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UK Finance Minister Rachel Reeves makes a speech during the Labour Party Conference that is held at the ACC Liverpool Convention Center in Liverpool, UK on September 23, 2024. 

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LONDON — British tech bosses and venture capitalists are questioning whether the country can deliver on its bid to become a global artificial intelligence hub after the government set out plans to increase taxes on businesses.

On Wednesday, Finance Minister Rachel Reeves announced a move to hike capital gains tax (CGT) — a levy on the profit investors make from the sale of an investment — as part of a far-reaching announcement on the Labour government’s fiscal spending and tax plans.

The lower capital gains tax rate was increased to 18% from 10%, while the higher rate climbed to 24% from 20%. Reeves said the increases will help bring in £2.5 billion ($3.2 billion) of additional capital to the public purses.

It was also announced that the lifetime limit for business asset disposal relief (BADR) — which offers entrepreneurs a reduced rate on the level of tax paid on capital gains resulting from the sale of all or part of a company — would sit at £1 million.

She added that the rate of CGT applied to entrepreneurs using the BADR scheme will increase to 14% in 2025 and to 18% a year later. Still, Reeves said the U.K. would still have the lowest capital gains tax rate of any European G7 economy.

The hikes were less severe than previously feared — but the push toward a higher tax environment for corporates stoked the concern of several tech executives and investors, with many suggesting the move would lead to higher inflation and a slowdown in hiring.

On top of increases to CGT, the government also raised the rate of National Insurance (NI) contributions, a tax on earnings. Reeves forecasted the move would raise £25 billion per year — by far the largest revenue raising measure in a raft of pledges that were made Wednesday.

Paul Taylor, CEO and co-founder of fintech firm Thought Machine, said that hike to NI rates would lead to an additional £800,000 in payroll spending for his business.

“This is a significant amount for companies like us, which rely on investor capital and already face cost pressures and targets,” he noted.

“Nearly all emerging tech businesses run on investor capital, and this increase sets them back on their path to profitability,” added Taylor, who sits on the lobbying group Unicorn Council for U.K. FinTech. “The U.S. startup and entrepreneurial environment is a model of where the U.K. needs to be.”

Chances of building ‘the next Nvidia’ more slim

Another increase to taxation by way of a rise in the tax rate for carried interest — the level of tax applied to the share of profit a fund manager makes from a private equity investment.

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Reeves announced that the rate of tax on carried interest, which is charged on capital gains, would rise to 32%, up from 28% currently.

Haakon Overli, co-founder of European venture capital firm Dawn Capital, said that increases to capital gains tax could make it harder for the next Nvidia to be built in the U.K.

“If we are to have the next NVIDIA built in the UK, it will come from a company born from venture capital investment,” Overli said by email.

“The tax returns from creating such a company, which is worth more than the FTSE 100 put together, would dwarf any gains from increasing the take from venture capital today.”

The government is carrying out further consultation with industry stakeholders on plans to up taxes on carried interest. Anne Glover, CEO of Amadeus Capital, an early investor in Arm, said this was a good thing.

 “The Chancellor has clearly listened to some of the concerns of investors and business leaders,” she said, adding that talks on carried interest reforms must be “equally as productive and engaged.”

Britain also committed to mobilizing £70 billion of investment through the recently formed National Wealth Fund — a state-backed investment platform modelled on sovereign wealth vehicles such as Norway’s Government Pension Fund Global and Saudi Arabia’s Public Investment Fund.

This, Glover added, “aligns with our belief that investment in technology will ultimately lead to long term growth.”

She nevertheless urged the government to look seriously at mandating that pension funds diversify their allocation to riskier assets like venture capital — a common ask from VCs to boost the U.K. tech sector.

Clarity welcomed

Steve Hare, CEO of accounting software firm Sage, said the budget would mean “significant challenges for UK businesses, especially SMBs, who will face the impact of rising employer National Insurance contributions and minimum wage increases in the months ahead.”

Even so, he added that many firms would still welcome the “longer-term certainty and clarity provided, allowing them to plan and adapt effectively.”

Meanwhile, Sean Reddington, founder and CEO of educational technology firm Thrive, said that higher CGT rates mean tech entrepreneurs will face “greater costs when selling assets,” while the rise in employer NI contributions “could impact hiring decisions.”

“For a sustainable business environment, government support must go beyond these fiscal changes,” Reddington said. “While clearer tax communication is positive, it’s unlikely to offset the pressures of heightened taxation and rising debt on small businesses and the self-employed.”

He added, “The crucial question is how businesses can maintain profitability with increased costs. Government support is essential to offset these new burdens and ensure the UK’s entrepreneurial spirit continues to thrive.”

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Salesforce CEO apologizes for saying Trump should send National Guard to San Francisco

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Salesforce CEO apologizes for saying Trump should send National Guard to San Francisco

Salesforce CEO Marc Benioff apologized on Friday for making comments in support of President Donald Trump potentially sending federal troops to San Francisco, where his company is based. 

“Having listened closely to my fellow San Franciscans and our local officials, and after the largest and safest Dreamforce in our history, I do not believe the National Guard is needed to address safety in San Francisco,” Benioff wrote in a post on X.

The Trump administration recently deployed the National Guard to Portland, Oregon and Chicago, sparking protests and lawsuits and resulting in citizens and immigrants being detained without legal representation.

In a story published late last week in The New York Times, Benioff indicated that he would welcome troops to San Francisco. The company’s annual Dreamforce conference was held in downtown San Francisco from Tuesday through Thursday of this week.

“We don’t have enough cops, so if they can be cops, I’m all for it,” Benioff told the Times.

Benioff faced blowback for his comments from local politicians and other leaders. California Governor Gavin Newsom and San Francisco politicians on Wednesday issued statements and held press conferences to deliver the message that federal troops are not welcome in the city, and that crime is coming down.

Prominent startup investor Ron Conway, who backed companies including GoogleAirbnb and Stripe, resigned from the board of the Salesforce Foundation on Thursday. According to the New York Times, Conway told Benioff in an email that their “values were no longer aligned.”

Conway is a longtime Democratic donor who was a member of VCs for Kamala, and donated around $500,000 to at least two funds tied to Kamala Harris’ unsuccessful 2024 election campaign. While Benioff has donated to members of both parties, he has supported Democrats for president, including Barack Obama, Hillary Clinton and Kamala Harris.

Venture capitalist David Sacks, who is now Trump’s AI and crypto czar, said after the news about Conway that Benioff could join the Republicans. On Tuesday, Sacks, a longtime friend and associate of Elon Musk, was featured with Benioff in an onstage interview at Dreamforce.

“Dear Marc @Benioff, if the Democrats don’t want you, we would be happy for you to join our team,” Sacks wrote on X. “Cancel culture is over, and we are the inclusive party.”

Following Benioff’s initial comment to the Times, Benioff appeared to walk back his comments, writing on X that safety is “first and foremost, the responsibility of our city and state leaders.” However, by that point, Musk and other right-wing figures had seized on his original comments, amplifying them to their audiences.

Musk, who has drawn criticism for his personal drug use, characterized downtown San Francisco as a “drug zombie apocalypse.” And on Wednesday, Trump called San Francisco “a mess,” and suggested possibly sending in the National Guard.

“My earlier comment came from an abundance of caution around the event, and I sincerely apologize for the concern it caused,” Benioff wrote in his Friday post. “It’s my firm belief that our city makes the most progress when we all work together in a spirit of partnership.”

Opposition to Benioff’s initial suggestion also came from Garry Tan, CEO of startup incubator Y Combinator. He wrote on X that “We don’t need the National Guard,” but he used his post to go after liberal local officials and judges perceived as too lenient.

— CNBC’s Lora Kolodny contributed to this report.

WATCH: Benioff interview at Dreamforce

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Oracle stock drops 7% as some skeptics question lofty AI targets

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Oracle stock drops 7% as some skeptics question lofty AI targets

Oracle's cloud catch-up: What's behind Oracle's stock reaction

Oracle’s extended rally, which has been driven by the company’s increasingly central position in the artificial intelligence boom, hit pause on Friday, with the stock tumbling 7%, its worst day since January.

The slide came a day after the software company revealed a long-term outlook, boosted by AI, at an analysts’ meeting that was part of the Oracle AI World conference in Las Vegas.

Oracle said on Thursday that it expects $166 billion in cloud infrastructure revenue in the 2030 fiscal year, up from $18 billion in fiscal 2026. The company now sees $21 in adjusted earnings per share on $225 billion in total revenue in fiscal 2030, which represents annualized sales growth of over 31%.

The initial reaction was positive. Oracle shares rose 3.1% on Thursday, continuing a rally that’s boosted the company’s market cap by more than 160% in two years.

But a hint of skepticism emerged on Friday, with some analysts questioning Oracle’s ability to reach its lofty targets.

It feels like the stock may take a bit of a breather here as investors digest those numbers and try to get comfort around the achievability of long-term numbers,” Rishi Jaluria, an analyst at RBC Capital Markets, told CNBC’s Seema Mody in an email. Jaluria recommends holding the stock.

Oracle didn’t respond to a request for comment.

Read more CNBC tech news

Oracle has emerged as one of the biggest beneficiaries of the AI infrastructure boom. It recently announced a five-year deal with OpenAI, worth more than $300 billion, to provide access to AI chips. Following its earnings report in September, the stock had its best day since 1992 as the company said it had $455 billion in remaining performance obligations, up 359% from a year earlier.

On Thursday, Oracle confirmed that it had a cloud deal with Meta, and said it signed up $65 billion in cloud infrastructure commitments in the current quarter. Oracle also said that its adjusted gross margins on AI infrastructure would be between 30% and 40%, higher than some analysts had expected.

Karl Keirstead, an analyst at UBS, raised his price target to $380 from $360 in a note on Friday, and said the stock price doesn’t reflect the entire upside of the company’s AI-powered acceleration. The shares closed on Friday at $291.31.

While he recommends buying the stock, Keirstead noted several things that “more cautious voices” will look at in his “bear case” scenario. They include the risk of concentrating business with OpenAI and “various unforeseen go-live bottlenecks” that could come with such an aggressive buildout, he wrote.

Oracle’s tone remains extremely optimistic. Clay Magouyrk, who was named one of Oracle’s two CEOs last month, said at the conference that this quarter’s commitments have come “across seven different contracts from four different customers.”

“None of those customers are OpenAI,” Magouyrk said. “I know some people are questioning sometimes, ‘Hey, is it just OpenAI?’ The reality is, we think OpenAI is a great customer, but we have many customers.”

WATCH: Oracle’s cloud could catch up

Oracle's cloud catch-up: What's behind Oracle's stock reaction

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AI tools are entering the doctor’s office and clinicians need to be prepared

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AI tools are entering the doctor's office and clinicians need to be prepared

The impact of artificial intelligence is being felt across the health-care industry, from tools that help analyze medical images, aid in drug discovery and complete cancer screenings.

But increasingly, AI is being used to fight one of the biggest challenges that health care is facing: a time-challenged (and often burned out) workforce of doctors, nurses and support staff that wants to focus more on patients and care instead of other arduous administrative tasks.

That’s leading health-care technology stalwarts like Epic Systems to invest in a variety of AI features that can do everything from helping patients book appointments or understand lab results to AI-powered clinical documentation that helps doctors record and write notes in real time, as well as anticipate patient information that a doctor might need handy like blood pressure trends.

It’s also fostering a new wave of startups creating solutions for this problem. More than 60% of the venture funding that had flowed into healthcare-focused AI companies between 2019 and 2024 was focused on administrative and clinical uses, according to a report from Silicon Valley Bank.

Abridge, which ranked No. 47 on the 2025 CNBC Disruptor 50 list, was founded with the idea of “giving physicians back their time,” co-founder and chief technology officer Zachary Lipton said at the CNBC AI Summit in Nashville on Wednesday.

Self-described as “generative AI for clinical conversations,” Abridge’s platform transcribes patient-doctor conversations and uses AI to add context and data from previous patient visits and tests. That aims to save time they’d use documenting visits and instead let them focus on the patient in front of them.

“Doctors are spending two hours doing digital paperwork for every one hour of direct patient care,” Lipton said. “The status quo was that [the industry] had created a digital world where technology was taking doctors away from their patients.”

Steve Beard, CEO of health-care education company Adtalem Global Education, said at the CNBC AI Summit that “everything we know from the surveys of clinicians today is that the No. 1 driver of burnout and career dissatisfaction is the administrative burdens associated with practice.”

“All the evidence suggests that AI is a fantastic complement, and we should be encouraging the adoption of these tools because of what they can do for the experience that we all have in health care,” Beard said.

But this influx of new AI health-care tools also means clinicians need to be prepared to use them. Only 28% of physicians say they feel prepared to leverage AI’s benefits, despite 57% saying they are already using AI tools for things like ambient listening, documentation, billing or diagnostics, according to a report from health-care technology platform Inlightened.

Adtalem, which has more than 90,000 enrolled students spanning nursing, medicine and other health-related professions, recently announced a new AI credentials program with Google Cloud focused on AI applications for health-care roles. The program, which will launch next year, will also be available to clinicians at the 270 health-care systems across the U.S. with which Adtalem is partnered.

The new program will not only provide broader health-care AI fluency, but “domain-specific tools for clinicians, nurses, doctors, imaging techs and others,” Beard said.

“The technology and the pace of the development of the technology will move as rapidly as lots of other innovations have, but the critical contingency that has to be solved for is workforce readiness,” Beard said. “How do we get clinicians ready to adopt these technologies in ways that allow the investments to deliver the returns?”

Ushering in AI, regardless of industry, has raised worker anxiety around job losses, especially as CEOs have touted how the technology has upped productivity while not requiring additional headcount.

While Beard acknowledged that “every major tech innovation comes with some labor dislocations,” he said that in regard to health care, “the human element, particularly in the way it drives trust between the clinical and the patient, is something that can’t really be replicated by machines.”

“Clinicians will have a chance to do more of what they joined these professions to do in the outset, which is to be at the bedside, caring for patients,” Beard said.

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