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| Hello Insiders! Today's business newsletter covers: - 🧠 OpenAI launches ChatGPT Enterprise
- 🏬 Nordstrom closes its San Francisco store after 35 years.
- 🚙 BYD acquires Jabil's Chinese operations for $2.2B.
If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Arbër
p/Arber | |
| 1 | | OpenAI has launched ChatGPT Enterprise, a new version of its AI assistant that includes new productivity and security features for businesses. The company said it tests the version with 20 businesses. More: - OpenAI stated that the new product has been tested at companies such as Estee Lauder, Zapier, Canva, etc.
- The company added that these companies have used it for coding, helping with creative work, and answering business questions.
- Overall, ChatGPT has been used by more than 80% of Fortune 500 companies, according to OpenAI CEO Sam Altman.
- The company did not provide specific details regarding the pricing of ChatGPT Enterprise, saying that it would evaluate its cost with businesses individually, depending on their needs.
Question: Has ChatGPT made you more productive in your job? Tell us how by joining the conversation here. |     | |
| 2 | | 
What happened: Nordstrom has closed its San Francisco store after 35 years of operation in the city. The company is the latest retailer to leave the city as complaints regarding safety continue. San Francisco has over 60 million square feet worth of vacant commercial real estate in neighborhoods such as SoFi and SoMa. More details: The decision was announced in May when the company stated that the changes in San Francisco had significantly impacted the foot traffic in its retail stores. Following Nordstrom, shopping mall operator Westfield said it would give up control of its San Francisco mall. Whole Foods, Anthropologie, Office Depot, and CB2 have all closed their stores in the city's downtown area. The San Francisco Centre has taken a significant hit in the past few years. Total sales have fallen from $455M in 2019 to $298M in 2022, and foot traffic has dropped from 9.7 million visits in 2019 to 5.6 million in 2022. Why it matters: San Francisco's vacancy rate hit 31% in Q2 2023, a new record. San Francisco, which relies on tech companies and commercial real estate for a significant portion of its budget, could face major issues in tackling issues such as increasing crime and implementing development projects if this current trend continues. | | | |
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| 3 | | BYD is set to acquire U.S. mobile electronics company Jabil's Chinese operations for $2.2B. BYD will likely have to fund the acquisition with loan and equity issuance. More: - BYD initially started as a mobile electronics part manufacturer itself before becoming China's best-selling EV company.
- In 2022, the company sold 1.82 million plug-in cars, a 3x increase from its sales number in 2019.
- One of BYD's major verticals has been selling electronic components for consumer electronics products such as smartphones and laptops, accounting for more than 70% of the 2022 total revenue for its subsidiary, BYD Electronic.
- Following this news, Jabil shares were up 7.8% on Monday, reaching $111.31.
- BYD had $24.173B in revenue in the fiscal year ending in June 2022.
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| 4 | | Amazon has raised the free shipping minimum order size to $35 for users who don't have Prime. Until now, users were able to receive free shipping on a $25 order. More: - Prime subscribers, who pay $139 a year for free shipping and other services, will continue paying the current price.
- Company officials stated that the change is part of Amazon's constant offering evaluation and that Prime members will continue to have free delivery on over 300 million items, a large percentage of which can be received on the same day.
- Amazon has changed the free shipping threshold for non-Prime members several times.
- In 2016, it raised the minimum to $49 from $35, then dropped its price to $25 to compete with Walmart.
Zoom Out: - Subscription services, which include over 200 million Prime memberships, generated about $9.9B in revenue for Amazon during the last quarter.
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| 5 | | China-based EV maker XPeng has acquired ride-hailing company Didi's assets for $744M. XPeng will launch a new sub-brand named Mona using these assets. More: - The investment is seen as a strategic way of scaling for XPeng, which only has around 2.1% of China's EV market (including hybrid vehicles).
- Didi, on the other hand, has around 585 million active users who use it as a ride-hailing service.
- The Mona brand is set to launch in 2024, while the partnership between the two companies will extend to marketing, financial insurance services, charging, and international expansion.
Zoom Out: - A few weeks ago, XPeng received a $700M investment from German automaker Volkswagen, setting a precedent for cooperation between Western and Chinese car companies.
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| 6 | | Fvlcrum Partners has closed a $302M fund to invest in tech, government contracting, and healthcare companies. Its initial fundraising target was $250M. More: - The company invests in diverse lower-middle market companies that aim to create economic opportunities for underserved communities.
- According to the firm, its team has collectively helped complete 50+ transactions that represent over $5B in value.
- Fvlcrum Partners invests in companies that are based in the U.S., have up to $15M in EBIDTA, have a predictable product demand, etc.
- The firm was founded in 2013.
- The company is based in Rockville, Maryland.
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- Mercedes-Benz has announced plans to launch its first electric vehicle DC fast-charging hubs in Atlanta, Chengdu, and Mannheim in Q4 2023.
- Google is set to begin selling mapping APIs to solar panel installing companies.
- New York-based Tri Ri Asset Management has raised a $142M funding round led by multiple pension funds and family offices in Europe.
- The number of movies and shows available on streaming services increased by 39% in the last two years, according to a new study.
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Term of the Day Core Consumer Price Index (CPI): Core CPI measures the change in price of all items — less food and energy — for urban consumers. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
INSIDE BUSINESS LEADERBOARD (30 DAYS) |
 | Writer | | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. | | This newsletter was edited by Aaron Crutchfield | |
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