T-Mobile store in Manhattan (Beata Zawrzel/Getty Images)

Weird Money

T-Mobile is making a nine-figure bet on AI customer service

The carrier is investing $100 million in an OpenAI-powered customer-service solution.

11/5/24 2:37PM

One of the bigger questions to emerge since ChatGPT was launched two years ago is which jobs will be most quickly replaced by generative AI. Two years later, one of the front-runners appears to be customer service. This year, we’ve seen more and more stories of companies increasingly turning to AI for customer-service solutions, such as Klarna’s AI assistant handling two-thirds of its customer-service chats in February 2024. On Monday, The Information reported that T-Mobile was shelling out $100 million to OpenAI over the next three years to build out “the first intent-driven AI-decisioning platform of its kind”: IntentCX. (The news of this deal broke in September, but the price tag wasn’t reported until this week).

According to T-Mobile, today’s customer-service options are limited because they “are rules-based and work from a finite set of data, and a fixed library of customer treatment options.” As such, “they can only offer an educated guess at the solution for a customer, and then have limited ability to actually take action.”

T-Mobile is training IntentCX on “billions” of data points from customer interactions, and because it will be integrated into T-Mobile’s operations and transaction systems, it will be able to take actions for customers.

While T-Mobile doesn’t explicitly say that it’s looking to replace customer-service representatives with artificial intelligence, it certainly implies that human contact soon won’t be needed for a lot of tasks:

“Proactive Action: IntentCX will connect directly to T-Mobile’s transaction and care systems, to preemptively identify and address customer needs and, where needed, execute tasks autonomously with customer permission. Not just AI-summarized information, but actual solutions.
Real-time decisioning: If a customer contacts T-Mobile about an issue with T-Mobile’s network or service, IntentCX will analyze T-Mobile’s network and service data in real-time and provide a solution that’s appropriate to the moment. This is an unprecedented approach to customer journey management.”

And T-Mobile may look to sell its customer-service software to other companies, too.

“Eventually, this technology could also offer other customer-obsessed companies worldwide the same opportunity to transform their approach to customer engagement, as the technology and business processes being created by this partnership have broad applications across customer-serving industries.”

A couple of thoughts here. First, this is a huge deal for OpenAI. The Information noted that this is one of the largest contracts the company has landed with an enterprise customer so far. If IntentCX is deemed a success, other companies could follow T-Mobile’s lead in 2025, benefiting OpenAI’s top line.

However, more broadly, T-Mobile’s investment marks a shift in how the world is thinking about customer service. T-Mobile is a $263 billion company, not a startup experimenting with different AI tools. If it has decided that AI customer service that automates many customer interactions is worth a $100 million investment, it’s safe to say that other large companies are probably considering automating their customer-service solutions, too, meaning that the days of talking to human representatives about your tech issues might be numbered.

Max Knoblauch6/15/26

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

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JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”

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