Tag Archives: Finance

China is plowing $11 billion into a solar, wind and coal energy project

Posted on by

A Chinese state-owned power company is splashing out 80 billion yuan ($11 billion) on an energy base that will generate electricity from solar, wind and coal sources. China Three Gorges Renewables Group, a subsidiary of the country’s largest hydropower company, plans to build a plant with a 16-gigawatt capacity and a five-gigawatt storage facility, Bloomberg reports.

This is part of China’s aim to build 455 gigawatts worth of renewable energy projects in the desert by 2030. This plant is being constructed in Inner Mongolia, which will get 135 gigawatts of the total planned output.

The China Three Gorges Corporation is looking to diversify its energy sources as building large hydro dams is becoming less feasible. According to Three Gorges, wind and solar generation from the plant will depend on grid accessibility. The coal plant is set to start operations in three years.

It’s somewhat disappointing that the new plant will have a coal power element, though it's not fully surprising given the way China has bristled at renewable energy commitments during climate summit talks with other countries. As Bloomberg notes, China has been struggling to put all of its clean energy into the power grid. It often relies on coal when renewable sources like solar and wind aren’t available.

This article originally appeared on Engadget at https://www.engadget.com/china-is-plowing-11-billion-into-a-solar-wind-and-coal-energy-project-120007712.html?src=rss

Volkswagen and Rivian agree to $5 billion partnership

Posted on by

Volkswagen and EV company Rivian have entered a new partnership, and the total price tag for the collaboration could reach an eye-popping $5 billion. The businesses are launching a joint venture to develop platforms for “software-defined vehicles.” According to the press release announcing the deal, the joint venture's work will focus on Rivian's zone-based approach to electric vehicles, which significantly reduces the complexity of the wiring and electronics. Both Rivian and Volkswagen are expected to debut vehicles using their combined forces as a result of the partnership; the release notes that each of the brands will continue operating their vehicle businesses separately.

The massive dollar figure for this collaboration is broken up into components. Volkswagen is making a baseline $1 billion investment in Rivian the EV company, followed by two more expected investments of the same amount in 2025 and 2026. The car brand also anticipates putting a total of $2 billion into the joint venture, some at the launch and some as a loan in 2026.

This work will see Volkswagen adopting Rivian's signature zonal architecture for its own future machines. Today's announcement follows hot on the heels of the brand integrating ChatGPT into many of its car models.

Rivian has seen some financial struggles this year, leading the company to abandon plans for a plant in Georgia and to cut 10 percent of its salaried staff. A deal of this size with a leading traditional automaker should help the company to stabilize as it works towards its next generation of electric vehicles.

This article originally appeared on Engadget at https://www.engadget.com/volkswagen-and-rivian-agree-to-5-billion-partnership-230421407.html?src=rss

Fisker is the latest EV startup to declare bankruptcy

Posted on by

Another EV manufacturer bites the dust with Fisker officially declaring bankruptcy. The US-based startup filed for Chapter 11 protections late Monday, June 17, with plans to restructure its debt and sell its assets. Unfortunately, this means the Alaska EV with a designated cowboy hat space will likely never come to fruition. 

"We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers' hands," a Fisker spokesperson stated. "But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently."

The news is not exactly surprising, as Fisker had already halted investments in future models, like the Alaska EV. That decision came alongside concerning figures in Fisker's February release of its preliminary Q4 and 2023 earnings. Among them was its plan to lay off 15 percent of its employees — about 200 people — as it attempted a switch to a Dealer Partner model. The startup had claimed it was in talks with "a large automaker" for an influx of cash and production support.

Fisker also revealed in the report that it had produced 10,193 units of its sole EV available, the Ocean SUV, in 2023 but only delivered 4,929 vehicles. Plus, there was the fact that, despite Fisker's fourth-quarter revenue increasing to $200.1 million from the previous quarter's $128.3 million, the company still had a gross margin of negative 35 percent. 

The decision to file for Chapter 11 protections adds Fisker to the ranks of other EV startups, such as Volta Trucks and Lordstown Motors. The two companies filed for bankruptcy last year in Sweden and the United States, respectively. 

This article originally appeared on Engadget at https://www.engadget.com/fisker-is-the-latest-ev-startup-to-declare-bankruptcy-123056157.html?src=rss

Apple Pay Later is dead, long live Affirm loans

Posted on by

Apple Pay Later is kaput. The company confirmed to TechCrunch on Monday that it’s killing the service only two years after first announcing it at WWDC 2022 — and only seven months after it became available to everyone in the US.

The company said at its developer conference last week that loans through third-party service Affirm are coming to Apple Pay later this year, so the two would have been redundant. “Users in the U.S. will also be able to apply for loans directly through Affirm when they check out with Apple Pay,” the company wrote in a newsroom post after its WWDC keynote.

According to TechCrunch, Pay Later is already disabled as an option when checking out with Apple Pay, and it won’t accept any new loans moving forward. However, those with current payment plans can still access those through the Wallet app.

“Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay,” Apple wrote in a statement to TechCrunch. “With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.”

This article originally appeared on Engadget at https://www.engadget.com/apple-pay-later-is-dead-long-live-affirm-loans-202524989.html?src=rss

OpenAI’s revenue is reportedly booming

Posted on by

We don’t know if OpenAI, the creator of ChatGPT, is actually making any money so far. But thanks to a Wednesday report in The Information, what we do know is that the company doubled its annualized revenue — a measure of the previous month’s revenue multiplied by 12, as the publication helpfully explained — in the last six months.

OpenAI’s annualized revenue was $3.4 billion, CEO Sam Altman reportedly told staff. That’s up from $1.6 billion around the end of last year, and $1 billion a year ago. Most of this revenue came from a subscription version of ChatGPT, which offers higher messaging limits to people who pay at least $20 a month, as well as from developers who pay the company to use the company’s large language models in their own apps and services. About $200 million on an annualized basis comes from Microsoft, which gives OpenAI a cut of sales of OpenAI’s large language models to customers using Azure, Microsoft’s cloud computing platform aimed at businesses.

Notably, an OpenAI spokesperson told The Information that the financials were "inaccurate" but did not explain which details it disputed. OpenAI did not immediately respond to Engadget's request for comment.

Earlier this week, Apple announced a partnership with OpenAI. The company plans to hook ChatGPT right into its operating systems for iPhones, iPads, and Macs, letting Siri reach out to ChatGPT to answer questions. The financial terms of that deal, however, are still unknown.

This article originally appeared on Engadget at https://www.engadget.com/openais-revenue-is-reportedly-booming-230324957.html?src=rss

Jabra says it’s exiting the consumer headphones business just as it announces new earbuds

Posted on by

Jabra is exiting the consumer earbuds business. The move is shocking, as Jabra's parent company made the announcement at the same time it unveiled new models of its Elite earbuds. Peter Karlstromer, CEO of parent company GN, said the decision is “part of our commitment to focus on attractive markets where we can deliver profitable growth and strong returns.”

The company will discontinue the Jabra Elite (consumer earbuds) and Talk (mono Bluetooth) product lines. In late 2023, it pivoted the Elite line towards the premium segment in a move designed to compete with industry heavyweights Apple, Sony and Bose. However, the company lamented that its target markets “have changed over time.” Its current assessment is that “we cannot generate a fair return on investment compared to the many other opportunities we have within our Hearing, Enterprise, and Gaming businesses.”

Jabra will reduce the inventory of the to-be-discontinued products, and it expects to complete the wind-down by the end of the year. However, GN says it will service and support its devices “for several years.”

Although a bit farther under the radar than obvious competitors like AirPods, Jabra made some high-quality audio gear. Engadget’s audio expert Billy Steele called the 2021 Jabra Elite 3 “the new standard for affordable wireless earbuds,” as the company struck an alluring balance between quality and value.

Now, who’s pumped for the new Jabra Elite 10 and Elite 8 Active earbuds coming later this month?

Update, June 12 2024, 1:15PM ET: This story and headline have been updated to note that Jabra's parent company made the announcement it was exiting the headphone business the same day it released new earbuds, not the day after.

This article originally appeared on Engadget at https://www.engadget.com/jabra-says-its-exiting-the-consumer-headphones-business-a-day-after-launching-new-earbuds-164518215.html?src=rss

General Motors revives its robotaxi service Cruise in Houston, with human drivers

Posted on by

Cruise, General Motors’ beleaguered driverless taxi service, announced Tuesday that it will start testing again around Houston. Cruise announced that they would start with human taxi drivers behind the wheels of its cars before moving to “supervised autonomous driving with a safety driver behind the wheel in the coming weeks.”

The announcement from Cruise landed around the same time that General Motors’ chief financial officer Paul Jacobson announced at Deutsche Bank’s Global Auto Industry Conference in New York City that the carmaker would inject another $850 million into the robotaxi company to cover operational costs.

Cruise has been nothing but a huge money pit for GM. Last year, the company plugged the plug on its driverless taxis when one of its cars in its San Francisco fleet hit a pedestrian who was hurled into the driverless taxi’s path by another vehicle and dragged them approximately 20 feet after getting pinned under its tire. The California Department of Motor Vehicles (DMV) suspended the company’s permits less than a month later. Cruise laid off nearly a quarter of its workforce and dismissed nine of its executives including the company’s co-founder and chief executive officer (CEO) Kyle Vogy following an investigation into the accident.

Since then, Cruise has slowly but surely started showing new signs of life. In April, the company announced it would start redeploying its services in Phoenix. Just as in Houston, Cruise’s cars will still be monitored and operated by humans. The autonomous taxi company also plans to expand its services to other cities by engaging “with officials and community leaders,” according to the company’s blog,but gave no timeline on when an extension might happen.

Update June 11, 5:45PM ET: This article was updated after publishing to clarify that Cruise's return to Houston is currently limited to testing, rather than picking up fares.

This article originally appeared on Engadget at https://www.engadget.com/general-motors-revives-its-robotaxi-service-cruise-in-houston-with-human-drivers-205002639.html?src=rss

OpenAI’s board allegedly learned about ChatGPT launch on Twitter

Posted on by

Helen Toner, one of OpenAI’s former board members who was responsible for firing CEO Sam Altman last year, revealed that the company’s board didn’t know about the launch of ChatGPT until it was released in November 2022. “[The] board was not informed in advance of that,” Toner said on Tuesday on a podcast called The Ted AI Show. “We learned about ChatGPT on Twitter.”

Toner’s comments came just two days after she criticized the way OpenAI was governed in an Economist piece that she co-wrote with Tasha McCauley, another former OpenAI board member. This is the first time that Toner has spoken openly about the circumstances that led to Altman’s dramatic ouster from the company he co-founded in 2015, and his quick reinstatement following protests from employees.

In the podcast, Toner, who is current a director of strategy at the Centre for Security and Emerging Technology at Georgetown, said that Altman had made it hard for OpenAI’s board to do its job by withholding information, misrepresenting things, and, “in some cases outright lying to the board.” She added that Altman also hid the company’s ownership structure from the board. “Sam didn’t inform the board that he owned the OpenAI startup fund, even though he constantly was claiming to be an independent board member with no financial interest in the company,” Toner said. Altman’s actions “really damaged our ability to trust him,” she said, and by October 2023, the board was “already talking pretty seriously about whether we needed to fire him.”

She criticized Altman’s leadership on safety concerns around AI, saying that he often gave the board inaccurate information on the company’s safety processes, “meaning that it was basically impossible for the board to know how well those safety processes were working or what might need to change.”

When asked for comment, an OpenAI spokesperson referred Engadget to the statement the company provided to The TED AI Show. “We are disappointed that Ms. Toner continues to revisit these issues,” Bret Taylor, OpenAI’s current board chief and co-CEO of Salesforce told the podcast. An independent review of Altman’s firing, he added, “concluded that the prior board’s decision was not based on concerns regarding product safety or security, the pace of development, OpenAI’s finances, or its statements to investors, customers, or business partners.”

The exact reasons for Altman’s abrupt ouster last year were still unclear and have been a source of intense speculation in Silicon Valley. In March, Altman was reinstated to the board by a group of temporary board members which included Taylor, economist Larry Summers, OpenAI co-founder Greg Brockman, Instacart CEO and former Meta executive Fiji Simo, former Sony executive Nicole Seligman, and former CEO of the Bill and Melinda Gates Foundation Dr. Sue Desmond-Hellmann. In an independent investigation, law firm WilmerHale found that Toner’s decision to fire Altman along with the rest of OpenAI’s previous Board “was a consequence of a breakdown in the relationship and loss of trust between the prior Board and Mr. Altman.” WilmerHale also found that OpenAI’s previous board had fired Altman “abruptly” and without giving him a chance to respond to its concerns.

Toner’s revelations are the latest controversy that OpenAI, company that sparked off the modern AI revolution, has been involved in. Over the last few days, multiple safety researchers left the company, publicly criticizing its leadership on their way out. OpenAI also backtracked on non-disparagement agreements it had required departing employees to sign after a Vox investigation, and forced to explain itself after actor Scarlet Johansson accused the company of copying her voice for ChatGPT despite denying permission.

This article originally appeared on Engadget at https://www.engadget.com/openais-board-allegedly-learned-about-chatgpt-launch-on-twitter-235643014.html?src=rss

OpenAI’s board allegedly learned about ChatGPT launch on Twitter

Posted on by

Helen Toner, one of OpenAI’s former board members who was responsible for firing CEO Sam Altman last year, revealed that the company’s board didn’t know about the launch of ChatGPT until it was released in November 2022. “[The] board was not informed in advance of that,” Toner said on Tuesday on a podcast called The Ted AI Show. “We learned about ChatGPT on Twitter.”

Toner’s comments came just two days after she criticized the way OpenAI was governed in an Economist piece that she co-wrote with Tasha McCauley, another former OpenAI board member. This is the first time that Toner has spoken openly about the circumstances that led to Altman’s dramatic ouster from the company he co-founded in 2015, and his quick reinstatement following protests from employees.

In the podcast, Toner, who is current a director of strategy at the Centre for Security and Emerging Technology at Georgetown, said that Altman had made it hard for OpenAI’s board to do its job by withholding information, misrepresenting things, and, “in some cases outright lying to the board.” She added that Altman also hid the company’s ownership structure from the board. “Sam didn’t inform the board that he owned the OpenAI startup fund, even though he constantly was claiming to be an independent board member with no financial interest in the company,” Toner said. Altman’s actions “really damaged our ability to trust him,” she said, and by October 2023, the board was “already talking pretty seriously about whether we needed to fire him.”

She criticized Altman’s leadership on safety concerns around AI, saying that he often gave the board inaccurate information on the company’s safety processes, “meaning that it was basically impossible for the board to know how well those safety processes were working or what might need to change.”

When asked for comment, an OpenAI spokesperson referred Engadget to the statement the company provided to The TED AI Show. “We are disappointed that Ms. Toner continues to revisit these issues,” Bret Taylor, OpenAI’s current board chief and co-CEO of Salesforce told the podcast. An independent review of Altman’s firing, he added, “concluded that the prior board’s decision was not based on concerns regarding product safety or security, the pace of development, OpenAI’s finances, or its statements to investors, customers, or business partners.”

The exact reasons for Altman’s abrupt ouster last year were still unclear and have been a source of intense speculation in Silicon Valley. In March, Altman was reinstated to the board by a group of temporary board members which included Taylor, economist Larry Summers, OpenAI co-founder Greg Brockman, Instacart CEO and former Meta executive Fiji Simo, former Sony executive Nicole Seligman, and former CEO of the Bill and Melinda Gates Foundation Dr. Sue Desmond-Hellmann. In an independent investigation, law firm WilmerHale found that Toner’s decision to fire Altman along with the rest of OpenAI’s previous Board “was a consequence of a breakdown in the relationship and loss of trust between the prior Board and Mr. Altman.” WilmerHale also found that OpenAI’s previous board had fired Altman “abruptly” and without giving him a chance to respond to its concerns.

Toner’s revelations are the latest controversy that OpenAI, company that sparked off the modern AI revolution, has been involved in. Over the last few days, multiple safety researchers left the company, publicly criticizing its leadership on their way out. OpenAI also backtracked on non-disparagement agreements it had required departing employees to sign after a Vox investigation, and forced to explain itself after actor Scarlet Johansson accused the company of copying her voice for ChatGPT despite denying permission.

This article originally appeared on Engadget at https://www.engadget.com/openais-board-allegedly-learned-about-chatgpt-launch-on-twitter-235643014.html?src=rss

T-Mobile to acquire majority of US Cellular, further consolidating carrier market

Posted on by

T-Mobile will acquire the majority of US Cellular in a deal worth approximately $4.4 billion. This means that T-Mobile will own all of US Cellular’s stores, some of its spectrum assets and some of its customers. The deal includes a combination of cash and up to $2 billion of assumed debt, according to a press release by US Cellular. The companies expect to finalize the purchase by mid-2025, though the deal must attain regulatory approval.

All told, T-Mobile will walk away with around 30 percent of US Cellular’s wireless spectrum, which it hopes to use to improve coverage in rural areas and offer better connectivity to current US Cellular customers throughout the country. Current customers will be able to keep their plans or switch to a similar T-Mobile contract.

US Cellular will retain 70 percent of its wireless spectrum and towers. Additionally, it will lease space on around 2,100 additional towers to T-Mobile. "The decisions we announced today are in the best interests of our customers and our shareholders. T-Mobile is the right partner for our wireless operations," said Laurent Therivel, CEO of US Cellular.

This is just the latest consolidation move by T-Mobile. The company recently acquired the Ryan Reynolds-backed Mint Mobile, via the purchase of parent company Ka'ena Corporation for around $1.35 billion. T-Mobile also merged with Sprint back in 2020. It’s basically Pac-Man, but instead of dots it hoovers up smaller cellular carriers.

The Wall Street Journal recently reported that T-Mobile had teamed up with frenemy Verizon to “carve up” US Cellular’s wireless spectrum, but it looks like that deal has either fallen through or will be significantly delayed.

This article originally appeared on Engadget at https://www.engadget.com/t-mobile-to-acquire-majority-of-us-cellular-further-consolidating-carrier-market-152212548.html?src=rss