In Short:
– OpenAI’s “shopping research” tool helps users find detailed shopping guides tailored to their preferences.
– Users can access Instant Checkout for purchases while ensuring user chats are not shared with retailers.

OpenAI has launched a new tool called “shopping research,” coinciding with an increase in consumer spending ahead of the holiday season.This tool is aimed at ChatGPT users seeking comprehensive shopping guides that detail top products, key differences, and the latest retailer information.

Users can customise their guides based on budget, features, and recipients. OpenAI notes that while the tool takes a few minutes to generate responses, users can still use ChatGPT for quicker queries like price checks.

When users ask specific prompts, such as finding a quiet cordless stick vacuum or a gift for a niece who loves art, the shopping research tool will appear automatically. It can also be accessed via the menu.

Shopping Research

OpenAI has been expanding its e-commerce capabilities, with the introduction of the Instant Checkout feature in September, enabling purchases directly through ChatGPT.

Soon, users of the shopping research tool will also be able to use Instant Checkout for making purchases.

OpenAI assures that shopping research results are derived from publicly available retail websites and will not disclose user chats to retailers, although it does warn that inaccuracies may occur in product availability and pricing.

Shopping research is now available to OpenAI’s Free, Go, Plus, and Pro users logged into ChatGPT.

In Short:
– Major U.S. tech firms raised over $120 billion in debt for AI, replacing cash strategies, causing investor concerns.
– Significant bond issuance raised market credit spreads, with fears over debt sustainability and investment returns increasing volatility.

Major U.S. technology companies have raised over $120 billion in debt this year for artificial intelligence infrastructure, shifting from their traditional cash-funded strategies.

The change has generated concerns among investors regarding market stability and expected returns.In September, four prominent hyperscaler companies issued nearly $90 billion in public bonds. Alphabet raised $25 billion, Meta $30 billion, Oracle $18 billion, and Amazon $15 billion in its first U.S. dollar bond sale in three years.

Only Microsoft has avoided borrowing from debt markets recently. Total debt issuance has increased substantially from an average of $28 billion over the past five years.

The surge in debt has exacerbated U.S. investment-grade credit spread widening from 74 basis points in mid-September to 84 basis points in mid-November. Alphabet and Meta both paid around 10-15 basis points over their existing debt for these new offerings, indicating investor caution. Oracle’s long-term bonds have faced scrutiny, declining by about 8% and trading at 65 cents on the dollar, with some analysts predicting a potential downgrade to junk status.

Market Pressures

AI capital expenditure is expected to hit $600 billion by 2027, up from $200 billion in 2024. Despite significant borrowing, around 80-90% of planned expenditures rely on cash flows. The mounting debt concerns have contributed to market volatility.

Following Nvidia’s earnings report on November 19, stocks initially rallied before a sharp reversal, with the S&P 500 declining 3% this month due to doubts about AI investment returns.

In Short:
– Amazon laid off over 1,800 engineers across gaming and advertising as part of a restructuring initiative.
– The company is reallocating resources towards artificial intelligence while further job reductions may occur.

Amazon laid off over 1,800 engineers as part of a record reduction affecting multiple divisions, including gaming and advertising.The company’s recent layoffs, part of a broader trend in the tech sector, saw 40% of job cuts in engineering roles across various states, according to WARN filings.

These reductions occurred amid a restructuring initiative aimed at making Amazon function more like a startup, with CEO Andy Jassy advocating for a leaner workforce and faster decision-making.

In the wake of these layoffs, Amazon is focusing on shifting resources towards artificial intelligence, which Jassy believes will reshape the company’s workforce. The company stated that although AI is a transformative tool, it was not the primary cause of recent job cuts.

Reports suggest that further job reductions may be forthcoming as Amazon continues to streamline. The job reductions affected multiple levels of software engineers, particularly mid-level staff, as the company cuts costs and reinforces its focus on innovation.

Job Cuts

The layoffs also included significant reductions in Amazon’s gaming division, with a focus on reducing roles tied to major game development projects. This effort reflects a broader strategy to mitigate expenses while reallocating resources towards more profitable ventures within the company.

Amazon’s ad division similarly experienced cuts, with over 140 positions eliminated, illustrating a trend of expansion and contraction within various business units in a changing economic landscape.