CNBC 3 days ago

Saudi Aramco profits soar in second quarter as Iran war squeezes oil

Saudi Aramco posted a substantial increase in its second-quarter profits, reporting an adjusted net income of 125.2 billion Saudi riyals, equivalent to $33.4 billion. This figure surpassed analyst expectations, which had projected earnings around $31.59 billion. The strong performance comes amid heightened volatility and interruptions in oil supply routes caused by the ongoing conflict in the Middle East, particularly around the Strait of Hormuz. The surge in profits reflects the company’s ability to capitalize on elevated oil prices driven by supply constraints resulting from the regional instability. The conflict involving Iran has tightened oil markets, fueling price increases that have benefitted major producers like Saudi Aramco. This environment has allowed the firm to maintain high revenue levels despite challenges to global oil transport. This earnings report highlights Saudi Aramco’s dominant position as the largest oil company worldwide, demonstrating its resilience in a period marked by geopolitical risk and market uncertainty. The company's financial results underscore the broader impact of Middle East tensions on the global energy landscape, influencing pricing and production decisions among key industry players. As geopolitical conflicts continue to affect energy markets, Saudi Aramco's earnings may serve as an indicator of how prolonged instability can drive profitability for major oil exporters. Investors and analysts are closely monitoring these developments, given their implications for global oil supply, prices, and economic conditions in producing nations.

1
0 comments Source
TechCrunch 3 days ago

After killer quarter, Palantir CEO Alex Karp calls AI industry ‘Marxist’

Palantir CEO Alex Karp delivered a strong message following the company’s impressive second-quarter performance, which included $1.9 billion in revenue—up 93% year-over-year—and $1.1 billion in profit. Despite Palantir’s success benefiting from the rapid adoption of AI technologies, Karp criticized the AI industry, particularly frontier labs developing large language models, likening their role to Marxist notions by attempting to seize control over the means of production from enterprise customers. His explanation, rooted in social theory, suggests that these AI companies risk undermining the businesses that rely on them by migrating intellectual property and expertise into their own models. Karp expanded on his Marxist analogy during a call with analysts, emphasizing his concerns about a small group of elite players controlling AI capabilities while others bear the costs. He warned that some AI companies operate under a belief of moral superiority, which justifies their appropriation of enterprises’ proprietary data and knowledge. This viewpoint resonates with a broader industry debate about how AI firms leverage partnerships and data inputs while simultaneously competing against those clients across sectors such as legal, healthcare, and drug discovery. Despite Karp’s harsh characterization of AI labs, Palantir’s business model differentiates itself by offering model-agnostic AI and analytics software, prioritizing data control for governments and enterprises. This approach allows clients to manage their own AI workflows, including prompts and context, so they can benefit from AI without surrendering ownership or control of sensitive assets. Palantir’s robust quarterly results demonstrate strong demand for this kind of enterprise-focused AI solution amid a fast-evolving tech landscape. This discourse comes amid a broader AI market expansion, where companies like Microsoft and others are actively competing with established AI labs such as OpenAI and Anthropic. Karp’s commentary underscores the complex and sometimes contentious relationships between AI technology providers and their enterprise customers as they navigate rapid innovation while addressing concerns over data ownership, competitive dynamics, and ethical considerations in AI deployment. Overall, Palantir’s quarter reflects strength and resilience despite these headwinds.

1
1 comment Source
CNBC 3 days ago

Trump says Exxon and Chevron made ‘too much money’ off high oil prices during Iran conflict: ‘I don’t like it’

Former President Donald Trump criticized ExxonMobil and Chevron for profiting excessively from the surge in crude oil prices linked to the conflict involving Iran. Speaking at the White House, Trump contended that the oil giants made "too much money" during the crisis, which stemmed from supply disruptions triggered by tensions and military actions in the region. He emphasized his dissatisfaction with the companies’ windfall gains amid the ongoing geopolitical strife. Both Exxon and Chevron posted remarkably strong second-quarter earnings, reflecting the elevated oil prices. Chevron’s profits soared by almost 400% to $12 billion, a significant jump from $2.5 billion in the same quarter last year. Meanwhile, ExxonMobil more than doubled its earnings, reaching $14.5 billion compared to $7.1 billion in the previous year’s quarter. These earnings reports underline how the oil majors capitalized financially on the market volatility caused by the Iran situation. Trump also urged these corporations to return some of these earnings to the public by lowering retail prices at the pump. He stressed that consumers should benefit from the companies' gains, insisting that gas prices needed to come down. His comments followed continued price increases at the gas station, with national average gasoline prices rising nearly 40% since the escalation of the Iran conflict in late February. The sharp rise in oil futures prices, which averaged around $92 per barrel from April to June—up roughly 27% from the first quarter—is directly linked to the disruptions in oil exports caused by Tehran’s attempts to block the Strait of Hormuz. Despite the recent price volatility and Trump’s remarks, shares of the two energy giants slightly declined amid broader market concerns regarding the ongoing geopolitical risks and prospects of de-escalation through U.S.-Iran negotiations.

1
1 comment Source
CNBC 11 days ago

Oil slides 5% as Iran reportedly signals halt to attacks if U.S. pause holds

Oil prices dropped sharply by about 5% following reports that Iran signaled it would halt attacks if the United States maintains a pause in hostilities. This development helped ease tensions that had escalated over nearly two weeks of conflict. As a result, Brent crude futures for September delivery decreased to around $91.97 per barrel, while U.S. West Texas Intermediate crude for the same month fell to $84.67 per barrel. According to a senior Iranian official cited by Reuters, Tehran’s stance now aligns with a conditional "attack for attack" policy, meaning Iran will cease attacks as long as the U.S. does the same. This message has reportedly been communicated to Washington, coinciding with the U.S. decision to pause its bombing campaign. The pause was reportedly influenced by warnings from President Donald Trump’s advisers about dwindling viable military targets and concerns over depleting weapon stockpiles. U.S. Ambassador to the United Nations Mike Waltz affirmed on Fox News that the pause in strikes was strategically chosen by President Trump to provide room for diplomatic efforts to progress. This development comes amid ongoing geopolitical instability, particularly in the Strait of Hormuz, a vital shipping corridor that had been nearly blockaded since the conflict's outset in February. The tentative reduction in hostilities could impact oil supply routes and market dynamics going forward. HSBC strategist Dhiraj Narula noted that while higher oil prices had increased speculation that the Federal Reserve might maintain tighter monetary policy, inflation expectations remained relatively stable despite the energy price rally. He credited this resilience to the Federal Reserve's strong communication on its commitment to price stability, which has helped prevent the recent oil shock from affecting long-term inflation outlooks.

1
0 comments Source
TechCrunch 14 days ago

Experts say exploiting Anthropic’s Fable isn’t how Kimi K3 got so good

The White House and U.S. officials have accused Chinese company Moonshot of illicitly replicating Anthropic’s Fable large language model (LLM) to create its own Kimi K3 model, which is currently the largest open-weight LLM available. White House science advisor Michael Kratsios claimed that Moonshot copied Fable’s capabilities using advanced Nvidia Grace Blackwell 300 GPUs, which are banned for export to China. Treasury Secretary Scott Bessent added that stolen U.S. AI intellectual property is a serious concern, with sanctions threatened for covert large-scale distillation attacks that infringe on proprietary technology. Despite these allegations, AI experts expressed skepticism that Kimi K3’s rapid emergence and advanced performance could be explained solely by distillation of Fable, which was only publicly released on July 1. Researchers like Braden Hancock of the Laude Institute pointed out that distillation and supervised fine-tuning typically take much longer, making it implausible for Moonshot to have matched or surpassed Fable’s strength in a matter of weeks. Nathan Lambert from the Allen Institute for AI further noted that effective replication of cutting-edge LLMs now requires complex reinforcement learning methods, which entail vast computational resources and cannot be efficiently done via API access. Anthropic previously accused Moonshot and other Chinese firms of systematic distillation attempts earlier this year, identifying millions of interactions consistent with capability extraction rather than normal usage. Although distillation is a common practice industry-wide—including by U.S. players like Elon Musk’s SpaceXAI—the scale and secrecy of Moonshot’s alleged efforts, combined with its access to black-market advanced GPUs forbidden for export, have elevated concerns over national security and intellectual property theft. The situation has intensified broader debates in Washington about restricting Chinese models and implementing stricter know-your-customer rules for data centers housing high-end AI hardware. Nevertheless, experts emphasize that Chinese AI teams, including Moonshot, possess substantial technical expertise and are not merely relying on stolen models to progress. The controversy has spotlighted challenges in balancing open AI research with protecting innovation and security, especially as frontier AI capabilities rapidly evolve. Moonshot has yet to respond to inquiries about its training processes, while U.S. authorities continue to investigate potential violations related to export controls and unauthorized use of proprietary technology in AI development.

1
0 comments Source
CNBC 14 days ago

Eli Lilly says it will file for approval of next-generation obesity drug in 2027 as it clears two more trials

Eli Lilly announced it plans to file for regulatory approval of its next-generation obesity drug, retatrutide, in the first quarter of 2027. This update follows successful results from two additional late-stage Phase 3 trials, which demonstrated significant weight loss and improvements in blood sugar control for adults with obesity who also have Type 2 diabetes or cardiovascular disease. Although the company initially aimed to submit an application as early as 2026, it is taking extra time to complete thorough manufacturing and quality-control data verification. In one of the recent trials, participants with obesity and diabetes experienced an average weight loss of around 20.8%, nearly 50 pounds, over 80 weeks. Another study involving severely obese adults with cardiovascular disease showed an average weight reduction of 22.6%, equating to about 55.8 pounds during the same period. Besides weight loss, the drug also positively impacted cardiovascular risk factors, further underscoring its potential benefits beyond just managing body weight. Retatrutide is positioned as a key addition to Eli Lilly’s obesity treatment portfolio, which already includes the injection Zepbound and the pill Foundayo. The drug operates by targeting three hormones—GLP-1, GIP, and glucagon—differentiating it from current therapies that affect one or two of these pathways. This triple hormone approach appears to deliver stronger appetite suppression and greater satisfaction for patients, which may translate into more effective weight management compared to competitors like Novo Nordisk’s semaglutide-based Wegovy. Analysts estimate retatrutide could generate $3.8 billion in sales by 2030, making it critical for Eli Lilly’s efforts to maintain market leadership in the obesity and diabetes arena. This sector is rapidly expanding and is forecasted to be worth around $100 billion by the 2030s. As the drugmaker advances toward regulatory submission, it aims to capitalize on growing demand for innovative weight-loss treatments that address multiple metabolic conditions simultaneously.

1
0 comments Source
TechCrunch 15 days ago

ServiceNow bets $40 million on Indian banking software specialist to expand its financial services push

ServiceNow has invested $40 million in BusinessNext, a 24-year-old Indian banking software company, valuing it at $700 million and acquiring around a 5% stake. This strategic investment aims to bolster ServiceNow’s expansion into the financial services sector, particularly by leveraging AI-powered banking solutions. BusinessNext, headquartered in Noida, India, serves over 70 banks across India, Southeast Asia, the Middle East, and the U.S., including key customers like the Reserve Bank of India, State Bank of India, and HDFC Bank. BusinessNext generated approximately $32 million in revenue in its latest financial year, with nearly half coming from international markets. Founder and CEO Nishant Singh emphasized that partnering with ServiceNow would allow BusinessNext to utilize ServiceNow’s global sales network to accelerate its growth outside India. The collaboration combines BusinessNext’s customer-facing banking workflow expertise with ServiceNow’s strengths in enterprise workflow automation and back-office systems, positioning both companies to jointly target financial institutions worldwide. The Indian firm, previously known as CRMNext, has built a strong platform focused on "autonomous banking" that integrates AI at its core to automate banking workflows while maintaining data privacy through private AI infrastructure. Singh noted that AI was foundational to BusinessNext’s technology from the beginning, not just an afterthought. The company employs more than 1,300 people and has raised over $60 million from investors such as Avataar Ventures, Norwest Venture Partners, and Ascent Capital. This investment reflects broader market shifts as enterprise software providers face rising challenges from AI-native alternatives. ServiceNow is expanding its portfolio in financial services through strategic deals like this one to stay competitive. Kulmeet Bawa, ServiceNow’s managing director for India and SAARC, highlighted that India’s financial sector is transitioning from digital experiments to full-scale AI-enabled operations, making the partnership timely for addressing evolving banking technology needs globally.

1
1 comment Source
CNBC 15 days ago

Intel stock is down 27% from June record highs. How the chipmaker can reverse the slide

Intel’s stock has retreated more than 27% from its record close near $141 per share in June after a strong rally this year. The pullback is largely driven by a broader reevaluation in the semiconductor sector, as investors question the sustainability of heavy spending by hyperscale customers on artificial intelligence infrastructure. Despite this decline, Intel has posted a remarkable 280% gain year to date, reflecting optimism about its role in AI-driven computing. Key investors and analysts are now focused on Intel’s upcoming earnings report for evidence of growth in AI server CPU demand and advancements in its foundry operations. Central processing units (CPUs) from Intel are playing an increasingly critical role as AI computing shifts from training models to inference, where AI systems execute tasks in real time. This transition has spotlighted Intel’s server chips in a space traditionally dominated by GPUs from Nvidia and custom processors like Google’s TPUs. However, Intel has faced supply constraints, which even limited its Q1 revenue growth. The company’s ability to scale production and meet rising AI-driven demand will be crucial in reversing the stock’s recent slide and reassuring investors. Intel’s unique advantage lies in its vertical integration with proprietary manufacturing facilities, known as foundries, which distinguishes it from competitors relying on third-party chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC). The foundry business not only supports Intel’s own chip production but also opens revenue streams by manufacturing chips for other firms. Recent strategic moves include a $5.7 billion investment to expand capacity at its Leixlip, Ireland plant and partnerships to produce chips for companies like Fortinet, Apple, MediaTek, and Terafab, signaling progress under CEO Lip-Bu Tan since his 2025 appointment. Analysts emphasize that Intel’s supply constraints may paradoxically enhance its pricing power by enabling the company to prioritize higher-margin server CPUs. While Intel’s manufacturing yields have historically lagged behind TSMC, experts believe narrowing that gap is sufficient for substantial growth. With expectations for a 12% revenue increase to $14.42 billion and a return to earnings per share profitability this quarter, investor confidence hinges on Intel advancing its gross margin and foundry expansion. Many maintain hold ratings, but bullish voices highlight Intel’s potential to lead American chip production and capitalize on rising AI demand.

1
0 comments Source
CNBC 16 days ago

Trump plans generic drug tariffs from 2028 with two-year delay testing U.S. onshoring push

President Donald Trump announced a plan to impose tariffs on generic drugs imported into the U.S., starting with a zero percent rate for two years beginning August 1, 2026, and escalating to 100% in August 2028 before doubling to 200% the following year. This phased tariff schedule aims to incentivize generic drug manufacturers to relocate production to the U.S., framing the tariffs as penalties for companies that do not establish domestic production facilities during the grace period. The proposal forms part of Trump's broader strategy to reshore pharmaceutical manufacturing in America, a move that brings significant challenges given the complexity and high cost of building drug production infrastructure onshore. Almost all generic drugs prescribed in the U.S. are currently manufactured overseas, involving intricate global supply chains and ownership structures. While Trump’s earlier tariffs targeted patented and branded pharmaceuticals at a 100% rate from April 2026, generics and biosimilars were initially exempted. However, this new announcement signals a tougher stance aimed specifically at the generic drug market. Industry experts, such as Deborah Elms from the Hinrich Foundation, caution that even a 200% tariff may not sufficiently alter the cost dynamics given that most raw materials for pharmaceuticals still come from abroad, making true onshoring economically difficult. India stands to face significant repercussions if these tariffs come into full effect, as it supplies nearly half of the generic medicines consumed in the U.S. and accounts for roughly one-third of India’s pharmaceutical exports. Indian drugmakers are concerned about the impact on their trade balance and export revenues, with fears that some manufacturers might withdraw from certain drug lines if added costs cannot be absorbed by wholesalers or consumers. Despite the looming threat, the two-year tariff delay offers a crucial window for New Delhi to negotiate with the U.S., potentially securing tariff exemptions in exchange for investment commitments on American soil. In response to these trade pressures, Indian pharmaceutical companies are expected to intensify lobbying efforts in Washington, pursue additional approvals from the U.S. Food and Drug Administration, and seek contract manufacturing deals to maintain access to the U.S. market. Diversifying into other global markets is also anticipated as a strategic hedge against the risk of full tariff implementation. Furthermore, since the crucial 2028 tariff imposition would coincide with a U.S. election year, Indian officials hope political shifts could influence whether the policy is ultimately enforced.

1
0 comments Source
TechCrunch 16 days ago

Meta is testing an AI bedtime story app for people with no imagination

Meta is currently piloting an AI-powered app called StoryKit, designed to generate personalized children’s bedtime stories. Available in select countries, StoryKit enables parents to create custom stories by selecting characters—made by snapping photos of toys or loved ones—choosing imaginative settings, and weaving in lessons such as kindness or empathy. The app’s interface emphasizes ease of use by assuring parents that no writing skills are needed to create engaging stories. Meta has implemented AI safety filters and restricted access to users over 18, with no social features included. The app represents Meta’s latest effort to automate creative processes traditionally fueled by human imagination. While StoryKit’s concept might appeal to busy parents seeking quick and tailored bedtime stories, it ignites debates about the role of AI in replacing the human touch in storytelling. Critics argue that bedtime stories are more than just narrative; they are moments of connection and imagination between parent and child. Outsourcing these interactions to AI could diminish the whimsical and personal essence that comes from human creativity. Meta’s initiative comes amid growing interest in AI’s ability to personalize and automate content creation. StoryKit enables parents to input specific narrative elements, then lets AI generate a seamless story complemented by music, aiming to preserve the educational and moral values embedded in traditional storytelling. Despite its novelty, some express skepticism, questioning whether AI-generated stories can truly replicate the spontaneity and emotional depth of human storytelling, and whether reliance on such technology might blunt imaginative experiences for children. Overall, StoryKit highlights a broader tension between AI’s convenience and the irreplaceable qualities of human experiences. Meta’s experimentation with AI storytelling reflects a cultural shift toward embracing automation even in intimate domains like family routines. However, it remains to be seen if parents and children will accept this new approach or prefer to preserve the rich, imaginative connections fostered by classic, human-crafted bedtime tales.

1
0 comments Source