MongoDB Eyes GenAI Growth

Plus: Lyft Shifts Gears, and Regulators Circle Temu and Shein

SaaS & Infra

MongoDB COO bullish on long-term GenAI potential despite macro headwinds

While acknowledging the impact of macroeconomic conditions on consumption growth, MongoDB COO Michael Gordon expressed strong optimism regarding the long-term potential of generative AI for the company. Speaking at the Citi Global TMT Conference, Gordon highlighted three key areas where GenAI is expected to benefit MongoDB: increased developer productivity leading to more applications, a shift towards modern applications favoring MongoDB's platform, and accelerated migration from legacy systems. This comes on the heels of MongoDB's strong Q2 performance, where the company beat earnings expectations and raised its full-year guidance, driven by robust new business wins and better-than-expected consumption of its Atlas cloud database service.

C3.ai subscription revenue disappoints as enterprises tighten belts

C3.ai's Q1 earnings report revealed a miss on subscription revenue estimates, signaling a slowdown in enterprise software spending due to economic uncertainty. Despite exceeding overall revenue expectations with $87.2 million, the enterprise software company fell short of the projected $79.1 million in subscription revenue. C3.ai maintains its fiscal year 2025 revenue forecast between $370 million and $395 million, slightly below analysts' average estimate of $383.4 million.

AI

Microsoft gets CMA approval for Inflection AI executive hires

The UK's Competition and Markets Authority (CMA) has given Microsoft the go-ahead for its hiring of key executives from Inflection AI, concluding its Phase 1 investigation into the deal. Although the CMA determined the employee transfer constituted a merger under UK law, it found no substantial evidence of anti-competitive concerns that would necessitate a deeper Phase 2 review. This decision provides Microsoft with a win as it seeks to bolster its AI capabilities and compete in the rapidly evolving chatbot market.

First AI treaty open for signatures

The Council of Europe announced the first legally binding international treaty on artificial intelligence will be open for signatures on Thursday. The treaty, negotiated by 57 countries including the US, UK, and EU member states, aims to mitigate the risks posed by AI while encouraging responsible innovation and safeguarding human rights. This landmark agreement signifies a crucial step towards establishing a global framework for the ethical development and deployment of AI technologies.

Consumer

Lyft cuts jobs, ditches company-owned bikes and scooters

In a bid to streamline operations and focus on its core ride-hailing business, Lyft announced a new round of layoffs and the elimination of company-owned dockless bikes and scooters. This move, which will impact 1% of Lyft's workforce, is expected to reduce operating costs and boost adjusted earnings by $20 million by the end of 2025. While Lyft will continue to offer bikes and scooters through partnerships in major markets like New York City and Chicago, it marks a strategic shift away from direct ownership in this segment.

US regulators call for safety probe into Temu and Shein

Following reports of unsafe products being sold on their platforms, US Consumer Product Safety Commission members are urging a formal investigation into the safety practices of e-commerce giants Temu and Shein. The commissioners specifically cited concerns about "deadly baby and toddler products" and expressed a need to better understand the companies' compliance controls, particularly regarding direct-to-consumer shipments. This development highlights the growing scrutiny faced by these rapidly expanding discount retailers as they navigate product safety regulations and consumer protection concerns.

Venture

OpenAI co-founder secures $1 billion for new AI safety venture

Ilya Sutskever, co-founder of OpenAI, has secured a staggering $1 billion in funding for his new venture, Safe Superintelligence (SSI). Backed by prominent investors like Andreessen Horowitz, Sequoia Capital, and DST Global, SSI aims to develop "safe" artificial intelligence models and address what Sutskever describes as "the most important technical problem of our time." This substantial investment underscores the increasing focus on ensuring the responsible development and deployment of increasingly powerful AI technologies.

(Sources: MongoDB, Reuters, WSJ, CNBC, Computer Weekly)

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