Core Viewpoint - Target is facing backlash from the LGBTQ+ community after announcing a rollback of its diversity, equity, and inclusion (DEI) programs, which includes ending its three-year DEI goals and the Racial Equity Action and Change (REACH) initiatives by 2025 [1][5]. Group 1: Target's DEI Program Changes - Target will implement changes to its "Belonging at the Bullseye" strategy, including the termination of its DEI goals and REACH initiatives [1]. - The decision to scale back DEI programs follows increased scrutiny and pressure on such initiatives from various sectors [6]. Group 2: Community Response - The Twin Cities Pride Festival organizers have decided to exclude Target from this year's festivities due to the company's rollback of DEI initiatives, marking a significant community response [2][3]. - The decision to part ways with Target as a sponsor means the festival will lose $50,000 in funding [3]. Group 3: Broader Industry Trends - Target joins a growing list of companies, including Amazon, Lowe's, Meta, McDonald's, American Airlines, and Boeing, that have scaled back or eliminated their DEI efforts amid scrutiny [6]. - In contrast, some companies like Costco have maintained their commitment to DEI policies despite activist pressure [7].

President Trump suggested on Monday that Microsoft is in talks to acquire TikTok and that he hopes a “bidding war” breaks out over the contentious Chinese-owned social media app. “I would say, yes,” Trump told reporters aboard Air Force One when asked if the software giant was bidding to buy TikTok from its Chinese parent company ByteDance. Trump, 78, has previously revealed that there is “great interest in TikTok” and that he has “spoken to many people” about a possible deal that would allow the app to ope ...

Compensation and Bonuses - Goldman Sachs CEO David Solomon received a $39 million compensation package for 2024, a 26% increase from the previous year [2] - Solomon is also eligible for an $80 million golden handcuffs bonus if he remains with the company for another five years [3] - The bank's chief operating officer John Waldron was also awarded a five-year $80 million golden handcuffs deal [6] - Rank-and-file employees expressed dissatisfaction with their bonuses, with one veteran banker stating their bonus was significantly lower than the typical 50% of base pay [2] - A first-year associate received a $135,000 bonus on top of a $200,000 base salary, expressing disappointment given the company's strong earnings [7] - Senior partners at Goldman Sachs can earn eight-figure bonuses annually alongside a roughly $950,000 salary [10] Employee Sentiment and Protests - Employees at Goldman Sachs are frustrated and angry over the disparity between executive compensation and their own payouts [5] - Some staffers clocked out early on January 16 to protest the skimpy payouts, with anger reaching a boiling point before Solomon's compensation was disclosed [4] - The backlash over bonuses spilled over onto the Wall Street Oasis forum, where employees vented their frustrations [7] - One equities trader described Goldman as a "cult" that strings employees along with promises of promotions or money [3] Financial Performance - Goldman Sachs posted its best earnings in three years, with profits soaring 67% to $14 billion in 2023 [6] - The bank's overall compensation ratio dropped to 32% in 2023 from 35% in 2022, indicating a smaller percentage of net revenues going to employees [9] - The strong earnings were partly attributed to a revival in dealmaking activity on Wall Street following a post-COVID slump [6] Industry Context - JPMorgan CEO Jamie Dimon was paid $39 million last year and received a $50 million retention bonus in 2021 [4] - Wall Street bonuses were forecast to increase by 7.4% overall, according to a report by New York State Comptroller Thomas DiNapoli [11] - Wells Fargo analyst Mike Mayo noted that Goldman Sachs is a best-in-class global investment bank and a microcosm of the industry, where some employees are paid and promoted while others earn and churn [12] Employee Lifestyle and Culture - Goldman Sachs employees typically work 80-hour weeks and are rewarded with performance-related bonuses [10] - Despite the discontent over bonuses, some employees celebrated with champagne purchases at a popular wine store near the Goldman Sachs headquarters [13] - The Spaniard, a popular bar near Goldman Sachs, saw an increase in patrons as some bankers drowned their sorrows over their annual payouts [14]

US chip giant Nvidia suffered a record wipeout on Monday after Chinese startup DeepSeek upended the tech sector — and the rout cost its CEO Jensen Huang more than $20 billion in a single day.DeepSeek said it built its new AI model in just two months for less than $6 million – a fraction of the training costs of its US rivals – and without access to Nvidia’s powerful, pricey computer chips, which are subject to the US government’s export controls.Shares of Nvidia plunged as much as 18% as the market reckoned ...

Market Reaction to DeepSeek's Emergence - Big technology stocks including Nvidia, Microsoft, Meta, and Tesla tumbled in premarket trading due to concerns over DeepSeek, a Chinese AI startup threatening US dominance in AI [1] - Nvidia shares plunged nearly 12% following news about DeepSeek's capabilities [1] - Microsoft shares dropped 4.1%, Meta fell 1.7%, and Tesla declined by more than 2.7% in premarket trading [4] - European chipmakers ASML and ASM International saw sharp declines of 8.9% and 13.6%, respectively [4] - Nasdaq futures tumbled 2.3%, S&P 500 futures declined 1.3%, and Dow Jones Industrial Average futures decreased by 0.9% before the opening bell [5][8] DeepSeek's Impact on AI Industry - DeepSeek, a China-based AI startup, launched a free, open-source large-language model in December, causing industry disruption [1] - The startup was developed in just two months at a cost of under $6 million, contrasting with the billions typically spent by Western tech giants on AI research [2] - DeepSeek's rapid progress has raised questions about the efficiency and cost-effectiveness of AI research investments by leading US firms [6] - Analysts note that DeepSeek's model appears highly competitive despite having less computational power than US hyperscalers [6] US AI Leadership and Strategic Investments - US companies maintain a significant advantage in AI due to access to the most sophisticated chips, despite DeepSeek's technological strides [7] - The US government is reinforcing AI leadership, with President Trump announcing a $500 billion AI initiative called Stargate [9] - The Stargate project involves top firms such as OpenAI, Oracle, and SoftBank, highlighting the strategic importance of advanced chips in maintaining US competitiveness in AI [10] Semiconductor Industry Impact - The emergence of DeepSeek triggered a global sell-off in chip companies, particularly impacting semiconductor firms [3] - Nvidia, a key player in AI-driven chip design, saw its shares plummet 11.8% before the market opened on Monday [3][11]

Deal Structure and Participants - The US administration is working on a plan involving Oracle and a group of outside investors to take control of TikTok's operations [1] - ByteDance would retain a stake in TikTok, but Oracle would oversee data collection and software updates [2] - The deal anticipates participation from ByteDance's current US investors, including Susquehanna International Group, General Atlantic, KKR, and Sequoia Capital [3] - Oracle would be responsible for addressing national security issues under the deal [5] TikTok's Operations and User Base - TikTok's management would remain in place to operate the app [6] - The app has 170 million American users and was temporarily taken offline before a law requiring its sale or ban took effect [6] Negotiation Status and Political Context - The terms of the deal are fluid and could include US operations as well as other regions [2] - Oracle was interested in a TikTok stake "in the tens of billions," but the rest of the deal is in flux [9] - The White House sees appeasing Congress as a key hurdle in the negotiations [9] Historical Context and Previous Agreements - TikTok initially struck a deal with Oracle in 2022 to store US users' information to alleviate Washington's concerns about Chinese government interference [5] - The company has argued that its content recommendation engine and user data are stored in the US on Oracle's cloud servers, and content moderation decisions affecting American users are made in the US [10]

Core Points - Meta's AI chatbots incorrectly stated that Joe Biden is the current president despite Donald Trump's inauguration on January 20, 2025, prompting an urgent response from the company to address the issue [1][2][8] - The company activated an emergency procedure known as a SEV (site event) to troubleshoot the problem, which was not deemed widespread according to Meta's data [2][10] - Meta's spokesperson acknowledged that generative AI systems can return outdated results and emphasized ongoing improvements to their features [3] Company Response - Meta has launched at least three emergency procedures this week to address glitches related to the presidential transition [6][12] - The company faced scrutiny from users accusing it of political bias, particularly after users were automatically following Trump's official accounts due to a transfer error [10][11] - Meta's spokesperson clarified that the issue with following accounts was due to the transition process of official White House social media accounts, which caused a failure to log unfollow requests [11] AI Performance - During testing, Meta's chatbot initially failed to provide the correct answer regarding the current president but later corrected itself [3][4] - Other AI chatbots, such as Grok, provided the correct information, while OpenAI's ChatGPT incorrectly stated that Joe Biden was still president [4]

Core Viewpoint - Meta Platforms plans to invest between $60 billion and $65 billion in AI infrastructure this year, indicating a significant commitment to advancing its AI capabilities and services [1][6]. Investment Plans - The planned investment marks a substantial increase from the estimated capital spending of $38 billion to $40 billion for the previous year [6]. - Meta will construct a data center exceeding 2 gigawatts, which is large enough to serve a significant portion of Manhattan [1][3]. AI Development Goals - CEO Mark Zuckerberg anticipates that Meta's AI assistant will reach over 1 billion users by 2025, with the open-source Llama 4 expected to become a leading model in the industry [3]. - The company aims to enhance its AI capabilities by developing an AI engineer that will contribute to research and design efforts [7]. Industry Context - Major technology firms are investing heavily in AI infrastructure, spurred by the success of OpenAI's ChatGPT, with investments from companies like Microsoft and Amazon also reaching tens of billions [4][5]. - President Trump announced a venture called Stargate, involving OpenAI, SoftBank Group, and Oracle, which will invest $500 billion in AI infrastructure across the United States [4][6].

Core Viewpoint - Costco is opposing a shareholder proposal that calls for an evaluation of business risks associated with its diversity, equity, and inclusion (DEI) practices, with a vote expected during the company's annual meeting [1][3]. Group 1: Proposal Details - The National Center for Public Policy Research submitted the proposal, claiming that Costco's DEI initiatives pose "litigation, reputational and financial risks to the company, and therefore financial risks to shareholders" [2][6]. - The proposal is part of a broader trend where conservative groups are challenging corporate DEI initiatives, especially following a U.S. Supreme Court decision that outlawed affirmative action in college admissions [2][8]. Group 2: Company Response - Costco's board of directors unanimously voted to recommend that shareholders reject the proposal, asserting that their commitment to respect and inclusion is essential and that the requested report would not yield meaningful information [3][10]. - The board emphasized that diverse employees and suppliers contribute to creativity, innovation, and customer satisfaction [3]. Group 3: Market Context - Analysts believe that Costco's management is generally trusted, and there is a prevailing sentiment among shareholders to maintain the current course without disruption [4]. - Other major companies, such as Walmart and McDonald's, have recently faced shareholder scrutiny regarding their DEI policies, indicating a shifting landscape in corporate diversity initiatives [7][9]. Group 4: Legal and Social Implications - The proposal highlights concerns that a significant portion of Costco's workforce, approximately 200,000 out of 300,000 employees, could be seen as victims of illegal discrimination due to the company's DEI practices [10][11]. - The current political climate, including actions taken by former President Trump to terminate DEI programs within federal agencies, adds complexity to the corporate landscape regarding diversity initiatives [9][15].

CEO Compensation - JPMorgan Chase CEO Jamie Dimon's 2024 compensation increased by approximately 8 3% to $39 million [1] - The compensation package consisted of a $1 5 million base salary and $37 5 million in incentives [1] Historical Compensation - Jamie Dimon was paid $36 million for 2023 [2][3] - His compensation was $34 5 million in both 2021 and 2022 [2] Context of Compensation - The compensation changes occurred against a backdrop of economic uncertainty, geopolitical tensions, and the lingering effects of the COVID-19 pandemic [2]