Forbes Daily: Putting AI Customer Service Chatbots To The Test
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Nvidia's stock has been on a tear lately, but a "technical error" from a key production partner Tuesday drove the chip giant's shares down 4.5%.
Dutch firm ASML, which makes much of the equipment used to manufacture high-tech AI chips, accidentally released its earnings a day earlier than anticipated due to the error. Those earnings were less than stellar, too.
That erased $155 billion from Nvidia's market cap—more than the entire market value of AT&T. It was Nvidia's steepest daily loss since a 10% drop last month, and other semiconductor firms also felt the impact: Advanced Micro Devices, Arm Holdings and Broadcom all fell at least 3.5%.
FIRST UPBank stocks surged Tuesday as five of the eight largest U.S. banks by market cap reported third-quarter results Tuesday. One Deutsche Bank analyst noted that the market's increased confidence that the U.S. avoided a recession is the "best outcome for banks," which get major boosts from better economic sentiment and declining interest rates.
Startup Decagon's CEO Jesse Zhang says his company's AI-powered customer service system has outperformed others, attracting clients like Notion, Duolingo and Substack to do things like issue refunds, cancel subscriptions, dispute transactions and replace a credit card. The company, now valued at $650 million, announced Tuesday it's raising $65 million, as it bets that AI-powered agents can resolve issues without involving a human at all.
BUSINESS + FINANCEApple's stock reached an all-time high , making the world's largest company even bigger, as the company benefits from the release of the AI-forward iPhone 16. Apple's market capitalization reached to as much as $3.61 trillion, the highest valuation ever recorded by a public company.
WEALTH + ENTREPRENEURSHIPMelinda French Gates received an additional $1.2 billion of public company stock from her ex-husband Bill Gates, boosting her fortune to an estimated $30.2 billion as of Tuesday afternoon and making her the 12th-richest woman in the world. Gates reported giving French Gates a 7.1% stake in automotive retailer AutoNation currently worth $470 million, and she also received a 1% stake in the Canadian National Railway Company currently worth $690 million. The pair reached a confidential divorce settlement in 2021.
TECH + INNOVATION AI startup Galileo wants to solve what CEO Vikram Chatterji believes is the main thing stopping businesses from fully embracing AI: Companies don't really know how well the tools are going to work once they're released. Galileo works with customers including Hewlett Packard , Comcast and Twilio to test their AI tools, making sure they are not hallucinating or giving out private data, and on Tuesday, the company told Forbes it has raised $45 million.
MONEY + POLITICSMiriam Adelson, widow of casino billionaire Sheldon Adelson, gave $95 million to a pro-Donald Trump super PAC during the third quarter, according to recently released filings, along with almost $75 million from Tesla CEO Elon Musk and nearly $49 million from shipping and packing supplies billionaire Dick Uihlein. The donations to pro-Trump groups are crucial for the former president in closing a fundraising gap, as Kamala Harris' campaign has raised $1 billion this year compared to the Trump campaign's $853 million.
Two top Biden Administration officials sent a letter warning Israel the U.S. could cut military aid if Israel does not take steps to improve the humanitarian situation in Gaza in 30 days, one of the most serious U.S. rebukes of Israel. The amount of aid flowing into Gaza has decreased by 50% since April, the last time U.S. officials issued such a warning, according to a photo of the letter.
TRAVEL + LIFESTYLEThe Department of Transportation fined Lufthansa for allegedly discriminating against a group of Orthodox Jewish passengers , its largest ever penalty against an airline for a civil rights violation. In the 2022 incident the passengers attempted to board a connecting flight from JFK to Budapest in Frankfurt, but were told they would not be allowed onto the plane because members of their group had violated the airline's masking policy. Video from the incident showed Lufthansa staff telling passengers that everyone who was "Jewish coming from JFK" would have to pay for the mistakes of the passengers violating the policy—despite many of them not knowing each other and not traveling together.
FEATURED STORY Truepill's Sid Viswanathan Is Back With A New Pharmacy Startup Focused On HIVA new healthcare startup called Alchemy from Truepill cofounder Sid Viswanathan is working to increase access to HIV medications.
After operating in stealth for more than a year, the San Francisco-based startup is launching publicly after raising $31 million in seed funding, led by venture firm Andreessen Horowitz, Viswanathan told Forbes. Magic Johnson, the NBA superstar who was first diagnosed with HIV in 1991, is also an investor.
To date, the startup has set up pharmacies inside 15 clinics across the country that serve a large HIV and hepatitis C patient population. Alchemy sets up and runs the pharmacies, and receives a percentage of revenue from them. It works with the clinics to access a federal program to get medications at lower cost, helping their patients get and stay on their medications.
In the United States there are around 3,000 HIV-focused clinics, most of which are located in underserved Black and brown communities. But less than 20% of them have pharmacies in-house, Viswanathan said, which makes it difficult to keep patients on the treatments they need.
"The HIV epidemic disproportionately impacts Black and brown communities across the country. What Alchemy is doing—bringing pharmacies directly into the clinics that serve these vulnerable populations—is a game-changer because for many, one of the biggest obstacles to staying on their HIV medication is getting to the pharmacy," Magic Johnson said by email.
Alchemy plans to use the new funding to expand its pharmacies to 20 states over the next year, while adding a mobile clinic program and digital tools to streamline pharmacy operations and patient communications.
WHY IT MATTERS "Alchemy's approach is designed to get medications to underserved and sometimes uninsured people," says Forbes senior editor Amy Feldman. "It is rolling out in Federally Qualified Health Centers (which provide healthcare for underserved populations), STD clinics and Ryan White clinics (focused on HIV/AID) in locations as diverse as Indianapolis and Haines City, Florida. Federally Qualified Health Centers serve more than 30 million people, the majority of them low income."
FACTS + COMMENTSWalgreens announced more store closures after reporting better-than-expected earnings Tuesday. The pharmacy chain is working to free up cash flow, as its CEO said it is losing revenue from prescription drugs and staffing shortages:
The number of stores Walgreens will close by 2027, including 500 locations next year
Walgreens' adjusted earnings as well as revenue of $37.5 billion, both higher than analysts' projections
$3 billion: Walgreens' reported net loss for the quarter
STRATEGY + SUCCESScan be tempting to take any job while on the hunt, especially if you're unemployed, but there are a few key red flags to look out for . Research the company's track record, including the employee reviews and whether there's high turnover. Keep an eye out for a manager who seems disorganized, or they try to lowball your salary offer. And stay away from companies that promote unhealthy work habits like working late or on weekends.
The Victoria's Secret Fashion Show returned Tuesday evening for the first time since 2018 after a string of controversies for the brand. What was the value of the most expensive item ever worn at the fashion show?
A. $1 million
B. $5 million
C. $12 million
D. $15 million
Check your answer.
Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire.
