Tag Archives: Investment & Company Information

Rivian is halting construction of its $5 billion Georgia plant to save money

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Rivian generally had a good day yesterday, launching the R2 SUV along with the surprise R3 crossover and dune buggy-esque R3X that were met with general acclaim. Buried in that press release, however, was the news that the automaker is halting production of its $5 billion Georgia plant in order to save money. 

Instead of building the R2 in Georgia as originally planned, the company will start production of the electric SUV at its existing Normal, Illinois plant. "Beyond significantly reducing the amount of capital needed to bring R2 to market, the company believes this approach considerably reduces risk to the launch and associated ramp," the company said. 

The move will also allow Rivian to bring the R2 to market sooner, in the first half of 2026, while saving the company $2.25 billion in capital spending in the short term. That's important since it has been burning through cash of late, according to recent reports.

The Rivian R3 and R3X will eventually be built at the company's Georgia plant
Elliot Ross Studio

Of all the EV startups to come along of late, Rivian has been one of the most promising thanks to significant investments from Amazon, Ford and others. The company's electric R1T pickup and R1S SUV were also widely praised for their attractive designs, healthy range and more. 

Ramping up an automotive startup is no easy feat, though, especially in a market that's been tough on EVs of late — with even stalwart Tesla feeling the pinch. It doesn't help that startup rivals like Fisker are having serious cash flow issues, as it may spook consumers wary of untested EV brands.

Rivian selected Georgia as the site for its second EV factory back in 2021, receiving up to $1.5 billion in state incentives. At the time, the company said it hoped to eventually produce 400,000 electric vehicles there annually. With plant changes, the Normal, Illinois facility will augment capacity to 215,000 units annually across R1T, R1S, EDV, RCV, and R2.

The Georgia location remains in the picture, but Rivian only said it construction would restart later. "Rivian’s Georgia plant remains an extremely important part of its strategy to scale production of R2 and R3," it said in a statement. 

This article originally appeared on Engadget at https://www.engadget.com/rivian-is-halting-construction-of-its-5-billion-georgia-plant-to-save-money-082236810.html?src=rss

Rivian is halting construction of its $5 billion Georgia plant to save money

Posted on by

Rivian generally had a good day yesterday, launching the R2 SUV along with the surprise R3 crossover and dune buggy-esque R3X that were met with general acclaim. Buried in that press release, however, was the news that the automaker is halting production of its $5 billion Georgia plant in order to save money. 

Instead of building the R2 in Georgia as originally planned, the company will start production of the electric SUV at its existing Normal, Illinois plant. "Beyond significantly reducing the amount of capital needed to bring R2 to market, the company believes this approach considerably reduces risk to the launch and associated ramp," the company said. 

The move will also allow Rivian to bring the R2 to market sooner, in the first half of 2026, while saving the company $2.25 billion in capital spending in the short term. That's important since it has been burning through cash of late, according to recent reports.

The Rivian R3 and R3X will eventually be built at the company's Georgia plant
Elliot Ross Studio

Of all the EV startups to come along of late, Rivian has been one of the most promising thanks to significant investments from Amazon, Ford and others. The company's electric R1T pickup and R1S SUV were also widely praised for their attractive designs, healthy range and more. 

Ramping up an automotive startup is no easy feat, though, especially in a market that's been tough on EVs of late — with even stalwart Tesla feeling the pinch. It doesn't help that startup rivals like Fisker are having serious cash flow issues, as it may spook consumers wary of untested EV brands.

Rivian selected Georgia as the site for its second EV factory back in 2021, receiving up to $1.5 billion in state incentives. At the time, the company said it hoped to eventually produce 400,000 electric vehicles there annually. With plant changes, the Normal, Illinois facility will augment capacity to 215,000 units annually across R1T, R1S, EDV, RCV, and R2.

The Georgia location remains in the picture, but Rivian only said it construction would restart later. "Rivian’s Georgia plant remains an extremely important part of its strategy to scale production of R2 and R3," it said in a statement. 

This article originally appeared on Engadget at https://www.engadget.com/rivian-is-halting-construction-of-its-5-billion-georgia-plant-to-save-money-082236810.html?src=rss

Elon Musk sues OpenAI and Sam Altman for allegedly ditching non-profit mission

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OpenAI co-founder Elon Musk has sued the company, his fellow co-founders, associated businesses and unidentified others. He claims that, by chasing profits, they’re violating OpenAI’s status as a non-profit and its foundational contractual agreements to develop AI “for the benefit of humanity.”

The suit alleges that OpenAI has become a “closed-source de facto subsidiary” of Microsoft, which has invested $13 billion and holds a 49 percent stake. Microsoft uses OpenAI tech to power generative AI tools such as Copilot.

According to the filing, under OpenAI’s current board, it is allegedly developing and refining an artificial general intelligence (AGI) “to maximize profits for Microsoft, rather than for the benefit of humanity. This was a stark betrayal of the Founding Agreement.”

The suit defines AGI as "a machine having intelligence for a wide variety of tasks like a human." Musk argues in the suit that GPT-4, which is purportedly "better at reasoning than average humans," is tantamount to AGI and is "a de facto Microsoft proprietary algorithm."

Musk has long expressed concerns over AGI. He claims the theoretical tech posits "a grave threat to humanity," particularly "in the hands of a closed, for-profit company like Google."

According to the filing, OpenAI CEO Sam Altman and fellow co-founder Greg Brockman persuaded Musk to help them start the non-profit and to fund its early operations in a bid to counter Google's advancements in the AGI space with DeepMind. He noted that their initial agreement called for OpenAI's tech to be "freely available" to the public. Musk claims to have donated $44 million to the non-profit between 2016 and 2020 (he stepped down as an OpenAI board member in 2018). As TechCrunch reports, Musk previously said he was offered a stake in OpenAI's for-profit subsidiary, but rejected it due to "a principled stand."

Muskl, of course, has some skin in the game. Since the public debut of OpenAI's ChatGPT in November 2022, there's been a battle between tech giants to offer the best generative AI tools. Musk joined that rat race when his AI company, xAI, rolled out ChatGPT rival Grok to Premium+ subscribers on his X social network last year.

When Altman swiftly returned to power after OpenAI's board shockingly fired him in November, he's said to have appointed a new group of directors that is less technically minded and more business-focused. Microsoft was appointed as a non-voting observer. “The new board consisted of members with more experience in profit-centric enterprises or politics than in AI ethics and governance,” the lawsuit alleges.

The suit accuses the defendants of breach of contract, breach of fiduciary duty and unfair business practices. Musk is seeking a jury trial and a ruling that forces OpenAI to stick to its original non-profit mission. He also wants it to be banned from monetizing tech it developed as a non-profit for the benefit of OpenAI leadership as well as Microsoft and other partners.

Competition regulators in the US, the UK and European Union are said to be examining OpenAI's partnership with Microsoft. It was reported this week that the Securities and Exchange Commission is investigating whether OpenAI misled investors. Several news organizations have sued OpenAI and Microsoft as well, alleging that ChatGPT repurposes their work "verbatim or nearly verbatim" without attribution, infringing upon their copyright in the process.

In a couple of internal memos seen by Bloomberg, OpenAI said it "categorically disagrees" with the lawsuit Musk has filed. Chief Strategy Officer Jason Kwon denied that OpenAI has become a "de facto subsidiary" of Microsoft and said that Musk's claims "may stem from [his] regrets about not being involved with the company today." Altman also said in another memo that Musk is his hero and that he misses the person he knew who competed with others by building better technology.

Update, March 02, 2023, 1:47AM ET: This story has been updated to include OpenAI's internal memos about the lawsuit.

This article originally appeared on Engadget at https://www.engadget.com/elon-musk-sues-openai-and-sam-altman-for-allegedly-ditching-non-profit-mission-160722736.html?src=rss

Elon Musk sues OpenAI and Sam Altman for allegedly ditching non-profit mission

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OpenAI co-founder Elon Musk has sued the company, his fellow co-founders, associated businesses and unidentified others. He claims that, by chasing profits, they’re violating OpenAI’s status as a non-profit and its foundational contractual agreements to develop AI “for the benefit of humanity.”

The suit alleges that OpenAI has become a “closed-source de facto subsidiary” of Microsoft, which has invested $13 billion and holds a 49 percent stake. Microsoft uses OpenAI tech to power generative AI tools such as Copilot.

According to the filing, under OpenAI’s current board, it is allegedly developing and refining an artificial general intelligence (AGI) “to maximize profits for Microsoft, rather than for the benefit of humanity. This was a stark betrayal of the Founding Agreement.”

The suit defines AGI as "a machine having intelligence for a wide variety of tasks like a human." Musk argues in the suit that GPT-4, which is purportedly "better at reasoning than average humans," is tantamount to AGI and is "a de facto Microsoft proprietary algorithm."

Musk has long expressed concerns over AGI. He claims the theoretical tech posits "a grave threat to humanity," particularly "in the hands of a closed, for-profit company like Google."

According to the filing, OpenAI CEO Sam Altman and fellow co-founder Greg Brockman persuaded Musk to help them start the non-profit and to fund its early operations in a bid to counter Google's advancements in the AGI space with DeepMind. He noted that their initial agreement called for OpenAI's tech to be "freely available" to the public. Musk claims to have donated $44 million to the non-profit between 2016 and 2020 (he stepped down as an OpenAI board member in 2018). As TechCrunch reports, Musk previously said he was offered a stake in OpenAI's for-profit subsidiary, but rejected it due to "a principled stand."

Muskl, of course, has some skin in the game. Since the public debut of OpenAI's ChatGPT in November 2022, there's been a battle between tech giants to offer the best generative AI tools. Musk joined that rat race when his AI company, xAI, rolled out ChatGPT rival Grok to Premium+ subscribers on his X social network last year.

When Altman swiftly returned to power after OpenAI's board shockingly fired him in November, he's said to have appointed a new group of directors that is less technically minded and more business-focused. Microsoft was appointed as a non-voting observer. “The new board consisted of members with more experience in profit-centric enterprises or politics than in AI ethics and governance,” the lawsuit alleges.

The suit accuses the defendants of breach of contract, breach of fiduciary duty and unfair business practices. Musk is seeking a jury trial and a ruling that forces OpenAI to stick to its original non-profit mission. He also wants it to be banned from monetizing tech it developed as a non-profit for the benefit of OpenAI leadership as well as Microsoft and other partners.

Competition regulators in the US, the UK and European Union are said to be examining OpenAI's partnership with Microsoft. It was reported this week that the Securities and Exchange Commission is investigating whether OpenAI misled investors. Several news organizations have sued OpenAI and Microsoft as well, alleging that ChatGPT repurposes their work "verbatim or nearly verbatim" without attribution, infringing upon their copyright in the process.

In a couple of internal memos seen by Bloomberg, OpenAI said it "categorically disagrees" with the lawsuit Musk has filed. Chief Strategy Officer Jason Kwon denied that OpenAI has become a "de facto subsidiary" of Microsoft and said that Musk's claims "may stem from [his] regrets about not being involved with the company today." Altman also said in another memo that Musk is his hero and that he misses the person he knew who competed with others by building better technology.

Update, March 02, 2023, 1:47AM ET: This story has been updated to include OpenAI's internal memos about the lawsuit.

This article originally appeared on Engadget at https://www.engadget.com/elon-musk-sues-openai-and-sam-altman-for-allegedly-ditching-non-profit-mission-160722736.html?src=rss

Fisker halts work on new EV models until it finds more money

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Fisker has announced its future plans alongside preliminary 2023 and Q4 earnings, and it's not looking great for the EV manufacturer. The company plans to lay off 15 percent of its workforce — nearly 200 people — as it shifts from a direct-to-consumer to a Dealer Partner model. The company is halting all investments in upcoming models and will resume only if in partnership with another automaker.

The company's fourth-quarter revenue increased to $200.1 million from $128.3 million in Q3. However, its gross margin was negative 35 percent, and it lost $1.23 per share. Its sole EV on the market, the Ocean SUV, also had 10,193 units produced but 4,929 vehicles delivered.

The automaker first introduced its pivot to a Dealer Partner Model in January and claims it has received interest from 250 dealers across North America and Europe, along with 13 signed agreements. "We are aware that the industry has entered a turbulent, and unpredictable period," Henrik Fisker, chairman and CEO of Fisker, said in a statement. "With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year. We have adjusted our outlook for 2024 to be much more conservative than in 2023." The company plans to deliver between 20,000 and 22,000 Ocean models across the world. 

Fisker is currently negotiating with "a large automaker" for an investment and joint production of future EVs. This means that previously announced vehicle production, such as the Alaska EV pickup with humungous cup holders and a designated cowboy hat space, will be on hold indefinitely. Fisker originally planned to start production on the Alaska EV pickup in early 2025. 

This article originally appeared on Engadget at https://www.engadget.com/fisker-halts-work-on-new-ev-models-until-it-finds-more-money-140050091.html?src=rss

Fisker halts work on new EV models until it finds more money

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Fisker has announced its future plans alongside preliminary 2023 and Q4 earnings, and it's not looking great for the EV manufacturer. The company plans to lay off 15 percent of its workforce — nearly 200 people — as it shifts from a direct-to-consumer to a Dealer Partner model. The company is halting all investments in upcoming models and will resume only if in partnership with another automaker.

The company's fourth-quarter revenue increased to $200.1 million from $128.3 million in Q3. However, its gross margin was negative 35 percent, and it lost $1.23 per share. Its sole EV on the market, the Ocean SUV, also had 10,193 units produced but 4,929 vehicles delivered.

The automaker first introduced its pivot to a Dealer Partner Model in January and claims it has received interest from 250 dealers across North America and Europe, along with 13 signed agreements. "We are aware that the industry has entered a turbulent, and unpredictable period," Henrik Fisker, chairman and CEO of Fisker, said in a statement. "With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year. We have adjusted our outlook for 2024 to be much more conservative than in 2023." The company plans to deliver between 20,000 and 22,000 Ocean models across the world. 

Fisker is currently negotiating with "a large automaker" for an investment and joint production of future EVs. This means that previously announced vehicle production, such as the Alaska EV pickup with humungous cup holders and a designated cowboy hat space, will be on hold indefinitely. Fisker originally planned to start production on the Alaska EV pickup in early 2025. 

This article originally appeared on Engadget at https://www.engadget.com/fisker-halts-work-on-new-ev-models-until-it-finds-more-money-140050091.html?src=rss

Saber Interactive may escape Embracer’s death hug and become a private company

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Saber Interactive has reportedly found an exit strategy from the death grip of its parent company, Embracer Group AB. Bloomberg reported Thursday that “a group of private investors” will buy the studio in a deal worth roughly $500 million. Saber would then become a private company with about 3,500 employees.

Engadget emailed a spokesperson from Saber for confirmation about the alleged buyout. The studio declined to comment.

The alleged agreement would be one of Embracer’s most significant cost-cutting moves since the collapse of a reported $2 billion deal with a group backed by Saudi Arabia’s sovereign wealth fund. Some criticized the imperiled deal as the gaming equivalent of “sportswashing,” using popular sporting acquisitions and partnerships to boost beleaguered governments’ global images. That followed US intelligence’s conclusion that the Saudi regime murdered The Washington Post reporter Jamal Khashoggi in late 2018.

Other cost-cutting moves at Embracer have included laying off about 900 employees in September, cutting another 50 or so jobs at Chorus developer Fishlabs and implementing more layoffs at Tiny Tina’s Wonderland developer Lost Boys Interactive, Beamdog, Crystal Dynamics and Saber subsidiary New World Interactive. Embracer also closed Saints Row studio Volition Games and Campfire Cabal.

Still from Star Wars: The Knights of the Old Republic. Two people and a droid stand outside on a bridge in a very Star Wars-y environment. Buildings, ships, towers.
LucasArts / Aspyr

According to Bloomberg, Saber’s sale won’t affect the studio’s role in developing an upcoming Star Wars: Knights of the Old Republic (KOTOR) remake. That game has already changed hands once: One of Saber’s Eastern European studios took over from Aspyr Media in the summer of 2022.

Aspyr had reportedly already been working on the game for years before providing a demo for Lucasfilm and Sony in June 2022; a week later, Aspyr fired its design director and art director. (Reports of the KOTOR demo costing a disproportionate amount of time and money may indicate a possible reason for the fallout.) By late that summer, Saber had taken over the development of the highly anticipated — and indefinitely delayed — remake.

Embracer bought Saber for $525 million in 2020 as it scooped up gaming studios left and right. It acquired at least 27 companies during that period, folding some of them (Demiurge Studios and New World Interactive) into Saber. Bloomberg reports that the deal to sell Saber to private investors includes an option to “bring along multiple Embracer subsidiaries.”

One studio that’s far too big to be included in this transaction is Borderlands developer Gearbox Entertainment. However, Kotaku reported Thursday that Gearbox CEO Randy Pitchford told staff this week that a decision about the studio’s future had been made. He allegedly said he’d be able to share more details with them next month.

In the meantime, a cloud of uncertainty envelops Gearbox — and Embracer’s other remaining studios. “I’ve personally been looking for roles elsewhere not just due to the Embracer layoff fears, but due to pay,” an anonymous developer reportedly said to Kotaku. “Vague and in a holding pattern is definitely par for the course at the moment and has been for most of 2023.”

This article originally appeared on Engadget at https://www.engadget.com/saber-interactive-may-escape-embracers-death-hug-and-become-a-private-company-203623311.html?src=rss

Saber Interactive may escape Embracer’s death hug and become a private company

Posted on by

Saber Interactive has reportedly found an exit strategy from the death grip of its parent company, Embracer Group AB. Bloomberg reported Thursday that “a group of private investors” will buy the studio in a deal worth roughly $500 million. Saber would then become a private company with about 3,500 employees.

Engadget emailed a spokesperson from Saber for confirmation about the alleged buyout. The studio declined to comment.

The alleged agreement would be one of Embracer’s most significant cost-cutting moves since the collapse of a reported $2 billion deal with a group backed by Saudi Arabia’s sovereign wealth fund. Some criticized the imperiled deal as the gaming equivalent of “sportswashing,” using popular sporting acquisitions and partnerships to boost beleaguered governments’ global images. That followed US intelligence’s conclusion that the Saudi regime murdered The Washington Post reporter Jamal Khashoggi in late 2018.

Other cost-cutting moves at Embracer have included laying off about 900 employees in September, cutting another 50 or so jobs at Chorus developer Fishlabs and implementing more layoffs at Tiny Tina’s Wonderland developer Lost Boys Interactive, Beamdog, Crystal Dynamics and Saber subsidiary New World Interactive. Embracer also closed Saints Row studio Volition Games and Campfire Cabal.

Still from Star Wars: The Knights of the Old Republic. Two people and a droid stand outside on a bridge in a very Star Wars-y environment. Buildings, ships, towers.
LucasArts / Aspyr

According to Bloomberg, Saber’s sale won’t affect the studio’s role in developing an upcoming Star Wars: Knights of the Old Republic (KOTOR) remake. That game has already changed hands once: One of Saber’s Eastern European studios took over from Aspyr Media in the summer of 2022.

Aspyr had reportedly already been working on the game for years before providing a demo for Lucasfilm and Sony in June 2022; a week later, Aspyr fired its design director and art director. (Reports of the KOTOR demo costing a disproportionate amount of time and money may indicate a possible reason for the fallout.) By late that summer, Saber had taken over the development of the highly anticipated — and indefinitely delayed — remake.

Embracer bought Saber for $525 million in 2020 as it scooped up gaming studios left and right. It acquired at least 27 companies during that period, folding some of them (Demiurge Studios and New World Interactive) into Saber. Bloomberg reports that the deal to sell Saber to private investors includes an option to “bring along multiple Embracer subsidiaries.”

One studio that’s far too big to be included in this transaction is Borderlands developer Gearbox Entertainment. However, Kotaku reported Thursday that Gearbox CEO Randy Pitchford told staff this week that a decision about the studio’s future had been made. He allegedly said he’d be able to share more details with them next month.

In the meantime, a cloud of uncertainty envelops Gearbox — and Embracer’s other remaining studios. “I’ve personally been looking for roles elsewhere not just due to the Embracer layoff fears, but due to pay,” an anonymous developer reportedly said to Kotaku. “Vague and in a holding pattern is definitely par for the course at the moment and has been for most of 2023.”

This article originally appeared on Engadget at https://www.engadget.com/saber-interactive-may-escape-embracers-death-hug-and-become-a-private-company-203623311.html?src=rss

Reddit files for IPO and will let some longtime users buy shares

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After years of speculation, Reddit has officially filed paperwork for an Initial Public Offering on the New York Stock Exchange. The company, which plans to use RDDT as its ticker symbol, will also allow some longtime users to participate by buying shares.

In a note shared in the company’s S-1 filing with the SEC, Reddit CEO Steve Huffman said that many longtime users already feel a “deep sense of ownership” over their communities on the platform. “We want this sense of ownership to be reflected in real ownership—for our users to be our owners,” he wrote. “With this in mind, we are excited to invite the users and moderators who have contributed to Reddit to buy shares in our IPO, alongside our investors.”

The company didn’t say how many users might be able to participate, but said that eligible users would be determined based on their karma scores while “moderator contributions will be measured by membership and moderator actions.”

The filing also offers up new details about the inner workings of Reddit’s business. The company had 500 million visitors during the month of December and has recently averaged just over 73 million “daily active unique” visitors. In 2023, the company brought in $804 million in revenue (Reddit has yet to turn a profit). The document also notes that the company is “exploring” deals with AI companies to license its content as it looks to expand its revenue in the future.

Earlier in the day, Reddit and Google announced that they had struck such a deal, reportedly valued at around $60 million a year. “We believe our growing platform data will be a key element in the training of leading large language models (“LLMs”) and serve as an additional monetization channel for Reddit,” the company writes.

This article originally appeared on Engadget at https://www.engadget.com/reddit-files-for-ipo-and-will-let-some-longtime-users-buy-shares-234127305.html?src=rss

Walmart is buying smart TV maker Vizio for $2.3 billion

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Walmart is buying Smart TV manufacturer Vizio for $2.3 billion, the retail giant announced as part of its latest earnings report. While Walmart has long been one of the major sellers of Vizio TVs, the company says the acquisition "enables a profitable advertising business that is rapidly scaling" via the company's SmartCast OS. The deal is still subject to regulatory approval. 

Vizio sells solid mid-range TVs, most equipped with its SmartCast operating system that supports free ad-supported content. The company recently refreshed its lineup with a more intuitive user interface and faster startups and app switching. 

Walmart, meanwhile, prominently features the brand on its shelves (along with TCL), as anyone who has gone there lately has probably noticed. The retailer already has its own TV house brand, ONN, but those sets are very much on the low end, usually selling for under $500. 

More importantly, the companies plan to combine their respective ad businesses. Walmart already has a $2.7 billion ad business, but Vizio would increase its access to key consumer info like viewership data. It would also effectively give Walmart more eyeballs for its ads — for instance, companies that sell goods at Walmart could also run ads on Vizio TVs, all of which could be tracked by the retailer. 

"We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment," said Walmart VP Seth Dallaire. "Our technology will help bring a scaled, connected TV advertising platform to Walmart Connect," added Vizio CEO William Wang. 

The acquisition may also be a counter to Amazon's in-house Fire TV business, both in terms of television retailing and advertising, as The Wall Street Journal reported last week. Amazon has one of the largest ad businesses in the US behind Alphabet and Meta, and smart TVs help it gather personalized consumer data for targeted advertising. 

This article originally appeared on Engadget at https://www.engadget.com/walmart-is-buying-smart-tv-maker-vizio-for-23-billion-130725953.html?src=rss