FTI Consulting News Bytes – 2 May 2025

FTI Consulting News Bytes

We start this week’s newsletter by looking at Amazon’s Project Kuiper launching 27 satellites into low-Earth orbit on Monday, the biggest step by the Company to date to establish business broadcasting internet connectivity from space. Elsewhere, in the world of AI, Meta launched a standalone AI app, becoming the latest technology giant to enter the field. Keeping with AI, Duolingo’s CEO Luis von Ahn announced an “AI-first approach,” including significantly reducing the Company’s reliance on contractors to perform AI tasks. We then look at the Federal Communications Commission’s decision to reassess decades-old satellite spectrum rules and a potential takeover of Deliveroo by delivery giant DoorDash.

This week’s news

Amazon’s Project Kuiper gets off the ground

Amazon’s first batch of production satellites reached low-Earth orbit, the biggest step to date in the Company’s effort to establish business broadcasting internet connectivity from space, as it attempts to rival Elon Musk’s Starlink. 27 Kuiper satellites were successfully deployed in space after reaching orbit aboard United Launch Alliance’s Atlas V rocket from Cape Canaveral in Florida, ULA. According to the Financial Times, the Kuiper satellites mark an important step for Amazon’s low-Earth orbit satellite internet service as it races to build a 3,200-strong constellation at a crucial moment for the sector, as many governments seek alternatives to Starlink. 

Meta launches a stand-alone AI app to compete with ChatGPT 

Meta launched a separate app for its Meta AI assistant. CNBC reports that the new AI offering will run on Meta’s Llama AI model and includes a “discover” feed showing how others interact with the tool and offers prompts. The new app now directly competes with other AI platforms such as ChatGPT as the AI arms race intensifies. According to TechCrunch, to win over users, Meta is trying to leverage what makes it different from other companies like OpenAI and Anthropic, by using information it already has; including a sense of who you are, what you like and who you hang out with, which is based on years of data likely shared on Facebook or Instagram.

Duolingo adopts an AI-first approach

Duolingo CEO Luis von Ahn announced in an all-hands memo that the Company will adopt an “AI-first” approach, significantly reducing its reliance on contractors for tasks AI can perform. According to The Verge, the strategy involves rethinking operational practices, applying AI to hiring and performance reviews and authorising new hires only when automation is not feasible. Von Ahn emphasised that the shift is not an attempt to replace employees but rather to eliminate repetitive tasks, enabling teams to focus on creativity and higher-value work.

FCC reviews satellite spectrum rules to boost broadband innovation 

The Federal Communications Commission (FCC) is reassessing decades-old satellite spectrum rules following requests from companies like SpaceX and Amazon to enhance satellite broadband capabilities. According to Reuters, the existing regulations established in the 1990s restrict satellite power usage and limit network coverage and capacity for services such as SpaceX’s Starlink and Amazon’s Project Kuiper. While tech giants advocate for updates to encourage innovation, wireless industry groups including AT&T, Verizon and T-Mobile emphasise the need to avoid interference with existing terrestrial 5G networks. 

Deliveroo shares surge on DoorDash’s $3.6bn takeover proposal 

Deliveroo shares jumped 17% after the Company disclosed a £2.7bn takeover approach from US delivery giant DoorDash. According to The Guardian, the deal, which values Deliveroo at 180p per share, could net founder Will Shu over £170 million based on his current stake. The UK delivery app, which reported its first-ever annual profit in 2024, saw shares reach their highest since 2022 following news of the possible acquisition. While DoorDash has until May 23 to submit a firm offer, the potential acquisition reflects broader consolidation trends in the delivery sector and could reshape the landscape for food and grocery logistics in the UK and beyond.

Top Tweets of the Week

• Waymo, the autonomous driving tech company posted on X: “We’re pleased to announce that together with @ToyotaMotorCorp, we’re exploring a new autonomous vehicle platform and how to leverage our technology for their personally owned vehicles.”
• CNBC posted on X: “Satya Nadella says as much as 30% of Microsoft code is written by AI.”
• Daniel Ek, Founder and CEO of Spotify posted on X: “Our Q1 2025 earnings results are out. We hit record subscriber growth in Q1, we rolled out several new features, and most importantly, we’re moving faster than ever as we deliver the best experience for our users, artists, creators, and authors. Huge thanks to all @Spotify teams around the world for making it happen.”

Number of the week

100 The number of days US President Donald Trump has been in office this week, according to City AM.