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Happy Friday! Wondering how AI can finally impact your life in a positive way? Here's a step-by-step guide to how you can easily (sort of) add your kid's school calendar to your Google Calendar.
In today's big story, Big Tech wants in on OpenAI.
What's on deck:
- Markets: A hedge fund just got one step closer to building the AI equivalent of a senior analyst.
- Tech: Nvidia's growth trajectory is starting to mirror another high-profile tech company.
- Business: MrBeast can't lawyer his way through his current crisis.
But first, can I get in on that round too?
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The big story
Apple and Nvidia have OpenAI fever
Who isn't interested in investing in OpenAI?
Two of the biggest tech companies in the world are reportedly looking to join the startup's newest funding round, which values it at more than $100 billion.
The Wall Street Journal first reported Apple's interest in the round, which was quickly followed just over an hour later by a Bloomberg story that Nvidia, too, would like in on the action.
And let's not forget Microsoft. The longtime OpenAI backer, which has poured roughly $13 billion into the startup, is also reportedly involved in the latest round.
The news comes a day after the initial report of the funding being led by Josh Kushner's Thrive Capital with a $1 billion investment. (It's been a busy month for Kushner, who also spent almost $30 million on a legendary Malibu beach house.)
It's not just money coming in. The WSJ also reported some OpenAI investors are looking to sell their shares.
The reports show how tech's biggest players are picking sides and placing bets on the companies they view as the future in an AI ecosystem bound to consolidate.
Apple already has ties to OpenAI with ChatGPT being incorporated into its products. But it also seemed open to partnering with other players in the space. (In March, it was rumored to be mulling a deal with Google.)
Investing in OpenAI doesn't necessarily mean Apple can't work with other players. Microsoft is building its own AI model separate from OpenAI. But an investment makes clear there is a financial incentive for Apple to see OpenAI remain at the top.
The three biggest companies in the world want to invest in your company. What could possibly go wrong?
Adding so much firepower to one's balance sheet is obviously good, but it's also bound to draw Washington's attention.
Everyone is already on edge about the threat of AI. And OpenAI and CEO Sam Altman haven't done a great job of calming nerves. Add in the fact regulators have started cracking down on Big Tech for what they view as monopolistic tendencies, and you can see where this is going.
A minority investment isn't the same as an outright acquisition, so there is some legal wiggle room. But investments like these will raise eyebrows as some lawmakers will likely want to avoid more consolidation of power.
Meta, Amazon, Anthropic, and, most notably, Google all remain in the AI race. But Apple and Nvidia's interest in OpenAI makes clear it's time to start picking sides.
News brief
Top headlines
- A Kroger exec reportedly testified that the supermarket giant raised prices of milk and eggs beyond inflation costs.
- Nvidia is in for a fight to maintain dominance in this area of AI computing as the field crowds with contenders.
- Tyson's finance chief is out of the job. The Tyson heir got the gig at 32, making him the youngest Fortune 500 CFO.
- A top CIA official said Taylor Swift's Austria concert was targeted by people who plotted to kill 'tens of thousands' in a terror attack.
- Putin and Kim Jong Un's new alliance is proving to be a win-win.
- Signal president says she spent 2 sleepless days dealing with the fallout of Elon Musk's criticism.
3 things in markets
- Everyone's favorite high-rate environment trade is about to end. The "T-bill and chill" trade was the go-to bet for investors looking to cash in on high interest rates. A looming rate cut will diminish those returns, but JPMorgan has some ideas on how to reposition your portfolio.
- Speaking of trades that won't last… The small-cap stocks rally — fueled by future rate cuts, rotation out of Big Tech, and a potential soft landing — could be winding down. If the US economy continues to cool, the sector will likely start underperforming.
- Balyasny dreams of AI analysts. The hedge fund wants to build an AI equivalent of a senior analyst. Thanks to a recent breakthrough by its Applied AI team, it's one step closer to that goal. A new tool can scan tens of thousands of documents and provide detailed reports in a fraction of the time it would take a human researcher.
3 things in tech
- Nvidia is extraordinary, but it isn't otherworldly. The chipmaker's stock dipped on Wednesday after it reported earnings, despite blowing past expectations for Q2. Although Nvidia is still growing, it can't keep pace with investors' loftiest dreams. Its growth is starting to look more like another notable tech company's — but Wall Street still thinks it's a good time to buy.
- When will ServiceTitan go public? The startup, which makes software for service workers like plumbers and electricians, filed confidential paperwork to go public in 2022. Now, execs are waiting until after the election to make any decisions. The move could push its IPO into 2025.
- Wait, Apple has a sports app? Launched in February, the Apple Sports app has yet to garner a meaningful following. And while it just announced some new features, the actual purpose of Apple Sports still remains murky.
3 things in business
- Thanks to Kamala Harris, it's YIMBYs' time to shine. Pro-housing advocates, known as the "yes-in-my-backyard" or "YIMBY" camp, are having a moment thanks to the Democratic Party's sudden shift in policy. A quickly organized group, YIMBYs for Harris, raised more than $100,000 at a virtual fundraiser.
- Dollar General just showed how bad things are for budget-conscious shoppers. The store's stock plummeted 30% after reporting worse-than-expected Q2 results. It warned that its low-income shoppers have pulled back their spending — and that it could get even worse.
- MrBeast's PR crisis won't be solved in court. Jimmy Donaldson, the YouTuber known as MrBeast, is in hot water over a string of controversies regarding his associates and the conditions on his gameshow. He's hired a super lawyer to muscle through it — but PR experts say that won't help him win back fans. Here's what they think he should do instead.
In other news
- Sleep in this weekend — it may help you live longer and avoid heart disease.
- I was scammed out of $300K in a 3-month government impersonation scam.
- A nutrition coach to elite athletes helps clients boost their longevity. He focuses on 3 key things.
- First, he banned WFH. Now, this billionaire wants to stop his staff from going on coffee runs.
What's happening today
- Telluride Film Festival begins in Colorado.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.