The way publishers are approaching generative AI is changing as the media industry evolves its outlook on the technologies of the future. Questions had initially centered around how it would impact their workforce or operations, as well as how they could benefit from, or be harmed by, the new developments. Some of those answers are now becoming apparent in many parts of the publishing space, ranging from movies and music to online content and the printed word.
Backdrop: In the early innings of the AI revolution, firms banded together to stave off any threats to their bottom line. Hollywood actors and writers went on strike in part over fear that they might lose or share revenue with machines, while news and media companies started talks to establish a united front against Big Tech over "content scraping" and training their AI models on data produced by their organizations. It now looks like each industry and company will reach separate deals with internet giants that wield tremendous power over distribution and visibility.
Microsoft (MSFT)-backed OpenAI just signed a major content licensing deal with News Corp. (NWSA), which could be worth more than $250M over five years, sending shares of the latter up 7% in premarket trading. That'll give OpenAI access to The Wall Street Journal, Barron's and MarketWatch, and follows similar deals with The Financial Times and Axel Springer - the parent company of Business Insider and other publications. Google (GOOG) (GOOGL) also inked a deal with Reddit (RDDT) earlier this year to use the platform's content to train its AI models, while Meta (META) is reportedly looking to follow suit.
Outlook: Things aren't only evolving in the world of content licensing, but are also beginning to change in the world of content writing. Journalists and writers are experimenting with generative AI for article outlines, headlines and even text. Over at The Washington Post, a new strategy announcement reportedly declared that the paper has to have "AI everywhere in our newsroom" as it seeks to find a way out of its financial hole. The vast majority of Wall Street Breakfast subscribers believe that publishers should currently be required to use a disclaimer when using AI, but will that change as things evolve? Join the discussion in the comments section.
Superpower unleashed
Nvidia (NVDA) surged 6% AH on Wednesday, breaking through the $1,000 level, after the semiconductor giant reported quarterly results and guidance that topped Wall Street's expectations. That wasn't all. The AI darling announced a 10-1 stock split, more than doubled its quarterly dividend, and sent the market on a ride with Nasdaq futures up 1% in overnight trading. "The next industrial revolution has begun," CEO Jensen Huang declared. "Companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing to produce a new commodity: artificial intelligence." (344 comments)
Stronger protections
Looking to bring more oversight to the fast-growing space, the Consumer Financial Protection Bureau has issued an interpretive rule that will treat "buy now, pay later" lenders essentially the same as credit card issuers. BNPL providers like Affirm (AFRM), PayPal (PYPL) and Block's (SQ) Afterpay will now be required to refund returned products, investigate merchant disputes, and provide bills with fee disclosures. Credit card firms currently comply with such rules under the decades-old Truth in Lending Act, but the CFPB has been clamping down on the space, most recently finalizing a rule to cap credit card late fees. (3 comments)
Breaking up
DuPont (DD) is joining sprawling conglomerates like General Electric (GE) and Johnson & Johnson (JNJ) in splitting its businesses into more focused companies. The chemical giant - which was formed in 1802 - will separate into three publicly traded entities, sending its shares up about 5% in premarket trading. DuPont CEO Ed Breen said the break-up plan will unlock incremental value for shareholders and customers, and announced that current CFO Lori Koch will succeed him in his current role, effective June 1. Breen will transition to full-time executive chairman. (14 comments)
Today's Markets
In Asia, Japan +1.3%. Hong Kong -1.7%. China -1.3%. India +1.6%.
In Europe, at midday, London flat. Paris +0.3%. Frankfurt +0.2%.
Futures at 7:00, Dow +0.1%. S&P +0.6%. Nasdaq +1%. Crude +0.7% to $78.13. Gold -1% to $2,368.20. Bitcoin -0.3% to $69,867.
Ten-year Treasury Yield unchanged at 4.42%.
Today's Economic Calendar
8:30 Initial Jobless Claims
8:30 Chicago Fed National Activity Index
9:45 PMI Composite Flash
10:00 New Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
3:00 PM Fed's Bostic Speech
4:30 PM Fed Balance Sheet
Companies reporting earnings today »
What else is happening...
Fed minutes: Data didn't increase confidence toward inflation goal.
Target (TGT) falls after pointing to consumer discretionary softness.
Bird flu fears: Vaccine makers see double-digit percentage gains.
Biden cancels $7.7B more in student debt for 160,000 borrowers.
In orbit: SpaceX spy satellites and new Russian 'space weapon.'
Snowflake (SNOW) revenue and outlook shatter expectations.
Anglo American rejects new BHP (BHP) offer, but extends deadline.
British Prime Minister Rishi Sunak calls for national election in July.
Live Nation (LYV) sinks on report DOJ antitrust action is ready.
Solar benefits: An end to China's profit-slashing price war?
