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OpenAI’s Reddit Partnership Boosts Shares by 14%, Microsoft Embraces AMD Chips for AI, and More News

Fernanda T
Latest News
May 17 2024 7:36AM

Reddit (NYSE:RDDT) – Reddit has partnered with OpenAI to integrate its content with ChatGPT, boosting the platform’s shares. This initiative aims to diversify beyond advertising, following a similar collaboration with Alphabet to train AI models. Investors see significant revenue potential in data for AI. Reddit’s shares rose 13.7% in pre-market trading.

Microsoft (NASDAQ:MSFT), Advanced Micro Devices (NASDAQ:AMD) – Microsoft unveiled plans to offer cloud computing customers an AMD artificial intelligence chip platform, directly competing with Nvidia (NASDAQ:NVDA). The MI300X AI clusters will be available through Azure, offering an alternative to Nvidia’s GPUs, while the Cobalt 100 processors will also be launched. In other news, the UK’s second-largest grocery store, Sainsbury’s, has entered a five-year partnership with Microsoft, using AI to enhance online shopping experiences, improve search functions, and streamline processes in physical stores.

Qualcomm (NASDAQ:QCOM) – Ampere Computing revealed on Thursday a partnership with Qualcomm to produce chips aimed at energy efficiency in artificial intelligence operations. The collaboration seeks to optimize data center servers. This action does not directly compete with Nvidia but aims for efficiency after training AI models.

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) – The success of TSMC’s shares may face challenges due to investment restrictions, leading some investors to seek alternatives in the artificial intelligence field. Although the stock has risen 42% this year, investment limitations may lead to a search for rising tech companies.

Meta Platforms (NASDAQ:META) – EU regulators announced on Thursday that they will investigate Facebook and Instagram, both owned by Meta Platforms, for possible violations of child safety rules. The European Commission has expressed concerns about the risks to children and the influence of the platforms’ algorithms. Another Meta network, Threads, is testing its version of TweetDeck, allowing users to pin up to 100 feeds on their homepages, facilitating content viewing. Similar to TweetDeck, the new experience is only available on the web and has no additional cost.

Alphabet (NASDAQ:GOOGL) – Google, represented by Alphabet, seeks a non-jury trial in the U.S. Department of Justice’s lawsuit over anti-competitive practices in online advertising. The department accuses the giant of abusing its market dominance, seeking to force it to sell its ad management bundle.

Amazon (NASDAQ:AMZN) – Amazon’s new cloud chief, Matt Garman, will take over a $100 billion per year business, more profitable than ever. He faces the challenge of maintaining AWS’s leadership in the era of artificial intelligence, succeeding Adam Selipsky, who will step down in June.

Disney (NYSE:DIS), Warner Bros Discovery (NASDAQ:WBD), Fox Corporation (NASDAQ:FOX) – Disney, Warner Bros Discovery, and Fox are joining forces to launch the sports streaming service Venu Sports this year, revealed Pete Distad, CEO of the venture. Venu Sports will be accessible through a new app and can be bundled with Disney+, Hulu, or Max. The joint venture awaits regulatory approval and the finalization of definitive agreements, aiming to reach 5 million subscribers in the first five years. The potential market is estimated at 50 to 60 million users.

Spotify (NYSE:SPOT) – Spotify is at the center of controversy with songwriters due to changes in its contractual classification, now self-styled as a “bundle,” which may reduce royalties for songwriters. The National Music Publishers’ Association (NMPA) sent a letter demanding the removal of unlicensed songs in podcasts hosted on the platform.

Tesla (NASDAQ:TSLA) – Tesla is planning to use Chinese data to train algorithms to develop its advances in autonomous driving, including the possibility of a data center in China. CEO Elon Musk is seeking approvals to transfer data and discusses licensing the FSD. Additionally, Tesla received approval from the local board to expand its factory in Germany despite protests. The expansion aims to double the capacity to 100 gigawatt-hours of battery production and 1 million cars per year.

Xpeng (NYSE:XPEV) – Xpeng expressed concerns about new U.S. tariffs on Chinese electric vehicles, highlighting obstacles to carbon neutrality. Additionally, the company plans to expand into European markets despite barriers. The EU’s anti-subsidy investigation and the U.S.-China trade war also affect its global expansion strategies.

General Motors (NYSE:GM) – General Motors and LG Energy Solution agreed to establish a $150 million fund to compensate owners affected by the recall of defective Chevrolet Bolt EV batteries. Eligible owners who received battery replacements or software updates may receive up to $1,400.

Toyota Motor (NYSE:TM) – Toyota Motor faced repeated shutdowns at its Tijuana factory in Mexico due to local labor shortages and technical issues, halting production for 19 days in February and March.

Ford Motor (NYSE:F) – Ford has asked its electric vehicle suppliers to cut costs, citing the need for profitability. Liz Door, director of the supply chain, emphasized the importance of affordable products, encouraging cost efficiency. The company aims to reduce operational losses and focus on hybrids before fully electric cars.

Boeing (NYSE:BA) – At today’s annual general meeting, Boeing shareholders will vote on whether the outgoing CEO, Dave Calhoun, should remain on the board, while the new president, Steve Mollenkopf, will face his first public appearance. The company’s crisis, including investigations and production declines, makes the choice of the next leader crucial.

Spirit AeroSystems (NYSE:SPR) – Spirit AeroSystems is reducing its workforce in Wichita, Kansas, due to a slowdown in Boeing’s production. Although no exact number was announced, an internal memo mentioned about 400 layoffs, with the company committed to conducting the transition compassionately, according to KSN.

United Airlines (NASDAQ:UAL) – On Thursday, the Federal Aviation Administration (FAA) denied approval for United Airlines to expand routes or fleets and required its supervision during final inspections of new aircraft. The FAA is reviewing safety following incidents, with the timeline depending on the ongoing safety assessment.

Lockheed Martin (NYSE:LMT) – Lockheed Martin faces delays in the F-35 fighter due to a problematic $1.8 billion upgrade, postponing advanced missions until 2025, reported by the Government Accountability Office. Additionally, problems with software and hardware delay the delivery of TR-3 jets, while the Pentagon withholds payments.

Hess (NYSE:HES), Chevron (NYSE:CVX) – At a special meeting on May 28, Hess shareholders will vote on Chevron’s $53 billion offer, stated Glass Lewis. While they consider the offer reasonable, they note uncertainties regarding arbitration between Hess and partners in Guyana. The merger awaits regulatory approval. Additionally, Chevron plans to sell its remaining North Sea oil and gas assets, marking its exit after more than 55 years.

ABB Ltd (NYSE:ABB) – ABB agreed to acquire Siemens’ wiring accessories business in China, expanding its market reach and complementing its offerings in smart buildings. The deal, whose price was not disclosed, includes a company that manufactures wiring accessories and home automation products.

GSK (NYSE:GSK) – British GSK raised $1.52 billion (£1.25 billion) by selling its remaining stake in the consumer health company, Haleon, to institutional investors. This will allow GSK to reinforce its focus on vaccines, cancer, and infectious diseases, aligned with CEO Emma Walmsley’s plans to boost profits.

Johnson & Johnson (NYSE:JNJ) – J&J announced the acquisition of Proteologix for $850 million in cash, aiming to access experimental treatments for atopic dermatitis. Proteologix’s antibodies PX128 and PX130 are in development for moderate to severe eczema and asthma, complementing J&J’s efforts. The transaction awaits regulatory approval and other closing conditions.

JPMorgan Chase (NYSE:JPM) – Investors eagerly await JPMorgan Chase’s succession plans after a year of record profits, seeking insights into artificial intelligence and opportunities beyond traditional banking. CEO Jamie Dimon will highlight growth strategies and financial goals next Monday, as the bank seeks innovation and leadership in a diverse market.

Goldman Sachs (NYSE:GS), United Parcel Service (NYSE:UPS) – UPS has hired Goldman Sachs to manage its pension fund assets in the U.S. and Canada, valued at $43.4 billion. This move reflects Goldman’s pursuit of growth in asset management and allows UPS to focus on its core business.

Bank of America (NYSE:BAC) – Bank of America strategists predict that long-term bonds will return at the end of 2024, driven by softer macroeconomic conditions. Michael Hartnett and his team note a possible reversal of the “everything but bonds” trade due to weak economic signals.

New York Community Bancorp (NYSE:NYCB) – NYCB announced on Thursday the resignation of its chief operating officer, Julie-Ann Signorille-Browne, effective from May 24.

Jefferies Financial Group (NYSE:JEF) – A Jefferies risk manager, Jennifer Miranda, questioned the urgency of withdrawing large sums from the Archegos Capital Management account. She testified about the rush by Becker, the former head of risk management at Archegos, to withdraw money, unaware of the company’s frenzied trading campaign.

Mizuho Financial Group (NYSE:MFG) – Andy Laszlo has been promoted to head of investment in technology, media, and telecommunications and corporate banking at Mizuho Financial Group. He succeeds Rich Gallivan, who will take over as the bank’s technology president for the Americas, reporting to Laszlo. Additionally, Mizuho recently completed the acquisition of Greenhill & Co.

Blackstone (NYSE:BX) – Blackstone agreed to acquire a majority stake in Priority Software, an Israeli enterprise software company, for $800 million. Current investors, Fortissimo Capital and TA Associates, will retain stakes. The acquisition highlights the growing technological activity in Israel, despite the ongoing conflict with Hamas in Gaza.

Carlyle Group (NASDAQ:CG) – Carlyle Group agreed to acquire about $450 million in loans from Sungage Financial, as traditional banks retreat. This includes a minority stake in Sungage, helping diversify its financing. Sungage offers financing for solar energy, roofing, and batteries.

Under Armour (NYSE:UAA) – Under Armour Inc. is undergoing restructuring, focusing on men’s apparel and staff cuts, as founder Kevin Plank retakes control.

Unilever (NYSE:UL) – Unilever will continue to produce Cornetto and Carte D’Or in Russia, despite selling its global ice cream unit. The Russian ice cream division will remain intact, while the company faces pressures to exit the country due to the Ukraine invasion. Unilever’s sales in Russia increased last year.