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Amazon Prime truck
Amazon just drove past Walmart’s quarterly sales (Matthias Balk/Getty Images)
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Walmart finally fell behind Amazon in revenue

Despite being giant retailers, their overall businesses are very different.

Rani Molla

Well, it finally happened: Amazon’s top-line numbers beat Walmart’s. Amazon brought in a record $187.8 billion in sales last quarter, surpassing the $180.6 billion Walmart reported today.

Walmart stock is selling off ferociously, down 8% premarket, on expectations of slowing growth even though overall, the company saw a strong holiday season.

The two giant retailers have been battling it out for ages. But while the e-commerce everything store that’s picked up some brick-and-mortar locations along the way is still a huge retail competitor with the brick-and-mortar everything store that built a substantial online marketplace, the comparison doesn’t go much deeper these days.

While their headline revenue figures are tight, Amazon’s revenue sources are much more varied. Walmart sells goods at its Walmart and Sam’s Club stores around the world. Memberships to Sam’s Club and subscriptions to Walmart+ provide a much smaller second source. (Walmart also has a small but growing advertising business that brought in $4.4 billion last year.)

Meanwhile, Amazon, in addition to revenue from online and physical stores, also makes money from a wide variety of subscription services; its cloud computing platform, Amazon Web Services; and advertising, among others.

Amazon’s online and physical store sales (Amazon Fresh, Whole Foods) have similar margins to Walmart, which has an e-commerce business in addition to its 10,500 stores.

Where Amazon really sets itself apart from Walmart is in its large, high-margin divisions, including AWS and its advertising business.

Amazon brought in $59 billion in profit last year, for a net profit margin of more than 9%. Meanwhile, Walmart brought in $19.4 billion in profit last year, for razor-thin margins of 2.9%.

That gulf in margins really shows up in the value of the companies.

Amazon, which a decade ago was worth less than Walmart, now has a market cap of three Walmarts.

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Sam Altman says OpenAI fixed ChatGPT’s serious mental health issues in just a month. Anyway, here comes the erotica

Well that was quick. Just over a month ago, OpenAI CEO Sam Altman announced a 120-day plan to roll out new protections for identifying and helping ChatGPT users who are suffering a mental health crisis, after a series of reports of such users harming themselves and others after using the company’s AI chatbot.

Today, Sam Altman says that the company has built new tools to address these issues and “mitigated” these problems.

Altman is so confident they have addressed mental health safety, that the company is reverting ChatGPT’s behavior so it “behaves more like what people liked about 4o.” Altman essentially apologized to users for the changes that were made to address mental health problems that arose with use of the chatbot:

“We realize this made it less useful/enjoyable to many users who had no mental health problems, but given the seriousness of the issue we wanted to get this right.”

Separately, the company announced the members of its “Expert Council on Well-Being and AI,” an eight-person council of mental health experts.

As a reward for the adults who aren’t suffering mental health issues exacerbated by confiding in the chatbot, Altman says that erotica is on the way.

“In December, as we roll out age-gating more fully and as part of our “treat adult users like adults” principle, we will allow even more, like erotica for verified adults.”

In response to Altman’s post on X, Senator Josh Hawley (R-MO) quoted Altman’s post with this message:

“You made ChatGPT “pretty restrictive”? Really. Is that why it has been recommending kids harm and kill themselves?”

Altman is so confident they have addressed mental health safety, that the company is reverting ChatGPT’s behavior so it “behaves more like what people liked about 4o.” Altman essentially apologized to users for the changes that were made to address mental health problems that arose with use of the chatbot:

“We realize this made it less useful/enjoyable to many users who had no mental health problems, but given the seriousness of the issue we wanted to get this right.”

Separately, the company announced the members of its “Expert Council on Well-Being and AI,” an eight-person council of mental health experts.

As a reward for the adults who aren’t suffering mental health issues exacerbated by confiding in the chatbot, Altman says that erotica is on the way.

“In December, as we roll out age-gating more fully and as part of our “treat adult users like adults” principle, we will allow even more, like erotica for verified adults.”

In response to Altman’s post on X, Senator Josh Hawley (R-MO) quoted Altman’s post with this message:

“You made ChatGPT “pretty restrictive”? Really. Is that why it has been recommending kids harm and kill themselves?”

tech

Meta says Instagram teen accounts will default to a PG-13 content limit

Meta is introducing new guidelines for the content on Instagram teen accounts. The company is turning to the well-known PG-13 standard from the Motion Picture Association, used by the film industry.

Any user under the age of 18 will have their content limited to PG-13.

Parents who administer their child’s teen account will have the ability to change the settings — including placing their child in a more restrictive level than PG-13 — but that assumes the teen hasn’t just tried to sign up on their own using a fake birthday.

To counter those wily kids, Instagram will use “age prediction technology” to set content restrictions, according to the company.

In a blog post announcing the new policy, Meta acknowledged the new settings may not catch all prohibited content:

“Just like you might see some suggestive content or hear some strong language in a PG-13 movie, teens may occasionally see something like that on Instagram — but we’re going to keep doing all we can to keep those instances as rare as possible.”

Parents who administer their child’s teen account will have the ability to change the settings — including placing their child in a more restrictive level than PG-13 — but that assumes the teen hasn’t just tried to sign up on their own using a fake birthday.

To counter those wily kids, Instagram will use “age prediction technology” to set content restrictions, according to the company.

In a blog post announcing the new policy, Meta acknowledged the new settings may not catch all prohibited content:

“Just like you might see some suggestive content or hear some strong language in a PG-13 movie, teens may occasionally see something like that on Instagram — but we’re going to keep doing all we can to keep those instances as rare as possible.”

tech

Smartphone upgrades grew for Apple and Samsung last quarter

The global smartphone market grew 2.6% in the third quarter, thanks in part to interest in the latest phones from Apple and Samsung, according to new shipment data from market intelligence firm IDC.

“Apple and Samsung posted strong results as their latest devices encouraged consumers to upgrade in the premium segment, while new, affordable AI-enabled smartphones also drove high upgrades in more affordable price categories,” IDC Vice President of Client Devices Francisco Jeronimo said in a press release for the data, which would include roughly half a month of new iPhone sales. “Demand for Apple’s new iPhone 17 lineup was robust, with pre-orders surpassing those of the previous generation. At the same time, Samsung’s Galaxy Z Fold 7 and Galaxy Z Flip 7 outperformed all earlier foldable models, creating renewed momentum for the foldables segment.”

Here’s the year-over-year growth in third-quarter shipments:

And here’s how the absolute number of shipments compared last quarter:

The “other” bin is made up of dozens of smaller, often regional and low-cost manufacturers.

tech
Jon Keegan

Sora’s ghoulish reanimation of dead celebrities raises alarms

OpenAI’s video generation app Sora has spent its first two weeks at the top of the charts.

The startup’s fast-and-loose approach to enforcing intellectual property rights has seen the app flooded with videos of trademarked characters in all sorts of ugly scenarios.

But another area where Sora users have been pushing the limits involves videos that reanimate dead celebrities.

And we’re not talking just JFK, MLK, and Einstein. Videos featuring more recently deceased figures such as Robin Williams (11 years ago), painter Bob Ross (30 years ago), Stephen Hawking (seven years ago), and even Queen Elizabeth II (three years ago) have been generated. Some of the videos are racist and offensive, shocking the relatives of the figures.

OpenAI told The Washington Post that it is now allowing representatives of “recently deceased” celebrities and public figures to request that their likenesses be blocked from the service, though the company did not give a precise time frame for what it considered recent.

But another area where Sora users have been pushing the limits involves videos that reanimate dead celebrities.

And we’re not talking just JFK, MLK, and Einstein. Videos featuring more recently deceased figures such as Robin Williams (11 years ago), painter Bob Ross (30 years ago), Stephen Hawking (seven years ago), and even Queen Elizabeth II (three years ago) have been generated. Some of the videos are racist and offensive, shocking the relatives of the figures.

OpenAI told The Washington Post that it is now allowing representatives of “recently deceased” celebrities and public figures to request that their likenesses be blocked from the service, though the company did not give a precise time frame for what it considered recent.

tech
Rani Molla

Tesla is selling unsold Cybertrucks to Elon Musk’s other companies

Sales of Tesla’s Cybertruck, once expected to reach hundreds of thousands per year, are currently in the low tens of thousands range and falling. Last quarter in the US, Tesla sold fewer than 5,400 of the “apocalypse-proof” vehicles, for a total of about 16,000 this year, Business Insider reports, citing Cox Automotive data.

That’s a 63% drop from the same quarter a year ago, even as Tesla as a whole notched its best quarterly sales ever, spurred by the expiration of the $7,500 federal EV tax credit.

With sales lagging, the company has dialed back production of the stainless steel behemoths, but there’s still been an excess.

Fortunately for Tesla, Electrek reports that CEO Elon Musk has other uses for Cybertrucks within his other companies, which often share resources and personnel. Tesla is delivering truckloads of the EV to both xAI (which Tesla shareholders will vote next month on whether to invest in) and SpaceX, where Cybertrucks are replacing internal combustion engine support fleets.

There’s a lot of chatter about “circular deals” in the billion-dollar pacts announced in the AI space on a weekly basis. But it doesn’t get much more circular than this, with production and buying activity kept within the Musk corporate family.

That’s a 63% drop from the same quarter a year ago, even as Tesla as a whole notched its best quarterly sales ever, spurred by the expiration of the $7,500 federal EV tax credit.

With sales lagging, the company has dialed back production of the stainless steel behemoths, but there’s still been an excess.

Fortunately for Tesla, Electrek reports that CEO Elon Musk has other uses for Cybertrucks within his other companies, which often share resources and personnel. Tesla is delivering truckloads of the EV to both xAI (which Tesla shareholders will vote next month on whether to invest in) and SpaceX, where Cybertrucks are replacing internal combustion engine support fleets.

There’s a lot of chatter about “circular deals” in the billion-dollar pacts announced in the AI space on a weekly basis. But it doesn’t get much more circular than this, with production and buying activity kept within the Musk corporate family.

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