Plus: Shares of Getty Images nearly double following OpenAI agreement. And EV manufacturer Lucid will cut 18% of its U.S. workforce. Julie Chang 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, June 22nd. I'm Julie Chang for The Wall Street Journal. Reflection AI has agreed to rent data center capacity from SpaceX, following similar agreements with Anthropic and Google. The startup, which has a $25 billion valuation, is building a network of open-source AI models. According to a person familiar with the matter, the deal is among the first for SpaceX since its public market debut earlier this month,
[00:00:45] [SPEAKER_00] and it'll give Elon Musk's company $150 million a month in revenue starting in July through the end of 2029. But shares of SpaceX are on track for their biggest one-day decline. The stock was down more than 13% in afternoon trading. Meanwhile, shares of Getty Images more than doubled, but has since retreated some after the company disclosed a display agreement with OpenAI.
[00:01:11] [SPEAKER_00] Under the deal, Getty said its licensed content libraries will appear across OpenAI search and discovery experiences within ChatGPT, enabling the use of its content within the AI platform. Getty's stock is up nearly 90% this afternoon. Through Friday's close, its shares had lost more than half of their value since the beginning of the year. And Lucid Group will lay off about 18% of its U.S. workforce, including its COO.
[00:01:40] [SPEAKER_00] The EV manufacturer said the cuts affect full-time employees, contractors, and hourly workers, and would save the company about $158 million a year. Lucid has been looking to streamline its structure, reduce costs, and align production with anticipated demand. This round of layoffs follows a 12% U.S. workforce cut it had announced in February. For a deeper dive into what's happening in tech, check out Tuesday's Tech News Briefing podcast.
[00:02:07] [SPEAKER_02] Scaling AI successfully requires more than the right technology. Here again is Caroline Roach, Senior Partner, IBM Consulting.
[00:02:14] [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.
[00:02:26] [SPEAKER_02] Companies able to identify, correct, and then avoid misalignment will be best positioned to deliver meaningful business value from AI.
[00:02:32] [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.
[00:02:53] [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.
[00:03:01] [SPEAKER_00] This content was created by custom content from WSJ, a unit of the Wall Street Journal Advertising Department.