Google’s AI search has been making headlines for its bizarre suggestions. Recently, it recommended eating small rocks daily, which is clearly dangerous. On a brighter note, stocks surged before the holiday weekend. The Nasdaq reached a new high, driven by Nvidia’s optimistic earnings. Crypto saw a boost with the approval of the first spot-ethereum ETFs by the SEC.
OpenAI’s Licensing Deal: A Game-Changer for News
OpenAI’s recent licensing deal with the Wall Street Journal owner, News Corp, could reshape the news landscape. The $250 million deal allows OpenAI to use articles from News Corp brands. This partnership will help OpenAI train its bots and provide accurate answers to user questions. This collaboration signals a shift as the news industry warms up to Big Tech.
OpenAI isn’t new to such deals, having partnered with Axel Springer and the Associated Press. Google has also been involved, paying smaller outlets for AI-generated articles. However, not all publishers are on board. Some, like The New York Times, are suing OpenAI and Microsoft for copyright infringement. Nearly 90% of major US news outlets block their sites from being crawled for AI training.
Silicon Valley’s history of sudden pivots has often affected newsrooms. Meta and Google’s algorithmic changes have significantly impacted web traffic. Before AI news-licensing, social media deals were the norm. Meta’s Facebook News tab, launched in 2019, was one such example. However, it was later scrapped, shifting focus to creator content. Now, Meta might be considering news deals again, this time for AI training data.
Events to Watch This Week
This week brings several key events. On Thursday, Costco, known for selling everything from groceries to gold bars, will report its earnings. Recent trends show that essential, budget-friendly businesses are thriving. Walmart’s success as higher-income shoppers trade down highlights this. In contrast, Target, which relies on discretionary items, reported declining sales. Costco’s membership-based model and bulk bargains make it a strong contender in the current economy.
Millennial mall favorites like Abercrombie & Fitch, American Eagle, and Gap are also reporting this week. These brands exceeded sales expectations in the holiday quarter. Abercrombie & Fitch saw a 35% revenue boost, while American Eagle’s collaborations created significant buzz. Gap is trying to revamp Old Navy with a new designer, aiming to capture the “cool” factor. This is crucial as consumers become more selective with their spending.
Key Stories to Follow
Several stories are worth keeping an eye on. The Federal Reserve has investors on an emotional roller coaster with its mixed signals. Hopes for a rate-cut summer are fading as officials discuss potential rate hikes. Goldman Sachs’ CEO predicts no cuts this year. However, news of cooling inflation in April provided some consolation.
New college graduates face a tough job market. Employers are hiring fewer fresh grads, and entry-level roles now often require years of experience. By April, less than 25% of grads had full-time jobs lined up, down from over a third. The unemployment rate for young grads has also risen to 5%. One reason could be the rise of AI, which has replaced some entry-level positions.
Lastly, the housing market is undergoing changes. Prospective buyers should stay informed about new trends and insights from major mortgage lenders. It’s essential reading for anyone looking to navigate the housing market efficiently.
Stay tuned for more updates and insights on these developing stories.
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