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Artificial intelligence pioneer Geoffrey Hinton speaks at the Thomson Reuters Financial and Risk Summit in Toronto, December 4, 2017.

Mark Blinch | Reuters

Geoffrey Hinton, known as “The Godfather of AI,” received his Ph.D. in artificial intelligence 45 years ago and has remained one of the most respected voices in the field.

For the past decade Hinton worked part-time at Google, between the company’s Silicon Valley headquarters and Toronto. But he has quit the internet giant, and he told the New York Times that he’ll be warning the world about the potential threat of AI, which he said is coming sooner than he previously thought.

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“I thought it was 30 to 50 years or even longer away,” Hinton told the Times, in a story published Monday. “Obviously, I no longer think that.”

Hinton, who was named a 2018 Turing Award winner for conceptual and engineering breakthroughs, said he now has some regrets over his life’s work, the Times reported, citing near-term risks of AI taking jobs, and the proliferation of fake photos, videos and text that appear real to the average person.

In a statement to CNBC, Hinton said, “I now think the digital intelligences we are creating are very different from biological intelligences.”

Hinton referenced the power of GPT-4, the most-advanced large language model (LLM) from startup OpenAI, whose technology has gone viral since the chatbot ChatGPT was launched late last year. Here’s how he described what’s happening now:

“If I have 1000 digital agents who are all exact clones with identical weights, whenever one agent learns how to do something, all of them immediately know it because they share weights,” Hinton told CNBC.  “Biological agents cannot do this. So collections of identical digital agents can acquire hugely more knowledge than any individual biological agent. That is why GPT-4 knows hugely more than any one person.”

Bill Gates calls OpenAI's GPT the most important tech advance since 1980

Hinton was sounding the alarm even before leaving Google. In an interview with CBS News that aired in March, Hinton was asked what he thinks the “chances are of AI just wiping out humanity.” He responded, “It’s not inconceivable. That’s all I’ll say.”

Google CEO Sundar Pichai has also publicly warned of the risks of AI. He told “60 Minutes” last month that society isn’t prepared for what’s coming. At the same time, Google is showing off its own products, like self-learning robots and Bard, its ChatGPT competitor.

But when asked if “the pace of change can outstrip our ability to adapt,” Pichai downplayed the risk. “I don’t think so. We’re sort of an infinitely adaptable species,” he said.

Over the past year, Hinton has reduced his time at Google, according to an internal document viewed by CNBC. In March of 2022, he moved to 20% of full-time. Later in the year he was assigned to a new team within Brain Research. His most recent role was vice president and engineering fellow, reporting to Jeff Dean within Google Brain.

In an emailed statement to CNBC, Dean said he appreciated Hinton for “his decade of contributions at Google.”

“I’ll miss him, and I wish him well!” Dean wrote. “As one of the first companies to publish AI Principles, we remain committed to a responsible approach to AI. We’re continually learning to understand emerging risks while also innovating boldly.”

Hinton’s departure is a high-profile loss for Google Brain, the team behind much of the company’s work in AI. Several years ago, Google reportedly spent $44 million to acquire a company started by Hinton and two of his students in 2012.

His research group made major breakthroughs in deep learning that accelerated speech recognition and object classification. Their technology would help form new ways of using AI, including ChatGPT and Bard.

Google has rallied teams across the company to integrate Bard’s technology and LLMs into more products and services. Last month, the company said it would be merging Brain with DeepMind to “significantly accelerate our progress in AI.”

According to the Times, Hinton said he quit his job at Google so he could freely speak out about the risks of AI. He told the paper, “I console myself with the normal excuse: If I hadn’t done it, somebody else would have.”

Hinton tweeted on Monday, “I left so that I could talk about the dangers of AI without considering how this impacts Google. Google has acted very responsibly.”

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Visa says new AI shopping tool has helped customers with hundreds of transactions

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Visa says new AI shopping tool has helped customers with hundreds of transactions

Mustafa Hatipoglu | Anadolu | Getty Images

Visa said on Thursday that it successfully completed hundreds of AI transactions as part of a pilot program that kicked off after the company’s product event in April.

The credit card issuer and rivals across the fintech industry are racing to build tools that allow consumers to task artificial intelligence agents with completing certain transactions.

“This is going to be the year we see an enormous amount of material adoption, and consumers really starting to get comfortable in a bunch of different agentic environments,” said Rubail Birwadker, Visa’s head of growth products and partnerships, in an interview.

AI is transforming the e-commerce experience for shoppers, changing how customers purchase and browse for goods.

Mastercard said in April it was testing a feature called Agent Pay that allows AI agents to shop online for customers. Amazon began testing a “Buy For Me” offering that same month, while PayPal and Perplexity have joined forces on agentic shopping tools. Earlier in December, a survey from Visa found that nearly half of U.S. shoppers are using AI with purchases.

While the data is limited, Birwadker said the tools could be useful for consistent purchases made by consumers or events like concert tickets.

Visa said it plans to launch pilot programs in Asia and Europe next year, and is working with over 20 partners on AI agent tools.

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CNBC Daily Open: Oracle’s debt seems to be affecting data center funding

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CNBC Daily Open: Oracle's debt seems to be affecting data center funding

A view of Oracle headquarters on September 11, 2023 in Redwood Shores, California. 

Justin Sullivan | Getty Images

The apprehension investors have surrounding Oracle has spilled over from manifesting in its stock price — which has fallen nearly 50% from its all-time high on Sept. 10 — to affecting its projects.

Asset management firm Blue Owl Capital reportedly pulled out from Oracle’s $10 billion data center project over unfavorable debt terms, according to the Financial Times, as concerns about the tech giant’s high level of debt mount.

The latest development adds fuel to worries that Oracle could delay the completion of data centers for OpenAI, which were first flagged by Bloomberg on Friday, though the cloud company has denied the report.

Shares of Oracle fell 5.4% Wednesday, putting its month-to-date losses more than 11%. They weighed down related names, such as Broadcom Nvidia and Advanced Micro Devices.

As a result, major U.S. indexes fell. The S&P 500 retreated 1.16% and the Dow Jones Industrial Average dropped 0.47%, while the Nasdaq Composite lost 1.81% in its worst day in nearly a month.

Despite the recent pullback in artificial intelligence stocks, the Bank of America thinks “the AI trade may still have room to run into 2026” — with the important caveat that shares going up does not mean a bubble isn’t forming.

“In our view, such progression validates our thesis that a larger AI bubble continues to build,” analysts at Bank of America wrote.

The trouble, as always, is pinpointing the exact moment before the bubble pops — if that’s even possible.

— CNBC’s Jaures Yip contributed to this report.

What you need to know today

Major U.S. indexes fall on AI weakness. The S&P 500 and Dow Jones Industrial Average had their fourth consecutive losing session. Asia-Pacific markets mostly slid Thursday. Japan’s Softbank lost around 3.7%, paring earlier losses, with the Nikkei 225 trading in the red.

China’s chipmakers are challenging Nvidia. MetaX Integrated Circuits, a Chinese semiconductor firm, soared nearly 700% in its market debut on Wednesday. It’s a sign of how investors are growing enthusiastic over Chinese chipmakers and their progress in catching up with Nvidia.

Netflix deal is ‘superior’ to Paramount’s, Warner Bros. says. Samuel Di Piazza, chair of the Warner Bros. board, separately told CNBC on Wednesday that the board would have appreciated more involvement from Paramount Skydance CEO David Ellison’s father, Oracle co-founder Larry Ellison.

U.S. approves arms sale to Taiwan, reportedly the biggest ever. The $11.15 billion transaction, which was given the green light on Thursday, reportedly comprises HIMARS rocket artillery systems, self-propelled howitzer systems and Javelin and TOW anti-tank missiles, according to Reuters.

[PRO] One chart is worrying Michael Burry. “The Big Short” investor pointed to a graphic produced by Wells Fargo that showed a phenomenon in U.S. households that has only happened twice before and preceded bear markets that “lasted years.”

And finally…

People walk past a Starbucks Reserve in the Huangpu district in Shanghai on April 11, 2025.

Hector Retamal | Afp | Getty Images

Correction: An earlier version of this report stated the wrong date of the U.S. government’s approval of its arms sale to Taiwan. This has been rectified.

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SoftBank leads decline in Japanese tech stocks as worries over AI spending spill over to Asia

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SoftBank leads decline in Japanese tech stocks as worries over AI spending spill over to Asia

TOKYO, JAPAN – FEBRUARY 03: SoftBank Group CEO Masayoshi Son delivers a speech during an event titled “Transforming Business through AI” in Tokyo, Japan, on February 03, 2025. SoftBank and OpenAI announced that they have agreed a partnership to set up a joint venture for artificial intelligence services in Japan.

Tomohiro Ohsumi | Getty Images News | Getty Images

Japanese tech stocks took a tumble on Thursday as AI infrastructure spending worries on Wall Street crossed the ocean into the Asian markets, with AI-related stocks declining.

Softbank Group Corp was among the top losers in the benchmark Nikkei 225, falling as much as 7.25%, with the index leading losses in Asia, down 1.23%. The group pared some losses and was last trading 3% lower.

This decline comes as the tech-heavy Nasdaq Composite fell 1.81% overnight, dragged by losses in Oracle, Broadcom, Nvidia and other AI plays.

The losses in Oracle came after the Financial Times reported on Wednesday that Blue Owl Capital’s plans to finance the cloud infrastructure company’s $10 billion Michigan data center had stalled. The company last week had refuted a report that said it had delayed some projects for AI major OpenAI to 2028.

Tech-focused SoftBank has seen sharp volatility in its stock over the past month as fears over AI-related spending have gripped the market.

At the start of the year, the group had revealed plans to invest $500 billion in AI infrastructure in the U.S. along with OpenAI, Oracle and other partners, and in September it announced five new U.S. AI data center sites under Stargate, OpenAI’s overarching AI infrastructure platform.

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Other Japanese tech stocks also fell. Semiconductor equipment supplier Advantest, dropped as much as 5%. Counterparts Lasertec, Renesas Electronics and Tokyo Electron declined between 3% and 4%.

Jesper Koll, expert director at Tokyo-based financial services firm Monex Group, said much of what goes into data centers, power centers, and AI hardware enablers is “Made in Japan, and can only be made in Japan.” That makes Japanese tech, especially AI-related stocks more vulnerable to any worries around U.S. tech spending.

On Wednesday, Japan’s trade numbers showed that exports of electrical machinery jumped 7.4%, and semiconductor-related exports surged 13% year on year. Koll said the U.S.-led boom in tech spending was translating into growing exports of specialized machinery and equipment.

Losses were less pronounced in South Korean chip heavyweight Samsung Electronics at 0.93%, while SK Hynix reversed course to gain 0.73%. Taiwan’s TSMC, the world’s largest contract chip manufacturer, was marginally down.

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