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Microsoft (MSFT) CTO hints at new ‘super important’ AI product emerging. (00:26) Starbucks (SBUX) CEO says strategy will include refocusing on community coffeehouse vibe. (01:30) Apple (AAPL) sends hearing aid stocks lower on AirPods upgrade. (03:05)
This is an abridged transcript of the podcast.
Microsoft (NASDAQ:MSFT) Chief Technology Officer Kevin Scott hinted at an important, new artificial intelligence model or product emerging before the end of the year.
Scott spoke at the Goldman Sachs Communatopia and Technology conference on Tuesday afternoon.
Although he said he could not reveal exactly what it was, he might have provided a clue.
“We have things coming shortly that will be very visible for people looking for signs of progress,” he said. “Look at how much work was done from GPT2 to GPT4. Let me just say, the work has not stopped at GPT4.”
He went on to highlight how important the relationship with OpenAI, the creator of Chat-GPT, has been to Microsoft.
“I think OpenAI, by any objective measure, has been one of the most consequential partners Microsoft has ever had, and Microsoft has had some really good partners,” Scott said.
“I don’t think we are at the point of diminishing marginal returns,” he added. “I think we are on the path of gains. You are not wrong to suggest there are some disrupting things coming.”
“Something like this would usually move slow, but not this time,” Scott said. “Everyone in the ecosystem is moving materially faster than ever seen before.”
The new CEO of Starbucks Corporation (NASDAQ:SBUX) made it clear on his second official day on the job what his priorities are in transforming the coffee chain.
Brian Niccol stated in a letter to employees, “We’re getting back to Starbucks.” He wants the company to refocus on a welcoming coffeehouse where people gather and drink coffee handcrafted by skilled baristas.
Niccol said that during his first 100 days he will spend time in stores and at the company’s Support Centers, meeting with key partners and suppliers, and working with his team to drive critical first steps. He said the key areas of focus that will have the biggest impact are empowering baristas to take care of customers, getting the morning daypart right, and reestablishing Starbucks as the community coffeehouse.
“Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between to-go and for-here service,” he highlighted.
This would be a switch from what has been happening at Starbucks post-pandemic. Instead of being the “Third Place”, Starbucks (SBUX) is now emphasizing drive-thru, pick-up, and delivery options.
The “Third Place” is defined as the space that is neither home nor work, but a welcoming environment where individuals can relax, connect, and enjoy the Starbucks experience.
Starbucks (SBUX) is up 19% over the last six weeks as investors have bet on the chain’s ability to return positive comparable sales growth. On Seeking Alpha, bulls and bears have been hashing it out on if a turnaround is likely.
European hearing aid developers closed lower on Tuesday after Apple (NASDAQ:AAPL) unveiled a major upgrade to its AirPods Pro earbuds, with the addition of hearing aid technology as a built-in feature.
Amplifon (OTCPK:AMFPF) (AMFPY), Demant (OTCPK:WILLF) (OTCPK:WILYY), GN Store Nord (OTCPK:GGNDF) (OTCPK:GNNDY), and Sonova Holding (OTCPK:SONVF) (OTCPK:SONVY) were among notable decliners.
With the feature, the company’s wireless headphones will double as over-the-counter hearing aids, helping users with mild to moderate hearing loss.
The company said the hearing aid features will be available this fall on AirPods Pro 2 devices through a software update pending regulatory clearances from the FDA and other global health authorities.
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Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. Crude oil is up 2.7% at $67/barrel. Bitcoin is down 1% at $56,000.
In the world markets, the FTSE 100 is flat and the DAX is up 0.2%.
The biggest movers for the day premarket: Trump Media & Technology (NASDAQ:DJT) shares declined by as much as 11% after the U.S. presidential debate between Democratic nominee Kamala Harris and Republican Donald Trump. According to a CNN instant poll conducted by SSRS, 63% of viewers felt Harris won the debate, while 37% believed Trump was the winner.
On today’s economic calendar:
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8:30 am The August CPI report will be released. Economists expect the core inflation rate to be up 0.2% month-over-month and 3.2% year-over-year.
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10:00 am Quarterly Services Survey
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