Good morning, AI enthusiast.

The AI industry is facing a significant reality check as Wall Street reacts to a sobering new report. A warning from OpenAI CEO Sam Altman about a potential "AI bubble," combined with findings that most companies aren't seeing returns, has sparked a widespread sell-off of major tech stocks.

Despite billions being poured into enterprise AI, a staggering 95% of organizations are reportedly seeing no measurable return on their investment. Is this a temporary hurdle as the industry matures, or a sign of a deeper disconnect between the technology's promise and its practical application?

In today’s AI recap:

• AI’s 95% enterprise failure rate

• Google’s new AI health coach

• Databricks’ new $100B valuation

• 8 trending AI tools

AI's Reality Check

The Recap: A tech stock sell-off is rattling Wall Street, sparked by OpenAI CEO Sam Altman’s warning of an "AI bubble" and a new report revealing most companies are failing to see returns on their AI investments.

Unpacked:

• Despite billions in enterprise spending, a recent MIT report found that 95% of organizations are getting zero measurable return from their generative AI tools.

• Adding to the jitters, Sam Altman told reporters he believes investors are "overexcited" about AI, comparing the current frenzy to the dot-com bubble.

• The market reaction was swift, with AI darlings like Nvidia and Palantir seeing significant slides as investors take a step back to reassess the technology's short-term value.

Bottom line: The initial hype cycle is meeting the hard reality of implementation and profitability. This shift pushes the industry to move beyond flashy demos toward creating real, sustainable value.

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Google's New AI Health Coach

The Recap: Google is overhauling the Fitbit app with a Gemini-powered personal health coach. The new feature creates and adjusts custom workout plans in real-time based on your sleep and activity data.

Unpacked:

• It moves beyond basic summaries by analyzing real-time data from your watch, smart scale, or glucose monitor to dynamically adjust your weekly fitness plan.

• The coach is built for conversational adjustments, allowing you to tell it about an injury or travel plans to get immediate, personalized modifications to your routine.

• To ground its coaching in real-world expertise, Google has brought on NBA star Stephen Curry as a performance advisor to provide feedback on the new products.

Bottom line: This marks a significant shift from passive data tracking to proactive, personalized health management. If successful, it could redefine how we use wearable tech, turning raw metrics into actionable daily guidance.

AI Training

How to Build a WhatsApp Chatbot + AI Agent in n8n for Small Businesses (free template)

The Recap: In this video, I'm going to show you how to build a WhatsApp chatbot and AI agent for businesses that interact with their customers over WhatsApp. This system can scrape all details from a business or company's website, bundle that together into an LLM-ready knowledge base, and use that knowledge base to answer real customer inquiries. I'm also going to show you how to set up the WhatsApp n8n connection from scratch.

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Databricks Hits $100B

The Recap: Data and AI company Databricks announced a new Series K funding round, valuing the company at over $100 billion. The oversubscribed round signals massive investor confidence in foundational enterprise AI platforms.

Unpacked:

• The new capital will accelerate Databricks' AI strategy by expanding its Agent Bricks and Lakebase products.

• Over 15,000 organizations, including over 60% of the Fortune 500, rely on the Databricks Data Intelligence Platform to manage their data and AI.

• This funding follows recent momentum, including new or expanded partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir.

Bottom line: This massive valuation underscores a key trend: investors are betting heavily on the platforms that help businesses use their own data for AI. Databricks is solidifying its role as a critical piece of the enterprise AI infrastructure.

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Hollywood's New AI Negotiator

The Recap: Talent representatives are now using AI tools like ChatGPT and Grok to analyze viewer sentiment, giving them hard data to negotiate better contracts in an industry where streaming metrics are kept private.

Unpacked:

• AI analysis showed that for the film Heads of State, Priyanka Chopra Jonas generated 50-60% of the online conversation, more than double the buzz of her top-billed male co-stars combined.

• This data-driven approach directly challenges the “streaming black box,” allowing agents to prove a client’s value without relying on viewership numbers that studios rarely share.

• While many in Hollywood remain wary of AI, this use case levels the playing field, as streamers have been using similar internal AI tools for years to assess talent value.

Bottom line: AI-driven sentiment analysis is shifting the power dynamic from opaque studio metrics to transparent, data-backed proof of an actor's influence. This allows talent to accurately quantify their cultural impact and secure compensation that reflects their true value.

Signing off,

David, Lucas, Mitchell — The Recap editorial team