hapabapa
Listen below or on the go on Apple Podcasts and Spotify
Scale AI's largest customer Google (GOOG) (GOOGL) plans to part ways with startup after META deal - report. (00:23) Another activist investor calls for changes at Victoria's Secret (VSCO) - report. (01:43) Southwest (LUV) equipping fleet with Honeywell (HON)-designed cockpit alert software. (02:56)
This is an abridged transcript.
Google (NASDAQ:GOOG) (NASDAQ:GOOGL) plans to part ways with Scale AI following an announcement that Meta Platforms (NASDAQ:META) is taking a 49% stake in the startup.
Reuters reported, citing people with knowledge of the matter that Google had planned to pay Scale AI around $200M this year for the human-labeled training data which is vital for developing technology, including the AI models behind its chatbot Gemini.
According to the report, Google has already held discussions with several of Scale AI's competitors this week as it intends to move away from much of that workload.
If you remember, we told you last week that Meta announced a $14.3B investment in Scale, acquiring a 49% stake and valuing the San Francisco-based company at over $29B. A key aspect of the deal includes Scale CEO Alexandr Wang joining Meta to head its “superintelligence” team focused on artificial general intelligence.
Other major technology companies which are customers of Scale, including Microsoft (NASDAQ:MSFT), are also backing away. xAI is also looking to exit, the report added.
Companies that compete with Meta in developing AI models are worried that doing business with Scale could reveal their research priorities.
Seeking Alpha reached out to Scale, Google, Microsoft and OpenAI but they did not immediately respond to a request for comment.
Victoria's Secret (NYSE:VSCO) is facing more shareholder pressure to overhaul its board and boost its stock performance.
The Wall Street Journal reported that Barington Capital Group, which owns an over 1% stake in Victoria's Secret (NYSE:VSCO) and plans to buy more shares, believes that Victoria's Secret's (VSCO) current management, including its CEO, lack the strategic clarity to drive a turnaround.
Barington is planning to ask the company to consider replacing a majority of its board with new independent directors, and refocus on its core bra business to boost stock performance.
It also sees opportunities to unlock value in VSCO’s beauty business which alone may be worth about as much as the company's current market value.
A Victoria's Secret (VSCO) spokesperson said the company hadn't heard from Barington yet, but is looking forward to engaging with the investor.
The lingerie retailer is already facing pressure from one of its largest shareholders BBRC International, controlled by Australian billionaire Brett Blundy, which has accused it of "continued mismanagement."
BBRC also called out the recent cybersecurity incident at Victoria's Secret (VSCO), which it said "may have been preventable with proper precautions."
Southwest Airlines (NYSE:LUV) is adding cockpit alert software, designed by Honeywell (NASDAQ:HON), to its entire Boeing 737 fleet to increase runway safety.
The SmartRunway and SmartLanding software notifies pilots when they move too fast, fly too high or are directed toward the wrong runway, Honeywell (NASDAQ:HON) said in a statement.
More than 700 Southwest (LUV) aircraft have been activated with the software to date. The software is certified for most Airbus (OTCPK:EADSF) and Boeing (BA) planes, as well as several business aviation platforms.
Honeywell's (HON) next-generation runway safety technology called Surface Alerts (SURF-A) is currently being tested and is expected to be certified on commercial aircraft in 2026.
SURF-A uses GPS data, Automatic Dependent Surveillance-Broadcast equipment and advanced analytics to provide pilots with direct alerts of potential runway traffic.
What’s Trending on Seeking Alpha:
U.S. pushes Vietnam to reduce reliance on Chinese tech - report
Japan, Europe and China tipped to outperform U.S. stocks over next decade
Catalyst watch:
Amazon (AMZN) will hold its AWS re:Inforce conference in Philadelphia. The three-day event will provide the latest insights into securing workloads on AWS, including a keynote address from AWS Chief Information Security Officer Chris Betz. Shares of Amazon (AMZN) have rallied following the event in the past.
The Paris Air Show will begin. The event will present an opportunity for aerospace companies to unveil new technologies, announce strategic orders, and reshape investor sentiment. Boeing (BA), Airbus (OTCPK:EADSY), Embraer (ERJ), Honeywell (HON), Eve Holdings (EVEX), GE Aerospace (GE) are some of the companies participating.
The three-day Marine Money Week event will begin in New York City. The event is widely regarded as the largest annual gathering of the most active dealmakers in global ship finance.
Stock index futures climbed on Monday, as market participants seemed to shrug off worries emerging from the ongoing Israel-Iran conflict. Dow, S&P and Nasdaq futures are in the green. Crude oil is down 0.4% at $72/barrel. Bitcoin is up 1.5% at $107,000. Gold is down 0.5 % at $3,414.
The FTSE 100 is up 0.4% and the DAX is up 0.3%.
The biggest movers for the day premarket: EchoStar (NASDAQ:SATS) +52% – Shares surged on reports that President Trump intervened to help resolve tensions between the FCC and EchoStar over its spectrum licenses.
On today’s economic calendar:
10:00 am Wholesale Inventories
11:00 am Treasury Buyback Announcement
