Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

Florida has filed a lawsuit against OpenAI and Sam Altman, its chief executive, claiming they failed to warn users about the potential dangers of ChatGPT, which was marketed as safe, especially for children. The lawsuit alleges that OpenAI has contributed to serious harms, including aiding mass shooters and encouraging suicidal behavior. Florida Attorney General James Uthmeier stated, "Sam Altman and ChatGPT have chosen the AI race over the safety and security of our kids," and indicated that penalties could reach billions of dollars. OpenAI has responded by emphasizing its commitment to user safety and the measures it has implemented to protect minors. The lawsuit is part of a broader trend of legal actions against AI companies regarding the impacts of their technologies.

 

NPR / National Public Radio

Bridgewater Associates expects widespread AI-related job losses to remain limited this year, citing constraints on computing capacity and a resilient economy. Its research says AI adoption is still narrow, with fewer than 20% of U.S. firms reporting AI use in any business function over a two-week period, mainly in information, technology and professional services. More than 90% of firms using AI reported no employment impact over the past six months, and where staffing was affected, more companies increased headcount than reduced it. Bridgewater flagged two near-term risks: escalation of the Iran conflict and cost pressures from AI capital spending. It also warned that limited AI-driven economic cooling could complicate the Federal Reserve’s inflation management in a tight labor market.

 

U.S. News

According to a new study from the AI-Driven Enterprise Institute (AIDE), Nvidia, Amazon, Meta, and Schlumberger scored highest in AI adoption. The open-source index evaluates companies based on their AI literacy, advocacy, orientation, and implementation, with scores up to 100. Nvidia achieved a perfect score, reflecting its dominance in AI chip production. Paul Cheek, AIDE's chief executive, emphasized the importance of data in assessing AI strategies, stating: “When a board asks a CEO — ‘How are we doing compared to our peer group?' — I don't want it to be speculative.” The index aims to provide a clear comparison for executives, highlighting the need for improved AI literacy among board members to manage risks and investments effectively.

 

CNBC

Walmart has introduced usage limits on its internal AI assistant, Code Puppy, after employee demand exceeded expectations, highlighting the growing costs associated with large-scale AI adoption in the workplace. The retailer has moved from unlimited access to a token-based system, allocating a fixed amount of AI computing capacity to each employee. Code Puppy, developed in-house, helps staff with tasks including spreadsheet analysis, presentations, and other office workflows.

 

Bloomberg

SpaceX is preparing for its highly anticipated IPO, aiming to raise $75bn. The company has reserved up to 5% of its stock for purchase by "certain employees and persons" through a direct share program, as stated in an amended filing. Morgan Stanley will manage this program, which allows selected individuals to benefit from the offering without lock-up restrictions. This move mirrors practices from other tech companies and aims to provide opportunities typically reserved for large investors. SpaceX, valued at $1.25tn after merging with xAI, could debut on the Nasdaq as early as June 12. Ross Gerber expressed his intention to hold shares for the long term.

 

CNBC

Meta Platforms is set to lay off over 2,000 workers in California, including 2,200 at its Menlo Park headquarters and 74 in Playa Vista, as part of a 10% workforce reduction. Chief executive Mark Zuckerberg stated that these layoffs, announced on May 22, are necessary to enhance efficiency and support investments in artificial intelligence. The company aims to keep pace with competitors like Google and OpenAI, which dominate the AI landscape. In a message to employees, Zuckerberg indicated that no further companywide layoffs are anticipated for 2026. This move follows similar job cuts by other tech firms, including Intuit, which reduced its workforce by 17%.

 

Los Angeles Times

Alphabet has announced plans to raise up to $80bn in equity to help fund its accelerating artificial intelligence (AI) infrastructure build-out, marking a significant shift for a company that has historically been one of the largest buyers of its own shares. The fundraising includes a $10bn private placement with Berkshire Hathaway, which has been steadily increasing its investment in the Google parent since late 2025. The transaction will lift Berkshire’s Alphabet stake to approximately $32bn, making it one of the conglomerate’s largest public equity holdings. Alphabet reiterated plans to spend up to $190bn on capital expenditure in 2026, with investment expected to rise further in 2027 as competition in AI intensifies. The company said the equity raise would support the “significant growth opportunity” presented by AI. The move represents one of the largest equity financings ever undertaken by a major US technology company and highlights the scale of investment required to build next-generation AI infrastructure.

 

Bloomberg

CNBC

Financial Times

Wall Street Journal

Fifteen defendants, including lawyer Nicolo Nourafchan and personal injury attorney Robert Yadgarov, pleaded not guilty in Boston to U.S. charges over an alleged decade-long insider trading scheme tied to merger tips. Prosecutors say attorneys passed confidential information on nearly 30 deals to traders, generating tens of millions of dollars. Nourafchan had worked at Sidley Austin, Latham & Watkins and Goodwin Procter, while other alleged sources were linked to Wachtell, Lipton, Rosen & Katz, Weil, Gotshal & Manges and Willkie Farr & Gallagher. U.S. Magistrate Judge Judith Dein warned of a possible fee-related conflict, saying, “You may have different interests as this goes on.” Gabriel Gershowitz has pleaded guilty and is cooperating.

 

U.S. News

Ikea has been sued in a proposed U.S. class action seeking refunds for price increases that customers allege were imposed to offset tariffs later ruled unlawful by the U.S. Supreme Court. The lawsuit argues that if Ikea receives tariff refunds from the government following the court's February ruling against the Trump-era tariffs, those savings should be passed on to consumers who paid higher prices, and seeks unspecified damages on behalf of potentially hundreds of thousands of customers. The case is part of a broader wave of litigation against major retailers including Amazon, Costco, Nike, and FedEx over the treatment of potential tariff refunds.

 

Reuters

The European Parliament’s trade committee has approved the E.U.-U.S. trade agreement, clearing the way for a final parliamentary vote on June 16th and subsequent approval by E.U. member states. The deal would remove E.U. tariffs on U.S. industrial goods in exchange for a 15% tariff cap on E.U. exports to the U.S., helping avert threatened new tariffs from President Donald Trump ahead of a July 4th deadline. The agreement, first reached last summer, was delayed twice amid tensions over U.S. trade policy and broader geopolitical disputes. The final version includes an expiry date of end-2029 and allows the E.U. to suspend the pact if U.S. tariffs on steel and aluminum-related products rise above 15% after 2026. Mr .Trump has also warned that tariffs on European automobiles could increase to 25% if the deal is not implemented by the deadline.

 

Bloomberg

MLex

Research from the Federal Reserve Bank of New York reveals that the rise of remote work accounts for 64% of the increase in youth unemployment. The unemployment rate for young college graduates rose to 5.6% in March 2026, up from 3.6% in March 2019. The economists noted: "Employers may not want to hire fresh graduates onto distributed teams because it is more difficult to teach them the requisite skills from afar." The study highlights that while artificial intelligence's impact on entry-level jobs is often discussed, remote work has likely had a more significant effect. The authors emphasized that remote work has weakened incentives to hire young workers by impeding on-the-job training, leading to fewer inexperienced hires during the pandemic. They warned that "the high unemployment rates of young college graduates are particularly concerning because early-career experiences can have lasting consequences."

 

The Baltimore Sun

CNBC

NPR / National Public Radio

The United Auto Workers (UAW) union confirmed that workers at an axle and components plant in Three Rivers, Mich., initiated a strike at 12:01 a.m. ET on Monday. While the union has not disclosed a complete list of demands, it emphasized that workers are seeking to recover wages lost during the Great Recession. UAW President Shawn Fain stated, “We'll stay out on strike until this company comes to its senses.” The union highlighted that long-time employees saw their wages drop from $29 an hour to $14.50 in 2008, with current wages capped at $22 an hour. A company spokesman expressed disappointment over the strike, asserting that the best outcomes are achieved through negotiation. Meanwhile, General Motors is monitoring the situation, noting that production remains unaffected for now.

 

CNBC

U.S. manufacturing activity expanded for a fifth consecutive month in May, with the Institute for Supply Management’s Purchasing Managers Index (PMI) rising to 54, its highest level since May 2022 and above economists’ expectations of 53.2. Growth was supported by continued expansion in new orders and production, while order backlogs also increased. The new orders index extended its recovery after a prolonged period of contraction, signaling sustained demand across the sector. Although the employment index improved from April, it remained in contraction territory. Price pressures remained elevated but eased slightly, with 66.3% of survey respondents reporting higher prices, down from 70.3% in April. Manufacturers also highlighted ongoing disruption from the conflict in the Middle East, citing shipment delays, higher energy costs, and inflationary pressures.

 

Wall Street Journal

U.S. construction spending rose 0.4% in April, outperforming economists’ expectations of a 0.2% increase and accelerating from a revised 0.2% gain in March, according to data from the Commerce Department’s Census Bureau. The increase was driven primarily by residential construction, with spending on housing projects rising 0.8% month-over-month. Investment in new single-family homes climbed 1.4%, helping offset broader weakness elsewhere in the sector. Overall construction spending was up 0.9% compared with April 2025. Private construction spending increased 0.4%, while public construction spending also rose 0.4%. Within the public sector, federal government construction outlays jumped 4.8%, while state and local government spending edged up 0.1%.

 

Reuters