Amazon signs US$38b deal with OpenAI; Ryanair CEO attacks UK tax

Mōrena and welcome to your Tuesday recap of business and political news from around the world.

First today, multiple media outlets are reporting on a big deal signed by Amazon Web Services (AWS) and OpenAI.

The US$38 billion agreement meant the ChatGPT maker will pay AWS for access to hundreds of thousands of Nvidia graphics processing units over seven years, Bloomberg reported.

“As OpenAI continues to push the boundaries of what’s possible, AWS’s best-in-class infrastructure will serve as a backbone for their AI ambitions,” AWS chief executive Matt Garman said.

Amazon shares rose 4.5% to US$255.29 as the markets opened on Monday local time, while Nvidia rose 3.3% to US$209.20, Bloomberg noted.

OpenAI chief executive Sam Altman talked up the possibilities of the deal. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

The first phase of the deal will use existing AWS data centres, and Amazon will eventually build additional infrastructure for OpenAI, CNBC reported.

Meanwhile, artificial intelligence may dent future demand for office workers, but there was reason for hope, Goldman Sachs chief executive David Solomon told CNN.

“There will be disruption. But I’m a big believer that our economy is very nimble, very flexible. And when you look at the technology that has flooded over hundreds of years into our society, we adapt,” Solomon said.

“We find new businesses. We find new jobs. I don’t believe it will be different this time.”

Goldman Sachs CEO David Solomon.

Staying in the US, Huggies maker Kimberly-Clark announced it will buy Kenvue in a near-US$50b deal, creating a massive consumer products conglomerate, CNN reported.

The companies said the combined business will bring together US$10b brands and create annual revenue of US$32b.

The new company will make products for most stages of life including Johnson’s baby products, Clean & Clear skin care, and Listerine mouthwash.

Elsewhere, Iran was in no hurry to resume talks with the United States over its nuclear programme, Foreign Minister Abbas Araghchi told Al Jazeera.

Iran remained prepared to engage in indirect negotiations if the US chooses to talk “from an equal position based on mutual interest”. He added conditions set by the US for talks to resume were “illogical and unfair”.

“It appears they are not in a hurry ... We are not in a hurry, either.”

Outspoken Ryanair chief executive Michael O’Leary criticised the UK government and the Treasury, and said Chancellor Rachel Reeves was clueless to deliver economic growth, CNBC reported.

He said the government’s push to raise air travel taxes was counter to its strategy of boosting the economy.

“So, you see markets like Sweden, Hungary, Italy, and Croatia abolishing environmental taxes and then you have the laggards, like Germany, France, and Rachel Reeves here in the UK, remarkably talking about wanting growth and yet increasing taxes on air travel – on an island, on the periphery in Europe.

“Which again confirms my belief that Rachel Reeves hasn’t a clue how to deliver growth despite the fact we have written to her offering her significant growth, particularly in the regions of the UK,” O'Leary said.

Elsewhere, France threatened to ban online retailer Shein from accessing the country's market if it resumed selling "childlike" sex dolls, the AFP and Reuters reported.

France's anti-fraud unit said the company was selling dolls of a likely "child pornography nature". Shein said the dolls had been withdrawn from its platform and it had launched an internal inquiry.

Finance Minister Roland Lescure said the company would be banned in France if the items returned online.

Over the Ditch, energy retailers will be encouraged to offer free power in the middle of the day to Australian households, when solar generation produces more supply than demand, the ABC reported.

The Solar Sharer scheme will require retailers to offer free electricity to households for at least three hours.

Climate Change Minister Chris Bowen said Aussies deserved a fair deal with their energy bills.

“In our second term, we're getting on with delivering reform to ensure that no household or business pays more than they should.

"People who are able to move electricity use into the ‘zero cost’ power period will benefit directly, whether they have solar panels or not and whether they own or rent, and the more people take up the offer and move their use, the greater the system benefits that lower costs for all electricity users will be."