Artificial intelligence startup Lambda and Microsoft (MSFT) announced a multi-billion dollar agreement on Monday that will see the two companies work together. Read for more.

In 2023, Microsoft partnered with an Abu Dhabi-based company called Group42 to grow its UAE data center presence. The tech giant disclosed today that it will have invested more than $7.3 billion in the partnership by the end of the year. Over half the sum was allocated to capital expenditures, a line item that includes data center infrastructure.

As AI spending grows, so will the need for semiconductor capacity from TSMC. This should enable it to keep increasing revenue rapidly -- 41% year over year last quarter -- and perhaps eclipse $200 billion in sales in 2027. With a 50% operating margin, that would equate to $100 billion in bottom-line operating earnings.

Microsoft AI head Mustafa Suleyman asserts that only living beings can truly feel emotions, rejecting the idea of conscious artificial intelligence.

Microsoft CEO Satya Nadella talked up the “fungibility” of its technology in response to concerns about an AI overbuild.

Fears that artificial intelligence investments have been overhyped sent the tech-heavy Nasdaq down 1.2% by approximately 2:45 p.m. ET.