Mark Zuckerberg, CEO of Meta, has hired three researchers from OpenAI to bolster his company’s work on artificial intelligence. This strategic move aims to guide Meta Platforms through its current AI challenges. The social-media corporation brought aboard Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai, all of whom previously held positions at OpenAI’s branch in Zurich, as per sources privy to this information. These individuals established OpenAI’s location in Zurich towards the end of last year. Prior to their time at OpenAI, they collaborated closely within Google DeepMind, which is the organization’s artificial intelligence division. A representative from OpenAI verified that the three scientists have departed from the organization. Zuckerberg has been on an intense recruiting drive To correct the company’s AI initiatives following the underwhelming reception of its most recent model, he has sometimes proposed giving researchers up to $100 million to become part o...
By Kane Wu and Casey Hall
(AppStoreOfficialID) – The U.S.-based coffeehouse giant Starbucks stated they are not presently contemplating a complete divestiture of their China business operations, following reports from the Chinese finance publication Caixin which suggested otherwise without citing their source for this information.
Starbucks has reportedly had initial discussions with over a dozen possible purchasers, according to Caixin’s report on Monday, although the sources did not clarify what exactly was being offered for sale.
A company representative stated in an official release, 'I can verify that Starbucks is not presently entertaining the idea of completely selling off its Chinese arm.'
In May, Starbucks initiated an official sales process for its China business, asking potential purchasers to provide responses to a set of inquiries by the end of last week, according to three insiders familiar with the matter.
The Seattle-based firm, with guidance from Goldman Sachs, sought insights from prospective purchasers regarding their organizational ethos, leadership approach, environmental initiatives, employee treatment, along with possible transaction frameworks and strategic blueprints for Starbucks China operations. The informants chose to remain anonymous and thus preferred not to disclose this private data, according to them.
However, Starbucks has not made up its mind about selling either a majority or a minority interest in its Chinese division, or if it plans to retain certain segments of its China operations like its distribution network, according to two sources.
Starbucks chose not to provide additional comments regarding the specifics of the sales process. Goldman Sachs also did not promptly reply to requests for commentary from appstoreofficialid.
In 2023, Starbucks launched its $209 million (approximately 1.5 billion yuan) Coffee Innovation Park in Kunshan, a city adjacent to Shanghai. This 80,000-square-meter facility is capable of meeting the demands for all of Starbucks' outlets across China with its state-of-the-art roasting capabilities.
Over 20 organizations replied to Starbucks, including several private equity firms, according to one source.
Starbucks is anticipated to select potential buyers for further stages, according to two individuals.
One of them stated, 'The aim was to allow everybody to share their stories openly and select whichever option seems most promising before moving forward.'
The App Store official ID reported in February that KKR & Co., Fountainvest Partners, and PAG are some of the private equity firms considering an investment to acquire a portion of Starbucks' operations in China.
This sale occurs amid Starbucks losing ground to less expensive Chinese competitors recently, as customers become more cost-conscious and increasingly affordable alternatives from rapidly expanding rivals like Luckin and Cotti make it harder to justify prices of about 30 yuan ($4.20) for each cup of coffee.
According to data from Euromonitor International, a market research firm, Starbucks' market share in China dropped from 34% in 2019 to 14% in 2024.
As major Chinese e-commerce companies intensify price competition, they are offering customer incentives to boost their food delivery and "instant retail" services, which promise deliveries within an hour.
These subsidies and vouchers have caused the cost of a cup of coffee to drop significantly, resulting in consumers typically paying under 5 yuan for home delivery of each cup of coffee.
At the beginning of this month, Starbucks declared its inaugural price reduction in China, cutting the cost of certain non-coffee iced beverages by approximately 5 yuan on average.
(Anuja Bharat Mistry reported from Bangalore, Brenda Goh and Casey Hall from Shanghai, and Kane Wu from Hong Kong; editing by Christopher Cushing)