OpenAI Co-Founder Ilya Sutskever Launches AI Safety Startup
5 Things to Know Before the Stock Market Opens
Target to Roll Out Generative AI Chatbot in Stores
U.S. stock futures are rising, driven by gains in Nvidia and other AI-related stocks. Here are the key developments to watch as markets prepare for Thursday's trading session:
1. Nvidia Extends Gains After Becoming World’s Most Valuable Company
Nvidia (NVDA) is set to continue its rally, with shares rising more than 3% in premarket trading. On Tuesday, Nvidia overtook Microsoft (MSFT) to become the world's most valuable company, reaching a market capitalization of $3.335 trillion. This marks a significant milestone, as it is the first time since March 2000 that a large computing infrastructure company has held this position, the last being Cisco Systems (CSCO) during the dot-com boom.
2. Dell and Super Micro Computer Rally on AI Factory Announcement
Dell Technologies (DELL) and Super Micro Computer (SMCI) are both experiencing premarket gains of over 3% and 4%, respectively, following an announcement by Elon Musk. The Tesla (TSLA) CEO revealed that his AI startup, xAI, would partner with Dell and Super Micro to build an AI factory to power the Grok chatbot. Dell CEO Michael Dell initially announced the project, with Musk later specifying that Dell and Super Micro would each assemble half of the racks for the supercomputer.
3. Target to Roll Out Generative AI Chatbot in Stores
Target (TGT) is set to implement a generative AI chatbot called "Store Companion" across its nearly 2,000 stores starting in August. This innovation aims to assist employees with on-the-job questions, coaching, and operational support, thereby enhancing efficiency. Despite this technological advance, Target shares have remained relatively unchanged in premarket trading and throughout the year, struggling to keep up with inflation and competition from retailers like Walmart (WMT), whose stock has surged nearly 30% in 2024.
4. Accenture Shares Rise on Strong Q3 Bookings
Accenture (ACN) shares are up 7% in premarket trading after the consulting giant reported a 22% year-over-year increase in fiscal third-quarter bookings, reaching $21.1 billion. Despite a slight 1% decline in revenue to $16.5 billion, CEO Julie Sweet highlighted significant milestones, including $2 billion in generative AI sales and $500 million in related revenue year-to-date. However, Accenture lowered its fiscal 2024 earnings guidance, with expected EPS now in the range of $11.29 to $11.44, down from the previous range of $11.41 to $11.64.
5. OpenAI Co-Founder Ilya Sutskever Launches AI Safety Startup
Ilya Sutskever, a co-founder of OpenAI, has announced the launch of a new AI startup focused on safety, named Safe Superintelligence Inc. This move comes amidst growing concerns about AI's rapid advancements. The announcement follows Sutskever's departure from OpenAI, where he co-led the "Superalignment" team before its dissolution. In a post on X, Sutskever, along with former OpenAI employee Daniel Gross and entrepreneur Daniel Levy, emphasized the new venture's commitment to developing safe superintelligent systems.
Conclusion
The stock market is poised for an active trading session with significant movements expected in AI and technology stocks. Investors should keep an eye on Nvidia's continued rise, the collaborative efforts of Dell and Super Micro with xAI, Target's technological advancements, Accenture's strong bookings, and the implications of Ilya Sutskever's new AI safety startup.