Microsoft announced Thursday it is teaming up with digital pathology provider Paige to build the world’s largest image-based artificial intelligence model for identifying cancer.
The AI model is training on an unprecedented amount of data that includes billions of images, according to a release. It can identify both common cancers and rare cancers that are notoriously difficult to diagnose, and researchers hope it will eventually help doctors who are struggling to contend with staffing shortages and growing caseloads.
Paige develops digital and AI-powered solutions for pathologists, which are doctors who carry out lab tests on bodily fluids and tissues to make a diagnosis. It’s a specialty that often operates behind the scenes, and it’s crucial for determining a patient’s path forward.
“You don’t have cancer until the pathologist says so. That’s the critical step in the whole medical edifice,” Thomas Fuchs, co-founder and chief scientist at Paige, told CNBC in an interview.
But despite pathologists’ essential role in medicine, Fuchs said their workflow has not changed much in the last 150 years. To diagnose cancer, for instance, pathologists usually examine a piece of tissue on a glass slide under a microscope. The method is tried and true, but if pathologists miss something, it can have dire consequences for patients.
As a result, Paige has been working to digitize the pathologists’ workflow to improve accuracy and efficiency within the specialty.
Doctors working with Paige technology
Source: Paige
The company has received approval from the Food and Drug Administration for its viewing tool FullFocus, which allows pathologists to examine scanned digital slides on a screen instead of relying on a microscope. Paige also built an AI model that can help pathologists identify breast cancer, colon cancer and prostate cancer when it appears on the screen.
Digital pathology is costly
Paige is the only company that has received FDA approval for pathologists to use its AI as a secondary tool for identifying prostate cancer, and CEO Andy Moye said this is likely in part because of barriers related to storage costs and data collection.
Digitizing a single slide can require over a gigabyte of storage, so the infrastructure and costs associated with large-scale data collection balloon quickly. Fuchs said the storage costs can be inhibiting for smaller health systems, which is why wealthy academic centers have historically been the only organizations that can afford to invest in digital pathology.
Paige spun out of the Memorial Sloan Kettering Cancer Center in New York in 2017 and has a “fantastic wealth of data,” according to Moye, which is why the company was able to build its own AI-powered solutions in the first place. To put the scale in perspective, Paige has 10 times more data than Netflix, including all the shows and movies that exist on the platform.
But in order to expand its operations and build an AI tool that can identify more cancer types, Paige turned to Microsoft for help. Over the past year and a half, Paige has been using Microsoft’s cloud storage and supercomputing infrastructure to build an advanced new AI model.
Paige’s original AI model used more than 1 billion images from 500,000 pathology slides, but Fuchs said the model the company has built with Microsoft is “orders of magnitude larger than anything out there.” The model is training on 4 million slides to identify both common and rare cancers, which can be difficult to diagnose. Paige said it is the largest computer vision model that has ever been announced publicly.
“Until ChatGPT got released, no one really understood how this is going to impact their lives. I would argue this is very similar for cancer patients going forward,” Moye said. “This is sort of a groundbreaking, land-on-the-moon kind of moment for cancer care.”
Moye added that the company is thinking of ways to incorporate predictive modeling to give pathologists and patients easy access to information about their biomarkers and genomic mutations down the line.
Desney Tan, vice president and managing director of Microsoft Health Futures, said Microsoft’s infrastructure is a key component of the partnership, but that the company is also working to develop the new algorithms, detection and diagnostics that Paige is hoping to deliver in the next couple of years.
He added that though the technology is powerful, it’s meant to enrich pathologists, not replace them.
“We think of these AI implements, these technologies, as tools, really just as the stethoscope is a tool, just as the X-ray machine is a tool,” Tan told CNBC in an interview. “AI is a tool that is to be wielded by a human.”
On Thursday, Paige and Microsoft will publish a paper on the model through Cornell University’s preprint server arXiv. The paper quantifies the impact of the new model compared with existing models, and Fuchs said it outperforms anything that has been built in academia up to this point.
But the preprint is just the first step of a much longer journey. Paige wanted to make the research available to the broader community while it is under peer review, and the company intends to submit to the scientific journal Nature. The process can take months, if not longer. Paige also has years of work ahead before it will be able to roll the model out as a product — including thorough testing and collaboration with regulators to ensure it is safe and accurate.
Ultimately, Fuchs said the AI model will solve the storage problem for health systems, while also helping pathologists work through cases and arrive at a diagnosis more quickly. For some patients, it could mean the difference between waiting two days and two weeks to find out what’s wrong.
“The more you go away from academic medical centers, especially in community clinics where pathologists are completely overwhelmed across all cancer types with so many cases, there, the impact is quite drastic,” Fuchs said. “That really helps to democratize access to health care in these places.”
Google chief executive Sundar Pichai speaks during the tech titan’s annual I/O developers conference on May 14, 2024, in Mountain View, California.
Glenn Chapman | Afp | Getty Images
Google will start using artificial intelligence to determine whether users are age appropriate for its products, the company said Wednesday.
Google announced the new technique for determining users’ ages as part of a blog focused on “New digital protections for kids, teens and parents.” The automation will be used across Google products, including YouTube, a spokesperson confirmed. Google has billions of users across its properties and users designated as under the age of 18 have restrictions to some Google services.
“This year we’ll begin testing a machine learning-based age estimation model in the U.S.,” wrote Jenn Fitzpatrick, SVP of Google’s “Core” Technology team, in the blog post. The Core unit is responsible for building the technical foundation behind the company’s flagship products and for protecting users’ online safety.
“This model helps us estimate whether a user is over or under 18 so that we can apply protections to help provide more age-appropriate experiences,” Fitzpatrick wrote.
The latest AI move also comes as lawmakers pressure online platforms to create more provisions around child safety. The company said it will bring its AI-based age estimations to more countries over time. Meta rolled out similar features that uses AI to determine that someone may be lying about their age in September.
Google, and others within the tech industry, have been ramping their reliance on AI for various tasks and products. Using AI for age-related content represents the latest AI front for Google.
The new initiative by Google’s “Core” team comes despite the company reorganization that unit last year, laying off hundreds of employees and moving some roles to India and Mexico, CNBC reported at the time.
AppLovin shares soared almost 30% in extended trading on Wednesday after the company reported earnings and revenue that sailed past analysts’ estimates and issued better-than-expected guidance.
Here’s how the company performed compared with analysts’ expectations, according to LSEG:
Earnings per share: $1.73 vs. $1.24 expected
Revenue: $1.37 billion vs. $1.26 billion expected
Net income in the quarter more than tripled to $599.2 million, or $1.73 per share, from $172.3 million, or 51 cents per share, a year earlier, the company said in a statement.
Revenue jumped 43% from $953.3 million a year earlier.
AppLovin was the best-performing U.S. tech stock last year, soaring more than 700%, driven by the company’s artificial intelligence-powered advertising system. In 2023, AppLovin released the updated 2.0 version of its ad search engine called AXON, which helps put more targeted ads on the gaming apps the company owns and is also used by studios that license the technology.
Read more CNBC tech news
AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, the apps business has become much less important, and now the company says it is selling it off.
“Today we’re announcing we’ve signed an exclusive term sheet to sell all of our apps business,” CEO Adam Foroughi said on the earnings call.
Later in the call, the company said it has signed a term sheet for the sale for a “total estimated consideration” of $900 million. That includes $500 million in cash, “with the remainder representing a minority equity stake in the combined private company.”
Advertising revenue climbed 73% in the quarter to almost $1 billion. The ad business was previously categorized as Software Platform. The company said it made the change because advertising accounts for “substantially all of the revenue in this segment.”
AppLovin said it expects first-quarter revenue of between $1.36 billion and 1.39 billion, exceeding the $1.32 billion average analyst estimate, according to LSEG. More than $1 billion of that will come from its advertising segment, as the company said it is “still in the early stages” of bolstering its AI models.
“The roadmap ahead is filled with opportunities for iteration,” the company said in its shareholder letter. “As we execute, we believe we can continue to drive value creation for our shareholders.”
Cisco CEO Chuck Robbins speaking on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.
Gerry Miller | CNBC
Cisco shares climbed about 6% in extended trading on Wednesday after the networking hardware maker reported fiscal second-quarter results and guidance that topped Wall Street’s expectations.
Here’s how the company did against LSEG consensus:
Earnings per share: 94 cents adjusted vs. 91 cents expected
Revenue: $13.99 billion vs. $13.87 billion expected
Revenue increased 9% in the quarter, which ended on Jan. 25, from $12.79 billion a year earlier, according to a statement. The growth follows four quarters of revenue declines. The company said it had orders for artificial intelligence infrastructure that exceeded $350 million in the quarter.
Cisco now sees adjusted earnings of $3.68 to $3.74 for the 2025 fiscal year, with $56 billion to $56.5 billion in revenue. Analysts polled by LSEG had been looking for $3.66 in adjusted earnings per share and $55.99 billion in revenue. In November, the forecast was $3.60 to $3.66 in earnings per share and $55.3 billion to $56.3 billion in revenue.
Net income in the latest period slid almost 8% to $2.43 billion, or 61 cents per share, from $2.63 billion, or 65 cents per share, a year ago.
Revenue from the networking division totaled $6.85 billion, down 3% but more than the $6.67 billion consensus among analysts surveyed by StreetAccount.
The security unit contributed $2.11 billion. That is a 117% increase from a year earlier, thanks to the addition of Splunk. Analysts expected $2.01 billion, according to StreetAccount.
Read more CNBC tech news
Splunk, which Cisco bought in March 2024 for $27 billion, was accretive to adjusted earnings per share sooner than planned, Scott Herren, Cisco’s finance chief, was quoted as saying in the statement. Cisco’s total revenue would have been down 1% year over year if not for Splunk’s contribution, according to the statement.
Many technology companies have been trying to predict the effects from President Donald Trump’s newly established Department of Government Efficiency. But three-quarters of Cisco’s U.S. federal business comes from the Defense Department, while most of the headcount cutting thus far has occurred in other agencies, Cisco CEO Chuck Robbins said on a conference call with analysts.
“Everything seems to be progressing as we expected,” he said.
Customers do not appear to be pulling up orders before tariffs go into effect, Herren said on the conference call.
As of Thursday’s close, Cisco shares were up 5% so far in 2025, while the S&P 500 index had gained about 3%.