FTI Consulting News Bytes – 6 December 2024

FTI Consulting News Bytes

We start this week’s newsletter by looking at reports that OpenAI is exploring plans to introduce advertising to its AI products as it seeks new revenue sources. Elsewhere, staying in the world of AI, we cover Thomas Reuters CEO’s interview with The Times where he suggests AI licensing deals can protect quality journalism, and Google DeepMind’s new milestone in AI weather forecasting. We then look at Bitcoin reaching a record high of $100,000 for the first time, driven by optimism surrounding US President-elect Donald Trump’s crypto-friendly policies. Finally, we assess comments made by Revolut’s CEO in relation to the company’s plans for an IPO.

This week’s news

OpenAI explores advertising as it steps up revenue drive

OpenAI is discussing plans to introduce advertising to its artificial intelligence products, as the ChatGPT maker seeks new revenue sources as it restructures. Sarah Friar, Chief Financial Officer, told the Financial Times in an interview that the $150bn AI start-up was weighing up an ads model, adding that it planned to be “thoughtful about when and where we would implement them.” Of note, the article added that OpenAI has been hiring advertising talent from big tech rivals such as Meta and Google, according to people familiar with the matter and an FT analysis of LinkedIn accounts. 

AI licensing deals can protect good journalism, says Reuters Chief 

In an interview with The Times, Thomson Reuters CEO Steve Hasker said publishers “are right to be wary” about the companies developing AI, due to the challenges the news industry has faced with tech businesses over the past 25 years. He emphasised the importance of being “vigilant” when it comes to copyright. The article also highlights Thomson Reuters’ “historical news file,” with Steve noting that its news is independent, fact-based and a powerful source for models to be trained and built on. Additionally, he stressed the importance of licensing agreements to ensure clarity around intellectual property use in AI and suggested that generative AI could become a vital stream to fund quality journalism.

Google DeepMind hits new milestone in AI weather forecasting

Google DeepMind has launched GenCast, an AI-powered weather prediction model that surpasses traditional methods, delivering forecasts up to 15 days ahead with exceptional accuracy – especially for extreme events like hurricanes and cyclones. The Guardian reports that GenCast outperformed the ENS forecast from the European Centre for Medium-Range Weather Forecasts by 20%. Designed to complement, not replace, traditional forecasts, GenCast is expected to deliver sharp precision on future blasts, heatwaves and high-winds, as well as help energy companies optimise windfarm power generation.

Bitcoin hits new milestone as crypto confidence soars 

Bitcoin has reached a record high of $100,000 for the first time, driven by optimism surrounding US President-elect Donald Trump’s crypto-friendly policies. This milestone followed Trump’s announcement that he would nominate former SEC commissioner Paul Atkins, a cryptocurrency advocate, to head the Wall Street regulator, replacing Gary Gensler. Bitcoin’s value, a key indicator of the cryptocurrency market, has contributed to the industry’s estimated worth of $3.3 trillion. As reported by BBC News, Trump’s election victory has been a catalyst for Bitcoin’s rise, marking a dramatic shift from his 2021 stance, when he called Bitcoin a “scam.” The $100k price reflects a 40% increase since Election Day and more than double the value at the beginning of the year.

Revolut reportedly to shun London in favour of New York IPO 

Revolut CEO Nik Storonsky commented this week it would be “not rational” for the fintech to list publicly in London, highlighting the UK market’s lack of liquidity compared to the US, particularly due to the stamp duty tax on share purchases. As City AM reports, although Revolut may consider an IPO “sooner or later,” Storonsky emphasised that the UK market can’t compete with the US on these terms. His comments hint at a possible public debut in New York, following the trend of other UK tech companies. While the UK government has attempted reforms to make London more attractive, Revolut’s strong valuation and plans to expand as a fully-fledged lender could further push its decision toward a US listing.

Top Tweets of the Week 

• Madhumita Murgia, AI Editor at the Financial Times tweets: “Two years on from ChatGPT & a year from its leadership coup, OpenAI is entering adolescence – transitioning to a for-profit, targeting 1bn users & recasting itself as the world’s AI platform. My piece on a new era for OpenAI, ft @thefriley @chrislehane.”
• Arjun Kharpal, Senior Technology Reporter at CNBC tweets: “I recently caught up with @tegmark for a thoughtful conversation about artificial general intelligence- or AI that’s smarter than human-level intelligence. In the course of the chat he said something interesting – that China will not want to develop AGI – here’s why.”
• Jon Robinson, UK Editor at City AM retweeted: “The UK boss of trading platform @eToro has opened up about the firm’s plans to become a public company and what the London Stock Exchange has to do to win its backing. The London-headquartered division of the Israel-headquartered trading and investment group has been weighing up floating in London or on another international exchange for a number of months.”

Number of the week

£3.1bn – The amount UK investors poured into UK-focused funds in November, the first month of inflows since May 2021, according to Calastone (Reuters).

What’s coming up?

• 9 December: Green Monday
• 10 December: Welsh Government Draft Budget & International Human Rights Day
• 13 December: Guardian journalists on strike over proposed Observer sale
• 14 December: Georgia presidential election