Dating app giant Bumble is laying off about 240 employees—roughly 30% of its global workforce—as part of a major restructuring aimed at reviving growth and sharpening its business strategy.

The announcement, disclosed in a recent securities filing, comes as the company looks to “realign its operating structure” and redirect resources toward product and technology development. Bumble says the layoffs will ultimately save the company around $40 million annually.

“These decisions were not made lightly,” the company said in a statement Wednesday, expressing gratitude to affected employees. “We are now focused on strengthening our core business and positioning ourselves for future growth.”

A Rebuilding Phase Amid Industry Shifts

Bumble CEO and founder Whitney Wolfe Herd addressed employees directly in a memo, acknowledging the difficult nature of the layoffs. “Bumble, like the online dating industry itself, is at an inflection point,” she wrote. “Rebuilding requires hard decisions.”

Wolfe Herd, who founded Bumble in 2014 after co-founding Tinder, previously served as CEO until stepping down in January 2024. She returned to the role in March to steer the company through a turbulent period.

Timing and Costs Still Unclear

While Bumble hasn’t yet detailed exactly which roles will be cut or when the layoffs will take effect, the company signaled that the process will unfold over the rest of the year. Severance and related costs are expected to total between $13 million and $18 million, with most of the impact showing up in Bumble’s third and fourth fiscal quarters.

Despite the tough news for employees, investors appeared optimistic about the company’s reset. Bumble’s stock surged more than 23% on Wednesday, trading around $6.40 per share. Still, the broader picture is less rosy—the stock is down over 35% in the past year and has plummeted nearly 92% since its public debut in February 2021.

Revenue Still Lagging Behind Expectations

Bumble reported $247 million in revenue for the most recent quarter, a nearly 8% decline compared to the same period last year. Looking ahead, the company expects to bring in between $244 million and $249 million in its upcoming quarter—a slight improvement from earlier forecasts, but still below the $269 million it reported for the same quarter in 2024.

As Bumble reshapes its operations, the company is betting that a leaner workforce and renewed investment in technology will help it rebound in a competitive and rapidly evolving dating app landscape.

Source: AP News – Bumble says it will cut 240 jobs, or about 30% of its global workforce

The post Bumble to Lay Off 30% of Workforce in Major Restructuring Plan appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

A bold new collaboration between OpenAI CEO Sam Altman and iconic Apple designer Jony Ive has been forced into an abrupt pause after a federal judge issued a preliminary injunction over a trademark dispute—putting one of Silicon Valley’s most high-profile hardware bets in legal limbo.

The partnership, announced in May, centers on building a next-generation artificial intelligence device—an ambitious effort to marry Altman’s frontier AI development with Ive’s celebrated minimalist hardware design ethos. As part of the plan, OpenAI revealed it would acquire io Products, a product and engineering company co-founded by Ive, in a deal reportedly worth $6.5 billion. The initiative was quietly years in the making, with backing from Altman’s personal investment arm and rumored support from SoftBank.

But the fanfare was short-lived.

Just days after OpenAI publicized the acquisition, a lesser-known California startup named IYO Inc. filed a federal trademark lawsuit claiming it had previously pitched its AI device concept to both Altman’s and Ive’s teams back in 2022. IYO, which is also developing AI-integrated hardware, argues that OpenAI’s new “io” branding is confusingly similar to its own and that the tech giant is infringing on a name and concept it introduced first.

IYO CEO Jason Rugolo said in court filings that his company not only has prior trademark rights but also shared confidential ideas about hardware use cases and branding—only to watch a powerful duo later roll out something strikingly similar.

On Friday, U.S. District Judge Trina Thompson agreed that IYO’s claim merited serious consideration. She issued a temporary restraining order prohibiting OpenAI, Altman, and Ive from using “the IYO mark, and any mark confusingly similar thereto, including the IO mark,” for any product marketing or public materials related to the AI hardware initiative. A full hearing on the matter is scheduled for October.

As a result, OpenAI has scrubbed all mention of the new hardware venture from its website. The May 21st announcement page now displays a notice stating the content is “temporarily down due to a court order,” and includes a terse message: “We don’t agree with the complaint and are reviewing our options.”

In a sharply worded public statement, IYO’s Rugolo made clear he’s not intimidated by OpenAI’s muscle.

“IYO will not roll over and let Sam and Jony trample on our rights, no matter how rich and famous they are,” Rugolo said Monday.

The case shines a rare spotlight on the opaque and competitive world of AI hardware development—a sector still in its early days, but one that major players like OpenAI, Google, and Apple see as the future of computing. While AI models like ChatGPT have dominated headlines, many in the industry believe the next frontier lies in physical devices purpose-built to interact seamlessly with these models, potentially reshaping how people access information, communicate, and perform daily tasks.

For Ive, the legal controversy marks a sharp detour from his usual low-key, high-design profile. After departing Apple in 2019, he launched the design firm LoveFrom and has taken on select projects ranging from luxury audio to pandemic-era public service work. His reentry into the consumer tech spotlight through OpenAI was widely seen as a signal that AI hardware could be as disruptive—and as culturally defining—as the smartphone.

Now, that vision is on hold.

The October hearing will determine whether OpenAI can continue developing and promoting the device under its current branding—or whether it will need to completely rethink how it brings its first AI-native gadget to market.

Source: AP News – OpenAI scrubs mention of Jony Ive partnership after judge’s ruling over trademark dispute

The post OpenAI and Jony Ive’s AI Hardware Venture Halted by Court Order appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

In one of the biggest developments yet in the AI arms race, Meta has taken a nearly 50% stake in Scale AI, a data-labeling powerhouse critical to the development of advanced artificial intelligence models. The deal reportedly totals $14.3 billion and values Scale at a staggering $29 billion—more than double its valuation just a year ago.

The investment marks a strategic shift for Meta as it works to catch up with AI frontrunners like OpenAI, Google DeepMind, and Anthropic. And it comes with a major leadership shakeup: Scale AI co-founder and CEO Alexandr Wang is stepping down to join Meta, where he will play a central role in shaping its most ambitious AI initiative to date—what insiders are calling its “superintelligence” efforts.

Meta’s Bet on Data—and on Wang

Meta confirmed the deal Friday, saying it plans to deepen its collaboration with Scale AI to “produce data for AI models.” Wang, 27, will help spearhead the company’s next-generation AI programs from within Meta, but will stay involved with Scale as a board director. Meanwhile, Scale’s chief strategy officer Jason Droege will take over as interim CEO.

“We will share more about this effort and the great people joining this team in the coming weeks,” Meta said in a statement.

While the companies are closely aligning, Scale AI stressed that it remains an independent company. The capital infusion will be used both to cash out existing investors and shareholders and to fuel future growth, the company said.

Who Is Alexandr Wang?

Wang, a former MIT dropout, founded Scale AI in 2016 at just 19 years old. The company started by automating data labeling for self-driving cars—a tedious but essential task. In the years since, Scale evolved into the go-to infrastructure provider for AI labs in need of massive, high-quality datasets to train large language models (LLMs) and other advanced systems.

By combining machine learning with human annotators, Scale delivers the “fuel” that powers today’s AI. Its services have been used by OpenAI, Microsoft, Meta, and the U.S. Department of Defense. The company has increasingly focused on hiring PhDs, machine learning experts, and senior engineers to meet the growing demand for premium data annotation in the age of frontier models.

Wang quickly rose to prominence in the tech world, known for his sharp mind and aggressive scaling strategy. His shift to Meta signals not only a talent acquisition for the company, but also a deeper commitment to building world-class AI from the ground up.

Why This Deal Matters

This investment gives Meta a powerful asset at a critical moment. While the company has launched its own open-source LLMs—most recently the LLaMA 3 family—its AI tools have lagged behind rivals in terms of performance and adoption. A recent report by SingalFire found that Meta lost 4.3% of its top AI researchers to competitors in 2024, highlighting its struggles to retain elite talent.

Meanwhile, Meta’s social media business—its cash cow—faces stagnation, regulatory heat, and rising competition from platforms like TikTok. AI represents both a necessary evolution and a fresh battleground for relevance and growth.

This deal also raises eyebrows because of its scale and timing: Just a year ago, Scale raised $1 billion from backers including Amazon and Meta, at a $13.8 billion valuation. With this new round, Meta now holds a controlling interest (49%) and Scale’s valuation has more than doubled—reflecting the heightened importance of training data as a strategic asset in the AI ecosystem.

The Hidden Power of Data Labeling

While AI headlines often focus on flashy chatbots or billion-parameter models, none of it works without data—clean, structured, labeled data. That’s where companies like Scale come in. And that’s why Meta’s move is so telling: it’s not just buying data services, it’s buying into the infrastructure of intelligence itself.

Scale isn’t alone in this space—competitors like Snorkel AI, Labelbox, and Surge AI are also ramping up—but its head start, technical sophistication, and client base put it in a class of its own.

Now, with Wang inside Meta’s AI labs and a near-$30 billion valuation, the line between Big Tech and the startups that power it has never been blurrier.

Source: Techcrunch – Scale AI confirms ‘significant’ investment from Meta, says CEO Alexandr Wang is leaving

The post Scale AI CEO Quits to Join Meta After Massive $14B Investment appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

From Tesla’s ambitious push into self-driving robotaxis to SpaceX’s crucial NASA missions, and even the future of Musk’s social media platform, X, the fallout depends largely on how far Trump wants to take this grudge match.

Tesla’s Robotaxi Dream Hangs in the Balance

Tesla was gearing up for a big moment: testing its driverless taxis in Austin, Texas — a potential game-changer as sales of its electric vehicles falter in some markets. But Trump could throw a wrench in the works by pushing federal safety regulators to scrutinize Tesla’s robotaxis more aggressively.

In fact, even before tensions flared, the National Highway Traffic Safety Administration (NHTSA) was already probing how Tesla’s self-driving cars handle tricky, low-visibility conditions. This follows a major investigation last year into over 2 million Teslas after several crashes — including a fatal pedestrian accident.

A NHTSA spokesperson says the probe is ongoing and that the agency will “take any necessary actions to protect road safety.”

The Department of Justice has also investigated Tesla’s safety record, though details remain murky.

Tesla’s stock had jumped 50% in anticipation of the robotaxi rollout, but the Trump-Musk feud sent shares tumbling over 14% on Thursday — recovering only slightly the next day.

Morningstar analyst Seth Goldstein summed it up: “Tesla’s recent rise was almost entirely driven by robotaxi enthusiasm. Elon’s feud with Trump could be a negative.”

The Carbon Credit Blow

One lesser-known but vital part of Tesla’s business is selling carbon credits — regulatory allowances that help other automakers meet environmental standards. This side hustle raked in nearly $600 million in the first quarter alone.

But Republican senators, aligned with Trump, inserted language into a budget bill that could eliminate penalties on gas-guzzling cars, potentially undercutting Tesla’s lucrative carbon credit sales.

Musk has downplayed the importance of this business, but such changes could hurt Tesla as it already faces boycotts from environmentally conscious buyers put off by Musk’s political leanings.

Sales Slump and a Shaky Comeback

Musk’s political flirtations with Trump have cost Tesla dearly among the green-minded, who once championed the electric car revolution. While distancing himself from Trump might bring some buyers back, it’s far from guaranteed.

Earlier this year, some analysts hoped Tesla might gain traction in conservative areas, but recent developments have dimmed that outlook.

TD Cowen analyst Itay Michaeli put it plainly: “There are more questions than answers. It’s too early to tell the lasting impact.”

Michaeli recently downgraded Tesla’s stock target from $388 to $330. Tesla shares hovered around $300 as of Friday.

SpaceX Faces Threats to Vital Government Contracts

The feud isn’t just about cars. Trump has openly threatened to cut government contracts to SpaceX, Musk’s private rocket company — a move that could cripple a firm valued at roughly $350 billion.

SpaceX is critical to NASA, ferrying astronauts to the International Space Station with its Dragon capsules and preparing for a moon mission next year.

If SpaceX falters, the U.S. risks relying again on Russian Soyuz capsules for space travel — a politically and strategically sensitive fallback.

Musk fired back with a dramatic threat to retire the Dragon spacecraft but later softened his stance, leaving many unsure how serious he was.

Starlink’s Future Could Shift Too

SpaceX’s satellite internet service, Starlink, has recently scored international deals, some possibly boosted by Musk’s once-close ties to Trump. For example, Saudi Arabia approved Starlink services during a recent Middle East trip with Trump, and India just granted a key license, opening access to millions without internet.

It’s unclear how much politics influenced these wins, and how much pure business.

Advertisers on X: Back and Forth

After a mass advertiser exodus from Musk’s social platform X — driven by concerns over conspiracy theories and content moderation — many big brands started creeping back, wary of a conservative backlash if they stayed away.

Musk called the boycott “illegal” and sued advertisers, while the Trump administration pushed for an FTC investigation into possible coordination among them.

But now, with Trump’s souring relationship with Musk, advertisers might again see X as too politically risky.

Cornell political scientist Sarah Kreps cautions: “The risk of a new exodus depends heavily on how the conflict unfolds, how long it lasts, and how it ends.”

What’s Next?

The Musk-Trump showdown is far from over — and its ripple effects could reshape key industries from electric vehicles and space exploration to global internet access and social media.

For Elon Musk, the price of this feud could run into the billions, but for the U.S. and its technological future, the risks are just as profound.

Source: AP News – Musk could lose billions of dollars depending on how spat with Trump unfolds

The post Musk’s Billion-Dollar Risk: What Trump’s Grudge Means for Tesla and SpaceX appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Musk vs. OpenAI: A History of Disputes

Musk, who co-founded OpenAI in 2015, has frequently criticized the company for straying from its original mission as a nonprofit focused on AI safety. He has filed multiple lawsuits against OpenAI and Altman, arguing that the company misrepresented itself as a philanthropic organization while secretly pursuing profits.

OpenAI operates under a nonprofit-controlled structure, but its for-profit arm, OpenAI LP, has skyrocketed in value—reaching nearly $100 billion in just a few years. Altman is widely credited as the driving force behind this transformation, leveraging major partnerships with Microsoft and Thrive Capital.

Musk’s Legal Challenges Against OpenAI

Musk’s legal battle with OpenAI has taken several twists. He first sued the company in June 2024, claiming it had abandoned its original open-source principles. However, the lawsuit was dropped after OpenAI released emails from Musk’s early involvement, showing that he had previously acknowledged the need for profit-driven growth.

In August 2024, Musk filed a second lawsuit, accusing OpenAI of:

• Prioritizing profits over AI safety
• Rushing to develop artificial general intelligence (AGI)
• Engaging in racketeering

In response, OpenAI has suggested that Musk is simply bitter about no longer being involved in the company. In 2018, Musk reportedly tried—and failed—to convince his co-founders to let Tesla acquire OpenAI, leading to his departure.

Investor Statement: OpenAI Must Return to Its Roots

Marc Toberoff, an attorney representing Musk and his investors, issued a strong statement about the bid:

“If Sam Altman and the present OpenAI board are intent on becoming a fully for-profit corporation, the charity must be fairly compensated for what its leadership is taking away—control over the most transformative technology of our time. It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”

Altman’s Response: A Sarcastic Rebuttal

Altman quickly dismissed the offer with a sarcastic post on X (formerly Twitter):

“No thank you, but we will buy Twitter for $9.74 billion if you want.”

This exchange highlights the ongoing power struggle between the two tech moguls, who have vastly different visions for the future of AI.

The OpenAI Power Struggle

OpenAI has faced internal turmoil in recent years. In late 2023, Altman was briefly fired by the board before being reinstated, signaling deep concerns about the company’s direction. Former board members have warned that OpenAI is moving too fast without proper safety measures.

Meanwhile, investors—including Microsoft—are eager to see OpenAI expand its business potential. The pressure to innovate and commercialize AI products has led OpenAI to develop and release cutting-edge tools at an unprecedented speed, sometimes at the risk of ethical and security concerns.

What’s Next?

If successful, Musk’s $97.4 billion bid could shift OpenAI’s leadership and direction dramatically. However, given the bitter history between Musk and Altman, as well as the deep-pocketed investors backing OpenAI, it remains to be seen whether this offer will gain traction—or if it’s simply another chapter in Musk’s ongoing battle with the AI giant.

Source

The post Elon Musk Offers $97.4 Billion to Buy OpenAI appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.