OpenAI unveils SearchGPT, a prototype search engine. Ford's stock plummets 18 due to warranty issues. Rupert Murdoch secretly manoeuvring to ensure his son Lachlan controls the family media empire. South Korea plans to lower inheritance taxes, easing financial pressures on billionaires. Jack Dorsey restructuring Block. All this and more on this edition of World Street.
Search Wizardry
OpenAI on Thursday announced a prototype of its search engine, called SearchGPT, which aims to give users “fast and timely answers with clear and relevant sources.”
The company said it eventually plans to integrate the tool, which is currently being tested with a small group of users, into its ChatGPT chatbot. The rollout could have implications for Google and its dominant search engine.
Warranty Woes
Ford stock plunged 18.3 percent, marking its worst daily decline since 2008 and the second-worst performer of S&P 500 companies — after the company missed Wall Street’s bottom-line earnings expectations due to warranty problems, a recurring issue with the company.
Succession Scramble
Billionaire Rupert Murdoch, 93, is in a secret legal battle to secure Lachlan Murdoch’s control of the family’s media empire, according to the New York Times. Murdoch aims to change the family trust's terms, which would have given his other children, James, Elisabeth, and Prudence, a say in company decisions.
Currently, the trust hands control to Murdoch’s four eldest children upon his death. However, sealed court documents reveal Murdoch wants Lachlan to have sole control over key assets, including Fox News, the Wall Street Journal, the New York Post, the Australian, and the Sun and the Times in the UK.
Heir Help
South Korea is set to lower its inheritance tax ceiling from 50% to 40% and scrap additional payment requirements for owners, offering significant relief to billionaire families.
For decades, firms like Samsung Electronics have faced up to 60% inheritance tax, forcing complex financial manoeuvres. President Yoon Suk Yeol's plan marks a contentious shift in policy, the Finance Ministry announced Thursday.
Electric Edge
US-listed Chinese electric car companies are now spending more on research as a percentage of sales than Tesla, according to a CNBC analysis of the four automakers’ first-quarter earnings.
Many Chinese automakers already match or exceed their global peers in R&D spending as a percentage of revenue, a notable increase from previous years. This increased investment is a survival strategy in China’s highly competitive auto market, the largest in the world.
Dorsey Shuffle
Twitter (now X) founder Jack Dorsey is reorganizing Block, the fintech company behind Cash App, Square, and Tidal. In an internal memo to employees, Dorsey—Block’s CEO and cofounder—announced an overhaul of the internal reporting structure, breaking down the boundaries between business lines and grouping employees by roles like engineering, design, and sales.
Lilly's Lament
Eli Lilly & Co's market value dropped by over $120 billion, and its leading position in the weight-loss drug market is under threat due to promising developments from at least two competitors.
The company’s shares fell 4.5 percent on Thursday, reaching their lowest level since May. New obesity drug updates from Viking Therapeutics and Roche Holding AG over the past week have triggered the selloff in Lilly’s shares.
AI Armor
Payments giant Visa is using artificial intelligence and machine learning to counter fraud. The company prevented $40 billion in fraudulent activity from October 2022 to September 2023, nearly double from a year ago, reported CNBC.
In the last five years, the firm has invested $10 billion in technology that helps reduce fraud and increase network security.
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