Good morning! It’s Friday, May 16, 2025, and here’s your daily dose of AI news from First AI Movers Pro. Let’s dive into today’s top stories.
Databricks has announced its agreement to acquire database startup Neon for approximately $1 billion
This move aims to enhance its AI capabilities and attract businesses seeking to develop AI agents. Neon's cloud-based platform, built on PostgreSQL, is tailored for developers and AI bots building apps and websites. The acquisition addresses a key challenge businesses face in AI deployment: enabling AI agents to rapidly create and integrate databases to support their operations. Currently, over 80% of databases are created by AI agents.
Neon's 140 employees will join Databricks, and while the startup will initially operate independently, full integration into the Databricks platform is planned. This move is Databricks’ third billion-dollar acquisition related to AI and data—the company previously acquired MosaicML in 2023 and Tabular. With a valuation of $62 billion and a recent $10 billion funding round, Databricks is positioning itself alongside major tech players like Nvidia and OpenAI in the competitive field of AI agent development. Customers like Replit anticipate that the acquisition will simplify the creation and management of software development agents, reducing their need to build systems from scratch. The deal is expected to close by July 31, 2025.
This acquisition underscores the growing importance of AI agents in enterprise applications and the race among tech giants to provide robust platforms for their development and deployment.
Middle East Emerges as AI Investment Hub
Nvidia and AMD have secured significant AI partnerships in the Middle East, particularly with Saudi Arabia and the UAE. Saudi Arabia's Public Investment Fund, through its AI arm Humain, has committed $10 billion to become a global AI leader, signing multi-billion-dollar deals with both chipmakers. These developments mark a strategic shift in global AI chip demand from China to emerging Middle Eastern powerhouses.
AMD Announces $6 Billion Stock Buyback
On May 14, 2025, AMD unveiled a new $6 billion stock buyback plan, increasing its total share repurchase authority to approximately $10 billion. The move aims to support share prices amid slowing momentum in AI-related markets. The announcement follows AMD's $10 billion AI collaboration with Humain, aligning the company with other tech firms pursuing opportunities in the Middle East.
Quick Takes
Meta Faces EU Lawsuit Over AI Data Training Opt-Outs — An EU privacy watchdog says it's prepared to start a multibillion-dollar class-action lawsuit against Meta if the company goes through with its plan to make users repeatedly opt out of AI data training.
Tether Announces QVAC for Edge AI Development — Tether is the largest company in the digital asset industry, today announced its upcoming QVAC (QuantumVerse Automatic Computation) platform, enabling the deployment and evolution of AI agents directly on user devices, rather than relying on big tech data centers.
On May 14, Google DeepMind announced AlphaEvolve, a coding agent powered by its Gemini model, designed to assist in developing advanced algorithms.
House Republicans Propose 10-Year Moratorium on State AI Laws — a provision in a budget bill that would prohibit U.S. states and local governments from regulating artificial intelligence (AI) and automated decision-making systems for ten years, unless the laws facilitate deployment of such technologies.
CoreWeave's Stock Soars on AI-Driven Growth — CoreWeave reported first-quarter revenue that grew over 400% year-over-year, sending shares higher in extended trading Wednesday.
Fun Fact
Did you know that AI is now being used to transform iconic sports moments into digital art? Artist Refik Anadol is creating an AI-generated artwork based on Lionel Messi's favorite goal, with proceeds supporting educational initiatives in Latin America.
That's a wrap for today! The Middle East's significant investment in AI underscores the dynamic shifts in global tech leadership.
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Until tomorrow,
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