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Can Artificial Intelligence (AI) Help Turn Opendoor’s Business Around?

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Opendoor’s new interim leader is looking to artificial intelligence to help improve the company’s operations.

Artificial intelligence (AI) has been transforming businesses across the globe and across all sectors of the economy. While it may not necessarily fix a broken business, it can help add efficiency, unlock new growth opportunities, and drive down costs.

Those are all things that Opendoor Technologies (OPEN 1.08%) could benefit from. Many investors and analysts see the iBuying company as nothing more than the latest meme stock, benefiting from a flurry of hype from retail investors.

Management, however, hopes to solidify its operations and do more with less, due to AI. Is this a great idea that could make Opendoor a better buy, or is this simply too risky of a stock to hold?

Image source: Getty Images.

Can AI fix the company’s biggest struggles?

Opendoor’s new president and interim leader, Shrisha Radhakrishna, who took over last month after Carrie Wheeler stepped down, is eyeing AI as a way to improve the company’s operations. Radhakrishna sees many ways that AI can be a key part of the company’s future growth, helping the business with marketing, pricing, and in-home assessments.

Turning to AI can be a way to improve efficiency, but it’ll take time and money to do so. And even then, it’s questionable how much generative AI can do for Opendoor’s business. Consider that the company’s gross margin is typically in just single digits. The iBuying business involves flipping houses and if there’s not enough of a spread there to make enough of a margin, it’s going to be incredibly difficult for the business to cover its other operating expenses and stay out of the red.

AI may help with pricing, but unless it results in significant margin expansion, it may not necessarily lead to a big payoff for the business and its shareholders.

Many AI projects are falling short of expectations

Excitement around AI has captivated investors, but that doesn’t mean that simply throwing money at AI is going to solve problems. In fact, it may create new ones as Opendoor spends excessively without having much to show for it.

According to a recent report from the Massachusetts Institute of Technology, a staggering 95% of companies haven’t been generating any meaningful revenue or payoff from their investments into AI. While the hyperscalers and big tech companies with massive budgets have undoubtedly grown their businesses due to AI, the study underscores the importance of keeping expectations in check.

As tempting as it may be to assume that AI will improve a company’s operations, that’s by no means a sure thing. And that can be particularly concerning for a business such as Opendoor, which has routinely posted losses and which already has more than $2 billion in debt on its books. Last quarter (which ended June 30), its interest expense totaled $36 million — nearly 3 times the size of its operating loss of $13 million.

Investing into AI likely won’t make Opendoor a better stock

Opendoor’s business needs a lot of work before it can have a realistic path to profitability and be a good investment option. There’s a ton of risk for investors to take on and although the stock has surged more than 300% this year (as of Monday), that doesn’t mean the rally is sustainable or that it will continue.

The volatility that comes with Opendoor’s stock makes it an unsuitable option for the vast majority of investors to consider for their portfolios. With challenging market conditions, poor financials, and many question marks surrounding the long-term viability of Opendoor’s business, this is a stock I’d steer clear of for the foreseeable future. At the very least, you may want to wait until the company actually shows some tangible improvement and payoff from its efforts and AI investments. Otherwise, you could be taking on significant risk. This is a stock that could have a long way to fall given its sharp rally this year and the volatility that comes with it.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.



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New AI model can identify treatments that reverse disease states in cells

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In a move that could reshape drug discovery, researchers at Harvard Medical School have designed an artificial intelligence model capable of identifying treatments that reverse disease states in cells.

Unlike traditional approaches that typically test one protein target or drug at a time in hopes of identifying an effective treatment, the new model, called PDGrapher and available for free, focuses on multiple drivers of disease and identifies the genes most likely to revert diseased cells back to healthy function.

The tool also identifies the best single or combined targets for treatments that correct the disease process. The work, described Sept. 9 in Nature Biomedical Engineering, was supported in part by federal funding.

By zeroing in on the targets most likely to reverse disease, the new approach could speed up drug discovery and design and unlock therapies for conditions that have long eluded traditional methods, the researchers noted.

Traditional drug discovery resembles tasting hundreds of prepared dishes to find one that happens to taste perfect. PDGrapher works like a master chef who understands what they want the dish to be and exactly how to combine ingredients to achieve the desired flavor.”


Marinka Zitnik, study senior author, associate professor of biomedical informatics in the Blavatnik Institute at HMS

The traditional drug-discovery approach – which focuses on activating or inhibiting a single protein – has succeeded with treatments such as kinase inhibitors, drugs that block certain proteins used by cancer cells to grow and divide. However, Zitnik noted, this discovery paradigm can fall short when diseases are fueled by the interplay of multiple signaling pathways and genes. For example, many breakthrough drugs discovered in recent decades – think immune checkpoint inhibitors and CAR T-cell therapies – work by targeting disease processes in cells.

The approach enabled by PDGrapher, Zitnik said, looks at the bigger picture to find compounds that can actually reverse signs of disease in cells, even if scientists don’t yet know exactly which molecules those compounds may be acting on.

How PDGrapher works: Mapping complex linkages and effects

PDGrapher is a type of artificial intelligence tool called a graph neural network. This tool doesn’t just look at individual data points but at the connections that exist between these data points and the effects they have on one another. 

In the context of biology and drug discovery, this approach is used to map the relationship between various genes, proteins, and signaling pathways inside cells and predict the best combination of therapies that would correct the underlying dysfunction of a cell to restore healthy cell behavior. Instead of exhaustively testing compounds from large drug databases, the new model focuses on drug combinations that are most likely to reverse disease.

PDGrapher points to parts of the cell that might be driving disease. Next, it simulates what happens if these cellular parts were turned off or dialed down. The AI model then offers an answer as to whether a diseased cell would happen if certain targets were “hit.”

“Instead of testing every possible recipe, PDGrapher asks: ‘Which mix of ingredients will turn this bland or overly salty dish into a perfectly balanced meal?'” Zitnik said.

Advantages of the new model

The researchers trained the tool on a dataset of diseased cells before and after treatment so that it could figure out which genes to target to shift cells from a diseased state to a healthy one.

Next, they tested it on 19 datasets spanning 11 types of cancer, using both genetic and drug-based experiments, asking the tool to predict various treatment options for cell samples it had not seen before and for cancer types it had not encountered.

The tool accurately predicted drug targets already known to work but that were deliberately excluded during training to ensure the model did not simply recall the right answers. It also identified additional candidates supported by emerging evidence. The model also highlighted KDR (VEGFR2) as a target for non-small cell lung cancer, aligning with clinical evidence. It also identified TOP2A – an enzyme already targeted by approved chemotherapies – as a treatment target in certain tumors, adding to evidence from recent preclinical studies that TOP2A inhibition may be used to curb the spread of metastases in non-small cell lung cancer.

The model showed superior accuracy and efficiency, compared with other similar tools. In previously unseen datasets, it ranked the correct therapeutic targets up to 35 percent higher than other models did and delivered results up to 25 times faster than comparable AI approaches.

What this AI advance spells for the future of medicine

The new approach could optimize the way new drugs are designed, the researchers said. This is because instead of trying to predict how every possible change would affect a cell and then looking for a useful drug, PDGrapher right away seeks which specific targets can reverse a disease trait. This makes it faster to test ideas and lets researchers focus on fewer promising targets.

This tool could be especially useful for complex diseases fueled by multiple pathways, such as cancer, in which tumors can outsmart drugs that hit just one target. Because PDGrapher identifies multiple targets involved in a disease, it could help circumvent this problem.

Additionally, the researchers said that after careful testing to validate the model, it could one day be used to analyze a patient’s cellular profile and help design individualized treatment combinations.

Finally, because PDGrapher identifies cause-effect biological drivers of disease, it could help researchers understand why certain drug combinations work – offering new biological insights that could propel biomedical discovery even further.

The team is currently using this model to tackle brain diseases such as Parkinson’s and Alzheimer’s, looking at how cells behave in disease and spotting genes that could help restore them to health. The researchers are also collaborating with colleagues at the Center for XDP at Massachusetts General Hospital to identify new drug targets and map which genes or pairs of genes could be affected by treatments for X-linked Dystonia-Parkinsonism, a rare inherited neurodegenerative disorder.

“Our ultimate goal is to create a clear road map of possible ways to reverse disease at the cellular level,” Zitnik said.

Source:

Journal reference:

Gonzalez, G., et al. (2025). Combinatorial prediction of therapeutic perturbations using causally inspired neural networks. Nature Biomedical Engineering. doi.org/10.1038/s41551-025-01481-x



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A semi-intelligent look at artificial intelligence

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Dr. Geoffrey Hinton is a British-Canadian cognitive psychologist and computer scientist who won the Nobel Prize in Physics last year “for foundational discoveries and inventions that enable machine learning with artificial neural networks.” Between you and me, I got hosed. I should have been a winner.The Nobel committee obviously overlooked my own entry entitled, “One molecule of g…





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The Dutch Connection: French AI Leader Gets Backing from European Tech Giant ASML

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French AI leader Mistral isn’t settling for being le grand fromage at home. It aims to be the best on earth. That means developing AI models and data centers that can go toe to toe with the best the US and Asia have on offer.

On Tuesday, the company received key backing from a continental ally. Dutch semiconductor equipment giant ASML opened its wallet — or portemonnee, a word borrowed from the French porte-monnaie — to become Mistral’s largest shareholder.

Which Way the Mistral Blows

Paris-based Mistral is a relative newbie in the AI world, founded just two years ago; by comparison, OpenAI, at 10 years old, is practically ready for senior citizen discounts. The maker of the chatbot Le Chat has been hailed by policymakers, including French President Emmanuel Macron, as key to Europe’s ambitions of building its own tech bulwark to fend off dominant US and Asian competition. Named after a famously strong wind in southern France, Mistral is also building data centers to establish European competition against major US cloud providers like Amazon Web Services and Microsoft Azure, making it a strategic bet on two fronts.

Enter ASML, one of Europe’s undisputed tech giants. Its $1.5 billion, 11% stake in the French startup announced Tuesday is a breakthrough moment in continental synergy. The fresh cash fuels Mistral’s efforts to develop new models and data centers, and ASML could hardly be a better-positioned partner. The Dutch giant has a de facto monopoly on the extreme ultraviolet (EUV) lithography machines essential to making advanced semiconductors. This has placed it at the heart of the global AI boom, furthering its lucrative symbiotic relationship with chip giants like Nvidia. On Tuesday, its $316 billion market cap made it the most valuable company in the European Union, which is something Mistral can look up to:

  • ASML’s stake, part of a total $2 billion round, values the French company at roughly $14 billion. That number underscores how far Mistral trails its AI competition in Silicon Valley: Anthropic closed a $13 billion funding round with a $183 billion valuation last week, while OpenAI is planning a secondary sale at a $500 billion valuation.
  • Mistral has another unique backer in Macron, who has encouraged blue chip firms to do business with Mistral and positioned the company as a key beneficiary of a €109 billion ($127 billion) national AI plan. France’s state-owned investment bank Bpifrance is also among its backers, though Mistral has no shortage of prominent international investors, among them Lightspeed Ventures, former Google CEO Eric Schmidt, Andreessen Horowitz, Nvidia and Microsoft. 

Double Dutch: And speaking of European companies with Microsoft ties, the US tech giant reached across the Atlantic on Monday to do business with another Netherlands-based tech firm. Nebius is a new arrival to Amsterdam, having split from Russia’s Google-equivalent Yandex last year. It ditched the search engine business of its former Russian parent to focus on AI infrastructure and computing capacity, something Microsoft has a growing need for as it builds out new products. Nebius will make at least $17.4 billion, and up to $19.4 billion, for providing Microsoft with dedicated AI computing capacity from a new data center being built not in picturesque Amsterdam or elegant Paris, but the land of gardens itself … New Jersey.



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