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Big Tech earnings AI dilemma, Ukraine drones, DeepMind shift, PwC AI errors

Financial Times Companies •
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Ukraine is shifting its long‑range drone campaign to target critical Russian infrastructure, focusing on energy facilities and transport hubs to degrade Moscow’s war‑making capacity. The new tactic reflects Kyiv’s evolving strategy to impose higher costs on the Kremlin while conserving its own missile stocks.

At the same time, Big Tech companies are confronting an AI dilemma as they release quarterly earnings, with investors questioning the profitability of massive AI investments. Chip stocks tumbled as the market reassessed growth expectations, and analysts warned that revenue from AI services may not offset soaring capital expenditures.

Google DeepMind has announced it will dismantle the Nobel‑winning AlphaFold team, redirecting resources toward new research ventures. The move signals a strategic pivot away from protein‑folding breakthroughs toward broader AI applications, despite AlphaFold’s landmark scientific impact.

Separately, PwC published “thought leadership” reports that were later found to contain AI‑generated hallucinations, raising concerns about the reliability of AI‑assisted consulting. The episode underscores the risk of deploying generative models without rigorous verification in professional services.