OpenAI to buy Jony Ive's AI startup IO Products for $6.4 billion
CNBC's Pippa Stevens joins 'The Exchange' to discuss OpenAI to buy Jony Ive's AI startup IO products for $6.4 billion.
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OpenAI says this state will play central role in artificial intelligence development
New York is poised to play a central role in the development of artificial intelligence (AI), OpenAI executives told key business and civic leaders on Tuesday. OpenAI CEO Sam Altman spoke at a private event hosted by the Partnership for New York City and the AI firm revealed a report showing that New York is well-positioned to play a central role in AI development, unlike during other stages of the digital economy, a source familiar with the event told FOX Business. Altman spoke to the business and civic leaders in attendance and outlined how he sees AI progressing in the next three years as well as why he sees New York as well-positioned to play a leading role in AI development. According to a copy of the OpenAI report obtained by FOX Business, New York is the top market in the world for active users of the enterprise version of ChatGPT. It also ranks second among U.S. states in terms of developers building their products on OpenAI's infrastructure, while it trails only California and Texas in terms of weekly ChatGPT users. Openai Backs Off Push To Become For-profit Company "OpenAI belongs here," the company wrote in the report. OpenAI said it has more employees working out of its office building in New York City than in any other office aside from San Francisco, and that it has room to triple its size. Read On The Fox Business App "New York's world-class higher ed institutions and irresistible pull for graduates from around the world will help us deliver on our mission to build AI that benefits the most people possible," OpenAI wrote. OpenAI chief economist Ronnie Chatterji also spoke to the business and civic leaders in attendance about how AI can increase productivity and fuel economic growth, according to a source familiar with the event. Openai Shakes Up Corporate Structure With Goal Of Scaling Up Agi Investment The report noted that economists have projected a wide range of increased productivity from AI, ranging from 0.06% at the low-end to 18%. OpenAI explained that even at the low end, it would add billions of dollars to U.S. gross domestic product given a nearly $30 trillion GDP. It also said factors that will affect the advancement of AI include geography, organizations and values. OpenAI added that implementing commonsense rules to protect people from the harms of AI and based on democratic values like those the U.S. has represented on the world stage will help ensure the technology helps as many people as possible. OpenAI's report also addressed concerns some have raised about the impact of AI on the labor force, as the company wrote that new innovations often complement workers rather than substitute them. It also said new technologies can lead to the creation of new types of jobs, noting that most of the professions in the workforce today didn't exist prior to article source: OpenAI says this state will play central role in artificial intelligence development
Yahoo
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1 Spectacular Growth Stock Down 74% to Buy Hand Over Fist, According to Wall Street
Confluent's data streaming platform helps organizations create live experiences for their customers. Data streaming is becoming a critical piece of the artificial intelligence (AI) revolution, because chatbots require constant access to real-time information. Wall Street analysts are bullish on Confluent stock, and it's trading near the cheapest level in its history. 10 stocks we like better than Confluent › Wall Street analysts don't always get things right, but it can pay to listen when they reach a consensus on a particular stock. The Wall Street Journal tracks 34 analysts who cover Confluent (NASDAQ: CFLT) stock, and the majority have assigned it a buy rating, with no analysts recommending selling. Confluent developed an industry-leading data streaming platform, which helps some of the world's biggest organizations deliver real-time digital experiences to their customers. But it's also becoming a key proponent of the artificial intelligence (AI) revolution, which could be a major growth driver for the company from here. Confluent stock is down 74% from its record high, which was set during the tech frenzy in 2021. Its valuation was unsustainable back then, but it's now trading near the cheapest level ever. Here's why Wall Street is right to be optimistic. Confluent is used by companies in a variety of industries, including retail, banking, and even sports betting. Walmart uses Confluent's platform to connect data between all of its physical stores and its online store so it has a real-time view of its inventory. This means Walmart instantly knows whenever a product is sold, so it can restock the shelves before they run bare. Plus, when shopping online, customers always have up-to-date information on whether a product is available before buying it. Sports betting and investing platforms use data streaming in a slightly different way. AI allows them to calculate odds or prices, feed them to customers' devices, and accept bets or orders, all in a matter of seconds. Without this technology, they would have to rely on cumbersome phone-based processes, and products like live in-game wagering on sporting events probably wouldn't exist. Data streaming also plays a pivotal role in AI, because a chatbot can only produce accurate responses if it has access to real-time data on command. Businesses can use Confluent's platform to build data pipelines, which they can plug into ready-made AI models like those created by OpenAI, in order to create a tailored experience for their customers. For example, let's say you're scheduled to catch a flight tomorrow and you want to inquire about a potential delay or even change your departure date. A mainstream chatbot like OpenAI's ChatGPT can only provide you with generic information, like how much it might cost to bring extra baggage onto a plane. However, if the airline plugs its data pipelines into OpenAI's models, it can create a custom chatbot that can assist with inquiries specific to your flight. Therefore, companies that invest in data streaming platforms like Confluent could save untold amounts of money over the long term by automating customer service workflows. According to the 2025 Data Streaming Report by Radma Research, 68% of information technology leaders from around the world plan to increase their investments in data streaming over the next two years. Confluent's subscription revenue came in at $260.9 million during the first quarter of 2025 (ended March 31), a 26% increase from the year-ago period. It marked an acceleration from the 24% growth the company delivered in the final quarter of 2024 three months earlier, which highlights the momentum in its business. The strong result was driven by two things. First, Confluent's net revenue retention rate was 117% during the quarter, meaning existing customers were spending 17% more money on the platform than they were in the year-ago period. Second, Confluent's customer base grew to a record high of 6,140 businesses, which included a 25% jump in the number of customers spending at least $1 million on its platform annually. But there is one caveat. Ongoing global trade tensions spurred by President Donald Trump's tariffs could put a dent in economic activity, which would impact corporate spending on platforms like Confluent. As a result, management slightly reduced its revenue guidance for 2025 to $1.11 billion, from $1.12 billion previously (at the high end of the forecast range). Turning to the bottom line, Confluent made some progress during the first quarter because it carefully managed its operating expenses, which only grew by 13%. Since revenue grew much faster, the company's generally accepted accounting principles (GAAP) net loss shrank by 27% year over year and came in at $67.5 million. But the company was profitable on a non-GAAP basis, which is a better indicator of how much money the business is generating because it excludes one-off and noncash expenses. Its non-GAAP net income came in at $28.9 million, which was up by a whopping 83% compared to the year-ago period. Confluent's focus on managing costs to drive profitability will create a more sustainable business for the long term. When Confluent stock peaked in 2021, its price-to-sales (P/S) ratio soared to around 60, which was completely unsustainable. But the 74% decline in the stock since then, combined with the company's consistent revenue growth, has pushed its P/S ratio down to 7.8. That is near the cheapest level since the stock went public: Valuation might be one reason Wall Street is bullish right now. The Wall Street Journal tracks 34 analysts who cover Confluent stock, and 21 have assigned it a buy rating. Five others are in the overweight (bullish) camp, and seven recommend holding. While one analyst has given the stock an underweight (bearish) rating, none recommend outright selling. The analysts have an average price target of $28.13, which implies a potential upside of just 15.5% over the next 12 to 18 months. The Street-high target is a little more juicy at $36, which suggests a potential upside of 47.8% instead. The consensus target might not sound compelling, but I would urge investors to focus on the longer term. Confluent values its addressable market at more than $100 billion today -- a figure that has doubled since 2021 -- and based on the company's current revenue, it has barely scratched the surface of that opportunity. As AI adoption grows, I would expect Confluent's addressable market to expand even further. In summary, this stock offers investors a unique, out-of-the-box way to expose their portfolios to the AI boom, and it could be a great long-term buy, especially at the current price. Before you buy stock in Confluent, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Confluent wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool recommends Confluent. The Motley Fool has a disclosure policy. 1 Spectacular Growth Stock Down 74% to Buy Hand Over Fist, According to Wall Street was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
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Meta's Zuckerberg aiming to dominate AI race with recruiting push for new ‘superintelligence' team: report
Meta CEO Mark Zuckerberg is reportedly building a team of experts to develop artificial general intelligence (AGI) that can meet or exceed human capabilities. Bloomberg News reported Zuckerberg is looking to build a superintelligence team and is recruiting from a group of artificial intelligence (AI) researchers and engineers who he has been holding a series of meetings with. Zuckerberg believes that Meta is positioned to outpace other tech companies in the race for AGI and has prioritized the recruitment of this team, Bloomberg reported, citing people familiar with the Meta CEO's plans. Zuckerberg plans to hire about 50 people for the new superintelligence team and will personally recruit most of the members, according to the report, which added that Scale AI founder Alexandr Wang is expected to join Meta's AGI team once the tech giant's multibillion-dollar investment in the startup is complete. Facebook Owner Investing Up To $65 Billion Toward Ai In 2025 Bloomberg reported that the recruitment push stems in part from Zuckerberg's frustration with the performance of Meta's most recent large language model, Llama 4. Read On The Fox Business App Zuckerberg announced earlier this year that Meta is investing up to $65 billion towards AI in 2025, including the construction of a massive data center, and said at the time that "Llama 4 will become the leading state of the art model." Meta is working on a new flagship AI model called "Behemoth" – though it delayed its release last month due to concerns about whether its improvements on prior models are as significant as the company has indicated and justify a public release, The Wall Street Journal reported, citing sources familiar with the matter. Openai Says This State Will Play Central Role In Artificial Intelligence Development The Journal reported that the launch of Behemoth had been pushed from April to June, before the most recent postponement pushed it back to the fall or later. Meta had previously indicated Behemoth was outperforming similar models from OpenAI, Google and Anthropic – though sources told the outlet that its performance has been hampered due to challenges in training the AI model. Meta was viewed as lagging behind tech rivals Microsoft and Google as well as OpenAI in the development of AI, but its spending push has helped the parent company of Facebook and Instagram catch up. Other tech firms, including OpenAI and Elon Musk's xAI, are also racing to develop AGI and have pursued additional funding for those efforts. Reuters contributed to this article source: Meta's Zuckerberg aiming to dominate AI race with recruiting push for new 'superintelligence' team: report Sign in to access your portfolio
