Michael and Susan Dell are investing $6.25 billion into "Trump accounts."
Trump accounts are also set to receive a $1,000 grant from the federal government.
For Dell, a $1,000 investment helped launch his computer company from his dorm room in 1984, now worth $90.6 billion.
Michael and Susan Dell are pledging to invest billions of dollars into "Trump accounts," which will also receive a $1,000 seed from the federal government.
For Dell, $1,000 has a special resonance.
It's the same amount of money that he initially invested in his company, Dell Technologies, as a student at the University of Texas in 1984. Today, the entrepreneur is the 11th wealthiest person in the world, according to Bloomberg's Billionaires Index, with a net worth of $148 billion as of December 1.
In his 2021 book, "Play Nice but Win," Dell marvels at the early success of his business despite its relatively modest initial investment.
Michael Dell in the early years of his computer company.
Rebecca McEntee / AP Images
"Our sales were growing by the week, as was our ragtag band of mercenaries and buccaneers. On the face of it, it made no sense," Dell wrote. "Here I was, twenty years old, a college dropout with a capital base of $1,000, saying: 'Hey, who wants to come work in this company?'"
Dell launched the company in 1984 as PC's Limited. It became one of the fastest growing companies in the country, raking in more than $6 million in sales in its first year of business. The company was renamed to Dell Computer Corp. a few years later in 1987, and went public in 1988, raising $30 million.
Today, Dell Technologies has a market cap of $90.6 billion.
In 1999, Dell revisited his old dorm room and was photographed in it.
Michael Dell visits his old dorm room in 1999.
Harry Cabluck / AP Images
Of course, $1,000 isn't quite what it used to be: That amount in 1984 is the equivalent of nearly $3,200 today, according to the US Bureau of Labor Statistics's Inflation Calculator.
"Trump accounts" are guided by the idea that a modest initial investment can grow over time and serve as a way for younger Americans to grow wealth.
"It enables every newborn child in America to experience the enormous benefits of compounded growth, and to accumulate significant resources with the passage of time," Sen. Ted Cruz of Texas, an early proponent of the idea, told Business Insider in May. "It creates a generation of new capitalists."
The Dells are pledging a total of $6.25 billion in charitable contributions to Trump accounts.
In addition to the $1,000 from the government, the Dells will pay $250 into the accounts of children who are 10 years or younger, born before January 1, 2025, and who live in zip codes where the median income is $150,000 or less.
Dell has also said that his company will match the $1,000 contribution from the federal government for Dell employees.
Should you invest $1,000 in AMP Limited right now?
Before you buy AMP Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Fresh analysis from VanEck has shed light on the “AI Euphoria” sweeping the US.Â
But there might be another market set to benefit long term.
Alice Shen, Portfolio Manager at VanEck said in a recent report that Nvidia Inc (NASDAQ: NVDA) posted gravity-defying earnings in its most recent October quarter.Â
This came as the AI economy increasingly looped back on itself and the major players invested in each other’s technologies.
Ms Shen said giants like OpenAI and Oracle Corp (NYSE: ORCL) are locking in the chip supply needed to scale their models. This means demand for Nvidia hardware could soar even more.
How does China fit into the AI puzzle?
AI euphoria isn’t limited to the US.
The Chinese market has also been focussed on homegrown AI technology and chipmaking.
Subsequently, valuations for pure-play AI stocks have soared.
While China is a global leader in semiconductor production, it isn’t limiting its AI participation to this segment.
Ms Shen believes China may be taking a different, more holistic approach compared to the western world.
The tremendous amounts of electricity, cooling, metal-intensive data centres, and resilient power supply required by AI have been the focus of many Chinese companies that have been specialising in these systems for decades.
For investors, this means there could be more reasonably priced opportunities across the broader supply chain that powers the physical backbone of AI: metals producers, energy storage leaders, and optical fibre manufacturers.
The AI boom isn’t just digital
When you think of AI, the first thing that comes to mind might be cloud computing, Chat AI tools, etc.
But the truth is, the data centres fuelling these AI solutions require huge amounts of copper and aluminium in servers and heatsinks.
Data indicates global copper demand could surge as much as 24% by 2035, with data centre expansion being one of the key drivers.
According to VanEck, China may have an advantage is its integrated value chain across mining, refining and manufacturing.
Several Chinese copper and aluminium miners have been outperforming the CSI 300 Materials Index this year. In our view, investing in these metals may offer a more cost-effective and direct way to participate in China’s AI capex cycle.
Chinese companies engaged in battery manufacturing and Graphics Processing Units (GPUs) have also been soaring this year as a result of the Chinese AI boom.
How do investors gain exposure?
For investors here in Australia, the most important question is how to gain exposure to this market.
There are a few ASX ETFs directly targeting Chinese technology and AI:
VanEck China New Economy ETF (ASX: CNEW) – Invests in 120 fundamentally sound and attractively valued companies with growth prospects in China’s New Economy, targeting technology, healthcare, and consumer staples and consumer discretionary sectors.
VanEck Ftse China A50 ETF (ASX: CETF) – Invests in a diversified portfolio comprising the 50 largest companies in the mainland (A-shares) Chinese market.
Global X China Tech Etf (ASX: DRGN) – designed to track the performance of 20 leading technology companies listed in Mainland China and Hong Kong. The index selects across 15 innovation-linked sectors, including semiconductors, automation, industrial software, and internet platforms.
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nvidia wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Should you invest $1,000 in Northern Star Resources Limited right now?
Before you buy Northern Star Resources Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Northern Star Resources Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
ASX growth shares can generate strong returns for investors over the long term; however, it may be a good idea to consider investments that provide exposure to markets outside of Australia.
The local economy is a great place to operate, but there are also significant opportunities elsewhere. Australia is a relatively small part of the global economy.
Let’s look at two ASX growth share investments that could deliver strong returns, in my opinion.
This exchange-traded fund (ETF) focuses on investing in 150 of the highest-quality businesses from across the world.
These businesses rank well on four different quality metrics. First, they have a high return on equity (ROE). Second, they have a low debt-to-capital ratio. Third, they have strong cash flow ability. Finally, they provide earnings stability (and growth).
When you put all of those factors together, it’s no wonder the fund has managed to return an average of 15% per year since November 2018 (when it was started). Of course, past performance is not a guarantee of future performance. With a return like that, I’d call that an ASX growth share (it’s listed on the ASX, and it’s about investing in shares).
Another reason to like this fund is the diversification. I like that there are four sectors with a double-digit allocation within the portfolio: IT, industrials, healthcare, and financials. IT seems like the most compelling industry, with strong margins and growth prospects, so it’s pleasing that it makes up more than a third of the portfolio.
I think many Australian investors could benefit by having a bigger allocation to good assets outside of Australia, and this investment could be a good way to get that exposure.
Tuas is one of the largest positions in my portfolio that I’d describe as an ASX growth share.
It’s a Singaporean telecommunications business that is rapidly capturing market share through its value offerings across different price points.
The company’s FY25 results included a lot of pleasing growth for shareholders. Active mobile subscribers grew by approximately 200,000 to 1.25 million, and active broadband services rose by around 23,000 to 25,592.
This helped revenue increase by 29% to $151.3 million, and operating profit (EBITDA) grew by 38% to $68.4 million. The net profit after tax (NPAT) increased by $11.3 million to $6.9 million.
One of the most important factors of the company’s future success is the rising profit margins, which will allow the ASX growth share’s net profit to rise at a faster pace than revenue, which is usually what investors value a business on.
FY25 saw the company’s EBITDA margin increase to 45%, up from 42%, representing a pleasing rate of improvement. I think there’s room for further growth.
There are two factors that I believe could contribute significantly to the business’ growth in the coming years. First, it’s acquiring a Singapore competitor called M1, which will significantly improve the company’s market share and profitability. Second, the company could expand into other nearby Asian countries such as Malaysia and Indonesia.
Should you invest $1,000 in Betashares Capital Ltd – Global Quality Leaders Etf right now?
Before you buy Betashares Capital Ltd – Global Quality Leaders Etf shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Betashares Capital Ltd – Global Quality Leaders Etf wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Tristan Harrison has positions in Tuas. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
I think it’s a great time to invest in ASX shares after a recent bout of volatility. Some of the best investments are trading more cheaply.
The best businesses don’t often become cheap, but I believe it’s always a good time to invest in companies with strong economic moats, even if they still don’t appear good value.
If I had $20,000 to invest in ASX shares, I’d happily invest in the four in this article in a heartbeat. I did recently put money into the first three and I have an intention to buy more of the fourth stock of my list, if the valuation stays as appealing.
The enterprise resource planning (ERP) software business has fallen 23% in the last month alone, despite reporting a strong level of growth in its recent result.
FY25 saw revenue rise 18% and profit before tax (PBT) growth of 19%. The company continues to unlock at least 15% revenue growth from its existing client base each year by investing significantly in its software for customers.
By growing revenue at 15% per year, it can double its top line within five years, which is a strong growth rate. If the company continues winning new customers in the UK, it’ll continue to be on a very pleasing path.
According to the forecast on CMC Markets, the ASX share is trading at 58x FY26’s estimated earnings.
This is best known as a listed investment company (LIC) that focuses on investing in high-quality international shares. Its portfolio includes Alphabet, Mastercard, Visa, Meta Platforms, Amazon and Microsoft.
Past performance is not a guarantee of future returns, but according to CMC Markets, it has delivered an average return per year of 15.8% over the last five years.
Aside from the growing dividend, one of the most appealing aspects of this investment is that it’s usually trading at a 10% discount to its underlying net tangible asset (NTA) value. Who doesn’t like buying a piece of great businesses at a double-digit percentage discount?
MFF is one of my biggest holdings and I’m even more optimistic on the ASX share after its recent acquisition of the funds management business Montaka.
This exchange-traded fund (ETF) was one of my latest investments and I’m glad that it’s now part of my portfolio.
I really like the investment strategy of this fund and it gives me exposure to shares I wouldn’t own a small piece of otherwise.
It invests in US shares that are seen as having economic moats (competitive advantages) that are expected to endure for at least two decades, allowing the business to generate strong profits. Additionally, the fund only buys when those businesses are trading at attractive value.
Past returns are not a guarantee of future returns, but I think it can continue its long-term track record of net returns in the mid-teens.
The Temple & Webster share price has fallen heavily â 31% at the time of writing â since the ASX share’s AGM trading update which showed sales growth had slowed in the last few months.
But, I’m expecting ongoing double-digit sales growth to enable the business to become much larger and unlock strong operating leverage.
The company is investing in technology and AI to improve its costs, boost the customer experience and deliver stronger conversion.
If its core offering continues growing, combined with impressive home improvement and trade and commercial sales, its future looks positive. I hope to buy more shares of this great business in the coming weeks if the valuation stays at this level (or goes lower).
Should you invest $1,000 in Technology One Limited right now?
Before you buy Technology One Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Technology One Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments, Technology One, Temple & Webster Group, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Microsoft, Technology One, Temple & Webster Group, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, Microsoft, Technology One, Temple & Webster Group, VanEck Morningstar Wide Moat ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Light & Wonder is a US company and the second-largest ASX gaming stock with a market cap of $12 billion.
The Light & Wonder share price finished the session at $153.27, up 0.3% yesterday.
Morgans has a buy rating on Light & Wonder shares with a price target of $175 following the company’s 3Q FY25 results.
The broker said:
LNW delivered record margin expansion across all three segments, with iGaming operating leverage the standout performer, while land-based margins surprised on favourable product mix as Grover scales and premium installed base momentum continues.
UBS reiterated its buy rating on this ASX gaming stock with a much more ambitious price target of $206.
Australian lottery and online gaming services provider Jumbo Interactive has a market cap of $675 million.
Jumbo Interactive shares closed at $10.76 on Tuesday, up 1%.
Morgans noted substantial M&A activity in October as part of the company’s pivot from the business-to-business (b2b)/software-as-a-service (SaaS) segment to the higher-growth business-to-consumer (b2c) market.
The broker maintained its buy recommendation on Jumbo Interactive shares and lifted its price target from $15.90 to $16.60.
Morgans said:
We view this as disciplined capital allocation: Acquiring proven profitable assets at reasonable multiples with clear operational improvement pathways.
The two B2C acquisitions combined add a base line A$24m in pro-forma EBITDA.
Jarden reiterated its buy rating with a price target of $13.40 to $13.70 on the ASX gaming stock.
Morgan Stanley also has a buy rating but is more optimistic on share price growth with a $16.80 target.
Should you invest $1,000 in Aristocrat Leisure Limited right now?
Before you buy Aristocrat Leisure Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aristocrat Leisure Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive and Light & Wonder Inc. The Motley Fool Australia has recommended Jumbo Interactive and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
CSL Ltd (ASX: CSL) shares dipped 0.11% for the day on Tuesday. At the close of the ASX, the share price was $183.44. The decline is small though, and off the back of a 3.64% increase over the past month it sparks the question: Have CSL shares finally reached the bottom?
What happened to CSL shares?
The biotech company’s shares suffered a brutal sell-off in mid-August. This followed CSL’s FY25 results, where a surprise restructure announcement strategic demerger sparked an investor panic. Investors weren’t happy with the announcement and sold off their shares in fear. As a result, the CSL share price lost around a fifth of its value within just one week. At the time, analysts said the investor reaction was overdone and unwarranted.Â
Just two and a half months later, in late-October, the company’s share price dropped another 19.2% to a seven-year low after it downgraded its FY26 revenue and profit growth guidance. Management had originally forecast an FY26 revenue growth of 4-5% and forecast net profit after tax before amortisation (NPATA) to grow 7-10%. But in October this was downgraded to FY26 revenue guidance of 2-3% and NPATA growth guidance of 4-7%. CSL also said its planned demerger of its Seqirus business will be pushed back.
Have CSL shares finally reached the bottom?
Despite a cluster of headwinds facing the business this year, and a downwards spiral of the CSL share price, it looks like we could be beginning to see green shoots of recovery.
Since the latest price plunge, CSL shares have climbed just over 7%. While the share price has fallen a little further today, I’m optimistic investor sentiment is turning a corner. CSL shares were the fifth most-traded by CommSec clients last week, over half of which was buying activity. If investor interest begins to pick up, it could mean that the share price does too.
Analysts appear to be bullish about the stock too. Tradingview data shows that out of 18 analysts, 1 have a buy or strong buy rating on CSL shares. The remaining 4 have a hold rating.
The average target price for the stock is $242.20, but some expect this could be as high as $278.05 over the next 12 months. At the time of writing this implies a huge potential 51.57% upside for investors.
Macquarie and UBS have a buy rating on CSL shares and a 12-month price target of $275.20 and $275 respectively. This suggests a potential 50% gain from here.
The team at Red Leaf Securities thinks that the biotech giant has been oversold and have named it as an ASX share to buy this week.
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Analysts at Macquarie believe there are several significant tailwinds for ASX All Ords healthcare stock Integral Diagnostics Ltd (ASX: IDX) in the coming year, and have a bullish price target on the company’s shares.
Integral Diagnostics provides diagnostic imaging services such as magnetic resonance imaging (MRI), ultrasound, and radiography at 145 sites across Australia and New Zealand. The Macquarie team says the company stands to benefit from programs such as the National Lung Cancer Screening Program, which the federal government is tipping $264 million into.
The company will also benefit from a boost to bulk-billing, according to Macquarie:
Success in CT lung cancer screening, supported by $264m in government funding and Integral Diagnostics’ expected 20% market share, is partly offsetting a slower MRI ramp. The upcoming $7.9bn expansion of bulk billing from Nov-25 should boost GP volumes and imaging referrals, particularly in regional areas where Integral Diagnostics is strong. We forecast FY26 domestic organic revenue growth of 8%.
Several pillars to growth
The Macquarie team said synergies from the 2024 merger with Capitol Health, ongoing clinic investments and expansion of the GP bulk billing program would all be “fully realised” in the current financial year.
These factors, combined with procurement efficiencies and an expected shift of patients from public emergency departments to GP channels, position Integral Diagnostics for a step-up in margins in the second half.
The Macquarie team said the company could also increasingly shift work to radiologists working remotely, allowing for more flexibility in staffing, supporting EBITDA margin forecasts.
As the analysts said:
We see several significant tailwinds for Integral Diagnostics over FY26, with expected ongoing mix shift benefits to higher fee modalities supported by MRI deregulation, CT lung cancer screening programs. Higher annualised cost savings further supports our EBITDA margin expectations.
The Macquarie team have a 12-month price target of $3.40 on Integral Diagnostics shares, and including dividends, are forecasting a total shareholder return of 32.2% over the next year.
Integral Diagnostics declared a fully franked final dividend of 4 cents per share in August, bringing the full year payout to 6.5 cents per share.
Integral Diagnostics shares were changing hands for $2.59 on Tuesday, up 0.7%.
Macquarie said in a separate research note to clients earlier this year that it preferred Integral Diagnostics to Australian Clinical LabsLtd (ASX: ACL), which it had a neutral rating on.
Should you invest $1,000 in Integral Diagnostics right now?
Before you buy Integral Diagnostics shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Integral Diagnostics wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Integral Diagnostics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
OpenAI CEO Sam Altman (right) has increasingly brought his company into competition with Sundar Pichai's Alphabet.
Evan Vucci/AP
OpenAI CEO Sam Altman has reportedly declared a "code red."
Google once did the same amid the rise of ChatGPT.
While Altman once quipped that he tried not to spend much time thinking about competitors, those days appear to be over.
Two "code red" alerts — the first from a veteran tech giant worried about a buzzy AI upstart, the second from the AI upstart after the tech giant gained ground.
What a difference three years can make.
News of a recent Sam Altman memo to OpenAI employees, first reported by The Information, is reverberating around the tech world and highlighting the competitive heat it's facing as Google narrows the gap in the AI race.
On Monday, Altman reportedly told OpenAI employees in an internal Slack memo that he was issuing a "code red" and that the company would be putting more resources into ChatGPT and delaying other products as a result.
Altman's memo illustrates just how much the AI race has changed. In 2022, Google's management issued its own "code red" in the wake of ChatGPT's launch, a moment that illustrated in sharp relief just how far behind the search giant was in the AI race despite financing the breakthrough research that paved the way for AI's development.
Three years later, it's clear that OpenAI's throne is under threat. Here are some of the pressure points it's facing as Google nips at its heels.
Google is catching up
The elephant in the OpenAI room is Google's Gemini 3 AI model, which debuted to widespread praise.
The model's capabilities demonstrated that Google is no longer far behind in the AI race. It's not just OpenAI that's unnerved, either. Nvidia, the world's most valuable company by market cap, recently found itself defending its AI chips after a report about Google's own chip progress.
The search giant said in November that Gemini had more than 650 million monthly active users, a large increase from the 450 million such users it reported in July. In comparison, OpenAI has said nearly 800 million weekly active users.
Salesforce CEO Marc Benioff recently said that he was ditching ChatGPT in favor of Gemini 3 because of Gemini's "insane" improvement.
"Holy shit," Benioff wrote on X last month. "I've used ChatGPT every day for 3 years. Just spent 2 hours on Gemini 3. I'm not going back. The leap is insane — reasoning, speed, images, video… everything is sharper and faster. It feels like the world just changed, again."
Last month, Google launched "Nano Banana Pro," its AI image generator, showcasing hyper-realistic images that users quickly used to imagine tech CEOs hanging out together or pretend famous Thanksgiving dinner table guests.
Altman's "code red," according to The Information's report, specifically mentions Gemini 3 and teases a coming OpenAI model that it says tested "ahead" of Google's flagship model, as well as mentions prioritizing OpenAI's Imagegen image generation model for ChatGPT users.
Google's advertising cash cow can fund its AI — while OpenAI faces a $1.4 trillion bill
The AI game is an expensive one, and Google has the advantage of being a cash-generating advertising juggernaut.
Sure, Google plans to spend between $91 billion and $93 billion this year on cap ex, much of which is going toward AI costs. But it also brought in $100 billion in revenue in just the last quarter alone — $74.18 billion of which came from its advertising business.
And unlike OpenAI, Google can leverage its massive size for a full-stack advantage, allowing it to control AI development from research to chip manufacturing to its in-house cloud, which hosts everything.
Meanwhile, some on Wall Street have raised concerns about OpenAI's mounting AI spending commitments, which tally at least $1.4 trillion over the next eight years. In response, Altman has said OpenAI is on track to bring in $20 billion in revenue this year, and expects its annualized revenue to grow to hundreds of billions in the coming years.
But OpenAI is still figuring out its own ads business — the launch of which could be delayed by Altman's "code red," according to The Information.
OpenAI has a head start — but Google has a platform advantage
OpenAI hasn't squandered its head start, and it's landed some major wins this year.
In recent months, OpenAI has made significant plays into other industries, including social media with Sora, its TikTok-esque AI video generation app. In a direct shot at Google Chrome, OpenAI also launched Atlas, its own web browser.
And it sounds like OpenAI has more up its sleeve as it battles the bottleneck of lining up enough compute and energy to power its developments.
OpenAI executives have said compute constraints are holding back other initiatives, like making ChatGPT Pulse, a personalized update feature within the chatbot for Pro users, available to everyone. Last week, Bill Peebles, OpenAI's head of Sora, announced that free users would face significant cuts in the number of videos they could generate per day.
ChatGPT also remains synonymous with AI — not unlike Google and online search. That will likely help continue to drive app downloads and usage and could also stave off Google's attempts to convince users to switch to Gemini or Google's other AI-infused products.
But humans are creatures of habit, and many already use a Google product or service everyday — a platform advantage that the tech giant is already utilizing to siphon away ChatGPT users.
Silicon Valley's history is built on startup disrupting the status quo.
Now, with OpenAI (smartly) looking over its shoulder, we get to watch the AI race heat up as Google, a former startup, gets its AI legs and hits its stride.
For OpenAI, it's a reminder that tech giants can put up quite a fight when facing the prospect of being disrupted — and sometimes, can turn the tables.
