• Front Research
  • Posts
  • Elon Musk Withdraws Lawsuit Against OpenAI, Suspending Claims of Mission Derailment

Elon Musk Withdraws Lawsuit Against OpenAI, Suspending Claims of Mission Derailment

5 minute tech insights.

Author

Kristoffer Lindström
June 12, 2024

INSIGHT

Would you be interested in an advisory service offered by Front Research?

After working in Investment banking as a startup CEO, doing venture investment, driving +5 M&A deals, and being a board member, I have much to share. I am exploring the interest in an advisory service done by Front Research.

Click one of the links below and fill out a 30-second form, and we will contact you!

Advisory service interest

TikTok Shop, the in-app shopping feature of TikTok, has emerged as a significant retailer for the beauty industry. According to a report by Dash Hudson and NielsenIQ, it is currently the ninth-largest online wellness and beauty retailer in the US and the second-largest in the UK. The feature, which has been available for less than a year, allows influencers and brands to sell products directly within the app.

💡 Insight: The rapid ascendancy of TikTok Shop in the beauty industry underscores the potent influence of integrated social-commerce platforms. By embedding e-commerce directly into a highly engaging content ecosystem, TikTok is usurping traditional retailers and reshaping consumer purchasing behavior. However, while TikTok's algorithm-driven virality offers explosive short-term sales for brands, sustainability remains uncertain amid potential regulatory hurdles and over-dependence on platform dynamics.

Elon Musk has withdrawn his lawsuit against OpenAI, according to court records. The suit claimed the company had abandoned its original nonprofit mission by turning into a profit-oriented entity, breaching its founding agreement to freely provide significant AI progress. The reason for the case withdrawal remains undisclosed. This comes amidst Musk's vocal critique on the Apple/OpenAI deal. OpenAI was co-founded by Musk, who left the company in 2018.

💡 Insight: Elon Musk's decision to drop his lawsuit against OpenAI may indicate a strategic shift, potentially leveraging other avenues to influence AI development. This could signal an intensified focus on critiquing OpenAI/Apple collaborations, possibly foreshadowing future competitive moves against these tech alliances.

BRIEF

Apple has introduced AI upgrades for its built-in Mail app on iOS 18, featuring on-device email categorization, Smart Replies, and summaries. The email categorization uses machine learning to sort mails into relevant categories gaining increased efficiency. Interaction with mails from specific companies is simplified through the new Digest view. Users will also receive response suggestions based on the email content and have the ability to preview relevant details from the inbox view. Expected to rollout later this year, the modifications will also include new Writing Tools for enhanced message composition.

Apple shares rose 3.5% to $199.87, marking a 20% leap since an April low and pushing market capitalization beyond $3 trillion. The rise follows the tech giant’s Worldwide Developers Conference, which showcased AI features and announced a partnership with OpenAI. D.A. Davidson upgraded Apple stock to 'buy' on anticipation that the AI-boosted iPhone could trigger an upgrade cycle amongst users. Despite this, Apple's gains still trail behind Nasdaq 100 Index and AI-exposure stocks like Microsoft, Amazon, Alphabet, and Meta Platforms.

In an unexpected move, Microsoft is retiring its consumer-facing Copilot GPT builder in favor of commercial and enterprise scenarios. The tool, released just three months prior, enabled Pro subscribers to construct and share custom, task-specific chatbots but allegedly saw limited uptake. The service will be phased out from July 10, 2024, and all associated data will be deleted in line with Microsoft's data privacy guidelines. Nevertheless, a business-facing version of the Copilot GPT builder could potentially be released, although Microsoft has yet to confirm this.

In an attempt to challenge Google's search dominance, TikTok is testing image search capabilities in the TikTok Shop, enabling users to either take or upload a photo to find similar products. The feature is currently available to all users in the US and Southeast Asia. This move aligns with TikTok's ambitious e-commerce strategy, aiming to keep users on its platform and capitalize on revenues generated through TikTok Shop.

Oracle's Q4 earnings and revenues trailed analysts' expectations, but the tech giant announced major cloud infrastructure agreements with Microsoft, OpenAI, and Google Cloud. The partnerships will extend Microsoft's Azure AI to Oracle Cloud Infrastructure and initiate the building of 12 OCI data centers within Google Cloud. These announcements drove Oracle's shares up over 9% in extended trading.

Voodoo, the French video game and app developer, has acquired the photo-sharing platform BeReal for €500mn. The takeover marks an effort by Voodoo to expand BeReal's stagnant user growth through the introduction of paid advertising. Aymeric Roffé of Voodoo will be BeReal's new CEO, and BeReal's founder, Alexis Barreyat, will remain active in the company.

QUICK

GameStop Banks $2.14B from Shares amid Retail Investor Rally - GameStop Corp. capitalized on a stock rally, raising $2.14 billion from a share sale program. The sales surged after Keith Gill's YouTube promotion, leading to a total raise of $3 billion over the past month.

AlphaSense Secures $650M, Acquires Tegus in $930M Deal, Reaches $4B Valuation - AlphaSense, valued at $4 billion, secured $650 million in funding to facilitate its $930 million acquisition of data provider Tegus, expanding its AI-based market research services.

Raspberry Pi Shares Surge in First Trading, Propelling UK Tech Market - Raspberry Pi's shares jumped a third in institutional trading after setting a price of 280p, implying a £542mn market valuation. The company's 2023 revenues notched $265.8mn, with pre-tax profits nearly doubling to $38.2mn.

YouTube Allows Creators to Test Multiple Video Thumbnails - YouTube has launched a tool, "Thumbnail Test & Compare", enabling creators to evaluate multiple video thumbnails. It also began testing AI-based features and QR codes for creators.

Pipe Rakes in $100M to Boost Capital-as-a-Service Offerings - FinTech company, Pipe, garners $100 million from Victory Park Capital, strengthening its Capital as a Service offerings.

Apple's watchOS 11 Unveils Convenient Translate App Feature - Apple's upcoming watchOS 11 will feature the Translate app, a language translation tool supporting 20 languages with both voice and typed input, useful for travel.

Reply

or to participate.