Big Bets, Bigger Questions: AI, Privacy, and Cybersecurity Take Center Stage

31th July 2025

The White House has unveiled a health data-sharing initiative to improve patient access and care coordination, though privacy concerns remain. Meanwhile, Meta exceeded Q2 expectations with AI-driven ad growth but faces rising infrastructure costs and regulatory scrutiny. Samsung reported a sharp drop in chip profits due to export-related losses but expects recovery via new AI chip contracts and innovations. Lastly, Palo Alto Networks is acquiring CyberArk for $25B to enhance its AI-era cybersecurity capabilities, signaling major consolidation in the sector despite investor concerns about integration challenges. All in today’s Read It and Eat !

Major Headlines 

White House Unveils Health Data Initiative, Sparking Privacy Debate

The White House has introduced a new health data tracking initiative aimed at giving patients easier access to their medical records and improving how health information is shared across systems. Announced at an event called “Making Health Technology Great Again,” the plan involves a partnership between the federal government and major tech and healthcare companies  including Apple, Google, Amazon, Cleveland Clinic, and UnitedHealth Group. The system would be overseen by the Centers for Medicare and Medicaid Services (CMS), and participation would require patients to opt in.

Once enrolled, individuals would be able to view and share their medical information through connected apps and platforms. For example, the Apple Health app might soon be able to display lab results alongside your sleep data or activity levels. The goal is to create a more complete picture of personal health using both clinical and everyday wellness data. U.S. Health and Human Services Secretary Robert F. Kennedy Jr. emphasized how this integration could lead to personalized recommendations powered by AI  potentially helping users make better health choices in real time.

Currently, most health systems operate in silos, often relying on outdated methods like fax machines to transfer information. Some hospitals have their own digital portals, but there’s no standardized system across the board. With 60 companies already committed, the administration hopes to launch this new program by early 2026. However, a similar proposal from 2018 failed to take off, raising questions about whether this effort will be different.

While the technology promises greater convenience and innovation, it has triggered concerns among patient advocates and privacy experts. Critics warn that the sharing of deeply personal health information could lead to misuse or even monetization without clear safeguards. Legal scholars have flagged ethical risks, and digital privacy advocates argue that patients may not fully understand how their data could be used. Whether this new system strikes the right balance between innovation and privacy remains to be seen. Bloomberg 

Meta Rides AI Momentum to Beat Expectations—But Big Spending Still Looms

Meta Platforms saw its shares jump 11% in after-hours trading after reporting stronger-than-expected second-quarter results, thanks to AI-fueled growth in its advertising business. The company also delivered a bullish revenue forecast for the third quarter, signaling that its investment in artificial intelligence is starting to pay off even as it continues to pour billions into future infrastructure. CEO Mark Zuckerberg told analysts that AI is unlocking meaningful improvements in how the company serves ads on platforms like Facebook and Instagram, despite rising costs tied to data centers and talent.

Meta has bumped up the lower end of its annual capital expenditure forecast to between $66 billion and $72 billion. That increase reflects the company’s aggressive efforts to lead in AI development, including high-profile hires and large-scale investments. Zuckerberg acknowledged the intense pace of advancement, suggesting that faster timelines for reaching strong AI or even superintelligence may be more realistic than many think. While investors have largely supported this vision, it comes at a cost: the company has signaled that expenses will keep growing through 2026.

Despite these headwinds, Meta’s second-quarter revenue came in at $47.52 billion, comfortably beating analyst expectations. Profits also topped forecasts, with earnings per share of $7.14. Zuckerberg noted that AI-driven ad recommendations helped boost conversions by 5% on Instagram and 3% on Facebook. The company has also rolled out new tools, like an image-to-video generator for ads, under its Advantage suite further integrating AI into its core business. Instagram’s short-form video product, Reels, continues to gain traction and is projected to make up more than half of Meta’s U.S. ad revenue this year.

Still, Meta’s road ahead isn’t without hurdles. Regulators in the U.S. and abroad are keeping a close eye on the company’s dominance in the social media space, with legal challenges threatening potential restructuring of key platforms like Instagram and WhatsApp. Meanwhile, internal efforts to catch up in the AI race such as revamping its Llama model and offering massive compensation packages to top researchers show that Meta is still working to close the gap with rivals like Google, Microsoft, and OpenAI. As Zuckerberg put it, the company plans to “push very aggressively” on all fronts, hoping that long-term gains will outweigh the short-term costs. Reuters 

Samsung’s Chip Business Stumbles, While Executives Bet on a Turnaround

Samsung Electronics took a hard hit in its chip business this past quarter, reporting a 94% plunge in operating profit far worse than expected. The chip division brought in just 400 billion won ($288 million) in operating income, well below analysts’ forecast of 2.73 trillion won. A major factor was a one-time inventory cost tied to U.S. export controls, which left some AI chips unsold. As a result, shares dropped by as much as 2.2% in Seoul following the announcement. Meanwhile, overall net income also missed expectations, coming in at 4.93 trillion won, while capital spending shrank 7% from the previous quarter, mostly in semiconductors.

Despite the tough numbers, Samsung is not standing still. Executives pointed to stronger demand for high-performance memory used in servers and highlighted their progress in advanced chip technology. The company has already shipped samples of its new HBM4 memory chips, which double the speed of their predecessors and offer better energy efficiency. But the market tells a more sobering story: Samsung’s share of the global high-bandwidth memory (HBM) market dropped to 17% in Q2  down from over 40% in Q1  falling behind even Micron to rank third, according to research firm Counterpoint.

Still, there’s cautious optimism for the second half of the year. Samsung expects its chip business to recover gradually, especially as it ramps up supply of higher-density memory and narrows losses at its foundry unit. Analysts at Bloomberg Intelligence echoed that outlook, predicting a strong rebound in sales and profit by Q3. A major boost could come from a recently secured $16.5 billion contract with Tesla to manufacture AI chips at Samsung’s upcoming facility in Taylor, Texas  a deal that has already driven up the company’s stock nearly 20% this month.

Looking ahead, Samsung is ramping up R&D spending and expanding production capacity to catch up with rivals SK Hynix and Micron, especially in AI-related chips. It's also trying to claw back foundry clients from industry leader TSMC, which is expanding aggressively in the U.S. While Samsung’s Texas plant isn’t expected to be operational until 2026, the company sees long-term opportunities in 2-nanometer chip production. And outside of semiconductors, its mobile division remains a bright spot, with strong Galaxy S25 sales and bold plans for foldables, a new XR headset, and even a trifold smartphone. Samsung’s story this year may be one of setbacks but also of steady determination to regain its footing. Financial Times 

Palo Alto’s $25B Bet on CyberArk Signals Big Push Into AI-Era Cybersecurity

Palo Alto Networks is making a major move to expand its cybersecurity footprint, announcing a $25 billion acquisition of Israeli firm CyberArk Software. The deal, which combines cash and stock, marks the largest in Palo Alto’s history and one of the biggest tech takeovers this year. CEO Nikesh Arora says the goal is clear: build a one-stop-shop for cybersecurity that can keep pace with rising AI-driven threats and an increasingly complex digital world.

This acquisition follows a broader wave of consolidation in the cybersecurity space, as companies seek streamlined, integrated solutions after a wave of high-profile breaches exposed the limitations of relying on too many different vendors. It also comes just months after Alphabet snapped up Israeli startup Wiz for $32 billion. For Palo Alto, bringing CyberArk into the fold adds robust identity security tools key tech that helps protect sensitive systems by controlling access to privileged accounts.

CyberArk’s tools are already trusted by major names like Carnival, Panasonic, and Aflac. With the rise of AI and the explosion of machine identities, identity security is becoming more critical than ever. As Arora put it, "Every identity requires the right level of privilege controls." The deal values CyberArk at $495 a share, a 29% premium compared to its price before reports of the deal surfaced. While CyberArk shares dipped slightly after Tuesday’s surge, Palo Alto’s stock dropped 8% as investors digested the scale and implications of the deal.

Some analysts flagged concerns about the integration process. Palo Alto has a solid track record of acquisitions more than 14 since 2019 but this is by far its largest and most complex. CyberArk’s sizable customer base and infrastructure could pose challenges for seamless integration. Still, many see long-term upside: the acquisition fills a gap in Palo Alto’s portfolio, particularly around identity security, and positions the company to better protect AI systems. With CyberArk generating around $1 billion in annual revenue and growing fast this could be the boost Palo Alto needs to reenergize its next-gen security business. Yahoo.Finance 

Minor Headlines

•  Trump issues a blitz of tariff announcements on copper, Brazil, South Korea, small-value imports. Reuters

• Google to sign EU's AI code of practice despite concerns. Financial Times 

• China Raises Security Concerns Over Nvidia’s H20 Chips. Reuters 

• Microsoft Nears $4 Trillion Market Cap Following Strong Earnings Report. Yahoo.Finance 

• Qualcomm Stock Drops Amid Worries Over Apple Modem Exit and Tariff Impact. Yahoo.Finance 

• Samsung Sees More Clarity After Tariff Deal, Anticipates Tesla Partnership Boost. Reuters 

• Arm Shares Fall as Investors React to Ambitious Chip Goals and Soft Outlook. Reuters 

• Federal Reserve Keeps Interest Rates Unchanged at 4.25% - 4.50% Range. Yahoo.Finance 

• High Noon Issues Recall of Vodka Seltzers Mistakenly Labeled as Celsius Energy Drinks. Morning Brew