Plus: online used-car retailer Carvana is expanding into new-car dealerships. And Elliott Investment Management has built a large stake in life-science tool provider Bio-Rad. Danny Lewis hosts.
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[00:00:00] [SPEAKER_02] Many companies are struggling to scale their AI deployments or even move them past the pilot stage. Often the problem isn't technology, but organizational misalignment around goals, processes and incentives. At the break, join Caroline Roach, senior partner IBM Consulting, to learn why.
[00:00:16] [SPEAKER_00] Here's your afternoon TNB Tech Minute for Monday, May 18th. I'm Danny Lewis for The Wall Street Journal. A jury unanimously rejected Elon Musk's claims against OpenAI, finding that the world's richest man waited too long to bring his lawsuit against the ChatGPT maker and its CEO, Sam Altman. In deliberations that lasted less than two hours, the jury found against Musk on technical grounds, determining the statute of limitations had expired.
[00:00:43] [SPEAKER_00] Musk's attorney said in court that his side will reserve its right to appeal. Musk had accused his fellow OpenAI co-founder of manipulating him into thinking he was donating tens of millions of dollars to launch an AI-developing nonprofit, only for it to be turned into a for-profit company. OpenAI's lawyers argued that Musk not only knew about the plan, but supported it and sought to control the venture. Used car giant Carvana is expanding its business into new vehicles.
[00:01:10] [SPEAKER_00] The online retailer has become a franchise dealer for Stellantis, the parent company behind Jeep, Chrysler, Dodge, and Ram. According to Stellantis figures shared with dealers and seen by The Wall Street Journal, Carvana's first dealership outside of Phoenix, Arizona, went from selling 30 to 50 cars a month before it took over to about 350 a month. Since then, Carvana has spent more than $160 million to add six more Stellantis dealerships across the country, according to a regulatory filing.
[00:01:38] [SPEAKER_00] The move hasn't sat well with traditional car dealers, and Stellantis has since prohibited dealers from acquiring more than one dealership in a rolling 12-month period, according to a memo viewed by the journal. A Stellantis spokeswoman said it wants to ensure healthy competition for its customers. Carvana declined to comment. And we exclusively report that Elliott Investment Management has built a sizable stake in BioRad laboratories.
[00:02:04] [SPEAKER_00] People familiar with the matter say the activist investor plans to push the supplier of life science tools and diagnostics products to boost its underperforming stock price. The people said BioRad has a $5 billion strategic investment in German pharmaceutical and lab supplier Sartorius, a company that Elliott is also a large investor in. The exact size of Elliott's stake in BioRad, as well as the details of its plans, couldn't be learned. And that's it for your T&B Tech Minutes. We'll have another quick tech update in the morning.
[00:02:33] [SPEAKER_02] Scaling AI successfully requires more than the right technology. Here again is Caroline Roach, senior partner, IBM Consulting.
[00:02:40] [SPEAKER_01] The biggest thing that we were talking about a year ago is what model to use. And the biggest thing that I'm talking about with my clients now is how do I drive change within my organization.
[00:02:51] [SPEAKER_02] Companies able to identify, correct, and then avoid misalignment will be best positioned to deliver meaningful business value from AI.
[00:02:58] [SPEAKER_01] The organizations that are the most successful set very clear targets and have several priorities that are very clear across the enterprise. The technology is really good, but if you're not changing your organizational alignment, not incentivizing your people correctly, not looking at workflows, you're not going to see real value with it.
[00:03:19] [SPEAKER_02] Visit IBM.com slash think slash leadership to learn how building organizational alignment can help deliver AI deployments that scale and drive growth. This content was created by Custom Content from WSJ, a unit of the Wall Street Journal Advertising Department.