Investment

Salesforce Touts AI Strategy, Doubles Investment in Startups

Published

1 year ago

June 12, 2023

(Bloomberg) — Salesforce Inc. is elevating new generative artificial intelligence features in its products and doubling its investment in AI startups as the company banks on the emerging technology to help resuscitate sales growth.

The software maker’s venture capital fund focused on generative AI will increase to $500 million from the initial $250 million announced in March, the company said Monday in a statement. In addition, its portfolio of artificial intelligence tools will now be called AI Cloud, putting it on par with other major product lines such as Sales Cloud and Service Cloud.

All the major technology companies are embracing generative AI and trying to add new tools after the introduction of OpenAI’s ChatGPT spurred intense interest from businesses across a swath of industries. Ahead of a Salesforce event focused on AI, the company is unveiling security standards for its technology, including preventing large language models from being trained on customer data.

“Every client we talk to, this has been their biggest concern,” said Adam Caplan, senior vice president of AI, of the potential for confidential information to leak through the use of these models.

Large language models are programmed to learn through trial-and-error using massive amounts of text and data. A type of these models is used for generative AI, which creates text and images from a user’s conversational prompts.

After a difficult six months that included job cuts, executive departures and public pressure from activist investors, Salesforce has been winning back the faith of many shareholders, and the stock had jumped 62% this year through Friday’s close. Investors, however, are concerned about sales growth — particularly after the company on May 31 projected revenue in the current quarter would gain 10% from a year earlier. That would be the slowest jump on record and a significant dropoff from a time when 30% increases were routine.

Executives have talked up the potential for AI to drive expansion. Like cloud computing and mobile apps before it, generative AI “is going to spark a massive new tech buying cycle,” Chief Executive Officer Marc Benioff said during an earnings call after the recent results. Underlining the company’s decision to prioritize AI is the decision last month to name Clara Shih as CEO of Salesforce AI. Shih once led Salesforce’s most lucrative product segment Service Cloud.

Read More: A Cheat Sheet to AI Buzzwords and Their Meanings

Customers will pay additional fees to use the new generative AI features across the company’s suite of software, Caplan said. Salesforce is still testing pricing levels, including whether it should be based on flat-rate subscriptions or use, he said. The AI tools will become generally available in products for sales and customer support this summer before being rolled out across the portfolio in coming months, the company said.

Salesforce had previously introduced some generative AI tools using OpenAI’s technology, including a chatbot for its Slack business communication unit and for tasks such as drafting customer service responses.

Bloomberg Intelligence analysts estimated earlier this month that generative AI may produce $1.3 trillion in sales of hardware, software, services and other tools by 2032.

Caplan previously oversaw Salesforce’s Web3, or blockchain and cryptocurrency-related initiatives. He said the applications for generative AI are much clearer than Web3 and customers have expressed massive interest.

Salesforce’s access to large amounts of customer data may be an ingredient for success in the new, highly hyped technology, Brad Zelnick, an analyst at Deutsche Bank, wrote Friday in a note to investors. “We see leading platforms such as Salesforce — with troves of trusted, high-quality data, connected processes, strong brands, distribution and ecosystems — as the natural winners in a generative AI world.”

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

2 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.