 What happened: Though retailers have long offered payments in installments to shoppers, the buy now, pay later (BNPL) phenomenon took off during the COVID-19 pandemic as online shopping rates accelerated and brands looked for new ways to drive sales. Affirm and Klarna were two of the biggest names to take advantage of that demand, with PayPal launching its Pay in 4 option. Why it matters: Apple launched its own BNPL offering, Apple Pay Later, on Tuesday, featuring loans that will be as high as $1,000 and bringing reach to 85% of U.S. retailers, according to the company. Where to see the impact: Given Apple’s existing presence at retail and more than 6.4 million Apple Card users who already depend on the brand for credit, Apple Pay Later will pose a challenge to incumbents in the BNPL space, despite their existing growth trajectories. We’re testing new content formats in Inside.com newsletters. Do you want to see more coverage like this? Respond to this email and let us know.
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Several tech leaders, including Elon Musk and Apple co-founder Steve Wozniak, have called for a pause on all training of artificial intelligence systems more powerful than GPT-4. In an open letter from the Future of Life Institute, AI labs are urged to pause the development of systems that can compete with human-level intelligence for at least six months. More: - GPT-4 is the latest version of the large language model software developed by San Francisco-based research firm OpenAI.
- OpenAI kicked off the recent race to develop various AI tools after it released its image-generation tool called Dall-E 2 and, more recently, its chatbot ChatGPT.
- The letter stresses that AI systems with human-competitive intelligence can pose profound risks to society and humanity.
- It notes that Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable.
- The letter has been signed by over 1,000 people across various sectors, including tech and AI research.
- The Future of Life Institute is a nonprofit organization based in Cambridge, Massachusetts.
- The firm promotes the responsible and ethical development of artificial intelligence.
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JPMorgan Chase CEO and chairman Jamie Dimon will be deposed over the bank’s involvement with Jeffrey Epstein. According to sources, Dimon has agreed to be interviewed under oath, at an undetermined date in the future, for two civil lawsuits tied to Epstein, a billionaire financier and convicted sex offender who died in prison awaiting trial on sex trafficking charges. More: - The deposition is connected to two cases brought against the bank by an alleged Epstein victim and the U.S. Virgin Islands, where the late Epstein had a residence.
- Epstein allegedly committed suicide on Aug. 10, 2019, at the Metropolitan Correctional Center in New York.
- The lawsuits claim JPMorgan benefited from Epstein’s human trafficking activities and ignored several internal warnings about his illegal behavior.
- Epstein banked with JPMorgan from 1998 to 2013.
- JPMorgan’s lawyers have argued Dimon was not involved in decisions about Epstein’s accounts.
- A judge presiding over the case has ordered all related depositions to be completed by the end of May.
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Starbucks founder and former CEO Howard Schultz appeared before Congress on Wednesday to respond to claims that the company engaged in union busting. Schultz stepped down from the role of CEO on March 20 and was succeeded by Laxman Narasimhan, who had spent the last six months learning about the company. More: - Sen. Bernie Sanders (I-Vt.), who chairs the Senate’s Committee on Health, Education, Labor, and Pensions, questioned Schultz’s involvement in firing or retaliating against any pro-union chain worker.
- Sanders also accused Starbucks of stalling on collective bargaining agreements, betting that workers would give up and leave the coffee chain.
- Schultz claimed that Starbucks hadn’t broken any federal labor laws, and he was confident that the allegations would be proven false.
- According to the National Labor Relations Board, about 300 Starbucks locations have voted to unionize under Starbucks Workers United.
- Schultz is Starbucks’ fifth-largest shareholder, with a 1.9% stake in the company.
- He will continue to serve on Starbucks’ board.
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Apple launched its “buy now, pay later” program, called Apple Pay Later, in the U.S. on Tuesday. The service allows customers to split purchases into four payments spread over six weeks with no interest or fees. Apple plans to randomly select users to give them early access to a prerelease version of Apple Pay Later. More: - The service can be used to make online and in-app purchases with retailers that accept Apple’s Apple Pay payment system.
- Customers with Apple’s Wallet app can borrow up to $1,000 using Apple Pay Later.
- Customers will be required to link a debit card as their loan repayment method.
- Credit cards won’t be accepted for payments.
- The move is Apple’s latest foray into finance to deepen its relationship with customers.
- The iPhone maker launched its own credit card in 2019 in partnership with Goldman Sachs.
In related news: - Apple announced its annual developer’s conference, WWDC, will occur from June 5 to June 9.
- The iPhone maker is expected to unveil its long-awaited virtual and augmented reality headset at the conference.
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U.S. Treasury Secretary Janet Yellen has rejected calls for a near-term capital increase for the World Bank. Yellen told U.S. lawmakers that she wants World Bank reforms to expand lending to fight climate change and other global crises. More: - Yellen made these comments during a budget hearing of the U.S. House of Representatives Appropriations Subcommittee on State, Foreign Operations, and Related Programs on Wednesday.
- Yellen said she wants the World Bank to stretch its existing resources, adopt innovative financing policies, and mobilize private finance.
- The U.S. is the bank’s largest shareholder, and a capital increase would not be possible without its support.
- Yellen said she also expects former Mastercard CEO and U.S. nominee Ajay Banga to be elected president of the World Bank.
- The World Bank’s window for nominations closes at 6 p.m. ET on Wednesday; there have not been any challengers.
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EV startup Lucid Group plans to lay off about 18% of its workforce, or about 1,300 employees. The company aims to cut operating costs and preserve cash ahead of its planned release of a second vehicle model next year. More: - In an email sent to employees, CEO Peter Rawlinson said the layoffs would occur across the company’s U.S. operations and include executives.
- The job cuts are expected to be completed by the end of Q2.
- Lucid expects to incur a cost of $24M to $30M related to the reductions.
- As of Dec. 31, Lucid had about $1.74B in cash and cash equivalents.
- Lucid plans to release its second model next year, an electric SUV called the Gravity.
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- The Senate voted 66-30 to revoke the 2002 law that authorized military operations for the U.S.-led invasion of Iraq.
- Disney has laid off Marvel chair Isaac Perlmutter amid its previously announced 7,000-job reduction.
- Pope Francis was hospitalized on Wednesday with a lung infection after experiencing difficulty breathing in recent days. He is expected to remain in the hospital for several days of treatment.
- Britain plans to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, an 11-member Asia-Pacific trade bloc.
- Former UBS CEO Sergio Ermotti is returning to lead the bank following its rushed acquisition of Credit Suisse. Ermotti served as UBS’s CEO from November 2011 to October 2020. He will replace current CEO Ralph Hamers effective April 5.
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 |  | Vanessa Omeokachie writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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