Issue #28

Judge rules Google a monopoly, Lloyds poaches AWS executive, Olympics ask influencers for help, and more.

News from August 1 - August 8, 2024

Elon Musk Sues OpenAI

Elon Musk has filed a lawsuit against OpenAI and CEO Sam Altman, accusing them of abandoning their humanitarian mission and becoming a for-profit company. Musk alleges Altman and co-founder Greg Brockman misled him into investing by falsely promoting a non-profit agenda. 

The suit claims OpenAI created for-profit affiliates and manipulated Musk, ultimately signing a $10 billion deal with Microsoft. Musk also argues that if OpenAI’s models have achieved artificial general intelligence (AGI), Microsoft's profit-sharing agreement should be nullified as it only covers “pre-AGI” profits. 

He seeks damages based on OpenAI’s gains from his contributions. Musk’s AI company, xAI, is currently valued at $18 billion, while OpenAI is valued at $86 billion.

Source

Warren Buffet Dumps Apple 

Warren Buffett's Berkshire Hathaway sold around 400 million Apple shares in Q2 2024. According to the latest report, Berkshire's Apple holdings decreased from $174.3 billion in December 2023 to about $84.2 billion. 

Despite this, Apple remains Berkshire's largest holding. The firm also reduced its stake in Apple by 12.5% in Q1 2024 and made additional sales at the end of 2023. 

Warren Buffett previously labeled similar past sales of the tech giant’s stock as "probably a mistake."

Source

Lloyds Poaches AWS Executive.

Lloyds Banking Group has hired Rohit Dhawan from Amazon Web Services to head its new AI strategy. Dhawan, with a PhD in AI, will be Lloyds' first group director of AI and advanced analytics. 

Reporting to Chief Data Officer Ranil Boteju, Dhawan will integrate AI into customer and operational processes, oversee an AI Centre of Excellence, and lead the creation of a new data and AI function. 

This move is part of Lloyds' broader digitization effort, which includes recruiting 1,500 tech specialists and implementing 50 AI use cases.

Source

Bulletin Board

• Mars to Own Pringles and Pop-Tarts. Mars, the conglomerate known for candy, food, and pet care, is in talks to acquire Kellanova, the maker of Pringles and Pop-Tarts. Kellanova emerged from the 2023 breakup of Kellogg and has a current market cap of $22 billion. The company recently raised its sales forecasts despite a consumer spending slowdown. Even before this announcement, its shares had already climbed about 15 percent this year. Analyst: “At times like this when growth slows, balance sheets are relatively clean, and valuations dip, the market leaders in food tend to look more closely at big combinations to drive cost synergies.” Source
• Rolls Royce Shares Rally. Rolls-Royce reported a 74% rise in half-year profits, resumed dividends and distributed shares to employees. Increased earnings from air travel and engine services have put the company on track to meet 2027 profit and cash flow targets. Despite gains, potential supply chain issues and market fluctuations pose risks. Analysts are optimistic but cautious about long-term sustainability beyond current favorable conditions. Source
• Nvidia Caught Stealing YouTube Videos. Leaked documents reveal Nvidia has been scraping vast amounts of YouTube data to train AI models without consent, violating YouTube's terms of service according to Google. The company used virtual machines to conceal its activities, collecting data for projects like self-driving car algorithms and 3D tools. Nvidia claims compliance with copyright law, but ethical implications remain in question. Internal emails show top executives approved the practice despite legal concerns. Source  
• Judge Rules Google a Monopoly. A federal judge ruled that Google violated US antitrust laws by maintaining a monopoly in search and advertising markets. The Department of Justice's victory highlights Google's monopolistic practices in “general search services” and “general search text advertising.” Federal judge: “After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly.” Google plans to appeal the ruling. Source 
• Olympics Ask Influencers for Help. Influencers are being enlisted to boost the Paris Olympics' global appeal. Platforms like YouTube, NBC, and Eurosport have flown in YouTubers, TikTokers, Snapchatters, and Instagrammers to create engaging content and attract younger audiences. The initiative follows trends in sports marketing to expand viewership, with influencers providing real-time storytelling and personal connections with athletes to make the games more relatable and exciting. Source 

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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