Earlier this year, financial services company Klarna said its artificial intelligence agent, powered by OpenAI, had taken over two-thirds of customer chats and was doing work equivalent to that of 700 full-time agents. That was after just one month of use.
Alexander Kvamme, CEO of customer engagement startup Echo AI, told CNBC that Klarna’s announcement in February may have been the first sign of AI agents “having their ChatGPT moment.”
OpenAI released the ChatGPT chatbot to the public in late 2022, giving the public a taste of how new generative AI chatbots could provide much more thorough, creative and conversational answers to web queries compared with traditional search, which is how consumers sought online information for the prior 25 years. Google, Microsoft and others followed with rival products.
The industry quickly moved past text responses and into AI-generated photos and videos. Now comes the rise of AI agents.
Rather than just providing answers — the realm of chatbots and image generators — agents are built for productivity and to complete tasks. They’re AI tools that are able to make decisions, for better or worse, “without a human in the loop,” Kvamme said.
Grace Isford, a partner at venture firm Lux Capital, said there’s been a “dramatic increase” in interest among tech investors when it comes to startups focused on building AI agents. They’ve collectively raised hundreds of millions of dollars and seen their valuations climb alongside the broader generative AI market.
Generative AI exploded in 2023, with $29.1 billion invested across nearly 700 deals, a more than 260% increase in deal value from a year earlier, according to PitchBook. Meanwhile, the non-AI investing landscape has been in an extended lull for well over two years following record financings during the Covid pandemic.
If 2023 was the year of peak AI hype, 2024 is the year of early deployments.
“It has really been a torrent of innovation that has hit the market since the introduction of ChatGPT,” Jared Spataro, Microsoft’s corporate vice president of AI at Work, told CNBC. Microsoft is the biggest backer of OpenAI and has invested billions of dollars on its own generative AI models and products, in addition to the billions it’s poured into the ChatGPT developer.
The term AI agents isn’t neatly defined across the tech sector. Industry experts who spoke to CNBC about the emerging trend generally viewed agents as a step beyond chatbots, in that they’re typically designed for specific business functions and can be customized on the big AI models. Think of J.A.R.V.I.S., Tony Stark’s multifaceted AI assistant from the Marvel Universe.
AI agents are often described as advanced generative AI tools that can do multistep, complex tasks on a user’s behalf and generate their own to-do lists, so that users don’t have to walk them through the process step-by-step.
“An assistant is not just giving you the answer, but automating a series of steps,” said Francois Ajenstat, chief product officer at digital analytics company Amplitude.
How Microsoft and Google are playing
Microsoft CEO Satya Nadella said on an earnings call earlier this year that he wants to offer an AI agent that can complete more and more tasks on a user’s behalf, though there is “a lot of execution ahead.” Executives from Meta and Google have also touted their work in pushing AI assistants to become increasingly productive.
At Google I/O in May, Google announced Project Astra, the company’s latest advancement toward its AI assistant that’s being built by Google’s DeepMind AI unit.
In Google’s demo video, the assistant, using video and audio, was able to help the user remember where they left their glasses, review code and answer questions about an object that it was shown. It’s just a prototype for now, but Alphabet CEO Sundar Pichai said he hopes to roll it out to users later this year.
The demo came a day after OpenAI showcased a similar audio back-and-forth conversation with ChatGPT, positioning it more as an AI assistant that can function as a conversationalist, language translator, math tutor and co-writer of code.
Microsoft followed at its Build developer conference by announcing a partnership with Cognition AI, which will bring Cognition’s own AI agent, called Devin, to customers. Cognition bills Devin as the “first AI software engineer.”
Devin quickly caused a stir on social media for its ability to handle multistep processes. Instead of just generating simple lines of code, Devin creates a problem-solving process, writes the code, tests it and then ships it.
Martin Kon, operating chief of enterprise AI startup Cohere, said AI agents could start doing work such as booking a plane ticket and expensing it, offering a suggested interest rate on a loan, or emailing a customer about arrival time and updating Salesforce accordingly.
To date, the tools have largely been limited to tasks such as helping write code. At Microsoft’s GitHub, for example, roughly 46% of all code “across all programming languages” was AI-generated, CEO Thomas Dohmke wrote in a blog post in early 2023.
While the line between an AI coding tool and a true AI agent is blurry, most experts who spoke with CNBC said the defining characteristic of an agent is that it goes well beyond a single use case and starts to approach an all-capable personal assistant.
Anthropic and other startups are already working toward that goal. The first step is giving their chatbots the ability to interact with external tools and services on behalf of the customer.
Microsoft’s Spataro said the process of developing his company’s Copilot coding agent has “kind of been like being strapped to a rocketship.” A big part of what Microsoft is doing, he said, is moving from one- or two-step tasks to multistep tasks. That could involve looking at a user’s calendar and giving a 30-second outlook on what to prioritize for the day.
Fred Havemeyer, head of U.S. AI and software research at Macquarie, wrote in a recent note to investors that the firm is looking forward to seeing more AI agents.
“We think agentic AI, which can self-direct towards achieving tasks, will be the tools that unlock the value of GenAI for everyday users,” Havemeyer wrote.
Romain Huet, OpenAI’s head of developer experience, told CNBC that the concept of AI agents came into focus last year, but people quickly realized there was work to be done to make the tools more autonomous.
“We have the models that become more and more powerful, so we can now capture user intent much better than before, but we’re also still pretty early on that journey at building agents,” Huet said.
The big advancement, he said, will be when an AI agent can know your preferences and “take action on your behalf” without you asking.
Startups raise big money
AI agent startups are reeling in hefty piles of cash from investors. They’re not the billion-dollar-plus financings that have been going into the AI model companies, but valuations are still far ahead of business fundamentals.
Adept, which is led by alumni of OpenAI and Google, received a valuation of over $1 billion last year. The company says on its website that its technology “navigates the complexity of software tools so you don’t have to.”
H, a French AI agent startup, raised a $220 million seed round in May from investors including Amazon, Samsung, UiPath and Google ex-CEO Eric Schmidt. Artisan AI, a Y Combinator-backed startup working on AI agents that it bills as “AI employees for enterprise,” recently completed a $7.3 million seed round and says it’s onboarded more than 100 companies so far.
Artisan AI founder and CEO Jaspar Carmichael-Jack said it wasn’t possible to begin working on true AI agents until 2022 because that’s when chatbots such as ChatGPT first made it possible for the average consumer to interact with such tools.
“People talk about how the VC market is down in general,” Carmichael-Jack said. “But for us it’s like 2021 in AI startups.”
Braden Hancock worked at Facebook Research and Stanford’s Artificial Intelligence Lab before co-founding Snorkel AI in 2019. He said the market is in a “similar hype cycle” to that of self-driving cars. And broader AI agents will similarly take a long time to hit the mainstream, he said.
Hancock said agents must be “many times” better before people are “willing to accept putting something on autopilot.” He added that, when it comes to having technology sign your name and make money transfers on your behalf, “there’s a really high bar.”
Kanjun Qiu’s three-year-old startup, Imbue, has been valued at more than $1 billion, with backing from Amazon’s Alexa Fund and Eric Schmidt. Based on the company’s own user research, Qiu said the current characterization of AI agents — as generally intelligent personal assistants that handle delegated tasks — is not what users actually want, since, by design, they’re “not fully trustworthy.”
“Even as CEO, it’s hard for me to delegate things to my executive assistant,” Qiu said. “I’ve had her for two years, and she’s amazing.” For new things, Qiu said, “It’s still hard for me to fully know, ‘Okay, is this going to come back the way I expected?'”
Imbue is developing ways for people to make their own AI software agents — without coding — to run in the background for their personalized needs, whether it’s creating a way to track the news or building a bot to book travel. These types of AI models wouldn’t need to train on user data, since each use case would be personalized.
Instead of delegating tasks to an agent built by the likes of OpenAI or Google, which would be centralized and controlled by those companies, Imbue imagines agents putting control in the hands of users.
“There’s a way of thinking about agents as enabling every person to make software,” Qiu said. The user is “asking the agent to write code on the computer, to make the computer do what I want to do.”
Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.
The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.
“MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”
SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.
The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.
David Laude, who served as the crew’s commander, described a typical day.
“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”
An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.
“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.
Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen
Mike Segar | Reuters
Apple had two major launches last month. They couldn’t have been more different.
First, Apple revealed some of the artificial intelligence advancements it had been working on in the past year when it released developer versions of its operating systems to muted applause at its annual developer’s conference, WWDC. Then, at the end of the month, Apple hit the red carpet as its first true blockbuster movie, “F1,” debuted to over $155 million — and glowing reviews — in its first weekend.
While “F1” was a victory lap for Apple, highlighting the strength of its long-term outlook, the growth of its services business and its ability to tap into culture, Wall Street’s reaction to the company’s AI announcements at WWDC suggest there’s some trouble underneath the hood.
“F1” showed Apple at its best — in particular, its ability to invest in new, long-term projects. When Apple TV+ launched in 2019, it had only a handful of original shows and one movie, a film festival darling called “Hala” that didn’t even share its box office revenue.
Despite Apple TV+being written off as a costly side-project, Apple stuck with its plan over the years, expanding its staff and operation in Culver City, California. That allowed the company to build up Hollywood connections, especially for TV shows, and build an entertainment track record. Now, an Apple Original can lead the box office on a summer weekend, the prime season for blockbuster films.
The success of “F1” also highlights Apple’s significant marketing machine and ability to get big-name talent to appear with its leadership. Apple pulled out all the stops to market the movie, including using its Wallet app to send a push notification with a discount for tickets to the film. To promote “F1,” Cook appeared with movie star Brad Pitt at an Apple store in New York and posted a video with actual F1 racer Lewis Hamilton, who was one of the film’s producers.
(L-R) Brad Pitt, Lewis Hamilton, Tim Cook, and Damson Idris attend the World Premiere of “F1: The Movie” in Times Square on June 16, 2025 in New York City.
Jamie Mccarthy | Getty Images Entertainment | Getty Images
Although Apple services chief Eddy Cue said in a recent interview that Apple needs the its film business to be profitable to “continue to do great things,” “F1” isn’t just about the bottom line for the company.
Apple’s Hollywood productions are perhaps the most prominent face of the company’s services business, a profit engine that has been an investor favorite since the iPhone maker started highlighting the division in 2016.
Films will only ever be a small fraction of the services unit, which also includes payments, iCloud subscriptions, magazine bundles, Apple Music, game bundles, warranties, fees related to digital payments and ad sales. Plus, even the biggest box office smashes would be small on Apple’s scale — the company does over $1 billion in sales on average every day.
But movies are the only services component that can get celebrities like Pitt or George Clooney to appear next to an Apple logo — and the success of “F1” means that Apple could do more big popcorn films in the future.
“Nothing breeds success or inspires future investment like a current success,” said Comscore senior media analyst Paul Dergarabedian.
But if “F1” is a sign that Apple’s services business is in full throttle, the company’s AI struggles are a “check engine” light that won’t turn off.
Replacing Siri’s engine
At WWDC last month, Wall Street was eager to hear about the company’s plans for Apple Intelligence, its suite of AI features that it first revealed in 2024. Apple Intelligence, which is a key tenet of the company’s hardware products, had a rollout marred by delays and underwhelming features.
Apple spent most of WWDC going over smaller machine learning features, but did not reveal what investors and consumers increasingly want: A sophisticated Siri that can converse fluidly and get stuff done, like making a restaurant reservation. In the age of OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini, the expectation of AI assistants among consumers is growing beyond “Siri, how’s the weather?”
The company had previewed a significantly improved Siri in the summer of 2024, but earlier this year, those features were delayed to sometime in 2026. At WWDC, Apple didn’t offer any updates about the improved Siri beyond that the company was “continuing its work to deliver” the features in the “coming year.” Some observers reduced their expectations for Apple’s AI after the conference.
“Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view,” wrote Jefferies analysts this week.
Siri should be an example of how Apple’s ability to improve products and projects over the long-term makes it tough to compete with.
It beat nearly every other voice assistant to market when it first debuted on iPhones in 2011. Fourteen years later, Siri remains essentially the same one-off, rigid, question-and-answer system that struggles with open-ended questions and dates, even after the invention in recent years of sophisticated voice bots based on generative AI technology that can hold a conversation.
Apple’s strongest rivals, including Android parent Google, have done way more to integrate sophisticated AI assistants into their devices than Apple has. And Google doesn’t have the same reflex against collecting data and cloud processing as privacy-obsessed Apple.
Some analysts have said they believe Apple has a few years before the company’s lack of competitive AI features will start to show up in device sales, given the company’s large installed base and high customer loyalty. But Apple can’t get lapped before it re-enters the race, and its former design guru Jony Ive is now working on new hardware with OpenAI, ramping up the pressure in Cupertino.
“The three-year problem, which is within an investment time frame, is that Android is racing ahead,” Needham senior internet analyst Laura Martin said on CNBC this week.
Apple’s services success with projects like “F1” is an example of what the company can do when it sets clear goals in public and then executes them over extended time-frames.
Its AI strategy could use a similar long-term plan, as customers and investors wonder when Apple will fully embrace the technology that has captivated Silicon Valley.
Wall Street’s anxiety over Apple’s AI struggles was evident this week after Bloomberg reported that Apple was considering replacing Siri’s engine with Anthropic or OpenAI’s technology, as opposed to its own foundation models.
The move, if it were to happen, would contradict one of Apple’s most important strategies in the Cook era: Apple wants to own its core technologies, like the touchscreen, processor, modem and maps software, not buy them from suppliers.
Using external technology would be an admission that Apple Foundation Models aren’t good enough yet for what the company wants to do with Siri.
“They’ve fallen farther and farther behind, and they need to supercharge their generative AI efforts” Martin said. “They can’t do that internally.”
Apple might even pay billions for the use of Anthropic’s AI software, according to the Bloombergreport. If Apple were to pay for AI, it would be a reversal from current services deals, like the search deal with Alphabet where the Cupertino company gets paid $20 billion per year to push iPhone traffic to Google Search.
The company didn’t confirm the report and declined comment, but Wall Street welcomed the report and Apple shares rose.
In the world of AI in Silicon Valley, signing bonuses for the kinds of engineers that can develop new models can range up to $100 million, according to OpenAI CEO Sam Altman.
“I can’t see Apple doing that,” Martin said.
Earlier this week, Meta CEO Mark Zuckerberg sent a memo bragging about hiring 11 AI experts from companies such as OpenAI, Anthropic, and Google’s DeepMind. That came after Zuckerberg hired Scale AI CEO Alexandr Wang to lead a new AI division as part of a $14.3 billion deal.
Meta’s not the only company to spend hundreds of millions on AI celebrities to get them in the building. Google spent big to hire away the founders of Character.AI, Microsoft got its AI leader by striking a deal with Inflection and Amazon hired the executive team of Adept to bulk up its AI roster.
Apple, on the other hand, hasn’t announced any big AI hires in recent years. While Cook rubs shoulders with Pitt, the actual race may be passing Apple by.
Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
Kevin Dietsch | Getty Images
Tesla CEO Elon Musk, who bombarded President Donald Trump‘s signature spending bill for weeks, on Friday made his first comments since the legislation passed.
Musk backed a post on X by Sen. Rand Paul, R-Ky., who said the bill’s budget “explodes the deficit” and continues a pattern of “short-term politicking over long-term sustainability.”
The House of Representatives narrowly passed the One Big Beautiful Bill Act on Thursday, sending it to Trump to sign into law.
Paul and Musk have been vocal opponents of Trump’s tax and spending bill, and repeatedly called out the potential for the spending package to increase the national debt.
The independent Congressional Budget Office has said the bill could add $3.4 trillion to the $36.2 trillion of U.S. debt over the next decade. The White House has labeled the agency as “partisan” and continuously refuted the CBO’s estimates.
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The bill includes trillions of dollars in tax cuts, increased spending for immigration enforcement and large cuts to funding for Medicaid and other programs.
It also cuts tax credits and support for solar and wind energy and electric vehicles, a particularly sore spot for Musk, who has several companies that benefit from the programs.
“I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post in early June as the pair traded insults and threats.
Shares of Tesla plummeted as the feud intensified, with the company losing $152 billion in market cap on June 5 and putting the company below $1 trillion in value. The stock has largely rebounded since, but is still below where it was trading before the ruckus with Trump.
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Tesla one-month stock chart.
— CNBC’s Kevin Breuninger and Erin Doherty contributed to this article.