OpenAI is indeed slashing prices across the board for some of its models, dropping the cost of two models in particular. Chat GBT 5.6% Luna was already its cheapest model. That's dropping by 80%.And then you have another model, Terra, which is dropping by about 20% in terms of price. They're also adding what is known as fast mode. So two times the speed.That version is also more expensive. But it is Kelly the latest signal that price is really becoming a battleground in AI. Open eye and anthropic are seeing ...

"BLOOMBERG TECH" IS LIVE FROM THE HEART OF SILICON VALLEY. ED: MICROSOFT SORES AS META-PLUMMETS WITH ZUCKERBERG'S AI THAT PITCH FALLS ON FLAT SPENDING. QUALCOMM EARNINGS WARNING OF COMPONENT SHORTAGES AND RISING COSTS.WE SPEAK TO THE CEO AND THEN IT IS ALL EYES ON APPLE AFTER THE CLOSING BELL TODAY IS TIM COOK GIVES HIS LAST EARNINGS REPORT AS CEO. LET'S GET STRAIGHT TO OUR TOP STORY. EARNINGS WE START WITH MICROSOFT.STOCKS UP AT MOST 15% ON TRACK FOR ITS BIGGEST JUMP SINCE OCTOBER OF 2008. WHAT DO WE NEED ...

Microsoft's monster quarter pulls markets back from the Fed dipUS stocks clawed back Wednesday's Fed-driven selloff, with the S&P 500 up about 1.5% to 7,424 and the Nasdaq leading as @Microsoft surged 16% after Azure topped $100B in revenue for the first time on 43% cloud growth.The rebound is narrow and nervy. @Meta fell 9% on a weak revenue forecast, the 30-year Treasury yield touched a multidecade high near 5.24%, and markets price roughly even odds of a September rate hike, with Amazon and Apple reporti ...

LinkedIn adds a button to report AI-generated ‘slop’ https://t.co/QhnBsTvI8k ...

As your growth at that level, it seems to be the main metric. So let's start there. What do we actually learn about that ROI through the Azure number.Hi. Good morning. It's interesting because from the outside in we can certainly see component pricing moving higher.We can see CapEx announcements. We can see memory pricing. But we don't always have perfect visibility into the other side of that equation, which is Microsoft's ability to monetize the ROI on the other end in the Azure business.And there are a c ...

Market Trends and Industry Dynamics - Global enterprises face growing backlash over closed AI models, with corporate customers expressing frustration that token-based services extract high costs while transferring proprietary business insights and operational recipes to model providers [13][14][15] - The artificial intelligence industry experiences a strategic shift as major technology corporations, including NVIDIA, Microsoft, Meta, Palantir, and others, urge Washington to recognize open-weight artificial intelligence as a critical strategic asset [22][23] - United States policy regarding artificial intelligence remains heavily focused on the hardware layer, such as semiconductor chips and data centers, while competing models originating from China gain significant global adoption due to open-weight accessibility and efficiency [2][3][5] Investment Opportunities and Potential Risks - Closed artificial intelligence models present operational vulnerabilities and single-point-of-failure risks, demonstrated by incidents where United States government national security directives abruptly cut off enterprise access to frontier models overnight [17][18] - Open-weight models provide cost-effective infrastructure for startups and smaller companies that cannot afford to train frontier models from scratch or sustain premium pricing for closed-source services [7] - Security arguments against open-source models face challenges following incidents where a closed American model compromised infrastructure, while an open-weight Chinese model, specifically GLM at a **5.2%** metric, assisted in cybersecurity defense investigations [27][28]

Market Trends & Pricing Competition - OpenAI decreases model costs across the board, reducing the price of the Luna model by 80% [1] - OpenAI reduces the price of the Terra model by approximately 20% and introduces a fast mode offering double the speed at a higher price [1][2] - Artificial intelligence pricing becomes a competitive battleground due to increasing market pressure from open-source models originating from China [2][3] - Technology companies including Microsoft attempt to differentiate their offerings by undercutting market prices with more affordable model versions [4] - Anthropic focuses the cost conversation on price-per-task efficiency [4] Financial Performance & Business Metrics - OpenAI Chief Financial Officer Sarah Frier reports that net new Annual Recurring Revenue added in July exceeds the total amount added during the entire second quarter [5] - OpenAI consumer business scales to surpass 1 billion users, providing the company with a strategic hedge against enterprise-only focus [6]

Macro Economy & Monetary Policy - U.S. GDP growth was weaker than expected, driven heavily by government and inventories, while core PCE inflation cooled down in June[5][6][7] - The 30-year U.S. Treasury yield surged to a 19-year or multi-decade high following comments from Fed officials, reflecting a significant steepening of the yield curve and rising long-term rates[5][8][133] - Consumer savings rates fell significantly to 2.7% in June from 4.4% in January, signaling growing pressure on consumer financial health[7] Technology & AI Sector Performance - Microsoft reported exceptional cloud revenue growth, with Azure growing 43%, while adding 30 million paid Copilot users, leading to a strong equity rally and reduced capital expenditure burn concerns[20][125][139][145] - Meta faced a 9% stock decline due to a softer outlook, higher spending forecasts, and growing investor scrutiny over artificial intelligence investments and a projected $130 billion to $145 billion in 2026 capital expenditures[16][98][100][138] - Qualcomm shares dropped nearly 5% due to component shortages and supply chain difficulties impacting its semiconductor outlook[2][66] Consumer Goods & Retail Sector - Starbucks and Chipotle raised their guidance following stronger-than-expected quarterly results driven by trendy new menu items, revamped loyalty programs, and strong transaction growth across income groups[2][67][71] - Mastercard reported a 21% profit surge as the company successfully expanded beyond traditional payment network services into agentic commerce and security efforts[3][166] - Consumer brands like Jersey Mike's and Reformation made their public market debuts, with Jersey Mike's raising $1 billion in its initial public offering[154]

Market Trends & Industry Dynamics - Fracking technology transformed the energy sector and helped the United States transition away from coal, reduce greenhouse gas emissions, and decrease reliance on foreign oil and gas [3] - Fracking counties experienced high GDP growth from 2008 to 2023, driven by high capital intensity, but household incomes did not rise commensurately and local jobs actually declined [6] - The current artificial intelligence and data center boom mirrors the historical fracking revolution by requiring massive upfront investments reaching billions of dollars for infrastructure and power models [7] - Energy represents the primary bottleneck and a major tension point in local communities due to the massive power demands of data centers [9][10] - Within the PJM grid operator network managing Pennsylvania and other states, 97% of energy projects in the interconnection queue consist of clean and reliable solar and battery initiatives [10] Investment Opportunities & Potential Risks - Fracking operations required high capital investments to acquire land, mineral rights, and equipment, yet created limited long-term job opportunities while introducing environmental and health concerns such as elevated asthma rates and rare cancers [2][6] - Artificial intelligence data centers involve billions of dollars in upfront capital expenditure for construction and power infrastructure, raising concerns regarding equitable benefit distribution between remote shareholders and local communities [7][8] - Strategic industry regulations involve federal government implementation of golden shares to secure taxpayer representation, analogous to the Alaska Permanent Fund distributing oil revenue checks to state citizens [13][14] - Proposed structural improvements for the artificial intelligence infrastructure boom include streamlining the permitting system with mandated timelines to accelerate the solar and battery grid interconnection process [9][11] - Proposed community-centric financial models advocate for local taxpayer ownership stakes, quarterly or annual tax relief, and dividend distributions to fund education and healthcare, supported by industry leaders like Microsoft implementing community-first artificial intelligence infrastructure plans [15][16]

I'm Jessica Edinger, CNBC. The rally continues this afternoon on Wall Street after yesterday's stock selloff led by Microsoft shares and chip makers. The Dow popped back up.It had faded a bit with its rally, but it is back up 366 points. That's 7/10en of a percent. Microsoft shares now up almost 16% after strong quarterly results.The S&P 500 index up 90, that's 1 and a4%. The Nasdaq up 605 points, almost 2.5%. The Nasdaq's now in the green for the week.Chipmaker shares are mostly higher and boy are they soa ...