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Happy almost Friday! Some good news this morning: A cheap, widely-prescribed diabetes drug is showing some promise in preventing colon cancer.
In today's big story, Google's stock tanked after an Apple exec said AI engines are starting to challenge the search engine's dominance.
If you haven't subscribed to our new newsletter Tech Memo, what are you waiting for?
What's on deck
Markets: Trump teases first 'major trade deal' — and it's set to be with the UK.
Tech: Big Tech is all about rewarding its stars and getting rid of everyone else.
Business: People are fed up with companies' 'bait and switch pricing.'
But first, can you Google ChatGPT this?
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The big story
Search and destroy
AI giveth, and AI taketh.
Google seems to be learning that the hard way, as the new tech is gaining ground on one of its crown jewels.
Apple executive Eddy Cue said searches on its Safari browser shrank for the first time last month, and he's pointing the finger at AI engines, writes BI's Peter Kafka.
Cue also said AI tools like OpenAI and Perplexity AI would eventually supplant traditional search engines, and Apple will offer them to Safari users in the future.
Google investors took the news hard, with shares dropping more than 8% on Wednesday.
Cue has a vested interest in Google's search business, since Google pays Apple at least $20 billion a year to make its search engine the default on the iPhone. Still, in theory, Apple might be able to replace some or all of that money with payments from the OpenAIs of the world.
(Cue's comments came while testifying in the federal antitrust suit against Google's parent company, Alphabet. When it rains, it pours.)
The AI boom obviously hasn't been all bad for Google. The interest in the tech gave it the green light to invest billions in new development. The results weren't always great, but it largely seems happy with the progress made on things like its AI Overviews.
But as much as it tries to reshape itself, the progress made by its younger, smaller AI rivals is becoming undeniable.
It's not just the new kids on the block enjoying the AI revolution.
A very, very old player has newfound success leveraging AI. IBM is full speed ahead on its AI strategy, and Wall Street is eating it up, writes BI's Matthew Fox.
The company's stock is up almost 15% this year, far outpacing the tech-heavy Nasdaq 100, which is down 5%. At its recent conference, CEO Arvind Krishna said its generative AI business is now worth $6 billion.
IBM's focus is helping companies adopt AI, and has the added benefit of an open-source approach. That allows it to work with clients regardless of the AI tools they prefer, Wedbush analyst Dan Ives told Matthew.
(If you're looking for more tech coverage like this, subscribe to our upcoming tech newsletter Tech Memo. Alistair Barr will be running the show, and he does a much better job of covering tech than me.)
3 things in markets
1. Trump's first post-tariffs trade deal. The White House is expected to announce a trade deal with the UK on Thursday. A Downing Street spokeswoman told BI that talks between the two countries had been "continuing at pace" and the Prime Minister, Keir Starmer, would provide an update later on Thursday.
2. No surprises from the Fed. The central bank held interest rates steady as expected, although Chairman Jerome Powell had faced calls from President Trump and members of his administration to lower them. Powell has stressed waiting to see how tariffs affect the economy.
3. Jefferies banker's death ruled an accident. Carter McIntosh, a 28-year-old associate, died of a toxic mix of drugs including fentanyl and cocaine, an autopsy revealed. His death in January sparked widespread backlash against the bank's work culture.
3 things in tech
1. Big Tech has a new playbook. Tech companies like Google, Amazon, and Microsoft are doubling down on performance-based rewards, with top performers receiving larger payouts and low performers facing the heat. Meanwhile, new-hire offers are being reduced.
2. How a meme empire is sliding into your DMs. The Instagram gold rush isn't in the grid anymore — it's in your DMs. Doing Things, the company that owns meme accounts like Overheard, told BI its strategy to get users to share its content.
3. Meet Valarian, a new addition from the Palantir mafia. The Palantir-alumni-founded startup wants to help governments and companies control their data and has plans to expand into the defense sector. Its current seed round has raised $20 million.
3 things in business
1. Pro-Tesla, anti-Musk. Working for Tesla was Matthew LaBrot's dream job, but he was fired after publishing a website protesting Elon Musk. In an interview with BI, he shared his concern for how the billionaire is affecting Tesla's brand and sales — and why he still believes in the company anyway.
2. Recession fears got nothing on Disney adults. They know a Disney vacation is pricey, but they're going anyway. Disney World visits are surging, US parks revenue soared last quarter, and soon, they'll have a new magical destination to add to the list: Abu Dhabi.
3. Does $19.95 to rent a U-Haul truck sound too good to be true? That's because it is. Companies are using "bait-and-switch" tactics to lure customers in with one price, only to tack on extra fees and make the total nowhere near what was initially expected. It's so common that customers often throw their hands up and pay anyway.
In other news
- After selling OnlyFans, its cofounder is launching a rival creator platform.
- Verily CEO tells staff the sale of its insurance business is a 'strategic win' as the deal closes.
- Altoids, K-Pop, and a Harry Potter wand: The strangest moments of Diddy jury selection.
- The COO of Reality Labs is leaving Meta after nearly 11 years.
- We visited two of the busiest US airports on the first day of Real ID requirements. Here's what our reporters saw.
- Seth Rogen gave Netflix CEO Ted Sarandos a cameo in 'The Studio.' He says Apple wanted Tim Cook instead.
- Airlines care more about your credit card than your flight.
- Sam Altman just hired a CEO of applications to help him grow his AI empire.
- Trump's tariffs and the end of the 'de minimis' exemption will be a welcome boon for the secondhand clothing industry.
- The freeloader era of streaming is over.
- Uber CEO says the Waymo robotaxis on its app in Austin are busier than 99% of human drivers.
- Hate your job? That may be by design.
What's happening today
Paramount, News Corp, Coinbase, and Lyft report earnings.
The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.
