Walmart Reaches $1 Trillion Market Value, While Tech Companies Face Scrutiny and Internal Issues
Walmart achieved a $1 trillion market valuation, becoming the first traditional retailer to reach this milestone, while Netflix faced skepticism over a proposed merger, and Pinterest terminated employees for tracking layoffs. Elon Musk's SpaceX also moved to acquire his AI startup, xAI.
Walmart's market valuation reflects the company's growing e-commerce business and its appeal to price-conscious shoppers, according to BBC Business. Wall Street has also responded positively to Walmart's investments in artificial intelligence (AI). The company's share price rose by more than 3% on Tuesday, propelling it into a group of companies with valuations over $1 trillion, including Nvidia and Alphabet.
Meanwhile, Netflix struggled to reassure lawmakers about its proposed $82 billion takeover of Warner Bros Discovery during a US Senate antitrust subcommittee hearing on Tuesday, according to BBC Technology. Senators from both Democratic and Republican parties raised concerns about reduced competition, potential price increases, and the future of cinemas if the merger proceeds. The Department of Justice (DoJ) is currently reviewing the deal.
In other news, Pinterest sacked two engineers for creating a tool to track which workers lost their jobs in a recent round of layoffs, according to BBC Technology and BBC Business. CEO Bill Ready stated in an email that the company was "doubling down on an AI-forward approach," according to an employee who posted the memo on LinkedIn. Pinterest announced the job cuts would impact about 15% of the workforce, or roughly 700 roles. The engineers then "wrote custom scripts improperly accessing confidential company information to identify the locations and names of all dismissed employees," according to reports.
Elon Musk's SpaceX is acquiring his artificial intelligence (AI) start-up, xAI, as the billionaire unifies some of his business interests, according to BBC Technology. SpaceX confirmed the deal, posting a memo from Musk about the merger on its website. A source familiar with the deal said it valued xAI at $125 billion and SpaceX at $1 trillion, potentially making it the most valuable private company ever. In his memo, Musk said the combination would form an "innovation engine" putting AI, rockets, space-based internet, and media under one roof. Terms of the deal were not disclosed.
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