…the Wall Street Journal teams up with ChatGPT
| It's called a newspaper, friend. (Silver Screen Collection/Getty Images) | |
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Last Week's Market Moves | | Dow Jones
39,070 (-2.33%) | S&P 500
5,305 (+0.03%) | Nasdaq
16,921 (+1.41%) | Bitcoin
$68,868 (+5.01%) |
| Dow Jones
39,070 (-2.33%) | S&P 500
5,305 (+0.03%) | Nasdaq
16,921 (+1.41%) | Bitcoin
$68,868 (+5.01%) |
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Hey Snackers, Since we said Google's AI search was suggesting glue as a pizza topping, its AI-generated summaries have gotten more unhinged. Recent responses include saying it's healthy to eat one small rock a day (um: don't do that). Stocks entered the holiday weekend on a high note, and the techy Nasdaq closed at a record on Friday after chipper Nvidia earnings boosted AI optimism. Crypto ticked up after the SEC's approval of the first spot-ethereum ETFs. | |
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OpenAI's mega WSJ licensing deal could reshape news as publishers choose sides on AI | Good night, and good luck… ChatGPT's about to consume a lot more articles about ChatGPT. Wall Street Journal owner News Corp and OpenAI sealed what appears to be the largest AI news-licensing deal ever, said to be worth $250M+ over a half decade. The partnership will give OpenAI the right to use articles from News Corp brands (like WSJ, MarketWatch, New York Post) to answer user questions and train its bots. It's the latest example of the beleaguered news industry warming up to Big Tech. Fit to print: OpenAI's made similar licensing deals with publishers including Axel Springer (Business Insider, Politico), IAC's Dotdash Meredith (People), and the Associated Press. Google's reportedly paying small outlets to produce articles with AI. Counterpoint: Publishers including The New York Times and the Chicago Trib have sued OpenAI and Microsoft over copyright infringement. ~90% of major US news outlets have installed blockers to prevent their sites from being crawled for AI training.
We've read this before… Silicon Valley's penchant for pivoting can upend mastheads (nearly 3K newspapers have closed or merged since 2005). For years, newsrooms have been at the whim of algorithmic shifts by Meta and Google, which've dramatically affected web traffic. Before AI news-licensing deals, there were social-media deals. In 2019, Meta launched Facebook's News tab, signing content partnerships with publishers like the WSJ. Then it scrapped them in a pandemic switch to creator content, pulverizing its $2B news budget by 95%. Now Meta's said to be considering news deals once again — this time for AI-training data. |  | THE TAKEAWAY |
| AI needs news… To make their AI search tools useful, Google and OpenAI need access to accurate and up-to-date info. By negotiating with publishers, they may be trying to avoid legal fallout before copyright lawsuits set a precedent. (By one estimate, The Times may be seeking $450B in damages.) But publishers like News Corp, which cut 1.2K staffers last year, are hoping to get ahead of the AI shift before it gets ahead of them. | |
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Sponsored by Rocket Mortgage | | What can home buyers bank on? | Markets move. Housing is no exception — but while trends in the housing market come and go, some things remain constant. For today's prospective buyers, knowing where they can take control hands them power in the process. The Rocket in your arsenal: Explore the new changes to buying a home and mainstays of the housing market with Rocket Mortgage, over at Sherwood.news. In a 5-min read, get the full digest of tips, tricks and actionable insights for your home buying journey and beyond. Read the article on Sherwood.news now.1 |
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| The gold isn't Kirkland… Wholesale icon Costco, which sells everything from mayo gallons to 24k gold bars, reports Thursday. Last week's earnings from Walmart and Target highlighted a trend: the cheaper and more essential your biz is, the better. Grocery leader Walmart did well as higher-income shoppers traded down. Target, whose revenue comes mostly from discretionary items, had another quarter of shrinking sales. Membership-based Costco last reported growing sales and profits as its bargain bulk buys position it to succeed in this tight economy. Y2 comeback… Millennial mall staples Abercrombie & Fitch, American Eagle, and Gap report this week. The trio all blew past sales expectations in the holiday quarter, with revenue at A&F's namesake label booming 35%. Aerie parent American Eagle said its collabs with Gen Z faves like Netflix's "Outer Banks" and E.l.f. Cosmetics generated "strong buzz." Meanwhile, hoodie icon Gap hired a designer in February to freshen Old Navy's brand (New Navy?). Capturing the cool factor is extra important as cash-tight consumers get pickier with their purchases. | |
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| Emotional roller coaster… We're not talking "Bridgerton." Comments from the Fed have put investors on an emotional seesaw as once fervent hopes for a hot rate-cut summer fade. Last week, Fed meeting minutes suggested officials saw a lack of progress in taming inflation, and some discussed the possibility of hiking interest rates again (gasp). "Higher for longer" seems to be the motto, and Goldman's CEO said he expected zero cuts this year. Investors were somewhat consoled by news that inflation cooled in April after heating up for three months. Left on unread… New college grads in search of jobs may struggle to get LinkedIn attention. Employers plan on hiring fewer fresh graduates compared to last year, and some hiring for entry-level roles want years of experience. By April 2023, more than a third of grads had full-time gigs lined up (or had stopped searching). Last month, that fell below 25%, and the unemployment rate for 20- to 24-year-old grads crept up to 5% (versus an overall rate of 3.9%). One possible culprit: AI. Bosses say it's replaced some entry-level gigs. | |
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Sponsored by Rocket Mortgage | | |
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What else we're Snackin' | Request: Investing scammers run ads on Meta's Instagram, hoping to lure traders into stock pump-and-dump schemes (FYI: victims have lost billions to such ploys). Sherwood played along with one to see how it'd unfold. Coin: The crypto industry's raised serious $$ ahead of US elections in support of friendly lawmakers. It may be paying off: last week the US House passed a bill that would defang the SEC's crypto-regulatory powers. 4Rent: The US office-vacancy rate could hit 20% next year, CBRE said. But the sitch isn't all that dire: just 8% of office buildings are half full or below, while two-thirds are 90%+ leased.
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Snack Fact Of the Day | The Federal Reserve Bank of New York houses 25% of the world's monetary gold | | |
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This Week | Tuesday: Case-Shiller US house-price index for March. US Conference Board consumer-confidence index for May. World Hunger Day. Manhattanhenge day one. Earnings expected from Bank of Nova Scotia Wednesday: Fed's "Beige Book" economic report. Manhattanhenge day two. Scripps National Spelling Bee Finals begin. Earnings expected from Abercrombie & Fitch, Chewy, Advance Auto Parts, Bank of Montreal, Salesforce, C3.ai, Okta, HP, and Dick's Sporting Goods Thursday: US jobless claims. World MS Day. Earnings expected from Costco, Gap, Nordstrom, Hormel Foods, Best Buy, Kohl's, Foot Locker, Canopy Growth, Burlington Stores, Dell, Ulta Beauty, NetApp, Birkenstock Holding, Build-A-Bear, and Dollar General Friday: US personal-consumption expenditure index for April, the Fed's preferred measure of inflation
Authors of this Snacks own ethereum and shares of: Alphabet, IAC, Microsoft, Nvidia, and Walmart 1Rocket Mortgage disclosures: The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as financial advice. Borrowers should undertake their own due diligence and carefully evaluate forecasts and factors before entering into a mortgage contract. ©2000-2024 Rocket Mortgage, LLC. All rights reserved. Lending services provided by Rocket Mortgage, LLC. NMLS #3030;www.NMLSConsumerAccess.org. Equal Housing Lender. Licensed in 50 states. For additional information please visit rocketmortgage.com/ legal/disclosures-licenses. 2EnergyX Disclosures: Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. This is a paid advertisement for EnergyX's Regulation A+ Offering. Please read the offering circular and related risks at invest.energyx.com. | |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more | |
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