The Information : OpenAI Moves to Generate AI Music in Potential Rivalry With St

OpenAI Moves to Generate AI Music in Potential Rivalry With Startup Suno

OpenAI recently made a splash with artificial intelligence that generates short videos from text prompts—say, a scene from “Lord of the Rings” but with Gen Z characters, or Pokémon’s Pikachu as “The Godfather.” Now the company has set its sights on doing the same thing with music.

OpenAI staff have been taking steps to develop AI that generates music, according to a person with knowledge of the work. For instance, the company has been working with some students from the Juilliard School to annotate music scores, according to a second person. They are providing the kind of training data that would be needed to develop AI that produces music.

The Takeaway
OpenAI is working on AI for music generation
Company has rapidly introducing new products, expanding beyond core chatbot services
New models or apps would increase rivalry with AI startups Suno, Udio
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The efforts show how OpenAI continues to aggressively expand the types of services it provides beyond its core chatbot, with the aim of keeping its 800 million–plus users on the service longer every day and potentially finding new ways to generate revenue.

OpenAI has privately discussed generating music with text and audio prompts: for example, enabling people to ask the AI to add guitar accompaniment to an existing vocal track, according to a third person who has been involved in the discussions. The resulting product could also help people add music to videos.

If OpenAI releases a music-generating tool, that could help the company’s own expansion into advertising someday. An ad agency, for instance, could use OpenAI’s tools for tasks related to generating an ad campaign, such as brainstorming ideas for lyrics, creating a catchy jingle based on music samples or recordings, or uploading a video to mimic in terms of style, according to one of the people.

The company, recently valued at $500 billion in an employee stock sale, is also trying to catch up with rival Google. The search engine giant in May launched the second generation of its music-making model, Lyria. Google customers can use Lyria through Google Cloud, and the company has touted the ability of marketers to employ it in creating soundtracks for ads.

It is not clear what the timing of OpenAI’s music efforts is, as well as whether ChatGPT or its video-generation app, Sora, would incorporate the new music AI capabilities or whether they would be part of a stand-alone application. Spokespeople for OpenAI declined to comment.

Before the release of ChatGPT, OpenAI had developed two music-generation models—MuseNet in 2019 and Jukebox in 2020—but they are currently not available to users via its chatbot.

A music AI model that enables OpenAI users to generate music, such as vocal tracks or instrumentation, would go beyond what ChatGPT and OpenAI’s existing models do. People using ChatGPT can ask the chatbot to write lyrics, chord progressions or rhyme schemes in the style of a specific artist, for instance. But it can’t create a full song the way other AI music generators, like those developed by startups Suno and Udio, can.

Using AI to make music has taken off to some extent. Three-year-old startup Suno, which sells subscriptions to an AI-powered music generator, is generating around $150 million in annual recurring revenue, up nearly four times from a year ago.

An OpenAI foray into music would follow its launch of video app Sora, which people use to generate short-form videos similar to those on TikTok but entirely AI generated. OpenAI’s head of Sora, Bill Peebles, said in an X post earlier this month that Sora had a million app downloads in less than five days—faster than ChatGPT’s growth when it first launched in late 2022.

The company also has been developing an X-like social feed within ChatGPT where users can share how they’re using the chatbot. These social features could serve as avenues for potentially sharing any music users create with OpenAI.

OpenAI has launched other AI models that generate audio, and this technology would likely overlap with generating music such as vocals. In March, the company released updated speech-to-text and text-to-speech audio models, aimed at helping customers generate voice agents in areas like customer service.


Label Litigation

OpenAI may need to make deals with music labels to avoid copyright lawsuits. The Recording Industry Association of America, a trade group representing Universal Music Group, Sony and Warner Bros., has sued Suno and Udio, alleging that the startups trained their AI models on copyrighted songs without permission or proper compensation. The labels are demanding as much as $150,000 in damages for each song allegedly infringed, potentially totaling billions of dollars.

Both Suno and Udio have said they can use copyrighted material under the fair use doctrine in copyright law. Universal Music and Warner Music have been in talks with these companies as well as Google for AI licensing deals, the Financial Times reported earlier this month.

Google declined to comment on any potential deals with music labels over AI licensing. The company has existing music industry relationships through its ownership of YouTube.

OpenAI currently takes some precautions to prevent the use of copyrighted material, such as not allowing ChatGPT to share the full lyrics of certain songs and instead offering to summarize them. After OpenAI’s Sora app launched last month, CEO Sam Altman said in a blog post that the company would give copyright holders “more granular control over generation of characters,” suggesting it would ask them to give permission before users can generate videos based on those characters. Altman also said OpenAI will share some of the revenue it makes from video generation with copyright holders.

The company also said it has stopped Sora users from creating videos of Dr. Martin Luther King Jr. at the request of his estate, as it improves its guardrails for historical figures.

CrunchBase : The Week’s 10 Biggest Funding Rounds: More AI Megarounds (Plus Some

The Week’s 10 Biggest Funding Rounds: More AI Megarounds (Plus Some Other Stuff)

This was another active week for large startup financings. AI data center developer Crusoe Energy Systems led with $1.38 billion in fresh financing, and several other megarounds were AI-focused startups. Other standouts hailed from a diverse array of sectors, including battery recycling, biotech and even fire suppression.

1. Crusoe Energy Systems, $1.38B, AI data centers: Crusoe Energy Systems, a developer of AI data centers and infrastructure, raised $1.38 billion in a financing led by Valor Equity Partners and Mubadala Capital. The deal sets a $10 billion+ valuation for the Denver-based company.

2. Avride, $375M, autonomous vehicles: Avride, a developer of technology to power autonomous vehicles and delivery robots, announced that it secured commitments of up to $375 million backed by Uber and Nebius Group. The 8-year-old, Austin, Texas-based company said it plans to launch its first robotaxi service on Uber’s platform in Dallas this year.

3. Redwood Materials, $350M, battery recycling: Battery recycling company Redwood Materials closed a $350 million Series E round led by Eclipse Ventures with participation from new investors including Nvidia’s NVentures. Founded in 2017, the Carson City, Nevada-based company has raised over $2 billion in known equity funding to date.

4. Uniphore, $260M, agentic AI: Uniphore, developer of an AI platform for businesses to deploy agentic AI, closed on $260 million in a Series F round that included backing from Nvidia, AMD, Snowflake Ventures and Databricks Ventures. The round sets a $2.5 billion valuation for the Palo Alto, California-based company.

5. Sesame, $250M, voice AI and smart glasses: San Francisco-based Sesame, a developer of conversational AI technology and smart glasses, picked up $250 million in a Series B round led by Sequoia Capital. The startup is headed by former Oculus CEO and co-founder Brendan Iribe.

6. OpenEvidence, $200M, AI for medicine: OpenEvidence, developer of an AI tool for medical professionals that has been nicknamed the “ChatGPT for doctors” reportedly raised $200 million in a GV-led round at a $6 billion valuation. Three months earlier, OpenEvidence pulled in $210 million at a $3.5 billion valuation.

7. Electra Therapeutics, $183M, biotech: Electra Therapeutics, a developer of therapies against novel targets for diseases in immunology and cancer, secured $183 million in a Series C round. Nextech Invest and EQT Life Sciences led the financing for the South San Francisco, California-based company.

8. LangChain, $125M, AI agents: LangChain, developer of a platform for engineering AI agents, picked up $125 million in fresh funding at a $1.25 billion valuation. IVP led the financing for the 3-year-old, San Francisco-based company.

9. ShopMy, $70M, brand marketing: New York-based ShopMy, a platform that connects brands and influencers, landed $70 million in a funding round led by Avenir. The financing sets a $1.5 billion valuation for the 5-year-old company.

10. Seneca, $60M, fire suppression: Seneca, a startup developing a fire suppression system that includes autonomous drones that help spot and put out fires, launched publicly with $60 million in initial funding. Caffeinated Capital and Convective Capital led the financing for the San Francisco-based company.

Barron's : How Trump Sparked a New Era of State Capitalism

How Trump Sparked a New Era of State Capitalism
Washington is pushing legal boundaries to secure supply chains and shore up national security. Both parties have bought in.

Uncle Sam is becoming America’s most powerful investor, taking big stakes in companies to bolster supply chains and make money for taxpayers. Both goals have bipartisan support, which suggests this new shareholder activism will far outlast President Donald Trump’s administration.

Under this unfolding form of American state capitalism, the U.S. is pushing the boundaries of its legal authority to invest billions of dollars in a growing number of companies in return for stock. A third driving force is to beat China, whose control over some materials and manufacturing processes has exposed critical national security weaknesses for the U.S. amid trade tensions.

Under Trump, the government has taken stakes in chip maker Intel and critical minerals firms such as MP Materials and Lithium Americas. Lawyers say some company boards are clamoring to take on the government as a shareholder, while others are wary that they may be forced to give up equity or some sort of control in exchange for permits or other approvals. Some managers believe U.S. investment has given their firms a leg up, although free-market advocates warn there is a litany of examples where government heavy-handedness has had poor consequences for the economy. While some Democrats criticize the moves as lacking strategy, the taking of equity stakes in some cases has bipartisan support.

Trump officials say they’re just getting started. Treasury Secretary Scott Bessent has said the White House is homing in on industries critical to U.S. national security. The idea is to avoid an overreliance on China, which government officials say has manipulated prices to undercut U.S. industries and give itself a strategic advantage.

“I wouldn’t be surprised” if the U.S. took more stakes in private companies, Bessent said at a CNBC event on Oct 15. “When you are facing a non-market economy like China, then you have to exercise industrial policy.”

Just as often, the White House’s targets seem to be ones of opportunity. The U.S. took its stake in Intel days after Trump called for the ouster of its CEO, with Trump arguing that he was rectifying an unfair deal for taxpayers made by President Joe Biden’s administration. In November 2024, the Biden administration announced that Intel would receive nearly $8 billion in grants to support the company’s $100 billion investment in building semiconductor projects in the U.S., but the U.S. didn’t receive any equity as part of the deal.

In addition to the national security goals, White House and cabinet officials say they want to make money for taxpayers. “Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer? And the answer Donald Trump has is we should get an equity stake for our money,” U.S. Commerce Secretary Howard Lutnick told CNBC as the Intel stake was completed.

The Defense Department invested $400 million in July in MP Materials, which operates a rare earth mine in California. The preferred stock and warrant for common stock give the government a 15% stake in the company, making the U.S. its largest shareholder. As part of the deal, the government also guaranteed a minimum price for some of its rare earth products and said the Pentagon would find customers for 100% of the magnets produced at a new facility for a decade after its completion.

This month, the government struck two more critical minerals deals, taking 5% stakes in Vancouver-based Lithium Americas and in one of its joint ventures, and a 10% stake in Vancouver-based Trilogy Metals with warrants to acquire another 7.5% of the company. In addition to the money, the U.S. approved a 211-mile road for a mineral project in Alaska, reversing a decision made by Biden.

A U.S. investment is “enormously accelerating and transformational and valuable,” says Brian Menell, CEO of TechMet, a mining and mineral investments company. The first Trump administration invested $25 million in TechMet in 2020 through the U.S. International Development Finance Corp., which Congress originally created in 2018 to support development projects in low-income countries. The DFC during the Biden administration invested another $80 million.

A U.S. equity investment de-risks projects in the eyes of other investors and foreign governments. Menell says the U.S. involvement was a major selling point when TechMet raised $180 million from the Qatar Investment Authority.

“Governments around the world are very respectful of U.S. interests unless they’re completely stupid,” Menell says. “It’s been positive for us everywhere.”

Despite talk early in the administration of creating a sovereign-wealth fund, the White House says it isn’t seeking to build a large portfolio of U.S. companies. It sees equity stakes as just part of its tool kit to firm up the U.S. supply chain. “The point with equity stakes is that the president is making sure the taxpayer isn’t needlessly giving out money with no strings attached,” said a White House official, who called any financial returns to taxpayers an “ancillary benefit” to national security interests.

There is no one person at the White House tasked with overseeing a portfolio of investments, the official said.

Critics note that taking stock in a company doesn’t necessarily do much to firm up supply chains. The U.S.’s original deal with Intel provided the company with grants, loans, and tax incentives in exchange for the company meeting certain milestones to build semiconductor projects in the U.S., an endeavor that Intel and other chip makers said wasn’t otherwise economically viable. As part of the deal to convert the grants and loans into equity, the Trump White House removed the milestones.

Some deals have given the U.S. influence over corporate actions but without any stock. In August, Nvidia and Advanced Micro Devices agreed to give the U.S. 15% of their revenue from artificial-intelligence chip sales to China in exchange for export licenses. Later in the month, the White House said the deal hadn’t been finalized—and China banned the chip sales, in any case. An Nvidia spokesman declined to comment. AMD didn’t respond to a request for comment.

As a condition for approving the sale of U.S. Steel to Japan’s Nippon Steel, the government received a so-called “golden share,” giving it veto power over some corporate actions.

“These demands to take a percentage of profits or actual equity ownership to operate in different markets are nothing more than extortion schemes,” says Jeffrey Sonnenfeld, president of the Yale Chief Executive Leadership Institute.

The rare-earth deals have kicked off a gold rush among companies looking to see if they can get Uncle Sam as an investor as well. Just this week, The Wall Street Journal reported that some quantum computing companies are in discussions to give the Commerce Department equity stakes in exchange for funding. The Commerce Department in a statement to Barron’s said it is not negotiating equity stakes with quantum companies.

Y. David Scharf, one of Trump’s former attorneys, says 20 to 30 companies—in industries ranging from critical minerals to manufacturing and robotics—have reached out to him to see if he could help line up a U.S. investment, which he has whittled down to a “handful” for pitches to government agencies. Although the investment discussions are often to further national security interests, he says government officials are also looking for a positive investment return.

“Everyone is working across the table from each other to make money,” says Scharf.

The government hasn’t released a comprehensive accounting of what it has made from its investments, but anecdotally, the returns so far are robust.

TechMet’s Menell says the government has made 30% annually on its investment in the private company. MP Materials recently traded at around $83, more than double the conversion and exercise price that the company gave the government in its funding deal. In exchange for deferring $184 million in debt payments, the government received 5% of Lithium Americas, a stake worth $93 million. And in perhaps its most lucrative investment, the government in August agreed to buy 9.9% of Intel at $20.47 per share, a discount to the market price. The stock recently traded at around $38.

On its face, the government’s terms have often looked dilutive to private shareholders. But in the early days, a U.S. investment has almost always been accompanied by a surge in the target’s share price. Shareholders have enjoyed gains alongside the government.

Trump officials have pointed to several industries they view as critical to national security interests that could end up getting U.S. investments. Lutnick and Trump in interviews have suggested that defense contractors, who often have the U.S. as their biggest or only customer, could be targets. At the CNBC event on Oct. 15, Bessent said that the U.S. had identified seven critical industries where equity stakes might be on the table, but didn’t name them. “We’re not going to come in and take stakes in nonstrategic industries,” he said. “We do have to be very careful not to overreach.”

The Treasury Department didn’t respond to requests for comment on what the seven industries are.

In many cases, the government is giving support to industries that traditionally have found it too risky or expensive to operate in the U.S. Setting up a rare earths mine is risky even before taking into account the minerals’ highly volatile prices. Steel companies for years have said they can’t compete with China’s state-sponsored companies, which sell some forms of steel at prices that would cause the U.S. firms to lose money. Congress passed the Chips and Science Act in 2022 in part because nearly all advanced chipmaking happens in Taiwan.

“There’s a shared bipartisan sense that these are sectors and industries that we want to make sure we have good domestic production and stockpiles of,” says Beacon Policy Advisors analyst Owen Tedford. “There is some degree of shared bipartisan belief that even if the method isn’t the best, the outcome will be worthwhile in the long term.”

The government’s track record in taking equity stakes is mixed. To help stabilize the financial system, the U.S. in 2008 under the Troubled Asset Relief Program took equity stakes in major banks, insurer American International Group, and auto companies. Government officials in 2014 said they had recovered $441.7 billion from those investments, compared with $426.4 billion disbursed—a positive return, but one that critics say wasn’t commensurate with the risk.

Though taking equity stakes outside of crises is unusual, legal experts say there’s nothing inherently illegal about it. Congress authorized the government to take stock in companies through the International Development Finance Corp., which has made some rare earths deals. The act that enabled the funding for the Intel deal didn’t explicitly talk about the U.S. taking shares but it didn’t prohibit it, either. And since Intel voluntarily entered the agreement, it isn’t clear who would sue.

“So long as the companies formally consent to the government shares, the government is unlikely to face lawsuits in court,” wrote former Biden White House official Peter Harrell on the Lawfare website.

The push for government equity stakes may even continue if a Democrat wins the White House. Sen. Bernie Sanders (Ind., Vt.) praised the Intel deal in a statement, saying that “the taxpayers of America have a right to a reasonable return” in exchange for grants to chip makers. Some officials from the Biden White House say there’s nothing inherently wrong with the tactic of taking equity in exchange for government help.

“An equity stake is an industrial policy tool just like a grant, a tax credit, a loan, or a tariff. They can be used in smart and strategic ways, but also be used in clumsy and misapplied ways,” says Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative and a former White House official in Biden’s National Economic Council. Jacquez says Trump seemed to be treating the equity investments as “a vanity play” and “personal portfolio.”

The chief executives of some of America’s top corporations sounded alarm bells at a gathering last month in Washington. They expressed acute anxiety that Trump is asserting unprecedented control over company governance. “They view this as a huge mistake,” says Sonnenfeld, who organized the meeting.

Many leaders of large companies blanch at the government taking equity but won’t speak out in public for fear of becoming a Trump target, says Sonnenfeld. What’s more, some of them see winning U.S. government support as a way to undercut rivals and get a short-term opportunity “to get a brief stock pop,” he says.

In the longer term, there’s a risk of government heavy-handedness undermining the conditions that have made the U.S. economy successful relative to its peers, says Norbert Michel, a vice president at the Cato Institute, a libertarian think tank.

“You don’t have to go too far to get to a completely different economic system,” Michel says. “There’s no clearly defined line that says, ‘Well, if you only have the government taking a 5% stake in five companies then it’s not fascism or not socialism.’ We shouldn’t be doing this, because that’s where this leads.”

What comes after the U.S. builds its portfolio is mostly unknown. With Intel, the White House agreed not to take governance rights. But it has already put its thumb on the scale in other arrangements. Trump exercised his U.S. Steel veto power for the first time last month, blocking a decision to stop processing raw steel at a plant in Illinois. A White House official in September told Barron’s that stopping processing was “perhaps a sensible business decision,” but against U.S. interests.

A U.S. Steel spokeswoman says there would have been no layoffs, in any case, and called the Trump administration “a great friend to the American steel industry.”

>>> Weekly Market Update

As US stocks opened up this week, the consternation about banks and potential boogeymen on their balance sheets quickly abated. Sentiment and breadth were positive despite little hope that DC lawmakers were moving towards any deal to reopen the US government. Earnings season forged further to the forefront of most investors’ minds amid a deluge of consumer and industrial earnings announcements. By mid-week, rotation could be seen in portions of the equity markets as well as flows into US Treasury debt. High flying sectors like metals and AI stack-related names saw relative weakness while industrial groups, healthcare, and staples responded better following the posting of key quarterly results. On Tuesday, gold prices saw one of the wildest trading moves in more than a decade after months of run up. Prices dropped more than 6% from most recent high, snapping a 10-week winning streak. Crude prices continued tracking lower, heading further into the mid to high $50’s range before bouncing meaningfully into the end of the week. The US Department of Energy indicated it would purchase 1M barrels for the SPR and, perhaps more importantly, the Trump Administration announced additional sanctions aimed directly at Russian oil producers amid the President’s growing frustration with Putin over the Ukraine war.

UK stocks and bonds experienced early relative strength in the wake of cooler than expected UK CPI data. Eurozone and German PMIs exceeded forecasts, boosting the euro to a three-week high versus sterling. UK PMIs were better as well, with manufacturing coming in above all estimates. Friday’s September US CPI print was below estimates which solidified expectations the Fed will cut two more times this years including next week. The delayed inflation reading buoyed risk appetite and sentiment, further offsetting stepped up rhetoric from President Trump surrounding his tariff policy. Canada returned as a flash point on the trade front while key members of the Administration arrived in Asia ahead of a still-on-for-now summit between Xi and Trump next week.
In corporate events this week, earnings season intensified the scrutiny of some high flying high tech ventures, and allowed some other sectors to shine through. 3M Company gave investors an excellent report and share surged as management touted a China business that remains resilient and growing, a rare case amid the trade war. GE Aerospace also kept chugging along with a strong earnings report and higher guidance, while also announce the $5.3B acquisition of the remaining 50% stake in its Prolec GE venture. General Motors reported spectacular numbers and was rewarded with a breakout in its share price, as executives trimmed their forecast for tariff impacts and confirmed the slowdown in the EV since the end of US subsidies. Ford also had great Q3 numbers, outweighing a FY guidance cut related to a supply issue resulting from a fire at the premier aluminum sheet provider in the US (Novelis). Tesla had worse number to report, missing estimates and warning that it has become difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains. On the AI front, Google scored a deal worth tens of billions of dollars from the surging OpenAI challenger Anthropic, poaching some business from Amazon’s AWS. Some of the market’s most speculative names got a new boost reports stating they would get favorable treatment for the Trump Administration. Oklo and other small nuclear reactor names were helped by a report that indicated the nuclear startups would be given access to nuclear grade plutonium. Meanwhile, quantum computing names saw a correction in the sector halted by reports that the White House is mulling taking stakes in the highly strategic sector. For the trading week, the S&P ended up 1.9%, the DJIA gained 2.2%, and the Nasdaq added 2.3%.

MON 10-20
(AU) White House releases sheet on critical minerals framework with Australia; DOD will invest in Gallium refinery; US additionally secures more access to US beef in Australia; Australia funds will raise US investment to $1.44T by 2035
(CN) US's National Foreign Trade Council said to urge Trump administration to cancel a rule that is leading to drop off in US exports and will result in foreign trade partners cutting US firms out of global trade flows – press
(KR) South Korea and US reportedly agree to sign trade MOU during Trump's visit – press
(UR) Reportedly during Friday's meeting, Trump told Zelenskiy he was losing the war, warning: “If Putin wants it, he will destroy you”; Trump also reportedly said that Russia’s economy is “doing great”, in a sharp contrast to his recent public remarks - FT (update)
(VE) Reportedly Pres Trump’s military build-up off the coast of Venezuela is aimed at convincing President Maduro and his inner circle that staying in power will be more costly than leaving - FT (update)
BABA Said to have introduced Aegaeon computing pooling solution that it said led to an 82% cut in the number of Nvidia graphics processing units (GPUs) needed to serve its AI models and potentially reshaping AI workloads – SCMP
CCK Reports Q3 $2.24 v $1.98e, Rev $3.20B v $3.19Be; Raises FY guidance
CLF Reports Q3 -$0.45 v -$0.48e, Rev $4.7B v $4.89Be; Entered MoU with undisclosed major global steel producer; Notes Q3 results show a richer sales mix and improved pricing and expect this trend to accelerate into 2026; Geological surveys at Michigan and Minnesota sites show key indicators of rare-earth mineralization
ODFL Announces general rate increase (GRI) of 4.9% applicable to rates established under the existing ODFL 559, 670, and 550 tariffs effective Nov 3, 2025; Intended to partially offset the rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages
OPENAI.IPO Reportedly ChatGPT's new user growth slowed after April; global DAU growth has flattened over the past month; October is on pace for an 8.1% m/m drop in the percentage change of global downloads, though the app still adds millions of installs per day - TechCrunch citing third-party app intelligence firm Apptopia (update)

TUES 10-21
(CA) CANADA SEPT CPI M/M: +0.1% V -0.1%E Y/Y: 2.4% V 2.2%E
(JP) JAPAN PARLIAMENT FORMALLY ELECTS TAKAICHI AS PRIME MINISTER
(JP) Japan PM Takaichi: Don’t see need to review BOJ-govt accord now; Determined to defend Japan's national interests through diplomacy and security; Now is not time to dissolve Parliament; No need to review BoJ-govt agreement now; BoJ's monetary policy is part of broader economic policy, for which the govt holds responsibility
(US) Dept of Energy to purchase 1M bbl for Strategic Petroleum Reserve (SPR) for delivery in Dec 2025 and Jan 2026 – press
(US) Redfin: U.S. home prices rose 0.2% from a month earlier in September on a seasonally adjusted basis; On a year-over-year basis, home prices rose 3%, the slowest rate recorded in Redfin Home Price Index (RHPI) data going back to 2012
ABNB CEO Chesky: OpenAI not ready for integration with AirBNB; Airbnb 'relies heavily' on Alibaba's Qwen models to power its AI customer service agent – press
ADS.DE Reports prelim Q3 Op €736M v €688Me, Rev €6.63B v €6.7Be; Raises FY Op outlook on brand momentum and tariff mitigation
CB Reports Q3 core op income $7.49 v $5.94e, Net Premiums Written $14.9B v $13.8B y/y
ELV Reports Q3 $6.03 v $4.98e, Rev $50.1B v $49.5Be; Notes dynamic healthcare environment
GE Reports Q3 $1.66 adj v $1.46e, Rev $12.2B v $10.3Be; Raises outlook again due to expectations of Q4
GM Reports Q3 $2.80 v $2.25e, Rev $48.6B v $44.2Be; Raises outlook
GOOGL Reportedly Antrophic in talks for Google cloud deal worth tens of billions of Dollars - press
HAL Reports Q3 $0.58 adj v $0.50e, Rev $5.60B v $5.39Be
META Announces JV with Funds Managed by Blue Owl Capital to Develop the $27B Hyperion Data Center; To hold a 20% stake
OKLO US DOE said to be planning to offer companies access to nuclear grade plutonium; Oklo and France's Newcleo said to be among the applicants – FT
OPENAI.IPO ChatGPT Atlas browser understands the information it's displaying, integrates sidechat for searching and aggregating information - video presentation
MMM Reports Q3 $2.19 v $2.10e, Adj Rev $6.3B v $6.25Be; Raises FY EPS and organic Rev outlook
NOC Reports Q3 $7.67 adj v $6.49e, Rev $10.4B v $10.7Be; Raises FY EPS view and cuts Rev
PHM TTN Summary of 08:30ET Earnings Call: Early-Oct trends mirror Q3; Buyers proceeding with caution despite lower rates due to economic and job concerns; Sees potential ~$1.5k/home build cost increase starting in 2026; Land spend for 2025 set at ~$5 billion (5% y/y decline), maintaining a robust pipeline to support future growth when demand rebounds
RTX Reports Q3 $1.70 adj v $1.42e, Rev $22.5B v $21.5Be; Raises guidance
WAL Reports Q3 $2.28 v $2.11e, Net Rev $938M v $888Me
WBD Warner Bros. Discovery confirms initiates Review of Potential Alternatives to Maximize Shareholder Value

WED 10-22
(CN) EU said to prepare trade options to counter China rare earths restrictions - press
(CN) Trump administration said to consider plan to restrict global exports to China that contain or are made with US software – press
(RU) US Treasury Dept: Targeting Russian integrated oil & gas companies Rosneft and Lukoil in latest round of sanctions [**Note: Pres Trump later on sanctions: "We hope they won't be on for long and that the war will be settled"]
(UK) SEPT CPI M/M: 0.0% V 0.2%E; Y/Y: 3.8% V 4.0%E
(US) Automakers are pushing for Trump administration to refrain from imposing new tariffs on factory robots and industrial machinery - press
(US) Tier1 analysts after call with legal experts: Legal experts judged that it’s too hard to predict the outcome of the IEEPA case; In terms of the timeline, the case could be decided by some time in December at the earliest. Experts agreed that if the court found tariffs to be unlawful then they would need to be refunded. Revenue from all IEEPA enacted tariffs totaled $89bn in FY 25
(US) TRUFLATION PROXY OF US AGGREGATED INFLATION INDEX ROSE TO 2.3% (HIGHEST SINCE FEB) V 2.2% W/W V 1.4% BEFORE 'LIBERATION DAY'
AAPL *REPORTEDLY DRASTICALLY CUTTING IPHONE AIR PRODUCTION ORDERS, BUT SAME TIME BOOSTING ORDERS FOR OTHER IPHONE 17 MODELS – Nikkei
AKZA.NL Reports Q3 Net -€194M v +€164Me, Adj EBITDA €385M v €386e, Rev €2.55B v €2.52Be; Notes Net hit by €300M provision related to court case; India divestment on track to close in Dec
APH Reports Q3 $0.93 v $0.79e, Rev $6.19B v $5.48Be; Organic net sales +41% y/y; Raises quarterly dividend 51.5% to $0.25 from $0.165 (indicated yield 0.78%)
CA.FR Reports Q3 Rev €22.6B v €23.4Be; Affirms outlook; CFO declined to comment on whether political crisis in France could impact demand in Q4
GOOGL Willow quantum chip demonstrates the first-ever algorithm to achieve verifiable quantum advantage on hardware
HEIA.NL Reports Q3 adj Rev €7.33B v €7.36Be; Guides FY25 volumes to decline modestly
HLT Reports Q3 $2.11 v $2.04e, Rev $3.12B v $3.02Be; Sees stronger RevPAR growth over the next several years
KER.FR Reports Q3 Rev €3.42B v €3.31Be
KNX *TTN Summary of 16:30ET Earnings Call: Taking a cautious view on Q4: LTL demand appears softer in the first two weeks of Q4 versus normal seasonality; base freight demand has been stable through mid-October, but the usual seasonal build hasn’t materialized and recent “overnight” peak projects may not recur
LRCX Reports Q1 $1.26 v $1.22e, Rev $5.32B v $5.22Be; Guides Q2 strong
META Reportedly Meta is cutting several hundred roles from its AI unit even as it continues to hire for its newer TBD Lab – Axios
POLITIX TTN Research Alert: The New Gerrymander (“Dummymander”) Trilemma: Inside the State-by-State Redistricting Blitz That Sets the House Math Before a Single Ad Airs; How Texas, Missouri, and North Carolina Built a Quiet R+7 and Why California’s Prop 50 Could Lower Bar for Dems Next Month
SAP.DE Reports Q3 €1.59 v €1.46e, Rev €9.08B v €9.13Be; Guides FY cloud Rev to lower end of range and Op profit to upper end of range (update)
TSLA Reports Q3 $0.50 adj v $0.53e, Rev $28.1B v $26.5Be; Difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains
TSLA TTN Summary Earnings Call: Tesla A5 AI chip design removes legacy GPU/ISP blocks for radical simplicity; Confident we can expand Tesla's production [does not provide timeline]; production-intent Optimus prototype will be ready to show off in Q1, likely February or March; Musk says Tesla’s idle cars could provide 100GW of distributed inference capacity
VRT Reports Q3 $1.24 v $1.00e, Rev $2.68B v $2.58Be; Raises outlook; Guides Q4 Rev strong; Organic Orders ~+60% y/y; Sees strategically positioned to deliver strong growth for the balance of 2025 and for 2026
VRT Provides look into 2026; Expecting AI infrastructure deployment in EMEA to accelerate in 2026; While tariffs remain fluid and uncertain, our execution of tariff countermeasures remains in focus. We are currently positioned to materially offset this impact exiting first quarter 2026, driving a year-over-year tailwind for full year 2026 - earnings slides

THRS 10-23
(AR) White House: Confirms increasing Argentina beef import tariff rate quota to 80K tons to reduce prices
(CN) Reportedly China state oil companies suspending seaborne imports of Russian crude out of fear over Western sanctions – press
(CN) CHINA COMMUNIST PARTY 4TH COMMUNIQUE: Approves draft of next 5-year plan (2026-31); replaces 11th Central Party Committee members (highest personnel turnover since 2017 amid an ongoing military purge); To greatly revitalize consumption ; To boost homegrown tech and core tech breakthroughs
(EU) EURO ZONE OCT ADVANCE CONSUMER CONFIDENCE: -14.2 V -15.0E
(JP) RENGO [LARGEST TRADE UNION IN JAPAN] SEEK WAGE HIKES OF 5% OR MORE IN 2026 V 5.25% ON AVERAGE IN 2025 - PRESS
(US) SEPT EXISTING HOME SALES: 4.06M V 4.06ME
(US) Tier1 analysts: Now expect the Fed to stop QT at the end of Oct vs prior expectation at end Dec; Elevated repo prints over recent days drove our change; At Oct FOMC we now expect 2 things: (1) QT cessation at end Oct (2) mortgage repayments immediately invested into UST bills. MBS to UST bills should be $10-20b/m.
(US) Trump Admin planning to open nearly all of US coast to offshore drilling exploration – press
AAL Reports Q3 -$0.17 v -$0.27e, Rev $13.7B v $13.6Be; Guides Q4 strong and raises FY outlook
AIR.FR Leonardo, Airbus and Thales confirm MoU to create a leading European player in space; The new company expected to be operational in 2027
DOW Guides Q4 Rev $9.4B v $10.0Be; Affirms FY25 Capex ~$2.5B (prior: ~$2.5B) - earnings slides
DOW Reports Q3 -$0.19 v -$0.31e, Rev $10.0B v $10.2Be; Notes near-term market backdrop remains largely unchanged across the end markets Dow serves
DSV.DK Reports Q3 (DKK) Adj Net 3.73B v 3.00B y/y, EBIT 5.43B v 4.42B y/y, Rev 72.0B v 44.1B y/y; Notes integration of Schenker maintained strong momentum; Trims outlook citing current market uncertainties related to trade tariffs, the geopolitical landscape, including the Red Sea situation, and macroeconomic factors, are expected to persist
F Reports Q3 $0.45 v $0.38e, Rev $50.5B v $42.7Be; Cuts outlook; Sees $1.5-2B adj EBIT hit in 2025 from Novelis fire, expect to mitigate at least $1.0B of adjusted EBIT in 2026
Flexport CEO: This time around [ahead of Nov 1st' tariff deadline] volumes haven’t dropped, importers all seem to think Trump will back off the 100% tariff increase before Nov 1st; Their cargo is already on the water though, so if the tariffs do go into effect next week will be brutal for importers. (update)
INTC Reports Q3 $0.23 adj v $0.01e, Rev $13.7B v $13.1Be; "Current demand is outpacing supply, a trend we expect will persist into 2026.”
NEM Reports Q3 $1.71 v $1.29e, Rev $5.52B v $4.97Be
NOKIA.FI Reports Q3 €0.06 v $0.06e, Rev €4.83B v €4.64Be; Notes order intake trends in Optical Networks and IP Networks remained strong
ROG.CH Reports Q3 (CHF) Rev 14.9B v 15.2Be; Notes groundbreaking next-generation sequencing technology set to launch next year
SMCI Q1 update: Recent design wins in excess of $12B; Affirms FY26 Rev $33B [does not provide specific Q1 guidance]
TMUS Reports Q3 $2.41 v $2.42e, Rev $22.0B v $21.8Be; Raises EBITDA and net additions outlook
TRU Reports Q3 $1.10 v $1.04e, Rev $1.17B v $1.13Be; Announces new up to $1B increase to share buyback
UNA.NL Reports Q3 Rev €14.7B v €14.9Be; Sees H2 ahead of H1; Ice Cream Demerger expected to complete in Q4 2025
ORCL *Reportedly banks anticipate launch of $38B debt offering as soon as Monday to fund Oracle-tied data centers - press

FRI 10-24
(US) PRES. TRUMP: THE RONALD REAGAN FOUNDATION HAS JUST ANNOUNCED THAT CANADA HAS FRAUDULENTLY USED AN ADVERTISEMENT THAT INTERFERES WITH THE US SUPREME COURT; ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED - post on Truth Social
(CA) Canada PM Carney: We can't control trade policy of US; We recognize US policy has changed; Stand ready to pick up on trade talks progress when US is ready - comments before departing for Malaysia for ASEAN summit
(IN) India and US reportedly discussing a few non-tariff barriers and are very close to a trade deal - press cites official (unclear if Indian or US)
(FR) FRANCE'S SOCIALISTS HAVE REPORTEDLY THREATENED TO TOPPLE THE GOVT BY MONDAY IF THEIR BUDGET CONDITIONS ARE NOT MET; WOULD FILE A NO-CONFIDENCE BILL EARLY NEXT WEEK IF BILLIONAIRES ARE NOT FORCED TO PAY MORE TAX – PRESS
(CO) US Treasury Dept's Office of Foreign Asset Controls (OFAC) places Specially Designated National (SDN) sanctions Colombia Pres Petro
(US) Pres Trump said to plan new class of Navy warships to counter China and other threats - WSJ
(US) Fed proposes changes to increase bank stress test transparency; Will disclose and solicit feedback on stress test models and scenarios for first time under new proposal; Fed will vote on proposed changes later today (10/24)
(CA) Ontario govt: Will take down anti-tariff ads after US Pres Trump ends trade talks - Canadian press
(US) SEPT CPI M/M: 0.3% V 0.4%E; Y/Y: 3.0% V 3.1%E (highest annual pace since Jan)
(US) OCT FINAL UNIVERSITY OF MICHIGAN CONFIDENCE: 53.6 V 54.5E; Current conditions: 58.6 v 60.8e (lowest since Nov 2022); 5-10 year inflation expectations 3.9% v 3.7%e
(US) OCT PRELIMINARY S&P MANUFACTURING PMI: 52.2 V 52.0E (3rd month of expansion); Expectations about year ahead output dropping to one of the lowest seen over the past three years; Companies are also concerned over disappointing export sales, especially in manufacturing, and factories are seeing an unprecedented rise in unsold stock.
(UK) OCT PRELIMINARY MANUFACTURING PMI: 49.6 V 46.6E (above all estimates, 1-year high, but 13th month of contraction)
(DE) GERMANY OCT PRELIMINARY MANUFACTURING PMI: 49.6 V 49.5E (40th month of contraction)
(FR) FRANCE OCT PRELIMINARY MANUFACTURING PMI: 48.3 V 48.2E (2nd month of contraction)
(US) Cleveland Fed’s Inflation Nowcast still sees Sept CPI Y/Y (to be released today) to re-accelerate again to 3.0% from 2.9%; Sees Oct CPI Y/Y (to be out next month if US govt reopens) to stay unchanged at 3.0%
PG CEO: Rescinded price increases in Canada which helped a lot in the quarter; We will see what the President says tonight - CNBC
IBM Exec: IBM is running quantum computing algorithm on widely available AMD chips - press interview
P911.DE Reports 9M Oper €40M v €4.0B y/y, Rev €26.9B v €28.6B y/y; Sees FY25 charges €3.1B for strategic realignment; Need to discuss large-scale realignment with employee reps; Must assume market conditions won't improve for foreseeable future
BAM Said to enter discussions with Santee Cooper to buy two dormant nuclear reactors in South Carolina - WSJ

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • DECK -12.5%, BAH -8.5%, NEM -6.4%, MHK -4.2%, MGRC -3.2%, KN -2.9%, COUR -2.5%, MRTN -2.2%, WSFS -2.1%, ASB -2%, BKR -1.9%, BYD -1.7%, SBSI -1.3%, ALK -1.2%, KNSL -1.1%, VRSN -1.1%, WKC -1%
Other news:
  • COYA -12.5% (stock offering)
  • COYA -12.5% (announces pricing of $20 million upsized public offering of common stock)
  • ULH -5.5% (postpones Q3 earnings release)
  • NEWP -5.4% (appoints CEO and CFO)
  • GSK -4.5% (FDA approves Blenrep for multiple myeloma)
  • XFOR -3.9% (prices offering consisting of common stock and warrants)
  • NIC -3.2% (NIC to acquire MOFG, also reports earnings)
  • VTOL -1.7% (files mixed securities shelf offering)
  • NBTX -1.4% (updates JNJ-1900 (NBTXR3) clinical program following transfer of ongoing Phase 3 Head and Neck Cancer Trial sponsorship and operational control)
  • UBS -1% (announces executive board and board of directors changes)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • FIX +17.7% (also increases dividend), NXT +13.1% (also to form Nextracker Arabia, a new joint venture), SLM +8.5%, INTC +7.5%, F +4.5% (also plans to significantly increase F-150 and F-Series Super Duty truck production), SSNC +4.5%, HCA +4.2%, UVE +4.1%, WU +3.1%, NWG +3.1%, HTH +2.5%, MXL +2.5%, SNY +2.4%, SAM +2.3%, E +2%, PG +1.9%, GRC +1.7%, GD +1.6%, DOC +0.9%, CUBI +0.9%, CYH +0.9%, FLG +0.8%
Other news:
  • INBX +63.6% (topline results from the registrational ChonDRAgon study)
  • MOFG +33.4% (NIC to acquire MOFG, also reports earnings)
  • VIOT +11.1% (approves $20 mln share repurchase plan)
  • BBAI +5.2% (deploys veriScan at Chicago O'Hare)
  • KURA +4.9% (announces receipt of a $30 mln milestone payment under its collaboration agreement with Kyowa Kirin in connection with the dosing of the first patient in the KOMET-017 Phase 3 registrational trials of ziftomenib)
  • FHI +4% (to acquire a majority interest in FCP Fund Manager)
  • TDOC +3% (CFO to step down, reaffirms guidance)
  • CSTL +2.9% (reports new analysis of 13,560 patients demonstrates DecisionDx-Melanoma stratifies risk across histological subtypes; Findings to be presented at Fall Clinical Dermatology Conference)
  • GLUE +2.6% (presents preclinical data at ACR Convergence 2025 on the potential of MRT-6160)
  • VSTM +2.4% (preliminary data from Phase 1/2a trial of VS-7375)
  • BBOT +2.2% (new preclinical data on BBO-11818)
  • FFAI +2.1% (Announces Strategic Cooperation with RAK Motors to Oversee FX Super One Sales and Services in the UAE)
  • PONY +2% (rolls out its 300th ARCFOX Alpha T5 Robotaxi)
  • SMCI +1.9% (announces new 6U 20-Node MicroBlade)
  • BRBR +1.6% (discloses Joint Juice litigation updates)
  • GOOG +1.3% (Anthropic announces expansion of its use of Google Cloud's TPU chips)
  • XPO +1.1% (litigation update)
  • KGS +1% (increases dividend)
  • MLGO +1% (WiMi Hologram (WIMI) clarified certain facts concerning its convertible debt and equity investments in its subsidiary MicroAlgo emphasizing commitment to long-term value creation and stable governance)

>>> US Research Calls I

Research Calls I
  • Upgrades
    • Alliant Energy (LNT) upgraded to Buy from Neutral at UBS, tgt $79
    • AppFolio (APPF) upgraded to Outperform from Market Perform at Keefe Bruyette, tgt $311
    • Commercial Metals (CMC) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $68
    • Coinbase (COIN) upgraded to Overweight from Neutral at JPMorgan, tgt $404
    • eBay (EBAY) upgraded to Outperform from Market Perform at Citizens JMP, tgt $115
    • FirstService (FSV) upgraded to Outperform from Sector Perform at Scotiabank, tgt $205
    • Kodiak Sciences (KOD) upgraded to Overweight from Neutral at JPMorgan, tgt $24
    • MNTN (MNTN) upgraded to Buy from Neutral at Citigroup, tgt $22
    • Tractor Supply (TSCO) upgraded to Equal Weight from Underweight at Morgan Stanley, tgt $60
    • United Bankshares (UBSI) upgraded to Overweight from Neutral at Piper Sandler, tgt $42.50
  • Downgrades
    • Anavex (AVXL) downgraded to Hold from Buy at JonesResearch
    • Arcturus Therapeutics (ARCT) downgraded to Neutral from Buy at H.C. Wainwright, tgt $12
    • Inspire Medical (INSP) downgraded to Hold from Buy at Jefferies, tgt $85
    • Integer (ITGR) downgraded to Neutral from Buy at BofA Securities, tgt $87
    • Integer (ITGR) downgraded to Neutral from Buy at Citigroup, tgt $77
    • Integer (ITGR) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $80
    • Kering (PPRUY) downgraded to Hold from Buy at HSBC
    • Life360 (LIF) downgraded to Hold from Buy at Stifel, tgt $92
    • Molina Healthcare (MOH) downgraded to Underweight from Equal Weight at Barclays, tgt $144
    • Mister Car Wash (MCW) downgraded to Neutral from Overweight at Piper Sandler, tgt $6
    • Sigma Lithium (SGML) downgraded to Neutral from Buy at BofA Securities, tgt $7
    • Snap (SNAP) downgraded to Sell from Hold at Stifel, tgt $6.50
    • South Plains Financial (SPFI) downgraded to Neutral from Overweight at Piper Sandler, tgt $41
    • Torrid (CURV) downgraded to Market Perform from Outperform at William Blair
  • Others
    • Albemarle (ALB) initiated with a Buy at Rothschild & Co Redburn, tgt $135
    • Alphatec (ATEC) initiated with an Overweight at JPMorgan, tgt $19
    • Amazon (AMZN) resumed with an Overweight at KeyBanc, tgt $300
    • DoorDash (DASH) reinstated with an Equal Weight at Barclays, tgt $272
    • ImageneBio (IMA) initiated with an Outperform at Leerink Partners, tgt $30
    • Kosmos Energy (KOS) initiated with a Buy at Clarksons, tgt $4
    • Kyivstar (KYIV) initiated with a Buy at BTIG Research, tgt $17
    • Legence (LGN) initiated with a Buy at Roth Capital, tgt $41
    • Pennant Group (PNTG) initiated with a Buy at Jefferies, tgt $30
    • Sociedad Quimica y Minera (SQM) initiated with a Neutral at Rothschild & Co Redburn, tgt $54
    • Tennant (TNC) initiated with a Buy at Roth Capital, tgt $102
    • Urban Edge (UE) initiated with a Neutral at UBS, tgt $21
    • Zymeworks (ZYME) assumed with an Equal Weight at Wells Fargo, tgt $15

>>> Eli Lilly to acquire Adverum Biotechnologies (ADVM) -- ADVM shares halted (8

Eli Lilly to acquire Adverum Biotechnologies (ADVM) -- ADVM shares halted (821.04)
  • Co announced a definitive agreement for Lilly to acquire Adverum Biotechnologies ncluding its lead product candidate, Ixo-vec.
  • Adverum is developing a pipeline of intravitreal single-administration gene therapies with the aspiration of developing functional cures to restore vision and prevent blindness. Its lead product candidate, Ixo-vec, is an intravitreal gene therapy being developed for the treatment of wet age-related macular degeneration. This serious, chronic and progressive retinal disease affects millions of people worldwide. Ixo-vec is designed as a single one-time treatment to deliver continuous and stable intraocular aflibercept levels, thereby reducing the significant patient burden associated with current chronic anti-VEGF therapies, while also potentially leading to improved vision outcomes.
  • Under the terms of the merger agreement, Lilly will commence a tender offer to acquire all of the outstanding shares of Adverum common stock for a per share price of (1) $3.56 per share in cash payable at closing plus (2) one non-transferrable contingent value right that entitles the holder to receive up to an additional $8.91 per CVR in cash upon the achievement of two milestones described below, for total potential per share consideration of up to $12.47.
    • The CVR provides payments if and when the following milestones are achieved:
    • Up to $1.78 per CVR in cash payable upon U.S. approval of Ixo-vec prior to the seventh anniversary of closing.
  • Up to $7.13 per CVR in cash payable upon the first achievement of annual worldwide net sales of Ixo-vec by Lilly, its affiliates or licensees exceeding $1.0 billion dollars prior to the tenth anniversary of closing.
  • The transaction is subject to closing conditions that appear in the merger agreement and tender offer documents that will be filed with the SEC, including the tender of a majority of the outstanding shares of Adverum's common stock. These conditions do not include a financing condition. The transaction is expected to close in the fourth quarter of 2025, subject to satisfaction of the closing conditions. If the tender offer successfully closes, then Lilly would acquire any shares of Adverum that are not tendered in the tender offer through a second-step merger for the same consideration as is paid in the tender offer.
  • In conjunction with the transaction, Adverum has entered into a Promissory Note (the "Promissory Note") with Lilly. The Promissory Note is secured by all of Adverum's assets, including all of its intellectual property rights, and enables Adverum to receive a loan of up to $65 million from Lilly, drawable by Adverum in four installments, subject to specified conditions, to support ongoing Ixo-vec clinical trials and registrational development activities prior to the anticipated closing of the transaction. Funding obligations cease and the Promissory Note immediately becomes due if the transaction is terminated, including as a result of the minimum tender condition not being satisfied. Absent funds provided by Lilly under the Promissory Note, Adverum's remaining cash and cash equivalents were expected to finance only its October 2025 operations and wind down activities.