Adobe Raises Annual Forecasts on Strong Demand for AI-Powered Creative Tools

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Adobe has raised its full-year revenue and profit forecasts, driven by steady demand for its AI-powered software tools that assist in generating images and video content. The company, known for flagship products like Photoshop and Premiere Pro, continues to innovate in the creative software market.

Despite a sluggish first quarter affected by budget constraints and project delays amid broader economic uncertainties, analysts at Jefferies noted signs of recovery in the second quarter as clients resumed delayed projects. This momentum supports Adobe’s confidence in reaching its growth targets.

For fiscal 2025, Adobe now expects revenue between $23.50 billion and $23.60 billion, up from a previous forecast of $23.30 billion to $23.55 billion. Adjusted earnings per share are projected between $20.50 and $20.70, an increase from the earlier range of $20.20 to $20.50.

Finance Chief Dan Durn highlighted ongoing investments in AI innovation to enhance customer value and expand Adobe’s user base.

Adobe’s AI-driven tools, notably the Firefly app launched in 2023, enable users to create and edit visual content from simple text prompts. Firefly uses ethically sourced training data to ensure brand safety and copyright compliance.

The company is also integrating AI image-generation models from OpenAI and Google into Firefly, further enhancing its creative capabilities.

Adobe reported second-quarter revenue of $5.87 billion, surpassing analyst expectations of $5.79 billion, and also provided a third-quarter outlook that exceeded estimates.

Meta Signs Deal for Advanced Geothermal Power in New Mexico to Support AI Expansion

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Meta has signed an agreement with XGS Energy to develop 150 megawatts of advanced geothermal electricity in New Mexico. The clean energy will power Meta’s expanding artificial intelligence data centers, marking a step forward in the tech giant’s efforts to source sustainable energy for its operations.

This deal highlights a growing trend among major technology companies to secure large-scale, low-carbon power supplies to meet soaring electricity demands driven by AI development. Advanced geothermal energy, unlike conventional geothermal, generates power without relying on natural water sources and produces no climate-warming emissions.

While 150 megawatts is a small portion of the gigawatts of power that Big Tech firms seek for AI data centers, it represents about 4% of total U.S. geothermal production capacity. New Mexico has significant untapped geothermal potential, estimated at around 160,000 megawatts.

The Meta-XGS project is planned to be phased in and operational by the end of this decade. The electricity generated will feed into the local grid and support Meta’s regional operations.

Urvi Parekh, Meta’s Global Head of Energy, said, “With next-generation geothermal technologies like XGS ready for scale, geothermal can be a major player in supporting the advancement of technologies like AI as well as domestic data center development. We’re excited to partner with XGS to unlock a new category of energy supply for our operations in New Mexico.”

Google Sues LATAM Airlines in U.S. Over Brazilian YouTube Video Takedown Dispute

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Google filed a lawsuit against Chile-based LATAM Airlines on Thursday in a U.S. federal court, seeking a declaration that Brazilian courts cannot compel the company to remove a YouTube video from the U.S. platform. The video, posted by a U.S. resident, accuses a LATAM employee of sexually abusing a child.

The tech giant alleges that LATAM is attempting to bypass U.S. free speech protections by pursuing legal action in Brazil to force a global takedown of the video. Google argues that courts should only have jurisdiction over content accessible within their own countries.

The video in question was posted in 2018 by Raymond Moreira, a Florida resident, featuring his six-year-old son detailing abuse allegations involving a LATAM employee during a trip as an unaccompanied minor. Moreira previously sued LATAM in Florida, resulting in a confidential settlement.

LATAM initiated legal proceedings in Brazil in 2018 seeking removal of the video worldwide. A Brazilian appeals court is expected to decide soon whether it can order Google to remove the video globally.

Google’s case in California challenges this extraterritorial reach and asks the court to affirm that LATAM cannot enforce the Brazilian order in the U.S.

This lawsuit follows a similar legal battle involving U.S.-based social media companies Trump Media and Rumble, who contested a Brazilian judge’s order to remove certain accounts from their platforms in the U.S., with a federal judge ruling in favor of the companies’ U.S. free speech protections.