Wealth Management News & Insights
The $14 Billion Question Dividing OpenAI and Microsoft, CVS and Walgreens are Ailing, A Look into the Economics of Running a Haunted House
Primary Sources
- Boeing CEO Message to Employees on Positioning for the Future: President and CEO Kelly Ortberg shared the following message with all employees. [Boeing]
- Social Media and Stock Tip Scams – Investor Alert: The SEC’s Office of Investor Education and Advocacy (OIEA) warns investors that scams involving stock recommendations may be conducted through social media. Never make investment decisions based solely on information from social media platforms or apps. [Investor.Gov]
Financial Markets
- Natural Disasters are Making a Mess of America. Private Equity Wants the Cleanup Cash: The global remediation industry is forecast to grow from $70 billion this year to $92 billion by 2029, and investors are clamoring to get a piece of it. [Sherwood]
- Carrying a Credit-Card Balance Has Gotten Way More Expensive: Issuers raise rates in anticipation of an $8 cap on late fees that is tied up in court. [WSJ]
- The $14 Billion Question Dividing OpenAI and Microsoft: The two companies have hired investment banks to help negotiate how much equity Microsoft gets when OpenAI becomes a for-profit company. [WSJ]
- Microsoft and OpenAI’s Close Partnership Shows Signs of Fraying: The “best bromance in tech” has had a reality check as OpenAI has tried to change its deal with Microsoft and the software maker has tried to hedge its bet on the start-up. [NYT]
The graphic above illustrates how OpenAI’s profits are distributed within its current nonprofit structure. Initially, profits are allocated to repay the organization’s earliest investors, including Khosla Ventures and LinkedIn co-founder Reid Hoffman. Following this, the next round of profits is directed towards ensuring that Microsoft recoups its substantial $13 billion investment, alongside compensation for the earliest investors and OpenAI employees.
Retirement Planning
- Changing Jobs Can Put a $300,000 Dent in Retirement Savings: Job switchers often reset the savings rate lower on their 401(k) accounts without realizing it, new research from Vanguard finds. [WSJ]
Business Strategy
- Amazon, Databricks Strike Five-Year Deal Around AI Chips: Databricks will tap Amazon’s Trainium chips to power services for building AI systems, a move that could cut costs for businesses. [WSJ]
- Uber Has Discussed a Bid for Travel Booking Company Expedia: Uber discussed a bid for travel booking company Expedia, CNBC confirmed, in a deal that would push the ride-hailing company into new markets beyond car travel and food delivery. [CNBC]
- CVS and Walgreens are Ailing. Here’s Why: Both chains are on a multibillion-dollar cost-saving spree — closing hundreds of locations, cutting thousands of jobs and, really, reconsidering their role in Americans’ lives. [NPR]
The charts above compare attendance trends for arenas and stadiums between 2017 and 2024. Arena attendance has consistently grown, increasing 21% from the previous year and reaching a record high in 2024.
Life & Work
- The Economics of Running a Haunted House: Most don’t make it past their third year. But the successful ones have figured out a winning formula. [WSJ]
- This Ring on Your Finger Tracks Your Sleep. Is It Worth the Splurge?: The $350 Oura Ring 4 looks sleek and cool, and it may be useful for data-hungry health enthusiasts. But it failed this sleep-deprived parent. [NYT]
- The Two Words That Strike Fear in Fliers: Gate-Check: Airlines are pushing harder for people to check their luggage at the gate, even when it turns out there’s plenty of room in overhead bins. [WSJ]
- In Sports, American Socialism Is Beating European Capitalism: The more egalitarian, redistributive club competitions that exist in the U.S. are starting to be copied across the Atlantic. [WSJ]