influence by proposing terms that are out of step with the marketplace,” the media company said in a statement.

The Fox standoff represents the latest contract dispute between content companies and delivery networks as viewers increasingly ditch cable. 

In February, Paramount Global notified YouTube TV subscribers that more than 20 channels including CBS, BET, Comedy Central, MTV and Nickelodeon could go dark on the service if the two didn’t reach a deal. Shortly after, YouTube TV and Paramount announced a multi-year distribution deal.

YouTube TV’s base plan costs $82.99 per month and includes over 100 live channels and unlimited cloud DVR. YouTube said a key part of its commitment to users is its partnership with content providers like Fox, “which allows us to carry a wide variety of channels.”

If Fox does go offline for an extended period of time, YouTube will give its members a $10 credit, the Google company wrote. Users will also be able to watch Fox content by signing up for Fox One, Fox’s streaming service, the blog said.

YouTube recently overtook Netflix, which has a market cap of $515 billion, as the top streaming platform in terms of audience engagement. Google does not provide official subscriber numbers for YouTube TV, but in its February 2024 letter, YouTube CEO Neal Mohan announced that the service had more than 8 million subscribers. MoffettNathanson principal analyst Michael Nathanson has estimated that YouTube TV has approximately 9.4 million paying subscribers.

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Musk’s xAI sues Apple, OpenAI alleging anticompetitive scheme harmed X, Grok

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Musk’s xAI sues Apple, OpenAI alleging anticompetitive scheme harmed X, Grok

Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.

Gonzalo Fuentes | Reuters

Elon Musk‘s xAI sued Apple and OpenAI on Monday, accusing the pair of an “anticompetitive scheme” to thwart artificial intelligence rivals.

The lawsuit, filed by Musk’s AI startup xAI and its social network business X, alleges Apple and OpenAI have “colluded” to maintain monopolies in the smartphone and generative AI markets.

Musk’s xAI acquired X in March in an all-stock transaction.

It accuses Apple of deprioritizing so-called “super apps” and generative AI chatbot competitors, such as xAI’s Grok, in its App Store rankings, while favoring OpenAI by integrating its ChatGPT chatbot into Apple products.

“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” according to the complaint, which was filed in U.S. District Court for the Northern District of Texas.

An OpenAI spokesperson said in a statement: “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.”

Representatives from Apple didn’t immediately respond to a request for comment.

The Tesla CEO launched xAI in 2023 in a bid to compete with OpenAI and other leading chatbot makers.

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Musk earlier this month threatened to sue Apple for “an unequivocal antitrust violation,” saying in a post on X that the company “is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”

After Musk threatened to sue Apple, OpenAI CEO Sam Altman responded: “This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn’t like.”

An Apple spokesperson previously said its App Store was designed to be “fair and free of bias,” and that the company features “thousands of apps” using a variety of signals.

Apple last year partnered with OpenAI to integrate ChatGPT into iPhone, iPad, Mac laptop and desktop products.

Several users replied to Musk’s post on X via its Community Notes feature saying that rival chatbot apps such as DeepSeek and Perplexity were ranked No. 1 on the App Store after Apple and OpenAI announced their partnership.

The lawsuit is the latest twist in an ongoing clash between Musk and Altman. Musk co-founded OpenAI alongside Altman in 2015, before leaving the startup in 2018 due to disagreements over OpenAI’s direction.

Musk sued OpenAI and Altman last year, accusing them of breach of contract by putting commercial interests ahead of its original mission to develop AI “for the benefit of humanity broadly.”

In a counter claim, OpenAI has alleged that Musk and xAI engaged in “harassment” through litigation, attacks on social media and in the press, and through a “sham bid” to buy the ChatGPT-maker for $97.4 billion designed to harm the company’s business relationships.

OpenAI says Musk's filing is 'consistent with his ongoing pattern of harassment

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Nvidia’s new ‘robot brain’ goes on sale for $3,499 as company targets robotics for growth

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Nvidia's new 'robot brain' goes on sale for ,499 as company targets robotics for growth

Jensen Huang, CEO of Nvidia, is seen on stage next to a small robot during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, on June 11, 2025.

Gonzalo Fuentes | Reuters

Nvidia announced Monday that its latest robotics chip module, the Jetson AGX Thor, is now on sale for $3,499 as a developer kit.

The company calls the chip a “robot brain.” The first kits ship next month, Nvidia said last week, and the chips will allow customers to create robots.

After a company uses the developer kit to prototype their robot, Nvidia will sell Thor T5000 modules that can be installed in production-ready robots. If a company needs more than 1,000 Thor chips, Nvidia will charge $2,999 per module.

CEO Jensen Huang has said robotics is the company’s largest growth opportunity outside of artificial intelligence, which has led to the Nvidia’s overall sales more than tripling in the past two years.

“We do not build robots, we do not build cars, but we enable the whole industry with our infrastructure computers and the associated software,” said Deepu Talla, Nvidia’s vice president of robotics and edge AI, on a call with reporters Friday.

The Jetson Thor chips are based on a Blackwell graphics processor, which is Nvidia’s current generation of technology used in its AI chips, as well as its chips for computer games.

Nvidia said that its Jetson Thor chips are 7.5 times faster than its previous generation. That allows them to run generative AI models, including large language models and visual models that can interpret the world around them, which is essential for humanoid robots, Nvidia said. The Jetson Thor chips are equipped with 128GB of memory, which is essential for big AI models.

Companies including Agility Robotics, Amazon, Meta and Boston Dynamics are using its Jetson chips, Nvidia said. Nvidia has also invested in robotics companies such as Field AI.

However, robotics remains a small business for Nvidia, accounting for about 1% of the company’s total revenue, despite the fact that it has launched several new robot chips since 2014. But it’s growing fast.

Nvidia recently combined its business units to group its automotive and robotics divisions into the same line item. That unit reported $567 million in quarterly sales in May, which represented a 72% increase on an annual basis.

The company said its Jetson Thor chips can be used for self-driving cars as well, especially from Chinese brands. Nvidia calls its car chips Drive AGX, and while they are similar to its robotics chips, they run an operating system called Drive OS that’s been tuned for automotive purposes.

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