Online marketplace behemoth eBay said it plans to no longer accept American Express, citing what the company says are "unacceptably high fees." CNBC: It's a notable blow to American Express, whose customers are often the most attractive among merchants and spend the most money per month on their cards. But it's not the first time merchants have voiced opposition to AmEx's business practices by walking away, most notably the warehouse chain Costco nearly a decade ago. [...] Overland said that eBay customers have become aware of new ways to pay for items, making payments more competitive than ever before, and AmEx was no longer a necessary partner for eBay. eBay has increasingly been offering customers buy now, pay later options on purchases through Apple Pay, PayPal and other companies like Klarna and Affirm as well.

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An anonymous reader writes: It emerged recently that Humane was trying to sell itself for as much as $1 billion after its confuddling, expensive and ultimately pretty useless AI Pin flopped. A New York Times report that dropped on Thursday shed a little more light on the company's sales figures and, like the wearable AI assistant itself, the details are not good. By early April, around the time that many devastating reviews of the AI Pin were published, Humane is said to have received around 10,000 orders for the device. That's a far cry from the 100,000 it was hoping to ship this year, and about 9,000 more than I thought it might get. It's hard to think it picked up many more orders beyond those initial 10,000 after critics slaughtered the AI Pin. One of the companies that Humane has engaged with for the sale is HP, the Times reported.

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Cailey Gleeson reports via Forbes: A group backed by more than two dozen investors -- including Citadel Securities and BlackRock -- is planning to start its own stock exchange in Texas, it said Wednesday, in an attempt to compete with the New York Stock Exchange and Nasdaq. The Texas Stock Exchange (TXSE) -- owned by TXSE Group Inc. and founded in 2023, per its LinkedIn -- will be a "fully electronic national securities exchange" that seeks to expand access to markets for all investors and those seeking access to public capital, according to Wednesday's press release. The TXSE aims to have primary listings, dual listings and exchange-traded products, according to The Wall Street Journal, which first reported the news. The stock exchange has raised $120 million in capital and plans to register with the Securities and Exchange Commission later this year, according to the press release, while it will also have a physical headquarters in Dallas, and the company will employ about 100 people, The Dallas Morning News reported. It plans to start facilitating trades in 2025 and host its first listing the following year, multiple outlets reported. The Wall Street Journal notes that past attempts at regional stock exchanges have failed, such as the Chicago Stock Exchange and Philadelphia Stock Exchange -- both of which combined with the NYSE and Nasdaq. "The NYSE considered relocating its electronic trading systems to the Dallas-Fort Worth area in late 2020, amid a proposed financial transaction tax on stocks in New York," adds Forbes. "But the move did not go through, nor the proposed tax,."

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Nvidia has reached a market cap of $3 trillion, surpassing Apple to become the second-largest public company behind Microsoft. CNBC reports: Nvidia's milestone is the latest stunning mark in a run that has seen the stock soar more than 3,224% over the past five years. The company will split its stock 100-for-1 later this month. Apple was the first U.S. company to reach a $3 trillion market cap during intraday trading in January 2022. Microsoft hit $3 trillion in market value in January 2024. Nvidia, which was founded in 1993, passed the $2 trillion valuation in February, and it only took roughly three months from there for it to pass $3 trillion. Nvidia's surge in recent years has been powered by the tech industry's need for its chips, which are used to develop and deploy big AI models such as the one at the heart of OpenAI's ChatGPT. Companies such as Google, Microsoft, Meta, Amazon and OpenAI are buying billions of dollars worth of Nvidia's GPUs.

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Apollo Global announced today that it will acquire a 49% equity interest in Intel's manufacturing facility in Ireland for $11 billion, in a deal expected to close in the second quarter. The deal "would allow Intel to redeploy parts of its investment in the project to other parts of its business," reports Reuters. "Intel has invested $18.4 billion in the facility till date." From the report: Apollo will acquire the stake in the Fab 34 facility in Leixlip, Ireland, the U.S. chipmaker's first high-volume location for its Intel 4 manufacturing process using extreme ultraviolet lithography machines. The company announced plans in 2022 to build chip factories in Ireland and France as it seeks to benefit from easier European Commission funding rules and subsidies as the bloc looks to cut its dependence on U.S. and Asian supply. Intel will retain full ownership and operational control of Fab 34 and its assets.

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Private-equity investors have poured billions into healthcare but often game the system, hurting both doctors and patients. From a report: Consolidation is as American as apple pie. When a business gets bigger, it forces mom-and-pop players out of the market, but it can boost profits and bring down costs, too. Think about the pros and cons of Walmart and "Every Day Low Prices." In a complex, multitrillion-dollar system like America's healthcare market, though, that principle has turned into a harmful arms race that has helped drive prices increasingly higher without improving care. Years of dealmaking has led to sprawling hospital systems, vertically integrated health insurance companies, and highly concentrated private equity-owned practices resulting in diminished competition and even the closure of vital health facilities. As this three-part Heard on the Street series will show, the rich rewards and lax oversight ultimately create pain for both patients and the doctors who treat them. Belatedly, state and federal regulators and lawmakers are zeroing in on consolidation, creating uncertainty for the investors who have long profited from the healthcare merger boom. Consider the impact of massive private-equity investment in medical practices. When a patient with employer-based insurance goes under for surgery, the anesthesiologist's fee is supposed to be determined by market forces. But what happens if one firm quietly buys out several anesthesiologists in the same city and then hikes the price of the procedure? Such a scheme was allegedly implemented by the private-equity firm Welsh, Carson, Anderson & Stowe and the company it created in 2012, U.S. Anesthesia Partners, according to a Federal Trade Commission lawsuit filed last year. It started by buying the largest practice in Houston and then making three further acquisitions, eventually expanding into other cities throughout the state of Texas. In each location, the lawsuit alleges, USAP pursued an aggressive strategy of eliminating competitors by either acquiring them or conspiring with them to weaken competition. As one insurance executive put it in the FTC lawsuit, USAP and Welsh Carson used acquisitions to "take the highest rate of all ... and then peanut butter spread that across the entire state of Texas." In May, U.S. District Judge Kenneth Hoyt dismissed the FTC's unusual step of charging the private-equity investor, Welsh Carson, but allowed the case against USAP to proceed.

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Vista Equity Partners has written off the entire equity value of its investment in tech learning platform Pluralsight, three years after taking it private for $3.5 billion, Axios reported Friday. From the report: One source says that the Utah-based company's financials have improved, with around 26% EBITDA growth in 2023, but not enough to service nearly $1.3 billion of debt that was issued when interest rates were lower. It's also a company whose future could be dimmed by advances in artificial intelligence, since some of the developer skills it teaches are becoming automated. Vista agreed to buy the company in late 2020 for $20.26 per share, representing a 25% premium to its 30-day trading average, despite a lack of profits.

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An anonymous reader quotes a report from Reuters: Best Buy is set to post its tenth consecutive quarter of sales decline on Thursday when the U.S. electronics retailer reports quarterly results, as spending on big-ticket electronics remains pressured despite easing inflation. Although results from big-box retailers Walmart and Target indicate that consumers have resumed spending on less-expensive discretionary items such as apparel and accessories, they are still hesitant to go for TVs and washing machines. UPDATE 5/30/24: Best Buy's quarterly profit exceeded Wall Street estimates due to improved demand in its computing category, cost-saving efforts, and a successful membership program, leading to a 10% rise in shares. "Demand for artificial intelligence-enabled laptops as well as higher-end televisions is helping Best Buy regain lost ground on sales in the country as consumers look to upgrade or replace their gadgets after more than two years of restraint on spending on electronics," reports Reuters. "The company is also banking on the launch of Microsoft's AI-powered Copilot+ PCs, which are expected to go on sale on June 18." "Best Buy CEO Corie Barry said on a post-earnings call that the company expects to have more than 40% of the product assortment at launch exclusive to the company. The company has also benefited from people signing up for its two-tiered membership program, which it refreshed last year, helping the top electronics retailer in the United States retain shoppers and drive better margins."

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Now included in Amazon Prime is free delivery via Grubhub. According to The Verge, "Amazon is now embedding Grubhub into Amazon.com and the Amazon Shopping app, and Amazon Prime customers paying $139 per year for Amazon Prime will now pay $0 for food delivery fees on orders of $12 or more, among other benefits." From the report: Amazon had previously offered Prime customers a free one-year subscription to GrubHub Plus, but that one auto-renewed at $129 per year. Now, it's a permanent part of the Amazon Prime subscription. Amazon says the ordering experience is "identical" to ordering from Grubhub's website or app and is accessible to all customers, even without Prime. Amazon and Grubhub say they'll continue collaborating on other promotions, including food pairings and promotions like the limited Nuka burger for the Fallout series premiere. Prime members can also get $5 off their Grubhub meal of $25 or more made through Amazon with code PRIME5 (valid through June 2nd). What will likely not be included in Amazon's Prime subscription is Alexa's upcoming AI overhaul. "Amazon is upgrading its decade-old Alexa voice assistant with generative AI and plans to charge a monthly subscription fee to offset the cost of the technology," CNBC reported earlier this month. Unfortunately, sources said it will not be included in the $139-per-year Prime offering.

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Salesforce shares dropped as much as 17% in extended trading due to weaker-than-expected revenue and guidance that fell short of Wall Street expectations. "Revenue in the fiscal first quarter, which ended April 30, increased 11% from $8.25 billion a year earlier," reports CNBC. "It's the first time since 2006 that Salesforce fell short on revenue, according to LSEG data." From the report: Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts surveyed by LSEG had expected $2.40 in adjusted earnings per share on $9.37 billion in revenue. [...] Salesforce saw budget scrutiny and longer deal cycles than usual during the quarter, president and operating chief Brian Millham told analysts on a conference call. Management implemented go-to-market changes that cut into bookings, Millham said. All five of Salesforce's product areas contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million. Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.

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Helen Toner, a former OpenAI board member, said that the board didn't know about the company's 2022 launch of its chatbot ChatGPT until afterward -- and only found out about it on Twitter. From a report: In a podcast, Toner gave her fullest account to date of the events that prompted her and other board members to fire Sam Altman in November of last year. In the days that followed Chief Executive Officer Sam Altman's sudden ouster, employees threatened to quit, Altman was reinstated, and Toner and other directors left the board. "When ChatGPT came out in November 2022, the board was not informed in advance about that," Toner said on the podcast. "We learned about ChatGPT on Twitter." In a statement provided to the TED podcast, OpenAI's current board chief, Bret Taylor said, "We are disappointed that Ms. Toner continues to revisit these issues." He also said that an independent review of Altman's firing "concluded that the prior board's decision was not based on concerns regarding product safety or security, the pace of development, OpenAI's finances, or its statements to investors, customers, or business partners." [...] In the podcast, Toner also said that Altman didn't disclose his involvement with OpenAI's startup fund. And she criticized his leadership on safety. "On multiple occasions, he gave us inaccurate information about the formal safety processes that the company did have in place," she said,"meaning that it was basically impossible for the board to know how well those safety processes were working or what might need to change."

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Russia may charge domestic companies to use foreign software, the TASS news agency quoted Digital Development Minister Maksut Shadaev as saying on Tuesday, as Moscow seeks to cut dependency on foreign technology and bolster its own. From a report: President Vladimir Putin has made achieving technological independence a key goal, as Western sanctions over the war in Ukraine seek to hamstring Moscow's ability to acquire technology and equipment from abroad that could help it on the battlefield. As part of that push, Putin signed a decree in early May which stated that at least 80% of Russian companies in key economic sectors should transition to using Russian-made software by 2030. Many Russian companies still use foreign software in their daily operations, although an EU sanctions package passed last December prohibits companies from supplying enterprise and design-related software to Russia. Shadaev said that introducing a levy on Russian firms would "equalise" foreign and Russian software.

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The WeWork founder Adam Neumann has shelved his bid to acquire the bankrupt shared office space provider. From a report: It emerged earlier this year that Neumann, who was ousted from the business in 2019 following a botched attempt to take it public on the stock market, was seeking to buy the business. His new real estate venture, Flow Global, submitted a bid of more than $500m to take over WeWork and its assets. On Tuesday morning, however, Neumann confirmed that Flow was walking away from his dream to take back control of the firm. "For several months, we tried to work constructively with WeWork to create a strategy that would allow it to thrive," he told DealBook. "Instead, the company looks to be emerging from bankruptcy with a plan that appears unrealistic and unlikely to succeed." WeWork, with over $13bn in long-term leases, filed for Chapter 11 bankruptcy protection last November in order to renegotiate these agreements. At its peak, the company had been valued at $47bn as investors including the Japanese multinational SoftBank lined up to back it. As it prepared to go public in 2019, however, analysts gave it a far lower valuation. After it eventually went public, in 2021, its market valuation tumbled to less than $50m.

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The US stock market is finally as fast as it was about a hundred years ago. Bloomberg News: That was the last time share trades in New York settled in a single day, as they will from Tuesday under new Securities and Exchange Commission rules. The change, halving the time it takes to complete every transaction, also occurred in jurisdictions including Canada and Mexico on Monday. The switch to the system known as T+1 -- abandoned in the earlier era as volumes became unwieldy -- is ultimately intended to reduce risk in the financial system. Yet there are worries about potential teething issues, including that international investors may struggle to source dollars on time, global funds will move at different speeds to their assets, and everyone will have less time to fix errors. The hope is that everything will run smoothly, but even the SEC said last week the transition may lead to a "short-term uptick in settlement fails and challenges to a small segment of market participants." The finance world's main industry group, the Securities Industry and Financial Markets Association, has instigated what it calls the T+1 Command Center to identify problems and coordinate a response. Firms across the spectrum have been preparing for months, relocating staff, adjusting shifts and overhauling workflows, and many say they're confident in their own readiness. The worry is whether every other counterparty and intermediary is similarly organized.

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PayPal hopes to boost its growth by starting an ad network [non-paywalled link] juiced with something it already owns: data on its millions of users. From a report: The digital payments company plans to build an ad sales business around the reams of data it generates from tracking the purchases as well as the broader spending behaviors of millions of consumers who use its services, which include the more socially-enabled Venmo app. PayPal has hired Mark Grether, who formerly led Uber's advertising business, to lead the effort as senior vice president and general manager of its newly-created PayPal Ads division. In his new role, he will be responsible for developing new ad formats, overseeing sales and hiring staff to fill out the division, he said. PayPal in January introduced Advanced Offers, its first ad product, which uses AI and the company's data to help merchants target PayPal users with discounts and other personalized promotions. Advanced Offers only charges advertisers when consumers make a purchase. Online marketplaces eBay and Zazzle have begun testing it, according to a PayPal spokesman. But PayPal now aims to sell ads not only to its own customers, but to so-called non-endemic advertisers, or those that don't sell products or services through PayPal. Those companies might use PayPal data to target consumers with ads that could be displayed elsewhere, for instance, on other websites or connected TV sets.

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iFixit and Samsung are parting ways. Two years after they teamed up on one of the first direct-to-consumer phone repair programs, iFixit CEO and co-founder Kyle Wiens tells The Verge the two companies have failed to renegotiate a contract -- and says Samsung is to blame. From a report: "Samsung does not seem interested in enabling repair at scale," Wiens tells me, even though similar deals are going well with Google, Motorola, and HMD. He believes dropping Samsung shouldn't actually affect iFixit customers all that much. Instead of being Samsung's partner on genuine parts and approved repair manuals, iFixit will simply go it alone, the same way it's always done with Apple's iPhones. While Wiens wouldn't say who technically broke up with whom, he says price is the biggest reason the Samsung deal isn't working: Samsung's parts are priced so high, and its phones remain so difficult to repair, that customers just aren't buying.

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Nvidia reported fiscal first-quarter earnings surpassing expectations with strong forecasts, indicating sustained demand for its AI chips. Following the news, the company's stock rose over 6% in extended trading. Nvidia also said it was splitting its stock 10 to 1. CNBC reports: Nvidia said it expected sales of $28 billion in the current quarter. Wall Street was expecting earnings per share of $5.95 on sales of $26.61 billion, according to LSEG. Nvidia reported net income for the quarter of $14.88 billion, or $5.98 per share, compared with $2.04 billion, or 82 cents, in the year-ago period. [...] Nvidia said its data center category rose 427% from the year-ago quarter to $22.6 billion in revenue. Nvidia CFO Colette Kress said in a statement that it was due to shipments of the company's "Hopper" graphics processors, which include the company's H100 GPU. Nvidia also highlighted strong sales of its networking parts, which are increasingly important as companies build clusters of tens of thousands of chips that need to be connected. Nvidia said that it had $3.2 billion in networking revenue, primarily its Infiniband products, which was over three times higher than last year's sales. Nvidia, before it became the top supplier to big companies building AI, was known primarily as a company making hardware for 3D gaming. The company's gaming revenue was up 18% during the quarter to $2.65 billion, which Nvidia attributed to strong demand. The company also sells chips for cars and chips for advanced graphics workstations, which remain much smaller than its data center business. The company reported $427 million in professional visualization sales, and $329 million in automotive sales. Nvidia said it bought back $7.7 billion worth of its shares and paid $98 million in dividends during the quarter. Nvidia also said that it's increasing its quarterly cash dividend from 4 cents per share to 10 cents on a pre-split basis. After the split, the dividend will be a penny a share.

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The Consumer Financial Protection Bureau declared on Wednesday that customers of the burgeoning buy now, pay later industry have the same federal protections as users of credit cards. From a report: The agency unveiled what it called an "interpretive rule" that deemed BNPL lenders essentially the same as traditional credit card providers under the decades-old Truth in Lending Act. That means the industry -- currently dominated by fintech firms like Affirm, Klarna and PayPal -- must make refunds for returned products or canceled services, must investigate merchant disputes and pause payments during those probes, and must provide bills with fee disclosures. "Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under long-standing laws and regulations already on the books," CFPB Director Rohit Chopra said in a release. The CFPB, which last week was handed a crucial victory by the Supreme Court, has pushed hard against the U.S. financial industry, issuing rules that slashed credit card late fees and overdraft penalties. The agency, formed in the aftermath of the 2008 financial crisis, began investigating the BNPL industry in late 2021.

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It seems no industry is safe from consolidation, and the latest target is gaming media. From a report: IGN Entertainment has acquired the website portfolio of UK publisher Gamer Network, which operates a number of beloved games-focused publications. That list includes Gamesindustry.biz, Eurogamer, Rock Paper Shotgun, VG247, and the tabletop site Dicebreaker. The network also holds shares in sites like Nintendo Life and Digital Foundry. Terms of the deal were not disclosed. Gamesindustry.biz reports that "some redundancies" have been made across the sites, though it's not clear how many workers have been impacted. According to several posts on X, editors at both Rock Paper Shotgun and Gamesindustry.biz have been laid off. IGN Entertainment is owned by Ziff Davis, which, in addition to IGN's site, also operates other subsidiaries like Humble Bundle.

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