OpenAI considers legal action against Apple over ChatGPT
OpenAI is considering legal action against Apple, alleging that the tech giant has not adequately integrated its ChatGPT chatbot into iPhone devices, according to a source familiar with the situation. The two companies formed a partnership two years ago aimed at enhancing Apple's AI capabilities, but OpenAI claims that Apple's failure to promote ChatGPT has resulted in significant subscription losses. As Apple explores collaborations with competitors in the AI space, OpenAI is contemplating sending a breach of contract notice to Apple.
Honda reports first annual loss since 1957
Honda reported its first annual loss since becoming publicly traded in 1957, amounting to approximately $2.7 billion for the year ending March 2026, primarily due to challenges in the U.S. electric vehicle market and a collapse of its business in China. The company cited around $10 billion in EV-related writedowns and announced the cancellation of plans for three EV models in the U.S., shifting its focus towards hybrid growth and its successful motorcycle business. CEO Toshihiro Mibe indicated that management is working to build a more resilient business structure amid ongoing market uncertainties.
Cerebras Systems Debuts on Nasdaq Valued at $95 Billion
Cerebras Systems, a maker of artificial intelligence chips, made its market debut on Nasdaq with shares opening at $350, 89% above its IPO price of $185, and closing at $311.07, valuing the company at approximately $95 billion. The company raised $5.55 billion by selling 30 million shares, marking the largest initial public offering for a U.S. tech company since Uber's debut in 2019. Cerebras' revenue surged 76% last year to $510 million, with a net income of $88 million, a significant turnaround from a loss of $481.6 million the previous year.
Alphabet Issues Record ¥576.5 Billion in Yen Bonds
Alphabet Inc. has sold ¥576.5 billion ($3.6 billion) in bonds, marking the largest yen bond issuance by a non-Japanese company, to support its $180 billion AI investment plan for 2026. The bond offering, led by Bank of America and Morgan Stanley, features maturities ranging from 3 to 30 years, capitalizing on Japan's historically low interest rates compared to the U.S. market. This move reflects a broader trend among major U.S. tech firms, including Amazon, to tap into foreign debt markets for funding AI infrastructure.
SpaceX IPO Could Reach $2 Trillion Amid Governance Concerns
Elon Musk's SpaceX is preparing for its initial public offering, anticipated to value the company at up to $2 trillion, despite facing criticism from leaders of three major U.S. public pension funds regarding its governance structure. These pension fund leaders have raised concerns about Musk's voting control and proposed a shift to a 'one share, one vote' system to enhance shareholder rights. The S&P 500 is considering changes to fast-track SpaceX's inclusion in its index, which could significantly impact market dynamics.
Tate & Lyle in Talks for £2.7 Billion Takeover
Tate & Lyle has confirmed it is in advanced discussions with American food company Ingredion regarding a £2.7 billion cash takeover bid, which includes a conditional offer of 615 pence per share, representing a 64% premium over the company's previous closing price. Following the announcement, Tate & Lyle's shares surged by 45.4% to close at 545 pence. Ingredion has until June 11 to make a formal offer or withdraw, with no guarantee that a binding deal will be reached.
Anthropic and Gates Foundation launch $200 million AI initiative
Anthropic and the Gates Foundation have announced a $200 million partnership aimed at enhancing the use of artificial intelligence in health and education over the next four years. The collaboration will focus on improving health outcomes in low- and middle-income countries by accelerating vaccine development and making health data more accessible, while also working to create AI tools that support educational needs. This initiative seeks to address the inequities in AI access and application, particularly for underserved communities.
NV Energy to Cut Power Supply to Lake Tahoe Residents
NV Energy has announced it will cease power supply to Lake Tahoe residents after May 2027, prioritizing energy for nearby data centers instead. This decision affects approximately 49,000 residents who currently rely on NV Energy for 75% of their electricity, leaving Liberty Utilities, their California-based energy provider, scrambling to secure alternative sources. The shift comes amid growing concerns over the impact of data centers on local energy resources, with a significant portion of Nevada's electricity generation already allocated to these facilities.
Applied Materials Projects Strong Revenue Growth Ahead
Applied Materials Inc. forecasted third-quarter revenue of approximately $8.95 billion, exceeding Wall Street estimates of $8.09 billion, driven by strong demand for semiconductor equipment linked to artificial intelligence and data centers. The company also reported second-quarter revenue of $7.91 billion and an adjusted profit of $2.86 per share, both surpassing analyst expectations. CEO Gary Dickerson noted a robust foundation for sustained revenue growth, with projections indicating over 30% growth in its semiconductor equipment business and more than 50% growth in packaging revenues for 2026.
