FTI Consulting News Bytes – 1 August 2025

FTI Consulting News Bytes

This week, we’ve been tracking major shifts in AI, cloud, and corporate strategy. We start by looking at how Meta and Apple integrate AI into their strategies and Wall Street’s growing impatience over dividends. Next, we discuss Amazon’s first AI licensing deal with the New York Times. In Brussels, the EU’s landmark AI rules are starting to take shape, as we look at early enforcement moves. We then turn to the UK market, looking at the CMA’s investigation into Microsoft and Amazon over cloud competition.  We finally look at Wise, whose shareholders backed a bold move to New York.  

This week’s news

Meta soars, Apple stalls, AI divide stretches

According to Sky News and The Wall Street Journal, Meta is sprinting ahead with a bold, high-stakes AI vision, as its Q2 earnings shattered expectations, with its stock soaring over 11% in after-hours trading. Mark Zuckerberg’s multibillion-dollar AI spree is already paying dividends. He’s doubling down on “personal superintelligence,” building labs, purchasing a stake in Scale AI, and poaching top researchers with jaw-dropping pay offers. Meanwhile, CNBC reports that Apple – down 15% this year – is still relying on iPhone sales and ecosystem stickiness while delaying key Siri upgrades and staying vague about its long-term AI strategy, and investors are paying attention. 

NYT and Amazon ink AI licensing pact 

The Wall Street Journal reported that Amazon has agreed to pay The New York Times $20-$25 million per year in a multiyear licensing deal that allows it to use the outlet’s content, including its news, cooking and Athletic sections, for AI training and integration into products like Alexa. This development reflects a growing trend among tech companies collaborating with publishers, as chatbots increasingly rely on existing articles to train AI and deliver real-time user engagement around unfolding events. Such deals also offer multiple benefits for publishers at a time when AI chatbots are disrupting traditional engagement, reducing site traffic and advertising income. 

EU AI rules spark Big Tech divide 

Reports from the Financial Times and CNBC show that Google is showing its support for the EU’s landmark AI Code of Practice, becoming the latest major player to align with Europe’s new standards on AI transparency, safety, and copyright. While Google called the move a step toward boosting access to secure AI tools, media notes it didn’t shy away from warning that parts of the code could hamper innovation and competitiveness. In contrast, Meta is refusing to sign the Act, saying the guidelines are a legal overreach that could “stunt” Europe’s AI ecosystem. With OpenAI and Mistral also onboard, Meta’s approach is different in the AI regulatory landscape, highlighting a growing split in how Big Tech is choosing to navigate the global AI rules race.

UK watchdog flags cloud competition concerns

Bloomberg reports that the UK’s Competition and Markets Authority (CMA) has found that Microsoft and Amazon hold significant market power in the cloud computing sector, raising concerns about practices that create “lock-in” effects and limit competition. It singled out Microsoft’s “significant market power”, criticising its licensing terms, which increase costs for rivals like Amazon and Google. Both tech companies disputed the findings, arguing the market is dynamic and competitive, while Google welcomed the CMA’s move, calling it a crucial step toward fairer pricing and greater innovation. The investigation reflects ongoing tensions between encouraging tech investment and protecting competitive markets in the UK’s cloud industry. 

Wise clears US move

Wise shareholders have greenlit the fintech’s plan to move its primary listing from London to New York, in a bid to boost investor interest and improve share liquidity. The Financial Times reports that the move includes a controversial 10-year extension of Wise’s dual-class share structure, which would grant increased voting rights to its founders, including CEO Kristo Käärmann. Co-founder Taavet Hinrikus, who owns 5.1% of the business’s shares, opposed the proposal, warning that it could undermine the company’s governance principles by concentrating control. He also criticised the extension, claiming the Company had not been transparent enough with shareholders. Despite the backlash, the plan secured more than 75% of shareholders voting in favour across both Class A and Class B shares. Wise’s US shift highlights growing concerns over the competitiveness of London’s markets. If more tech firms follow suit, the UK risks losing its appeal as a hub for high-growth listings.

Top Tweets of the Week

• Satya Nadella, CEO at Microsoft: We just wrapped our earnings call. It was a very strong close to our fiscal year.
• Lara Lewington, Technology Presenter at BBC and ITV: Filmed the incredible story of a patient being talked through the brain surgery they were about to have, in mixed reality – it may sound unsettling, but she found it reassuring, and meant she could give truly informed consent. Coming soon on @BBCNews Tech Now.
• Zoe Kleinman, Technology Editor at BBC: A poignant reminder that tech will tell you it can save the world… until “limitations in the detection algorithms” mean it can’t.

Number of the week

$4tn Microsoft became the second company ever to reach the $4tn market cap milestone.