Elon Musk Plans 'TruthGPT' to Rival OpenAI

Market Movers

• Elon Musk plans ‘TruthGPT’ A.I. to rival OpenAI. Musk revealed that he wants to start a new AI initiative called “TruthGPT” via his company X.AI because he fears that existing AI businesses are training their systems to be “politically correct.” He wants TruthGPT to be a “maximum truth-seeking AI that tries to understand the nature of the universe.”

• Goldman Sachs misses revenue estimates. The bank said profit fell 18% to $3.23 billion, or $8.79 a share, topping the estimate of analysts surveyed by Refinitiv. Revenue fell 5% to $12.22 billion, below estimates on the consumer loan hit and weaker-than-expected bond trading results. This is partly due to taking a $470 million hit tied to the sale of the Marcus loans portfolio.

• Bank of America shares gain after first-quarter results top expectations. Bank of America said its net interest income, what it makes lending money minus what it pays out to customers, jumped 25% to $14.4 billion during the quarter thanks to rising rates. Its noninterest income increased by just 1% to $11.8 billion.

• HSBC upgraded Nvidia to buy. Shares of the chipmaker rose 2.4% Tuesday after HSBC upgraded the stock two levels, to buy from reduce. The firm said Nvidia is showing it has more power in pricing* artificial intelligence chips than previously thought. Shares of Nvidia have already soared about 85% since the start of the year, and HSBC thinks there’s room for even more appreciation.

• China’s economy grew 4.5% in the first quarter. That was higher than the 4% forecast in a Reuters poll of economists and marks the highest growth since the first quarter of last year. Quarter-on-quarter, the economy grew 2.2%. China’s growth has been under the spotlight as it reopens after ending most of its strict Covid restrictions that were in place for nearly three years.

What to Watch

• Bets against continued gains in the S&P 500 have grown. The more the S&P 500 goes up — and it’s risen 6% in a month — the less people trust it.* Hedge funds have been loading up bets against US stocks, with S&P 500 e-mini futures data showing near the most bearish reading since November 2011. Yet benchmark notched fifth week of gains out of last seven.

• Brookfield defaults on $161 million debt for office buildings. The defaults are mostly around Washington, DC, as rising vacancies hit property values.* The loan was transferred to a special servicer who is working with the borrower to execute a pre-negotiation agreement and to determine the path forward, according to a filing on the commercial mortgage-backed security.

• Copper shortage threatens green transition. A lack of new mining activity has added to worries that there won’t be enough of the red metal. Electrification is expected to increase annual copper demand to 36.6 million metric tons by 2031, with supply forecast to be around 30.1 million tons, creating a 6.5 million ton shortfall* at the start of the next decade.

• Lego is building a $1 billion factory in Virginia. One of the few toy companies currently profiting, Lego wants to take advantage of retail momentum and America's newfound interest in manufacturing growth. The Danish powerhouse announced that it's going for a big sales push in the US, one week after breaking ground on a new $1 billion factory in Richmond, Virginia.

• Google ramps up AI technology to win over Samsung. Google's parent company lost market value Monday morning after a weekend report that Samsung may be looking to switch search engine providers. While Microsoft's Bing has integrated ChatGPT's underlying technology, Google is still tinkering with its AI chatbot, Bard. Source(10:18)