Debate grows over truth and control in the age of AI
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
41 minutes ago
- CNA
SoftBank's AI investment spree to be in focus on at Q1 earnings
TOKYO :When Japan's SoftBank Group reports earnings on Thursday, its mammoth investments in artificial intelligence companies are set to take the spotlight. Analysts and investors are keen for updates on how they will be financed, the timeline for returns to materialise and whether assets will be sold to fund the new projects. SoftBank has embarked on its biggest spending spree since the launch of its Vision Funds in 2017 and 2019. It is leading a $40 billion funding round for ChatGPT maker OpenAI. SoftBank has until the end of the year to fund its $22.5 billion portion, although the remainder has been subscribed, according to a source familiar with the matter. It is also leading the financing for the Stargate project - a $500 billion scheme to develop data centres in the United States, part of its effort to position itself as the "organiser of the industry," founder Masayoshi Son said in June. SoftBank has yet to release details on what kinds of returns its financing of the Stargate project could generate. The extent of third-party investment will determine what other financing tools, such as bank loans and debt issuance, it may have to deploy. In July, SoftBank raised $4.8 billion by selling off a portion of its holding in T-Mobile. "If other sources of capital are less supportive, SoftBank could look to asset-backed finance, which is collateralised by equity in other holdings," Macquarie analyst Paul Golding said. The Japanese conglomerate is expected to post a net profit of 127.6 billion yen ($865 million) in the April-June quarter, according to the average estimate of three analysts polled by LSEG. That would mark SoftBank's second consecutive quarter of profit and follow its first annual profit in four years when it was helped by a strong performance by its telecom holdings and higher valuations for its later-stage startups. Its results are, however, typically very volatile and difficult to estimate due to manifold investments, many of which are not listed. SoftBank's performance in exiting from investments and distributing profits has been patchy of late. The Vision Funds had made a cumulative investment loss of $475 million as of end-March. That said, 13 of 18 analysts have a "buy" or "strong buy" rating for SoftBank's stock, according to LSEG. Although there is some concern in the market that AI-related valuations have become bubbly, they continue to climb. OpenAI is in early-stage discussions about a stock sale that would allow employees to cash out and could value the company at about $500 billion, according to the source - a huge jump from its current valuation of $300 billion.
CNA
an hour ago
- CNA
Bumble's paying user drop sparks concerns over pace of AI-driven revamp
Bumble's paying users fell in the second quarter, the dating app operator said on Wednesday, clouding hopes of a quick turnaround and sending its shares slumping 8 per cent in extended trading. The company, which operates an eponymous app, has turned to artificial intelligence to combat the "dating fatigue" that has plagued the industry. Analysts, however, say Bumble has trailed bigger rival Tinder-parent Match Group as many of the company's efforts remain in early testing phases. The dating app's total paying users decreased by 8.7 per cent to 3.8 million in the second quarter. "The primary concern at this stage remains the headwinds in paying user growth, which Bumble needs to address to re-engage its core audience," said Chandler Willison, research analyst at M Science. In the three-month period to June, the company posted a net loss of $367.0 million, including $404.9 million of non-cash impairment charges, compared to a net profit of $37.7 million, a year earlier. The company, which named a new chief financial officer, did not specify the reasons behind its one-time cost. In its bet to provide real connections, Bumble has introduced a new coaching hub powered by both human expertise and artificial intelligence. The company said on Wednesday it would introduce an all-new Bumble BFF application this month to woo Gen Z customers and will also have new community-focused events to help users build offline friendships. Bumble posted second-quarter revenue of $248.2 million, compared with analysts' average estimate of $245.1 million, according to data compiled by LSEG. The company said Kevin Cook, who was recently financial head at data management platform Cloudera, would succeed interim CFO Ronald Fior, effective August 12. Bumble forecast third-quarter revenue between $240 million and $248 million, largely above analysts' estimates of $241.4 million, according to data compiled by LSEG.
CNA
an hour ago
- CNA
Apple says Samsung will supply chips from Texas factory
Apple said on Wednesday that Samsung Electronics will supply chips from its production plant in Texas for Apple products including iPhones. "This facility will supply chips that optimize power and performance of Apple products, including iPhone devices," Apple said in a statement. A Samsung spokesperson declined comment. The statement was made as part of Apple's announcement it would spend an additional $100 billion in U.S. investments, bringing its total investment commitment to the country to $600 billion over the next four years. Tesla recently signed a $16.5 billion deal to source chips from Samsung, with Tesla CEO Elon Musk saying in late July that Samsung's new chip factory in Texas would make Tesla's next-generation AI6 chip. Samsung's chip contract manufacturing business is expected to reduce losses by securing new orders in 2026 to make image sensor chips for iPhone 18s and chips for Tesla, Pak Yuak, analyst at Kiwoom Securities, wrote in a note late last month.
