Another Sign of A Softening Labor Market
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Bloomberg
33 minutes ago
- Bloomberg
Meta in Talks for Scale AI Multi-Billion Investment
Live on Bloomberg TV CC-Transcript 00:00Not exactly a household name. What do scale AI do. And how significant is the investment? Yeah, absolutely. Few people have heard outside of the world of technology and of course of this company, but it has grown in prominence. And now, of course, it's making headlines with this potential investment, 0 billion from META, as you say, one of the biggest private sector investments that we would have seen for years. So Scale AI it focuses on one of the three key components that you need to build out large language models, which is data. So you have energy chips and data, though those are the three main components that come together. And scale AI is squarely focused on data. So they train up, or at least they build out quality data that these models then feed in to train on and they hire PhDs and others to help work through that data and quantify it and tag it. So that's essentially the business model. They've also providing their own solutions into enterprise and have been pushing into defence as well. And I think what this deal tells us is a few things. One Meta of course, that Mark Zuckerberg is not going anywhere in terms of its investments around A.I.. They've pledged to invest at least $60 billion this year and 10 billion now for scale A.I.. If this, of course, comes to pass, so Meta is full bore on the focus on AI, particularly as well around data, it's a reminder that data is becoming a key battleground because along with energy and chips getting hold of the data, quality data is becoming increasingly difficult for these large language models. And so there is a fight on that spectrum as well. And then the third part of this, I think, in terms of what it tells us is defence technology Meta is increasingly working with the Pentagon, particularly further around things like virtual helmets and AI infused helmets for the military. And scale AI already has relationships with the Pentagon. So I think it's also a reminder that matter is getting closer in terms of defence technology as well. So on all three levels, I think those are the significance In terms of the deals that came through this company. Scale AI was valued at 14 billion USD back in 2024. You can imagine that that valuation is much higher now. Yeah. And also we've got London Tech Week kicking off today. What's the top of the agenda? Well, I was talking about data and energy and chips while chips will be front and center because Jensen Huang of nvidia will be giving the keynote speech at London Tech week later this morning alongside the Prime Minister Keir Starmer. Nvidia also expected to announce Jensen Huang some investments here in the UK around training the workforce to be able to use these A.I. applications. They've pledged to train about 100,000 people up until about 2030, investing in the R & D space as well in Bristol, Bristol here in the UK. So the focus is going to be on Jensen Huang has to say at that keynote speech and those investments and how the UK is trying to position itself in this AI race versus the US versus China and also as well versus their counterparts across the channel in Paris because France is also hosting Viva Tech, which is a big tech event and Jensen Huang will be going there as well. And France has been able to build out an AI ecosystem with tax cuts. That is something that arguably the UK government be looking for, which is desperate for growth. And there is one solution for this UK government. They hope to drive growth levels higher in the UK.
Yahoo
43 minutes ago
- Yahoo
US firms say Trump trade war is hitting production as dollar nears three-year low
US manufacturers have warned that Donald Trump's trade war is hitting production, pushing the dollar close to a three-year low against sterling on Monday. The greenback suffered a fresh sell-off, after the closely watched ISM survey of the manufacturing sector signalled a third monthly decline in output in a row. The ISM purchasing managers' index fell to 48.5% in May – below 50 signals contraction. Related: China accuses US of 'seriously violating' trade truce Comments from participants in the monthly poll underlined the damage being caused by the president's on-off tariff policies. 'Uncertainty due to the recent tariffs continues to weigh on profitability and service. An unresolved (trade deal with) China will result in empty shelves at retail for many do-it-yourself and professional goods,' a paper producer said. A chemicals producer reported: 'Most suppliers are passing through tariffs at full value to us.' Many US companies have struggled to keep track of the rapid reversals in trade policy in recent weeks. The dollar dipped to $1.3542 against sterling after the downbeat manufacturing survey was published, close to the three-year lows in late May. It also fell by about 0.5% against a basket of currencies. Concern about the probable economic impact of Trump's tariff policies intensified over the weekend, after he announced a 50% tariff on steel on Friday – up from 25%. Trump also suggested China had 'violated' the terms of a 90-day pause in the trade war between the two countries. Tariffs of 145% on Chinese exports were slashed last month to 30% for 90 days as the two sides agreed to discuss details of a wider deal. It is unclear what aspect of this truce Trump was accusing Beijing of breaching. The status of Trump's 'reciprocal' tariffs on a string of countries remains unclear, after a US court ruled last week that he overstepped his powers in imposing them – a decision the White House is challenging. The dollar has repeatedly come under pressure since Trump's 'liberation day' tariff blitz in April. At the same time, the yield on US Treasuries has risen – potentially a signal of anxiety among investors about the government's ability to repay its debts. The Treasury secretary, Scott Bessent, said on Sunday that the US would 'never default', amid growing concerns about the financial sustainability of plans for significant tax cuts, contained in Trump's 'big, beautiful' budget bill. 'We are on the warning track and we will never hit the wall,' Bessent told CBS, rebuffing comments by the JP Morgan Chase chief executive, Jamie Dimon, that bond markets could 'crack' under the weight of US government debts.
Yahoo
43 minutes ago
- Yahoo
Tech shares climb after strong Nvidia results despite warning over rise of Chinese rivals
Technology shares climbed on Thursday, buoyed by strong results from Nvidia, despite the AI chip company's boss issuing a warning about the rise of Chinese rivals. The Stoxx Europe tech index rose by 0.8% on Thursday following Nvidia's financial report, with the Dutch semiconductor equipment maker ASML rallying by 2.4%. In the US, futures for the tech-focused Nasdaq climbed 2%, and shares in Nvidia itself jumped 6% in pre-market trading. The boost to tech and artificial intelligence stocks came hours after Nvidia beat Wall Street forecasts, with quarterly revenues jumping 69% to $44bn (£32.6bn). The company also said it expected deals in the Middle East to start to fill a gap left by the loss of Chinese business. In April the US president, Donald Trump, said he was restricting AI chip exports to China, in effect barring Nvidia from selling its H20 AI chips to Chinese companies and blocking a major source of its revenue. Nvidia's chief executive, Jensen Huang, warned that Chinese rivals were benefiting from the void left by US firms forced to abandon the market due to US trade restrictions. 'The Chinese competitors have evolved,' Huang told Bloomberg Television. He added that Huawei, which had been blacklisted by the US government, had become 'quite formidable'. 'Like everybody else, they are doubling, quadrupling capabilities every year,' Huang said. 'And the volume is increasing substantially.' While the US government policy is meant to keep AI technologies out of the hands of Chinese actors, Huang said local companies are simply finding other options. 'You cannot underestimate the importance of the China market,' Huang said. 'This is the home of the world's largest population of AI researchers.' Nvidia said it expects to miss out on $8bn in revenue in the second quarter as a result of Trump's trade restrictions. Tech investors were also optimistic after a US trade court ruled against Trump's sweeping tariffs regime, in a move that could ultimately block the president's sweeping trade levies. But there is further uncertainty ahead, with the White House having already filed an appeal against the decision, issued by judges from the New York-based court of international trade. Meanwhile, shares in Tesla, another leader in artificial intelligence technology, rose 2.6%, after the company's chief executive, Elon Musk, confirmed that he would formally leave his role in the Trump administration. Musk has been leading the 'department of government efficiency' (Doge) since January, which ruthlessly cut state spending across a number of public departments and agencies. He said in April he would be stepping back after seeing Tesla's earnings plunge and failing to win a supreme court race in which he spent millions of dollars supporting a Republican candidate. 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
