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Welcome to today's edition of AI Business Weekly. As Nvidia crushes revenue expectations and the U.S. greenlights massive chip sales to the Middle East, a striking paradox emerges: while billions pour into AI infrastructure at unprecedented scale, a sobering KPMG report reveals that 93% of businesses use AI but only 2% see returns. Today's stories capture the fundamental tension defining this moment—Brookfield and Nvidia launch a $100 billion infrastructure program while companies struggle to demonstrate value from AI investments, and Disney doubles down on interactive AI storytelling despite decades of failed experiments. We're witnessing the collision of infrastructure euphoria and profitability skepticism, where sovereign wealth funds and tech giants commit historic capital even as the gap between adoption and realized value has never been wider. Let's dive in.

Nvidia Forecasts $65 Billion Q4 Revenue Despite Growing AI Bubble Fears

Nvidia projected fourth-quarter revenue of $65 billion, exceeding Wall Street estimates by over $3 billion, as demand from cloud providers remains insatiable despite mounting market concerns about AI valuations. The forecast arrives as stocks tumbled for four consecutive days on bubble fears, yet Nvidia's results suggest that whatever concerns exist in public markets, private purchasing decisions by major tech companies remain firmly bullish. The chipmaker's dominance in AI hardware—commanding 80-90% market share—positions it as the primary beneficiary of continued infrastructure buildout regardless of near-term profitability questions. Read more

U.S. Approves Historic Sale of 70,000 AI Chips to UAE and Saudi Arabia

The U.S. Commerce Department plans to approve the sale of up to 70,000 advanced AI chips to companies in the UAE and Saudi Arabia, marking a major shift in American technology export policy toward the Gulf region. The landmark decision could generate $1.75-2.8 billion in sales for U.S. chipmakers while enabling both nations to reduce dependence on foreign cloud providers for AI compute. The approval reflects AI's evolution from commercial technology to strategic national asset, with chip allocation increasingly driven by geopolitical considerations alongside commercial factors. Read more

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Brookfield Launches $100 Billion AI Infrastructure Program with Nvidia Partnership

Brookfield Asset Management launched a $100 billion AI infrastructure program backed by Nvidia and Kuwait Investment Authority, targeting data centers, energy assets, and compute capacity essential to AI operations. The fund has already secured $5 billion in commitments and signals that AI infrastructure has evolved from corporate IT consideration to major asset class attracting institutional capital. Nvidia's participation as both investor and partner demonstrates the chipmaker's confidence that infrastructure constraints represent genuine opportunities rather than speculative bets, while Kuwait's involvement reflects sovereign wealth funds' growing conviction in AI's long-term transformative potential. Read more

KPMG Report: 93% of Canadian Businesses Use AI But Only 2% See Returns

A KPMG survey of 753 Canadian business leaders found AI adoption jumped from 61% to 93% in one year, yet only 2% of organizations report returns on their generative AI investments. The findings highlight the stark gap between widespread implementation and realized business value, suggesting most companies remain in experimental phases or struggle to translate AI capabilities into measurable outcomes. The results serve as a reality check for AI enthusiasm—while technology holds transformative potential, realizing that potential requires more than simply adopting AI tools. Read more

Disney's High-Stakes AI Gamble: Why Interactive Storytelling Remains Elusive

Disney's aggressive push into AI-powered interactive storytelling faces significant obstacles that decades of failed experiments suggest go beyond technical capability. From the 1960s Sumerian Game to Black Mirror: Bandersnatch, attempts at interactive narrative have consistently failed to gain mainstream traction because most audiences prefer passive consumption of expertly crafted stories over making creative decisions themselves. Disney risks investing billions in technology that solves problems audiences don't have while ignoring what makes the company's content valuable—the storytelling quality that comes from specific artistic choices rather than algorithmic personalization. Read more

📢 The Infrastructure-Value Divide: Betting Billions Before Proving Returns

Today's stories reveal AI's defining contradiction: unprecedented infrastructure investment proceeding at full speed while practical value realization lags dramatically behind. Nvidia's $65 billion quarter, Brookfield's $100 billion fund, and the U.S. approving 70,000 chips to the Gulf represent historic capital deployment based on long-term conviction. Yet KPMG's finding that only 2% of businesses see AI returns exposes the uncomfortable gap between adoption and demonstrated value. This isn't irrational exuberance—it's a calculated bet by major institutions that infrastructure must be built before applications can scale, much like how internet infrastructure preceded the platforms that eventually justified the investment. The question is whether current spending levels prove prescient or whether we're witnessing speculative excess that will require painful corrections. For now, sovereign wealth funds, tech giants, and governments are answering with their capital: build first, prove value later. Whether that bet pays off will define the next chapter of the AI revolution.