All three major US stock indexes were down in late-morning trading Monday, as major artificial intelligence companies flagged concerns about the risks posed to humanity by the rapid advancement of AI models.
OpenAI Chief Executive Sam Altman said the company's highly anticipated initial public offering will not take place in 2026 due to ongoing concerns around safety and control in the AI sector, Fortune reported Monday, citing an interview with Altman. The OpenAI CEO's comments came amid Anthropic CEO Dario Amodei called on the AI industry to slow the pace of model capability development due to safety concerns. Later, Microsoft (MSFT) shared a document outlining the intended behavior and values of the company's future AI model. The tech giant invited feedback "to maximize the chances that AIs we develop avoid harm and deliver the greatest contribution to human flourishing possible." Microsoft shares were up 2% around midday.
Nvidia (NVDA), Palantir Technologies (PLTR) and Booz Allen Hamilton (BAH) have started demanding guarantees or eliminating use of Anthropic's and OpenAI's most advanced models over concerns that the AI giants could retain their customers' critical data, The Information reported Monday. Microsoft has started leveraging that unease to try to lure OpenAI clients to its own AI products, and it has pitched its own isolated cloud environments to customers worried about privacy, the report said, citing people involved in the effort. Shares of Nvidia were down 3%, while Palantir and Booz Allen were up 2.6% and 3.7%, respectively.
Baldwin Insurance Group (BWIN) said Monday it has entered into a definitive agreement under which an entity to be formed by Sequence Holdings and DFO Management will acquire a majority interest in the company in an all-cash deal with an implied enterprise value of about $7.7 billion. After the deal closes, which is expected in Q1 2027, Baldwin will become a privately held company, it said. Baldwin shares were up 7.7%.
Oracle (ORCL) has started a new round of layoffs after cuts to its workforce earlier this year, Business Insider reported Monday, citing an internal document and three sources familiar with the matter. The layoffs will impact double-digit percentages of certain teams, the report said, citing the internal document. The round of cuts is expected to start Monday, one of the people reportedly told the outlet. Oracle shares were down 3.8%.
Definium Therapeutics (DFTX) said Monday its second phase 3 study of DT120 orally disintegrating tablet in patients with generalized anxiety disorder met its primary and key secondary endpoints. Definium shares were up 3.5%.
Aon (AON) has commenced a US investment-grade debt sale in seven tranches to help fund its planned $17 billion acquisition of USI Insurance Services from KKR (KKR), Bloomberg reported Monday, citing a person familiar with the matter and a note from S&P Global Ratings. The company is looking to sell $13.5 billion of notes as part of the funding package, which could also include a $4 billion term loan, the report said, citing the note. Aon shares were up 2.8%.
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