Rabu, 31 Mei 2023

Canada closing in on deal to get Stellantis battery plant back on track: Champagne - CTV News Windsor

Ottawa, Ont. -

A deal to save a $5-billion electric vehicle battery plant in Windsor is inching closer, Industry Minister Francois-Philippe Champagne said Wednesday.

"I would say everyone should take a deep breath, things are going well, the negotiations are progressing," Champagne said following a Liberal caucus meeting in Ottawa.

"We're getting closer to the end of the negotiation."

The federal government, Ontario, Stellantis and LG Energy Solution have been in heavy negotiations for a few weeks after the companies paused construction on their planned factory in a dispute over federal subsidies.

The negotiations have been stuck between what Canada thinks is fair and affordable and what the company believes it is due. It has threatened to move the plant out of Windsor if it doesn't get what it says it was promised by the federal government in a "special contribution agreement" in February.

Champagne said the company has to be "reasonable."

The companies announced the plan for the battery facility in March 2022 with a $1-billion capital contribution from the federal and provincial governments.

But the companies went back for more government support after the United States announced new production tax credits for EV battery makers as part of the Inflation Reduction Agreement.

That legislation compelled Canada to sign an agreement with Volkswagen to subsidize batteries made at a planned new plant in St. Thomas, Ont., that could be worth up to $13 billion over a decade.

Champagne said he made a similar offer to Stellantis, but negotiations continue about how the formula would apply to the Stellantis plant, which is half the size of Volkswagen's but will start producing batteries three years earlier.

The subsidies are directly proportionate to the tax credits on offer under the IRA, which start at a tax credit of $35 per kilowatt hour from now until 2030, when they begin to be phased out. By 2033, they will be eliminated.

The Volkswagen deal includes a clause that ensures Canada's subsidies keep pace with the U.S. tax credits, and if the IRA is reduced or eliminated earlier than planned, Canada's subsidies will go down an equal amount.

The Stellantis plant is have an annual production capacity of 45 gigawatt hours, which could make enough batteries for more than 400,000 vehicles a year, with the first production happening as early as 2024.

Volkswagen's plant, with twice the production capacity, could produce enough for nearly a million vehicles annually, with initial production starting in 2027.

Neither company's plant is likely to make the maximum number of batteries in its first year.

In Canada, the production timelines would make Stellantis eligible for the full equivalent subsidy for nearly seven years, while Volkswagen would be getting it for just three or four.

Both plants are mainly intended to supply batteries to the companies' own EVs. For Volkswagen, those won't be made in Canada, as it has no auto plants in the country and no intention to build any.

Stellantis is retooling its auto manufacturing sites in both Windsor and Brampton, Ont., to be able to make electric vehicles. Champagne said stronger commitments, particularly for the Brampton plant, are part of the ongoing talks with the company right now.

"That's all part of the negotiation," he said.

Canada also insisted that the Ontario government put additional funds on the table, which Premier Doug Ford initially balked at but later committed to doing.

Champagne said he spoke with Ontario Premier Doug Ford both Tuesday and Wednesday.

“For me, this is an ongoing discussion," Champagne said. "We talk every day. And we're going to get to a deal. I'm very confident on that."

This report by The Canadian Press was first published May 31, 2023.

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2023-05-31 22:51:34Z
2053511007

Stocks slide as debt ceiling vote looms, jobs data stays hot : Stock market news today - Yahoo Canada Finance

US stocks closed lower Wednesday as investors kept a watchful eye on the prospects for the debt-limit deal in an expected House floor vote. Meanwhile, strong US jobs data and China’s economic woes pressured global markets.

The S&P 500 (^GSPC) fell 0.60% while the Dow Jones Industrial Average (^DJI) dipped 0.40% or more than 130 points. The technology-heavy Nasdaq Composite (^IXIC) slipped 0.63%.

US bond yields weakened as investors fretted over the potential impact of the debt-limit deal and reviewed the release of fresh jobs data. The yield on the benchmark 10-year Treasury dropped to 3.62%. The two-year note yields, which are more rate sensitive, slipped to 4.3%, while that on the 30-year bond dropped to 3.84%.

Equities lost steam as the Labor Department reported the number of job openings rose to over 10.1 million, up from economists' expectations of 9.4 million openings.

The figures underscores "the tightness in the labor market is unlikely to fall off a cliff but rather continue downward on a bumpy path," Oxford Economics wrote in a note on Wednesday. "While there are some concerns over the veracity of the JOLTS survey due to historically low response rates, the upshot remains that labor market strength remains robust."

In light of recent economic data, markets are pricing in an increase of 25 basis points in interest rates from the Fed at policymakers' meeting on June 13-14. On the commodities side, the dollar index rose, while crude oil slid below $70 a barrel.

Still, investors are still very keen on the latest developments in Washington. The debt ceiling agreement negotiated by President Joe Biden and House Speaker Kevin McCarthy passed its first key test on Tuesday when it gained approval from the Republican-led House Rules Committee despite opposition from hard-liners. That cleared the way for the deal to go before the House on Wednesday.

The clock is ticking down, as Congress must race to pass the deal to avoid a catastrophic default by June 5. That so-called X-Date is when the US will run out of money to pay its bills, Treasury Secretary Janet Yellen has warned.

Republican House Speaker Kevin McCarthy speaks to the press after a meeting with President Joe Biden on debt ceiling in Washington, D.C., the United States, May 22, 2023.  The United States is

Republican House Speaker Kevin McCarthy speaks to the press after a meeting with President Joe Biden on debt ceiling in Washington, D.C., the United States, May 22, 2023. (Photo by Aaron Schwartz/Xinhua via Getty Images)

Meanwhile, both Federal Reserve Governor Philip Jefferson and Philadelphia Federal Reserve President Patrick Harker signaled Wednesday that the central bank could pause rate hikes at its next policy meeting. Separately, the economy showed signs of cooling as hiring and inflation slowing, the Federal Reserve said in its Beige Book survey of regional business contacts.

Elsewhere, China’s factory activity slumped to its weakest level for a second straight month, another sign its post-pandemic economic recovery is losing steam. Asian markets tumbled after the release of the data.

On the housing front, mortgage demand dropped to its lowest level since March, while refinancing activity also dampened to another low, the MBA data showed Wednesday.

Meanwhile, in corporate news, Hewlett Packard Enterprise Company (HPE) sank more than 7% after the company posted a revenue miss in its second quarter earnings and slashed its full-year sales guidance.

Still, the run-up in stocks linked to AI was losing momentum, after the buzz around the technology helped boosted the Nasdaq 100 Index (^NDX) on Tuesday. Shares of ChargePoint Holdings, Inc. (CHPT) was flat, while C3.ai, Inc. (AI) dipped more than 8% Wednesday.

In single-stock moves, SoFi Technologies, Inc. (SOFI) shares rallied more than 15% in the wake of the debt ceiling deal. The bill would reinstate government student loan repayments, benefiting the online personal finance company.

Shares of HP Inc. (HPQ) sank more than 5% after the computing giant posted better-than-expected quarterly earnings on Tuesday, but reported sales that fell more than analysts estimated.

Intel Corporation (INTC) shares rose more than 4% after the chipmaker said current quarter revenue is on track to be at the high end of its guidance.

__

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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2023-05-31 20:03:14Z
2094867647

Meta launches paid verification system for Canadian users - CBC News

Meta, the owner of Facebook and Instagram, is launching a test of a new verification system in Canada, one that costs up to $19.99 a month for a version of the app that comes with enhanced features.

The company says that starting now, it is testing out what it calls a "subscription bundle" for both apps that not only verifies a user's identity via government ID, it also unlocks various support services for creators.

Anyone with an Instagram or Facebook account is eligible to sign up, but they must by over 18 and businesses are exempt. The app-based version will cost $19.99 a month, while a web-based version will cost slightly less, at $15.99.

Canada is just the latest country to be added to the service, as it was launched in Australia and New Zealand in February, followed by the U.S. in March and U.K. users earlier this month.

In addition to added protection from impersonation, more support services and other frills, anyone signing up for the service will get a "verified" badge on their profile.

Similar to Twitter changes

That mark of distinction is reminiscent of the blue "checkmark" badge that Twitter has long employed. Before it was bought by Elon Musk, Twitter would dole out blue checkmarks to verify the authenticity of certain accounts, although the exact requirements were always nebulous.

WATCH | How will having to pay to be verified on social media affect you?

How will the paid social media verification process affect you? | About That

1 month ago

Duration 7:36

A growing number of social media companies are changing the way they verify users, with a move to having them pay for the badges. About That producer Kieran Oudshoorn speaks with CBC News senior business reporter Anis Heydari about why it could affect how businesses and consumers interact online.

Last month, Musk made good on his threat to start charging for the service, removing the status from so-called "legacy" accounts that didn't agree to pay $8 US for verification, which comes with various perks above and beyond what the free version offers.

Similar to Twitter, Meta already verifies certain high-profile users or organizations, and the new service is not expected to bring any immediate changes to accounts that are already verified that way. But that may change.

"Long term, we want to build a subscription offering that's valuable to paid subscribers, including creators and businesses," Meta said. "As part of this vision, we are evolving the meaning of verified accounts on our apps so we can expand access to verification and more people can trust the accounts they interact with are authentic."

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2023-05-31 17:43:09Z
2064291822

Stellantis EV battery plant could cost Canada $19 billion in subsidies - Financial Post

Price tag may reach as much as $19 billion over a decade, far exceeding the $13 billion promised to Volkswagen

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Stellantis NV is likely to receive more in subsidies for a new electric-vehicle battery plant in Canada than the $13 billion Volkswagen AG extracted for a similar project, according to an expert who has crunched the numbers.

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Stellantis and South Korean partner LG Energy Solution Ltd. announced the factory in Windsor, Ont., last year, but have halted construction while they negotiate more financial aid from Prime Minister Justin Trudeau’s government. The companies are seeking the equivalent of what they would receive under the Inflation Reduction Act if they located the plant in the United States.

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That means the price tag to Canada for the plant may reach as much as $19 billion over a decade, said Johns Hopkins University professor Bentley Allan — even larger than the package Canada signed to lure Volkswagen.

“That’s just what the math says,” Allan, a political scientist who has studied the Inflation Reduction Act and how the subsidies compare to Canadian policy, said in an interview. “If you take Stellantis’s public announcements, and you calculate it by the full value of the IRA for cells and modules, you get $19 billion.”

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But there are factors that may allow Canada to bring the cost down, Allan said. For example, a recent budget measure by Trudeau’s finance minister to create investment tax credits will help offset equipment costs for the factory.

The reason the plants are so expensive is that U.S. legislation signed into law by President Joe Biden last summer offers to subsidize the production of battery cells, not merely the capital costs of building and equipping a new plant.

U.S. incentives

Although the Stellantis-LG facility would be smaller than the proposed Volkswagen plant at full capacity, the companies plan to start production next year — three years earlier than Volkswagen’s projected start date of 2027 for its facility in St. Thomas, Ont.

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Depending how quickly the German auto giant builds out its full plant, it may take years for Volkswagen to pass Stellantis in factory output, Allan said. The Inflation Reduction Act starts phasing out its battery plant subsidies in 2030, dropping them entirely by 2033, though future administrations could change that schedule.

The Volkswagen deal has received criticism from some economists in Canada, given the 10-year cost estimate. A majority of the population supports it, however, according to a recent poll by Nanos Research for Bloomberg News.

Prime Minister Justin Trudeau announcing Volkswagen will build a battery plant in St. Thomas, Ont.
Prime Minister Justin Trudeau announcing Volkswagen will build a battery plant in St. Thomas, Ont. Photo by Tara Walton/The Canadian Press

It’s unclear how the Canadian public would view a second deal with an automaker that’s even more expensive.

The bulging price tag may explain why Trudeau’s cabinet has sparred with Ontario’s government over how much the latter is contributing to the Windsor project, which is expected to cost $5 billion.

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Spokespeople for Industry Minister François-Philippe Champagne, Ontario Premier Doug Ford and Stellantis declined to comment for this story.

Canadian and Ontario government officials have repeatedly said they’re confident they will reach a deal to keep the plant in Windsor, despite warnings from Stellantis and LG that they’re considering alternate sites.

In April, the CEOs of the two companies sent a letter to Trudeau stating his government had committed in writing to match the IRA incentives but they were still waiting for a signature on a “special contribution agreement” finalized in February. “The continued delay in executing this agreement is bringing significant risk to the project,” they said.

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But Stellantis also has an incentive to stick with Canada. Relocating the 45 gigawatt-hour factory, which is supposed to reach full capacity by 2025, could delay plans to catch up to rivals in the EV race and introduce more than 75 fully electric models by 2030.

When the plant was announced in 2022, the provincial and federal governments committed about $1 billion in public funding for capital costs, according to Ontario’s premier and the Canadian Press.

  1. None

    VW subsidies raises questions about Canada's EV ambitions

  2. The NextStar battery plant construction site in Windsor is shown on Wednesday, May 24, 2023.

    Canada's industrial policy stumbles in Windsor

  3. A Shell employee walks through the company's Quest Carbon Capture and Storage facility in Fort Saskatchewan, Alberta. The federal budget promises tens of billions to speed the transition to a net-zero emissions economy.

    Timelines key as federal budget promises billions for green transition

Despite the cost to Canada’s treasury of competing with the U.S. on battery plant subsidies, Trudeau and Champagne have publicly mused that the country could still secure one or two more electric-vehicle battery plants in the near future.

Bloomberg.com

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2023-05-31 16:05:15Z
2053511007

Stellantis subsidy likely to exceed what Trudeau gave Volkswagen: Expert - BNN Bloomberg

Stellantis NV is likely to receive more in subsidies for a new electric-vehicle battery plant in Canada than the $13 billion Volkswagen AG extracted for a similar project, according to an expert who has crunched the numbers.

Stellantis and South Korean partner LG Energy Solution Ltd. announced the factory in Windsor, Ontario last year, but have halted construction while they negotiate more financial aid from Prime Minister Justin Trudeau’s government. The companies are seeking the equivalent of what they would receive under the Inflation Reduction Act if they located the plant in the U.S.

Justin Trudeau speaks at a Stellantis facility in Windsor, Ontario last year. Across the border from Detroit, the city is a key hub of Canada’s auto industry.

That means the price tag to Canada for the plant may reach as much as $19 billion over a decade, said Johns Hopkins University professor Bentley Allan — even larger than the package Canada signed to lure Volkswagen.

“That’s just what the math says,” Allan, a political scientist who has studied the Inflation Reduction Act and how the subsidies compare to Canadian policy, said in an interview. “If you take Stellantis’s public announcements, and you calculate it by the full value of the IRA for cells and modules, you get $19 billion.”

But there are factors that may allow Canada to bring the cost down, Allan said. For example, a recent budget measure by Trudeau’s finance minister to create investment tax credits will help offset equipment costs for the factory.

The reason the plants are so expensive is that U.S. legislation signed into law by President Joe Biden last summer offers to subsidize the production of battery cells, not merely the capital costs of building and equipping a new plant.

U.S. INCENTIVES

Although the Stellantis-LG facility would be smaller than the proposed Volkswagen plant at full capacity, the companies plan to start production next year — three years earlier than Volkswagen’s projected start date of 2027 for its facility in St. Thomas, Ontario.

Depending how quickly the German auto giant builds out its full plant, it may take years for Volkswagen to pass Stellantis in factory output, Allan said. The Inflation Reduction Act starts phasing out its battery plant subsidies in 2030, dropping them entirely by 2033, though future administrations could change that schedule.

The Volkswagen deal has received criticism from some economists in Canada, given the 10-year cost estimate. A majority of the population supports it, however, according to a recent poll by Nanos Research for Bloomberg News.

It’s unclear how the Canadian public would view a second deal with an automaker that’s even more expensive.

The bulging price tag may explain why Trudeau’s cabinet has sparred with Ontario’s government over how much the latter is contributing to the Windsor project, which is expected to cost $5 billion.

Canadian and Ontario government officials have repeatedly said they’re confident they will reach a deal to keep the plant in Windsor, despite warnings from Stellantis and LG that they’re considering alternate sites.

In April, the CEOs of the two companies sent a letter to Trudeau stating his government had committed in writing to match the IRA incentives but they were still waiting for a signature on a “special contribution agreement” finalized in February. “The continued delay in executing this agreement is bringing significant risk to the project,” they said.

But Stellantis also has an incentive to stick with Canada. Relocating the 45 gigawatt-hour factory, which is supposed to reach full capacity by 2025, could delay plans to catch up to rivals in the EV race and introduce more than 75 fully electric models by 2030.

When the plant was announced in 2022, the provincial and federal governments committed about $1 billion in public funding for capital costs, according to Ontario’s premier and the Canadian Press.

Despite the cost to Canada’s treasury of competing with the U.S. on battery plant subsidies, Trudeau and Champagne have publicly mused that the country could still secure one or two more electric-vehicle battery plants in the near future.

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2023-05-31 15:41:04Z
2053511007

Great-West Life selling U.S. wealth manager Putnam to Franklin Templeton in deal valued at US$1.8-billion - The Globe and Mail

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The Great-West Lifeco headquarters in Winnipeg is seen in this file photo.JOHN WOODS/The Canadian Press

Canadian insurer Great-West Lifeco Inc. GWO-T is offloading U.S. wealth manager Putnam Investments to investment giant Franklin Templeton in a deal valued at US$1.8-billion, a fraction of what the insurer initially paid for the operation.

The two asset managers announced Wednesday that Franklin Templeton will initially pay Great-West Life US$950-million to US$1-billion in a combination of cash and stock. Franklin Templeton will issue 33.33 million shares to Great-West at closing and $100-million in cash six months after closing.

Great-West’s shares will represent a 6.2-per-cent ownership stake in parent Franklin Resources Inc., and it has agreed to hold at least 4.9 per cent of Franklin Resources for at least five years.

“The economic benefits to us will be the appreciation in the Franklin stock which we think it’s actually undervalued,” chief executive Paul Mahon, said in an interview with the Globe. “We think there’s real upside there and as well the dividend throw off that it’s got a nice yield plus some of the cash proceeds that will be unlocked.

The deal, which is expected to close at the end of the fourth quarter, will also see the insurer, along with its parent company financial behemoth Power Corp. of Canada, form a strategic relationship with Franklin, allocating $25-billion of client assets into Franklin’s specialist investment products within 12 months of closing the deal.

An additional payment of up to $375-million will be paid between three to seven years after close, depending on the growth of the partnership, the companies said in a release.

Great-West Lifeco purchased Putnam for US$3.9-billion in 2007 to expand its U.S presence. The deal also included a US$900-million deferred tax benefit. In 2007, Putnam managed about US$192-billion in assets but struggled with performance and investor redemption in the years following the financial crisis. Now, the company manages about US$170-billion in assets. That includes about $33-billion of assets in Putnam subsidiary PanAgora, a quantitative asset manager that Great-West Lifeco will keep its controlling interest in. (Quantitative managers typically use computer algorithms and historical research in their investing decisions.) Mr. Mahon says PanAgora will be carved out from Putnam and reallocated under Great West Life.

“Although we had no indication that a sale of Putnam was imminent, it is also not a total shock given years of struggling performance at the asset manager along with veiled management comments that a sale was certainly a strategic option,” Scotiabank analyst Meny Grauman wrote in a research note.

While the U.S. fund manager did see some positive sales progress throughout 2020 and 2021 as investors flooded funds with COVID savings, Putnam fell back into redemptions as the industry saw investors begin to pull money out of funds in 2022, Great-West chief executive Paul Mahon, said in an interview with the Globe.

“We acquired Putnam at a difficult time just as the [2008] financial crisis was setting in, so obviously there was a bit of a reset at that point in time,” he said.

“There was a bit of a dislocation in markets in the last couple of years as we got into COVID and the net impact of that was the industry went into outflows and Putnam followed that same stream. So, while we were seeing good progress around 2021, we believe that as Putnam went into outflows, the best move really was to look to a transaction to unlock value and to get it to scale.”

In recent years, Mr. Mahon has been on a U.S. spending spree focused on building the company’s presence in the U.S. retirement industry through its subsidiary Empower Retirement.

In 2021, Empower spent US$3.55-billion in its largest deal to buy the retirement business of Prudential Financial Inc. adding $364-billion in assets. In June, 2020, Empower purchased digital wealth manager Personal Capital for an initial US$825-million, with the potential to add US$175-million if certain growth metrics are met. The same year, Empower bought the retirement business of Massachusetts Mutual Life Insurance Co for US$3.35-billion., adding US$167-billion in assets and approximately 2.5 million clients to its roster.

“The deal with Franklin allows us to further our focus in the US and growing our leadership position in the retirement space, through Empower and our focus on building the wealth management business,” Mr. Mahon said.

Mr. Mahon said he had considered a number of opportunities in the past to sell Putnam, but none of the potential buyers were a “good fit. While Mr. Mahon did not disclose the exact timing of when discussions with Franklin Templeton began, he said Great-West had been “at it” for “for a number of months with them.”

Credit Suisse analyst Joo Ho Kim reported the deal as positive, “given the underperformance” of Putnam on both sales and earnings front over the years.

“It would also allow Great-West Life to better focus on expansion of its retirement business in the U.S,” Mr. Kim wrote. “We also see modest value creation on fundamental front, as Franklin Templeton expects to add run-rate operating income of US$150-million in the first year post close and cost synergies.”

Scotiabank analyst Phil Hardie reported the deal as a “an important step” forward for parent company Power Corp.

“We believe the latest move related to divestiture at Great-West enables it to focus on its core growth strategy and removes a historical overhang,” Mr. Hardie wrote. “Putnam had likely weighed on investor sentiment towards Great-West and Power for years given its struggles with profitability.”

Morgan Stanley & Co. LLC and Rockefeller Capital Management served as financial advisors to Great West and Putnam Investments.

- with a file from David Milstead

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2023-05-31 15:04:39Z
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Selasa, 30 Mei 2023

Does AI pose an existential threat to humanity? Some tech execs warn it might - CBC News

More than 350 top executives and researchers in artificial intelligence have signed a statement urging policymakers to see the serious risks posed by unregulated AI, warning the future of humanity may be at stake. 

"Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war," the signatories, including OpenAI CEO Sam Altman, said in a 23-word letter published Tuesday by the nonprofit Center for AI Safety (CAIS).

Competition in the industry has led to a sort of "AI arms race," CAIS executive director Dan Hendrycks told CBC News in an interview.

"That could escalate and, like the nuclear arms race, potentially bring us to the brink of catastrophe," he said, suggesting humanity "could go the way of the Neanderthals."

Recent developments in AI have created tools supporters say can be used in applications from medical diagnostics to writing legal briefs, but this has sparked fears the technology could lead to privacy violations, powerful misinformation campaigns and lead to issues with "smart machines" thinking for themselves.

"There are many ways that [AI] could go wrong," said Hendrycks. He believes there is a need to examine which AI tools may be used for generic purposes and which could be used with malicious intent. 

He also raised the concern of artificial intelligence developing autonomously. 

"It would be difficult to tell if an AI had a goal different from our own because it could potentially conceal it. This is not completely out of the question," he said.

WATCH | OpenAI CEO Altman presses U.S. lawmakers on regulation:

ChatGPT boss urges U.S. to set rules for artificial intelligence

14 days ago

Duration 2:04

OpenAI CEO Sam Altman urged lawmakers in Washington to regulate the burgeoning field of artificial intelligence before it’s too late. Altman, whose company created the free chatbot tool ChatGPT, is the latest AI pioneer to warn about the potential dangers of a technology some fear could soon surpass human intelligence.

'Godfathers of AI' among critics

Hendrycks and the signatories to the CAIS statement are calling for international co-operation to treat AI as a "global priority" in order to address its risks. 

And you don't have to have be an expert — or even have an interest in artificial intelligence — to be affected by it going forward, said technology analyst and journalist Carmi Levy. 

"Just like climate change, even if you're not a meteorologist, it's going to touch your life," Levy said, citing the relationships between governments and citizens, financial markets and organizational development. "AI is going to touch all of our lives."

WATCH | No one will escape the effects of AI, says Levy: 

AI will affect your life even if you don't use it, expert warns

6 hours ago

Duration 0:49

Just because you don't use an app like ChatGPT doesn't mean your life won't be impacted by AI, says technology analyst Carmi Levy.

The letter coincided with the U.S.-EU Trade and Technology Council meeting in Sweden where politicians are expected to talk about regulating AI.

As well as Altman, signatories included the CEOs of AI firms DeepMind and Anthropic, and executives from Microsoft and Google.

Also among them were British-Canadian computer scientist Geoffrey Hinton and Université de Montréal computer science professor Yoshua Bengio — two of the three so-called "godfathers of AI" who received the 2018 Turing Award for their work on deep learning. Professors from institutions ranging from Harvard to China's Tsinghua University also signed on.

WATCH Canadian-British AI pioneer Geoffrey Hinton on potential risks:

He helped create AI. Now he’s worried it will destroy humanity

20 days ago

Duration 8:08

Canadian-British artificial intelligence pioneer Geoffrey Hinton says he left Google because of recent discoveries about AI that made him realize it poses a threat to humanity. CBC chief correspondent Adrienne Arsenault talks to the 'godfather of AI' about the risks involved and if there's any way to avoid them.

AI development has reached a milestone, known as the Turing Test, which means machines have the ability to converse with humans in a sophisticated fashion, Yoshua Bengio told CBC News. 

The idea that machines can converse with us, and humans don't realize they are talking to an AI system rather than another person, is scary, he added.

Bengio worries the technology could lead to an automation of trolls on social media, as AI systems have already "mastered enough knowledge to pass as human."

"We are creating intelligent entities," he said. AI systems aren't as smart as humans on everything "right now" but that could change, Bengio continued. 

"Are they going to behave well with us? There are a lot of questions that are very, very concerning and there's too much unknown."

WATCH | The stakes are too high to ignore rapid advances in AI: 

Too many 'unknowns' about machines that can converse with us, says professor

42 minutes ago

Duration 3:07

Université de Montréal computer science professor Yoshua Bengio says the advent of machines that can converse with us is both scary and exciting, and the stakes are 'just too high' to ignore questions about how humans will interact with them.

A statement from CAIS criticized Meta, where the third godfather of AI, Yann LeCun, works, for not signing the letter.

Bengio and Elon Musk, along with more than 1,000 other experts and industry executives, had already cited potential risks to society in April.

Last week, Altman referred to EU AI — the first efforts to create a regulation for AI — as over-regulation and threatened to leave Europe. He reversed his stance within days after criticism from politicians. 

European Commission president Ursula von der Leyen will meet Altman on Thursday.

AI regulation 'still playing catch up'

Not everyone believes AI is existential threat, yet.

"I think there are incredibly pressing practical ramifications of AI that affect people negatively, that I think we don't yet have good solutions for," said Rahul Krishnan, an assistant professor at the University of Toronto's department of computer science. 

He believes there is a need for "responsible AI," which includes "having a set of principle that users and developers of machine learning models agree on." 

Krishnan said AI regulation is "still playing catch up" but there needs to be a "good balance" to ensure technologies are developed and used safely without hindering improvements. 

WATCH | Could AI already be outsmarting humans:

Is AI moving too fast?

2 months ago

Duration 24:38

April 11, 2023 | There is growing concern that AI models could already be outsmarting humans. Some experts are calling for a 6-month pause. Also: how scammers can use 'deep voice' AI technology to trick you. Plus the phony AI images that went viral.

However, he sees the potential for "biases" to affect how machine learning algorithms are programmed.

He offered the example of AI being used to determine who should be approved for a credit card. If an AI tool is trained to work with data about past lending decisions that already "have a degree of bias," he said the algorithm could further perpetuate that bias in its predictions.

Luke Stark, who studies the social, ethical and cultural impacts of AI at Western University in London, Ont., agreed. If the data AI systems are using exhibit historical bias around race or gender, it's going to get exacerbated, built up and further expressed through the system, Stark said. 

"I think it's a real danger that we're facing today and that's already affecting marginalized communities. You know, people in society who often have the least say about how computing works and how computers are designed," he said. 

WATCH | Those most adversely affected by AI should be helping to create AI policy: 

Marginalized voices must be heard when creating AI policy, professor says

2 hours ago

Duration 0:47

Western University assistant professor Luke Stark says members of communities most adversely affected by artificial intelligence bias should be at the centre of discussions about creating AI policy.

Stark, however, believes the warnings about an existential threat from AI have gone overboard, at least for now. 

"From my perspective, it's these everyday real-world, real-life cases of contemporary AI systems being used to control different groups in society that are not getting as much attention."

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2023-05-30 22:58:21Z
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Air Canada pilots look to start bargaining early after WestJet pay hike - CP24


Christopher Reynolds, The Canadian Press
Published Tuesday, May 30, 2023 4:01PM EDT

MONTREAL - The pilots union at the country's largest airline has opened the gate to bargaining ahead of time - as early as next month, amid peak travel season - adding pressure to an industry under scrutiny after a rocky year.

The Air Canada pilots group said Tuesday it has invoked a clause to end its 10-year collective agreement a year early and launch negotiations over a new one.

The move comes after about 1,800 pilots at WestJet and budget subsidiary Swoop settled on a tentative deal this month that secures a 24 per cent wage increase over four years, as well as more flexible scheduling and a big boost to per diems.

Since landing on an agreement in 2014, Air Canada pilots have received a two per cent pay hike each year.

The current deal will remain in force until Sept. 29, but its provisions will still apply after that date, both parties said.

“The Air Canada pilots are looking forward to working with the company towards a contract that addresses career progression and job security issues for its pilots, and closes the growing wage gap between the U.S. and Canada,” said Air Line Pilots Association spokeswoman Camilla Castro in an email.

“The current agreement, which has been in place for nearly a decade, is a testimony of the productive relationship we have with our pilots. We expect the upcoming negotiations to be conducted in this same spirit,” Air Canada spokesman Peter Fitzpatrick said in an emailed statement.

The Air Canada pilots group, whose 4,500-odd members two weeks ago joined the Air Line Pilots Association, can kick off negotiations with a notice to bargain as early as June 1. The union expects to serve it to management early next month, said Castro.

The merger with the Air Canada Pilots Association, which WestJet flight crews also belong to, means 95 per cent of professional Canadian pilots are represented by a single union, according to Charlene Hudy, the Air Canada union's council chair.

The agreement between WestJet and its pilots - likely to be put to a ratification vote in early June - will serve as a benchmark for other aviation groups, ranging from flight crews to flight attendants, said aviation consultant Rick Erickson.

“I suspect that the Air Canada pilot union probably has the same documents sitting in front of them,” he said in an interview Friday.

The pending negotiations come as airlines face intense domestic and cross-border competition from ultra-low-cost carriers such as Flair Airlines and Lynx Air, as Canadian airlines look to return to profit after hundreds of millions of dollars in losses during the pandemic.

Labour shortages continue to plague the aviation industry as the sector emerges from COVDI-19 and the past year's travel turmoil, with a dearth of workers in areas ranging from air traffic control to ground handling.

In March, Delta Air Lines pilots secured a deal that includes a 34 per cent pay hike over four years.

American Airlines pilots authorized a strike amid contract negotiations earlier this month before reaching a preliminary deal last week.

United Airlines pilots are also in the middle of talks, pushing for even higher pay than their Delta counterparts, as well as comparable quality-of-life provisions.

This report by The Canadian Press was first published May 30, 2023.

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2023-05-30 20:01:54Z
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Air Canada pilots pull out of current job contract early to start new talks with airline this summer - CBC News

Air Canada's pilots are pulling out of their nine-year-old labour framework with the airline in a bid to renegotiate a better deal starting this summer.

The Air Canada pilots' group, which only joined the larger Air Line Pilots Association (ALPA) this month, decided to exercise an option that was in their current contract that would allow them to pull out of the 10-year pact early. The existing deal was set to expire next year, and the deadline to exercise that escape clause was Monday.

After triggering the exit clause, the agreement will now expire at the end of September 2023, and the move means pilots will "enter the bargaining process this summer, once the union provides their notice to bargain to Air Canada."

"Our pilots have elected to use the option that was available to them to terminate the collective agreement after nine years," the airline told CBC News in a statement.

"The current agreement ... is a testimony of the productive relationship we have with our pilots. We expect the upcoming negotiations to be conducted in this same spirit."

Canadian airline staff say they are underpaid

Under the existing pact that was signed in 2014, the 4,500 members of Air Canada's pilots' union have gotten a two per cent raise every year. 

Staff at Canadian airlines have long complained they are significantly underpaid compared to what their compatriots at U.S. airlines get. Cabin and flight crew at Delta Air Lines recently negotiated a new pact that got them a 34 per cent raise. American Airlines pilots authorized a strike earlier this month before reaching a preliminary deal last week.

The move by Air Canada's pilots comes after their compatriots at rival WestJet managed to secure raises averaging 24 per cent over the next four years in a last-minute deal that narrowly avoided a strike earlier this month.

WATCH | WestJet narrowly avoids strike but damage has been done:

Westjet strike avoided but travel disruptions continue

11 days ago

Duration 2:39

A last-minute deal between WestJet and its pilots union averted a strike, but stranded passengers and potential labour disruptions highlight ongoing challenges for WestJet and the airline industry.

"The Air Canada pilots are looking forward to working with the Company towards a contract that addresses career progression and job security issues for its pilots, and closes the growing wage gap between the U.S. and Canada," the pilots union told CBC News in a statement.

George Smith, a lecturer on labour relations at Queen's University in Kingston, Ont., has first-hand knowledge of how disruptive labour talks can be for airlines from his time as an executive at Air Canada back in the 1990s.

"When I was there one of the first things we tried to do was minimize noise around labour disruptions because they immediately affected bookings," he told CBC News in an interview.

He calls the airline's current deal with its pilots "revolutionary and progressive" because of its 10-year timeframe, which bought the airline an almost unprecedented amount of labour calm.

"In my day we would lose millions of dollars a day in advanced bookings from any strike talk," he said. "The longer it went on the less money you had to pay people in the talks you were in."

He says it's no surprise to see a new union leadership flexing its muscles, with such high-profile lucrative new contracts at other airlines in the current era of high inflation.

The recent WestJet deal "was definitely on the high side compared to other settlements, and if you add in working condition improvements it's a pretty lucrative deal," he said.

"If you are an Air Canada pilot you're� saying, 'Wait a minute, we've been playing nice with this 10-year agreement,' and along comes WestJet's union saying, 'We can get this and more,' and then human nature takes over," he said.

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2023-05-30 18:27:48Z
2061741877

Nvidia Joins the Trillion Dollar Club - Visual Capitalist

Published

on

Chart showing Nvidia surpassing the $1 trillion market cap milestone becoming the eighth company to join that club

Nvidia Joins the Trillion Dollar Club

Chipmaker Nvidia is now worth nearly as much as Amazon.

America’s largest semiconductor company has vaulted past the $1 trillion market capitalization mark, a milestone reached by just a handful of companies including Apple, Amazon, and Microsoft. While many of these are household names, Nvidia has only recently gained widespread attention amid the AI boom.

The above graphic compares Nvidia to the seven companies that have reached the trillion dollar club.

Riding the AI Wave

Nvidia’s market cap has more than doubled in 2023 to over $1 trillion.

The company designs semiconductor chips that are made of silicon slices that contain specific patterns. Just like you flip an electrical switch by turning on a light at home, these chips have billions of switches that process complex information simultaneously.

Today, they are integral to many AI functions—from OpenAI’s ChatGPT to image generation. Here’s how Nvidia stands up against companies that have achieved the trillion dollar milestone:

Joined ClubMarket Cap
in trillions
Peak Market Cap
in trillions
AppleAug 2018$2.78$2.94
MicrosoftApr 2019$2.47$2.58
AramcoDec 2019$2.06$2.45
AlphabetJul 2020$1.58$1.98
AmazonApr 2020$1.25$1.88
MetaJun 2021$0.68$1.07
TeslaOct 2021$0.63$1.23
NvidiaMay 2023$1.02$1.02

Note: Market caps as of May 30th, 2023

After posting record sales, the company added $184 billion to its market value in one day. Only two other companies have exceeded this number: Amazon ($191 billion), and Apple ($191 billion).

As Nvidia’s market cap reaches new heights, many are wondering if its explosive growth will continue—or if the AI craze is merely temporary. There are cases to be made on both sides.

Bull Case Scenario

Big tech companies are racing to develop capabilities like OpenAI. These types of generative AI require vastly higher amounts of computing power, especially as they become more sophisticated.

Many tech giants, including Google and Microsoft use Nvidia chips to power their AI operations. Consider how Google plans to use generative AI in six products in the future. Each of these have over 2 billion users.

Nvidia has also launched new products days since its stratospheric rise, spanning from robotics to gaming. Leading the way is the A100, a powerful graphics processing unit (GPU) well-suited for machine learning. Additionally, it announced a new supercomputer platform that Google, Microsoft, and Meta are first in line for. Overall, 65,000 companies globally use the company’s chips for a wide range of functions.

Bear Case Scenario

While extreme investor optimism has launched Nvidia to record highs, how do some of its fundamental valuations stack up to other giants?

As the table below shows, its price to earnings (P/E) ratio is second-only to Amazon, at 214.4. This shows how much a shareholder pays compared to the earnings of a company. Here, the company’s share price is over 200 times its earnings on a per share basis.

P/E RatioNet Profit Margin (Annual)
Apple30.225.3%
Microsoft36.136.7%
Aramco13.526.4%
Alphabet28.221.2%
Amazon294.2-0.5%
Meta33.919.9%
Tesla59.015.4%
Nvidia214.416.19%

Consider how this looks for revenue of Nvidia compared to other big tech names:

For some, Nvidia’s valuation seems unrealistic even in spite of the prospects of AI. While Nvidia has $11 billion in projected revenue for the next quarter, it would still mean significantly higher multiples than its big tech peers. This suggests the company is overvalued at current prices.

Nvidia’s Growth: Will it Last?

This is not the first time Nvidia’s market cap has rocketed up.

During the crypto rally of 2021, its share price skyrocketed over 100% as demand for its GPUs increased. These specialist chips help mine cryptocurrency, and a jump in demand led to a shortage of chips at the time.

As cryptocurrencies lost their lustre, Nvidia’s share price sank over 46% the following year.

By comparison, AI advancements could have more transformative power. Big tech is rushing to partner with Nvidia, potentially reshaping everything from search to advertising.

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2023-05-30 17:12:55Z
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