WEEKLY RECAP

Can't beat 'em, join 'em

The way publishers are approaching generative AI is changing as the media industry evolves its outlook on technologies of the future. Microsoft (MSFT)-backed OpenAI signed a major content licensing deal this week with News Corp. (NWSA), sending up the latter's shares, following similar deals inked with The Financial Times and Axel Springer. Google (GOOGL) has also partnered with Reddit (RDDT) to use the platform's content to train its AI models, while Hollywood could be next. Alphabet and Meta (META) are eyeing multimillion-dollar partnerships with major studios on licensing content for AI video generators.

Bankruptcy

Under the sea

It's official! Red Lobster filed for Chapter 11 bankruptcy after it buckled under mounting losses, costly leases, and rising material and labor costs. The seafood chain will use the proceedings to drive operational improvements, close restaurants, and pursue a sale of substantially all of its assets as a going concern. Red Lobster also announced a stalking horse bid from its existing lenders and $100M debtor-in-possession financing. The bankruptcy caps off years of financial troubles, which prompted top shareholder Thai Union Group (OTCPK:TUFBY) to look to exit its stake.

AI

Superpower unleashed

Nvidia (NVDA) surged 6% AH on Wednesday, breaking through the $1,000 level, after the semiconductor giant reported quarterly results and guidance that topped Wall Street's expectations. That wasn't all. The AI darling announced a 10-1 stock split, more than doubled its quarterly dividend, and sent the market on a ride, with the Nasdaq seeing some outsized moves. "The next industrial revolution has begun," CEO Jensen Huang declared. "Companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing to produce a new commodity: artificial intelligence."