Alphabet’s (GOOGL) Google is considering charging for new “premium” features powered by generative artificial intelligence, in its first push to move its search product behind a paywall; Tesla (TSLA) is raising pay for its AI engineers, Elon Musk says; Apple (AAPL) has teams investigating a push into personal robotics after it scrapped its electric-vehicle car project; shares of Levi Strauss (LEVI) are surging premarket on bullish guidance; and Chinese EV maker BYD (BYDDY) is taking on Tesla and Ford with an electric pickup truck launch this year. U.S. stock futures are pointing slightly higher as market participants anxiously watch for clues from Federal Reserve officials on when interest rates might be cut, while oil prices were hovering near their 2024 highs after OPEC+ maintained its production cuts. Here’s what investors need to know today.
1. Google May Charge for AI-Powered ‘Premium’ Service
Google is considering charging for new “premium” features powered by generative artificial intelligence, the Financial Times reported, in what would be the biggest ever shake-up of its search business. The proposed revamp to its cash cow search engine would mark the first time the company has put any of its core products behind a paywall, and shows it is still grappling with a technology that threatens its advertising business, almost a year and a half after the debut of ChatGPT, OpenAI’s chatbot. Google is looking at options including adding certain AI-powered search features to its premium subscription services, which already offer access to its new Gemini AI assistant in Gmail and Docs, the report said. Shares of Google parent Alphabet (GOOGL) were down about 0.7% in premarket trading.
2. Tesla Raises Pay for AI Engineers, Musk Says
Tesla (TSLA) is raising pay for its AI engineers as it fends off poaching from the likes of OpenAI, Chief Executive Officer (CEO) Elon Musk said in a series of posts on his social-media platform X. “The talent war for AI is the craziest talent war I’ve ever seen!” Musk said, adding that “Tesla is increasing comp (contingent on progress milestones) of our AI engineering team.” He also said AI startup OpenAI has been “aggressively recruiting Tesla engineers with massive compensation offers,” and succeeding “in a few cases.” Musk was a co-founder of OpenAI, the developer of hit chatbot ChatGPT, but fell out with others at the startup and set up his own product, xAI, last year. Tesla stock was up about 1% in premarket trading.
3. Apple Reportedly Pushes into Personal Robotics
Apple (AAPL) has teams investigating a push into personal robotics, a field with the potential to become one of the company’s ever-shifting “next big things,” according to a Bloomberg report. Engineers at Apple have been exploring a mobile robot that can follow users around their homes, the report said, citing people familiar with the situation. Apple is under growing pressure to find new revenue sources after it scrapped its electric vehicle project in February. Apple shares were little changed in premarket trading but are down more than 8% this year as the iPhone maker struggles to catch up on the AI frenzy that’s vaulted its rivals while struggling with challenges from regulators to open up its app ecosystem and allegations it engages in anticompetitive behavior.
4. Levi Strauss Shares Surge on Raised Outlook
Shares of Levi Strauss & Co. (LEVI) soared more than 12% in premarket trading Thursday after the jeans maker delivered better-than-expected first-quarter earnings and raised its full-year profit guidance as it ramps up its direct-to-consumer (DTC) business. The company’s DTC sales through its website and namesake branded stores made up 48% of the apparel maker’s total revenue, reducing reliance on its wholesale business, which posted falling sales. The better-than-expected quarterly results come several months after the company unveiled plans to reduce its global corporate workforce by 10% to 15% to generate $100 million in savings over the 2024 fiscal year.
5. China’s BYD Plans First Electric Pickup Truck
Chinese electric-vehicle maker BYD (BYDDY) plans to launch its first electric pickup truck this year. BYD doesn’t sell in the U.S., the most popular market for pickup trucks, but it has a presence in other popular markets for this type of vehicle, including in Thailand. The pickup will look to compete with the likes of the Ford Ranger and F-150 Lightning, the Toyota Hilux and the Tesla Cybertruck, according to CNBC. BYD and its Chinese rivals XPeng (XPEV), Nio (NIO), and Li Auto (LI) all reported year-over-year increases in March and first-quarter deliveries, while Tesla (TSLA) posted an 8.5% decline in Q1 deliveries.
