UBS invests in Domino Data Lab to expand AI development partnership

SAN FRANCISCO/ZURICH - UBS (NYSE: UBS), the largest global wealth manager with a market capitalization of $126 billion, has made an equity investment in Domino Data Lab to expand their strategic partnership focused on enterprise artificial intelligence development, according to a press release issued Thursday. The Swiss banking giant, which according to InvestingPro data has delivered an impressive 34.5% return year-to-date, continues to strengthen its technological capabilities.

The investment builds upon a five-year collaboration between the companies, with a UBS representative joining Domino Data Lab’s board as an observer. Financial terms of the investment were not disclosed. UBS enters this partnership from a position of strength, with InvestingPro analysis showing the bank maintains a "GOOD" overall financial health score and has consistently paid dividends for 14 consecutive years.

The partnership initially centered on UBS’s RiskLab, the bank’s platform for AI model development and validation built using Domino’s technology. UBS now plans to implement this platform across the entire organization to enhance AI model development while maintaining its risk-based approach.

"At UBS, we’re making bold choices to ensure we’re an AI-enabled institution," said Stephan Hug, Head of Group Functions Technology at UBS, in the statement.

Domino Data Lab’s Enterprise AI Platform provides integrated capabilities for model development, MLOps, collaboration, and governance. The platform will serve as the foundation for UBS’s broader AI initiatives, enabling teams to build and deploy models with improved traceability and governance.

UBS currently manages $6.6 trillion in invested assets as of the second quarter of 2025, according to the release. The bank’s stock is currently trading near its 52-week high of $40.21, reflecting strong investor confidence in its strategic initiatives. For deeper insights into UBS’s financial health and growth prospects, investors can access comprehensive analysis through the Pro Research Report available on InvestingPro, which covers over 1,400 top stocks with expert analysis and actionable intelligence.

The expanded partnership aims to help UBS maintain leadership in AI adoption within financial services while ensuring compliance with regulatory requirements. The collaboration focuses on developing AI solutions that can enhance customer experiences while maintaining appropriate safeguards.

Nick Elprin, co-founder and CEO of Domino Data Lab, stated that "there is a tremendous opportunity for AI to help safeguard financial markets and improve customer experiences."

In other recent news, UBS Group AG has been the focus of several analyst updates following its recent developments. Deutsche Bank raised its price target for UBS to CHF35.00, maintaining a Buy rating, citing improved capital outlooks after the bank’s second-quarter 2025 results. Meanwhile, BofA Securities upgraded UBS from Underperform to Neutral, increasing the price target to CHF31.00, based on a positive outlook for the bank’s earnings per share growth through 2028. Conversely, RBC Capital adjusted its price target for UBS down to CHF29.00, maintaining an Outperform rating, due to Switzerland’s "Too Big To Fail" regulatory proposal. Morgan Stanley downgraded UBS to Underweight, lowering the price target to CHF26.00, reflecting concerns over capital and reduced buyback assumptions. Additionally, UBS was involved in a $5 billion debt deal with Elon Musk’s xAI Corp., alongside other banks, to support future funding needs. These updates highlight a range of perspectives on UBS’s financial health and strategic positioning.

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