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| Hey Insiders, Welcome back for Tuesday's Inside Business newsletter. Today, we look at how young Americans are more likely to trust AI for financial advice and what the U.S. inflation report says about food prices. Plus, AMD is challenging Nvidia in the AI chip market. We hope you're enjoying the newsletter, and if you want to see any other topics discussed, let us know! Christopher
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| 1 | | A Yahoo Finance/Ipsos survey found that young Americans are more likely to use AI for financial advice. Twenty percent of Gen Z adults said they are somewhat or very likely to use an AI-powered financial advisor compared to 9% of baby boomers. More: - 18% of millennial investors said they'd use AI for financial advice, and 17% of Gen X investors felt that way.
- While these still may be smaller numbers, the idea of embracing AI as a trustworthy tool is growing.
- JPMorgan Chase recently applied to trademark an AI investment adviser product similar to ChatGPT.
- Only 23% of those surveyed "moderately" trusted banks to create a financial AI worth utilizing.
- Younger adults also had more trust in financial news websites than older adults, a 14% to 12% breakdown.
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What the numbers say: The price of food is starting to go up again after a few months of normalcy. Overall inflation has eased over the past few months, but May saw the Consumer Price Index (CPI) of food rise 0.2%. This included food at home and food away from home. Relevance: The U.S. Labor Department released a report on inflation on Tuesday, highlighting the overall trend over the past seven months of certain items. Food was steady in March and April, meaning there was no rise in overall pricing. It isn't anywhere near what the increase was at the end of last year. Over the past year, prices have risen 6.7%, which is actually down from 7.7% in April. Other items: All items less food and energy, which is the CPI for a basket of goods that excludes food and energy items, also rose in May by 0.4%. Fuel and oil continue to trend downward, and the price of new vehicles also trended downward for the second straight month. This will likely lead to a pause in rate hikes by the Federal Reserve. | | | |
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| 3 | | After the collapse of a section of I-95 in Philadelphia over the weekend, the U.S. Department of Transportation is warning that the price of goods will rise on the East Coast. The portion of the highway that collapsed carried an average of 160,000 vehicles per day, 8% of which were commercial trucks. More: - "Obviously, that is a lot of America's GDP moving along that road every single day," U.S. Transportation Secretary Pete Buttigieg said.
- A tanker-truck fire caused a portion of the interstate to collapse on Sunday.
- Commercial trucks will now be subject to a 40-mile detour, consisting mostly of non-interstate roads with more than 60 traffic lights.
- Road closures may cause more people to work from home or avoid travel in the area, suggested S&P Global Ratings. This could negatively impact Philadelphia's economic streams.
- Pennsylvania Gov. Josh Shapiro said it could take months to access federal funding to work on repairs.
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| 4 | | Insight Partners, the New York-based venture capital firm, has slashed the $20B target for its latest fund and said it would slow down its pace of dealmaking. This comes after a year of slow fundraising as technology valuations have slumped. More: - Insight Partners is one of the largest tech growth investors in the U.S., with $90B in assets.
- It has raised only around $2B for its 13th fund, which was first marketed to investors a year ago.
- The firm has cut the size of its latest fund to $15B, noting a "great reset in tech" in a letter to investors.
Zoom Out: - Insight had an extremely busy 2021, participating in deals valued at $25B. But the number of rounds of investing Insight participated in in 2022 fell nearly 20%, and the total sum of deals dropped to $14.4B, according to Crunchbase.
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| 5 | | AMD unveiled its most-advanced GPU for AI on Tuesday in a move that is set to close the gap between Nvidia and the rest of the chip-making market. The new chip, the MI300X, will start shipping to consumers by the end of this year. More: - Nvidia currently dominates the market for AI chips with over 80% market share, according to analysts.
- GPUs are used by firms like OpenAI to build and run programs such as ChatGPT, a front-running program in the current AI landscape.
- "We think about the data center AI accelerator [market] growing from something like $30B this year, at over 50% compound annual growth rate, to over $150B in 2027," AMD CEO Lisa Su told investors in San Francisco.
- Lower GPU prices are what could really shift the power dynamic in the industry, as Nvidia's GPUs can cost more than $30,000.
- It is unknown how much the MI300X will cost.
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| 6 | | Bunge, the U.S. grain trader, is set to acquire Viterra, Canada's largest grain handling company, for $8.2B. Bunge will use Viterra's network of North American grain-buying and shipping facilities to better handle weather supply chain disruptions. More: - Bunge will take its strengths in soybean processing and South American crops and utilize Viterra to help it sell crops to food companies, governments, and other buyers around the world.
- Bunge will pay Viterra shareholders about 65.6 million shares valued at $6.2B and about $2B in cash. It will also assume $9.8B in debt from Viterra.
- Agriculture shippers have seen larger profits ever since Russia's invasion of Ukraine sent grain prices soaring.
- The deal may receive scrutiny from antitrust regulators in the Biden administration as it could suppress competition in its industry.
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- Toyota announced it is creating an electric vehicle that behaves as if it has a stick shift.
- Bloomberg has a take on whether or not the U.S. will ever get rid of Daylight Savings Time.
- Accenture announced it would invest $3B in AI over the next three years.
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INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Editor | | Christopher Hachey is a freelance writer and editor based in the New York City area. He has spent most of the past 15 years in newsrooms covering all kinds of topics like sports, tech, business, finance, and commerce. He's now returning to his broadcast journalism roots by diving into podcasting news. Reach out to him at chris@inside.com | | This newsletter was edited by Aaron Crutchfield | |
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