meta launches microsoft while openai expands its platform

Key Takeaways

• Meta is cutting 8,000 jobs (10% of workforce) and leaving 6,000 open positions unfilled to fund AI spending.
• 98 tech companies have announced plans to cut more than 92,000 employees this year as AI costs force belt tightening.
• Nvidia shares rose 10% after reporting quarterly revenue of $7.1 billion, up 61% year over year, beating estimates by $1.1 billion.
• Nvidia's datacenter revenue jumped 139% to $2.7 billion, while gaming revenue rose 24% to $1.9 billion.
• Intel reported strong Q1 results driven by AI demand for CPUs, selling chips it had previously written off; shares are up 80% this year.
• Starbucks launched a ChatGPT integration that lets customers prompt the AI to choose their beverage, part of a broader turnaround effort.
• A MYOB survey of 500 NZ mid-sized businesses found most have not seen meaningful AI returns; top barriers include cybersecurity (43%), skills (40%), and governance (32%).
• MongoDB appointed Pablo Stern as CPO for AI and Emerging Products and Ben Cefalo as CPO for Core Products, and committed 74 million euros to expand in Ireland.
• The DOJ is supporting xAI in a lawsuit against Colorado, arguing that Bill SB24-205 violates First Amendment rights by forcing AI developers to change how they create products.
• Nvidia is poised to snap its longest stretch without a record close since the AI boom began, with the Philadelphia Semiconductor Index set for its 18th consecutive gain.

Meta to cut 8,000 jobs to fund AI spending

Meta announced plans to cut 10 percent of its workforce, letting go of about 8,000 employees. The company also will not fill around 6,000 open jobs. These cuts are meant to reduce costs and offset Meta's heavy spending on artificial intelligence. The plans were shared in a memo to employees and reported by Bloomberg.

AI costs force more layoffs across big tech companies

Tech companies are cutting costs to afford the artificial intelligence race. Microsoft and Meta have announced layoffs, with Meta cutting 10 percent of its workers or about 8,000 employees. Even younger companies like OpenAI are facing tough financial decisions. Overall, 98 tech companies have announced plans to cut more than 92,000 employees this year. These moves show how AI spending is forcing belt tightening across the industry.

NZ mid-sized businesses struggle to get AI returns

A MYOB survey of 500 New Zealand mid-sized businesses found most have not seen meaningful returns from AI. Australian firms are doing better at combining five key elements that drive ROI: processes, data, AI strategy, AI governance, and workforce capability. Key barriers include cybersecurity and data privacy at 43 percent, skills and change capacity at 40 percent, and governance and compliance at 32 percent. MYOB's Paul Voges said businesses using legacy systems mostly report time savings, while those with AI built into core systems see revenue growth and better profit margins. The survey shows that foundation investments like data integration and workforce upskilling are needed before AI can deliver commercial payoffs.

Starbucks launches ChatGPT platform to help recover sales

Starbucks stock has disappointed shareholders in recent years, but the company is making changes to turn things around. It is on its fourth CEO in five years and making many business changes. Last week, Starbucks announced a new initiative that integrates its platform with ChatGPT. Customers can give ChatGPT a prompt and it will choose their beverage. This move is part of Starbucks' effort to recover and boost sales.

Nvidia stock jumps on strong earnings and AI chip demand

Nvidia shares rose 10 percent in morning trading after the company reported strong quarterly earnings. Revenue grew 61 percent year over year to $7.1 billion, beating estimates by $1.1 billion. The company's datacenter business saw revenue jump 139 percent to $2.7 billion, while gaming revenue rose 24 percent to $1.9 billion. CEO Jensen Huang said the company is confident in its ability to deliver strong results. The earnings beat shows growing demand for AI semiconductor chips used in datacenter, gaming, and autonomous vehicles.

MongoDB appoints AI chiefs and invests 74 million euros in Ireland

MongoDB expanded its product leadership team by appointing Pablo Stern as Chief Product Officer for AI and Emerging Products and Ben Cefalo as Chief Product Officer for Core Products. The company also committed 74 million euros to grow its Ireland-based engineering, AI, and operational footprint by about 200 roles through 2027. These moves show MongoDB's push to deepen its capabilities in supporting real-world AI workloads. However, the company still faces risks from competition and ongoing losses.

Intel shares soar as AI demand drives strong CPU sales

Intel reported strong first-quarter results driven by demand for its central processors from AI service companies. The company even sold chips it had originally written off, a remarkable turnaround. Intel shares have gained about 80 percent this year after jumping 84 percent last year. CFO David Zinsner said the forecast was partly driven by higher prices and tight supply. At least 14 brokerages raised their price targets on Intel's stock. The company's turnaround is gaining steam under CEO Lip-Bu Tan after years of missteps.

Nvidia set to end longest stretch without a record close

Nvidia is poised to snap its longest run without a record close since the AI boom began. The AI chip trade is heating up, with the Philadelphia Semiconductor Index set for its 18th consecutive gain. This would end Nvidia's longest stretch without a record close since the unofficial start of the AI boom. The stock price of the company responsible for powering AI is showing strength again.

DOJ backs xAI in lawsuit against Colorado over AI law

The Department of Justice is supporting xAI in its lawsuit against Colorado. xAI argued that Colorado Bill SB24-205 violates the company's First Amendment rights by forcing developers to change how they create AI products. The law also compels companies to align their products with Colorado's views on diversity and discrimination. The DOJ acknowledged these concerns in its support of xAI's case.

Sources

• Meta to cut 10% of workforce to offset costs of AI investment
• A.I. Is Forcing More Belt-Tightening at Big Tech
• NZ Mid-sized Businesses Lag on AI Investment Returns
• Starbucks Reveals Groundbreaking Artificial Intelligence (AI) Platform. Will It Finally Recover?
• Why Nvidia Stock Popped Today
• Should MongoDB’s (MDB) New AI Chiefs and €74 Million Ireland Bet Require Investor Action?
• Intel set for record high as AI-driven CPU demand powers upbeat forecast
• Nvidia poised to snap longest run without a record close since the AI boom began
• The DOJ is backing xAI in its lawsuit against Colorado