Breakfast News: Meta Strikes Out vs OpenAI

With markets closed Thursday for Juneteenth, Breakfast News will be back in your inbox on Friday, 20 June.

Source: Image Created by Jester AI.

1. Meta Swings and Misses for Top Talent

OpenAI CEO Sam Altman claims Meta Platforms (META -0.69%) has tried to poach his key staff by offering joining bonuses of up to $100 million. Talking on the podcast Uncapped, Altman says "so far none of our best people have decided to take them up."

• $170 billion revenue in fiscal 2025 first quarter: Meta has already snagged Scale AI founder Alexandr Wang in a $14.3 billion deal that saw Meta acquire 49% of the company. The Times reports he'll head up the company's top AI team.
• "I think we understand a lot of things they don't": Altman doesn't see Meta as "a company that's great at innovation," and sees cultural risks in jobs that are more focused on money than on the work.

2. Fed Set To Join The Dots

The Federal Reserve is unlikely to change interest rates at today's meeting, though we'll hopefully get some clarity on future plans. The inflation outlook is worse since oil prices have shot up. And the Fed is under pressure from the government for cuts after President Trump said he "may have to force something."

• "This meeting will be all about the dot plot": Former Kansas City Fed president Esther George points to the quarterly chart showing where each member of the policymaking committee expects rates to go in the next few years.
• "Right now, it's two cuts, and I imagine it will stay pretty much the same": Wilmington Trust chief economist Luke Tilley expects no change today, as the CME FedWatch tool still predicts the next cut in September.

3. Switch 2 Helps Nintendo Power Up

Demand for the Switch 2 gaming console has helped push Nintendo (NTDOY 4.10%) to a record stock price above $21 for a 12-month gain of 61%. More than 3.5 million units were sold in the first four days after launch.

• Third in May Rankings for Rule Breakers: Toyo Securities analyst Hideki Yasuda notes the gaming industry is less affected by tariffs, which has helped the stock this year. The Switch 2 launched in the U.S. during the current pause.
• "Such imperative importance that it warrants review now": In more gaming news, two toy companies – Learning Resources and Hand2Mind – have asked the Supreme Court to rule on the legality of President Trump's use of the International Economic Emergency Powers Act to impose his wide-reaching tariffs.

4. Stablecoin Surge Closer To Reality

The Senate yesterday passed the GENIUS Act, providing a framework for companies to issue dollar-backed stablecoins for payments – digital currencies that don't experience typical crypto fluctuations. The act still needs House and Presidential approval.

• "A year ago I would've thought this at best was a fever dream": Paul Grewal, chief legal officer at Coinbase (COIN -2.92%), notes how quickly things have moved, with lenders and retailers reportedly planning their own stablecoins if the act clears the House.
• "We're working with the industry, working individually": Bank of America (BAC -0.44%) is among the banks considering a joint approach, while Amazon (AMZN -0.54%) and Walmart (WMT -0.06%) are considering their own plans according to The Wall Street Journal.

5. Your Take

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