—— OpenAI and Microsoft Sued for Data Theft; Google Leads Investment in AI Video Startup; LA Homeless Population Hits Record High; JPMorgan Overtakes Goldman in M&A Rankings; Google Shuts Canadian News Service; French Retailer Casino Tumbles on Debt Swap; US Inflation Could Return to 2% by Late 2024
1. OpenAI and Microsoft Sued for Data Theft
A group of anonymous plaintiffs has sued ChatGPT developer OpenAI, accusing the company of stealing vast amounts of personal information to train its AI models.
Microsoft, which plans to invest $13 billion in OpenAI, was also named as a defendant.
According to the group, OpenAI scraped 300 billion words from books, articles, websites, and social media posts without consent.
The plaintiffs, disclosing only their professions and initials to avoid retaliation, estimate that more than a million people were affected, with potential economic damages exceeding $3 billion.
ChatGPT and other generative AI applications have sparked widespread concern and debate about privacy and fraud risks.
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2. Google Leads Investment in AI Video Startup
Runway AI Inc., a startup that enables users to generate short videos from simple text prompts, raised $141 million in a funding round led by Google, Nvidia, and Salesforce.
In December, Runway raised $50 million in a Series C round led by Felicis Ventures. Since its founding in 2018, Runway has raised a total of $237 million.
AI startups have drawn surging global investor interest this year, placing Runway in a strong position.
While AI development for text and image generation is booming, video creation is poised to deliver the next breakthrough.
AI video generation is expected to significantly enhance creators’ efficiency and has wide future applications.
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3. LA Homeless Population Hits Record High
According to the Los Angeles Homeless Services Authority’s annual estimate, the number of homeless individuals in LA County surged 9% from 2022 to a record 75,518 people as of January.
LAHSA volunteers tallied individuals sleeping in cars, on sidewalks, and in alleys across the city.
The survey also found 46,000 unhoused individuals in Los Angeles city proper, a 10% year-over-year increase.
Mayor Karen Bass warned today that without immediate action, the numbers could climb even higher next year.
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4. JPMorgan Overtakes Goldman in M&A Rankings
According to Bloomberg data, JPMorgan participated in $284 billion of M&A transactions this year, accounting for a 22.5% market share, while Goldman Sachs handled $237 billion, losing the top spot for the first time in five years.
The last time Goldman ranked second was in the first half of 2018. However, Goldman still has a chance to reclaim first place by year-end.
Over the past 20 years, Goldman has only missed the top annual spot three times.
JPMorgan’s climb highlights shifting dynamics in the competitive M&A advisory landscape.
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5. Google Shuts Canadian News Service
Today, Google announced it will shut down Google News in Canada and block links to any news outlets.
Last week, Meta said it would block all news links on Facebook and Instagram for Canadian users.
Canadian Prime Minister Justin Trudeau previously accused Google and Meta of bullying politicians and passed a law requiring tech companies to pay news publishers.
Google said the Online News Act is effectively a “link tax,” arguing that it undermines the nature of search engines and the internet.
Meta and Google’s moves are seen as pressure tactics against Canadian lawmakers.
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6. French Retailer Casino Tumbles on Debt Swap
Shares of French grocery chain Casino plunged 37% today after the debt-laden company announced plans to convert €1.5 billion in secured bonds into equity, severely diluting existing shareholders.
Casino had already converted €3.6 billion in unsecured bonds into shares earlier.
As a result, parent company Rallye will lose control, with Rallye’s shares also dropping 45%.
Casino and Rallye negotiated future cash flow projections with creditors before agreeing on the debt restructuring plan.
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7. US Inflation Could Return to 2% by Late 2024
Lael Brainard, President Biden’s chief economic adviser, said today that inflation could fall back to around 2% by November 2024.
Brainard noted that sticky housing costs are expected to ease significantly by then. She also emphasized government investments in infrastructure, semiconductors, and green energy.
Asked whether a recession was likely, the 61-year-old said the economy currently appears resilient, and steady, sustainable growth is the goal.
Ahead of the 2024 election, the Biden administration is eager to improve public perception of the economy.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.