NYT vs OpenAI = Hollywood vs VCR?

Market Overview
Read time 1.6 minutes

Year To Date Performances:

1. Microsoft is challenging The New York Times' lawsuit against OpenAI, accusing the publisher of making "unsubstantiated" claims and presenting a narrative of "doomsday futurology" where OpenAI's ChatGPT could significantly harm the news industry. Microsoft, a major investor in OpenAI, argues that the use of content to train Large Language Models (LLMs) like ChatGPT does not replace the market for original works but rather teaches the models language. The battle underscores the growing tension between AI development and the media industry, with concerns about AI models being trained on decades' worth of valuable content. OpenAI has admitted it's "impossible" to train leading AI models without using copyrighted materials due to the extensive range of human expression covered by copyright. Meanwhile, OpenAI has reached agreements with media companies like Axel Springer and is reportedly in discussions with CNN, Fox Corp., and Time to license their content.

2. Apple's iPhone sales in China experienced a significant 24% drop early this year, amidst fierce competition from more budget-friendly brands like Vivo. This decline led to Apple offering rare discounts on its products in an effort to boost sales. Consequently, Apple was surpassed by Microsoft in market value and was removed from the top investment recommendations list by both Goldman Sachs and Evercore ISI. Additionally, Apple's assembly partner, Hon Hai Precision, reported an 18% decrease in sales, which negatively impacted Apple's revenue, largely dependent on iPhone sales. The launch of Huawei's Mate 60 Pro also contributed to Apple's challenges in China, as it boosted Huawei's market share and further reduced Apple's market share from 19% to below 16%. Honor Device Co. was the only competitor in this scenario to report an increase in sales.

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4. Headlines

   1. Bitcoin hit an all-time high yesterday before immediately falling.

   2. Target shares rose 10% on high profit and new paid membership program

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