Apple announced Wednesday that JPMorgan Chase is the new issuer of the Apple Card, replacing Goldman Sachs. Apple said that the transition will likely take up to 24 months.
While Apple is changing its banking partner, the Apple Card will continue to use the Mastercard network for payments. For consumers, nothing is changing at the moment, including for those applying for new cards.
JPMorgan said that the deal would bring over $20 billion in card balances to Chase. The Wall Street Journal noted that Goldman Sachs is offloading this amount at a $1 billion discount. Goldman Sachs said that for the fourth quarter of 2025, it expects a $2.2 billion provision for credit losses related to the forward purchase commitment.
Apple launched its credit card in 2019 in partnership with Goldman Sachs without late fees or penalty interest rates. The card offers up to 3% daily cashback on purchases from Apple and other select partners; 2% from using Apple Pay; and 1% from using the physical card.
Goldman Sachs has quietly dropped a rare stock market forecast, which stretches all the way to 2035, while delivering a twist most U.S. investors won’t love.
Following a decade that has been defined by tech-fueled gains along with expanding valuations, Goldman feels the next decade will look remarkably different.
The bank forecasts just a 6.5% annual return for the S&P 500, a stark contrast from the typical double-digit run to which most investors have become accustomed.
Earnings, and not multiple expansion, will be delivering the bulk of those lofty gains, a shift signaling a more “normal” market environment ahead.
However, the bigger surprise is where Goldman sees the biggest opportunities. Instead of the usual Silicon Valley-led outperformance, the firm feels the biggest upside will come from places U.S. investors tend to overlook.
Goldman Sachs expects global stocks to return 7.7% annually through 2035, driven largely by earnings growth.Photo by Aditya Vyas on Unsplash
Goldman’s point of view is mostly simple.
The days when pricing multiples would be doing all the heavy lifting are virtually over.
Long-term S&P 500 trailing returns chart
The firm’s 6.5% return prediction only makes sense once we examine the underlying math, which involves steady 6% earnings growth, a mild valuation headwind, and a modest dividend yield.
It’s a reminder that the next 10 years won’t reward investors for chasing the euphoria but will reward businesses that consistently grow, price smartly, and deliver real results.
Goldman’s valuation call is blunt.
The firm believes that today’s P/E levels are “very high relative to history,” which, more importantly, cannot be sustained once the structural tailwinds that were turbocharging margins fade away.
Their updated model now suggests a fair-value price-to-earnings ratio of 21x by 2035, which points to a gradual pullback from the current 23x ratio.
Their logic mainly rests on a couple of constraints.
Firstly, profit margins are already near record highs after jumping from 5% in 1990 to roughly 13% today. That increase was primarily driven by global supply chain efficiencies, as well as decades of declining interest and tax expenses. Goldman feels these tailwinds are unlikely to repeat.
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Secondly, the firm embeds a 4.5% 10-year Treasury yield into its framework, which leaves virtually nothing for valuations to grow from here.
Hence, the result is mostly a decade that’s defined by earnings, and not a multiple stretch.
Moreover, Goldman’s call lands at a point when corporate America continues to overdeliver. It has seen back-to-back quarters of broad earnings beats, which shows that the engine is running hotter than most expected.
Q2 wasn’t exactly a “Mag 7” mirage, but was more of a full-on earnings upgrade. By August, 66% of the S&P 500 reported, and 82% ended up beating EPS estimates while 79% beat on sales. Blended EPS growth struck even higher at 10.3% year over year, more than 50% the pre-season 2.8% forecast.
Q3 kept the momentum going. Two-thirds of businesses have already reported, with 83% beating EPS estimates while 79% topped sales forecasts, comfortably above five- and 10-year averages. The index seems to be on track for 10.7% earnings growth, its fourth straight quarter of double-digit bottom-line gains.
Big Tech is carrying the league. In both Q2 and Q3, eight of the S&P’s 11 sectors posted year-over-year earnings growth, while 10 sectors are growing sales, powering a 19- then 20-quarter streak of uninterrupted revenue expansion.
Goldman’s long-term math makes a simple point for U.S. investors in that the best returns of the next 10 years won’t come from the U.S. at all.
Though the S&P 500 posts a healthy 6.5% baseline, Goldman highlights Emerging Markets at +10.9%, Asia ex-Japan at +10.3%, and Japan at +8.2%.
EM and Asian markets usually benefit from more robust nominal GDP expansion along with structural reforms, including growing payout ratios, which Goldman expects to lift EM dividend yields from 2.5% to 3.2% by 2035.
Throw in governance upgrades in areas such as Korea and China, and suddenly these regions feel like compounding machines.
The real kicker, though, is currency.
Goldman’s FX strategists believe the U.S. dollar is 15% overvalued, forecasting a decade-long reversal that would lift USD-translated EM returns by 1.7% per year. Historically, dollar-related weakness coincides with foreign-market outperformance.
Also, there’s earnings power for investors to consider.
EM EPS growth is spearheaded by China and India, which drives the 10.9% baseline return. Japan’s reforms are expected to drive earnings to 8.2% returns.
Cybersecurity is a massive sector, but startups in the category are more likely to be acquired than go public. Even Wiz, which for a time held the title of the fastest-growing startup, abandoned its IPO ambitions when it agreed to sell to Google earlier this year.
In the past few years, there have been scant few significant cybersecurity listings: SentinelOne IPO’d in 2021, Rubrik did so last year, and Netscope went public in September.
Armis, a nine-year-old cybersecurity startup based out of San Francisco, intends to follow in these companies’ footsteps. The company said on Wednesday that it has raised a $435 million pre-IPO round led by Growth Equity at Goldman Sachs Alternatives. CapitalG made a significant investment in the round, and new investor Evolution Equity Partners also participated.
The round values Armis at $6.1 billion, a meaningful jump from the $4.5 billion tender offer valuation the startup announced in August.
Armis is hoping to launch its IPO in late 2026 or early 2027, its co-founder and CEO, Yevegny Dibrov (pictured above; right), told TechCrunch.
The round comes in the wake of significant acquisition interest in the company. In September, Bloomberg reported that Armis had received seven offers, which included a potential $5 billion bid from private equity firm Thoma Bravo.
But this new funding is an indicator of how serious Armis is about an IPO, a move which Dibrov described as his “personal dream.”
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According to Dibrov, Armis has reached annual recurring revenue of $300 million, and plans to take that figure to $500 million while becoming cash flow positive before its IPO.
The startup is already “behaving like a public company,” Dibrov said, adding that the company is ensuring it hits its quarterly financial targets.
The company provides security software for critical infrastructure to Fortune 500 companies, national governments, and state and local entities.
MoEngage, a customer engagement platform that works with consumer brands across 75 countries, says it has raised new funding led by its existing investor, Goldman Sachs Alternatives, to ramp up global growth and infuse more AI into its platform.
All told, $100 million in shares just traded hands, split roughly 60% primary and 40% secondary, as part of MoEngage’s Series F round. The funding marks the entry of Indian venture firm A91 Partners as a new investor co-leading the round with Goldman Sachs Alternatives. According to MoEngage, it has now raised $250 million in funding altogether.
As consumer brands increasingly rely on digital channels to reach customers, competition for attention has intensified. That’s pushed companies to use the customer data they already have to deliver more personalized marketing. While established marketing platforms continue to serve this space, brands are now seeking AI-driven tools that can automate decision-making and reduce manual labor. MoEngage positions itself in this segment with its Merlin AI suite, which helps marketing and product teams launch campaigns faster and improve targeting efficiency.
“We help B2C brands engage more effectively with their customers by leveraging the first-party data they already have,” Raviteja Dodda (pictured above), co-founder and CEO of MoEngage, said in an interview.
The 11-year-old startup spent its first seven years focusing largely on India and Southeast Asia. Over the past four years, it has expanded its reach to new markets, particularly North America, which now contributes more than 30% of its revenue, Dodda told TechCrunch. About 25% of the business comes from Europe and the Middle East, and the remaining 45% from India and Southeast Asia.
Goldman Sachs’ backing in the latest funding will help further bolster MoEngage’s global presence. The investment bank also co-led the startup’s Series E round of $77 million along with B Capital in June 2022.
“The current investors know the most about the company, in terms of how the company performs, and they know everything good and bad,” said Dodda. “[Goldman Sachs] leading the round is a strong validation of our fundamentals.”
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Over the past two to three years, MoEngage has invested heavily in generative AI and decisioning AI capabilities. These efforts are reflected in its Merlin AI suite, which Dodda said includes a range of AI agents built for marketing use cases.
Some of these agents act like copywriters, helping consumer brands draft marketing messages, create multiple variants of a campaign, or generate text in natural language along with relevant images. The suite also includes decisioning AI tools that help brands determine which customers should receive a particular message or offer, on which channel, and at what time, Dodda said.
MoEngage’s Merlin AI suiteImage Credits:MoEngage
MoEngage currently serves over 1,350 consumer brands worldwide, including SoundCloud, McAfee, Kayak, Domino’s, Deutsche Telekom, and Travelodge, as well as prominent Indian household names such as Swiggy, Flipkart, Ola, Airtel, and Tata. About 60% of the company’s business comes from traditional enterprises, while the remaining 40% is from internet-focused firms. The platform also works with more than 25 global banks and several large insurers, including JPMorgan Chase, Citibank, and India’s largest insurer, Life Insurance Corporation (LIC).
Some of these brands previously used marketing platforms from incumbents such as Adobe, Oracle, and Salesforce. MoEngage has since won over more than 300 of them, helping drive growth in North America and the EMEA regions.
In one instance, SoundCloud migrated over 120 million users to MoEngage within 12 weeks, utilizing AI-driven insights to accelerate product launches and enhance retention among its paid users, said Hope Barrett, senior director of martech at SoundCloud.
Several of MoEngage’s customers also relied on multiple point solutions to handle specific tasks. The company helped consolidate those tools into a unified platform to cut costs and streamline marketing operations.
“If you look at all of our brands, whether it’s a bank or an e-commerce company, they leverage MoEngage to unify all their customer data from all the touchpoints. It could be their offline stores, website, mobile app [or other channels],” Dodda told TechCrunch.
Without disclosing exact figures, Dodda said MoEngage grew about 40% year-over-year last year and aims to maintain a 35% compound annual growth rate (CAGR) over the next three years. The company also expects to become adjusted EBITDA-positive on a quarterly basis by the end of the current fiscal year.
MoEngage sees companies such as Braze and CleverTap, as well as legacy marketing clouds by Adobe, Oracle, and Salesforce, among its key competitors.
The startup has about 800 employees across its 15 offices worldwide. It plans to expand its workforce, particularly in North America and Europe, by scaling its customer success, support, sales, and marketing teams to deepen its presence in those markets. MoEngage also intends to build additional AI capabilities and hire more talent to support that effort.
MoEngage plans to become IPO-ready within the next couple of years, Dodda told TechCrunch, without sharing a specific timeline for going public.
“We see an opportunity to build a multi-billion dollar revenue company in our space,” he stated.
Goldman Sachs is developing AI for nuanced processes that go beyond deployment for coding and customer service. For example, AI struggles with investing because it’s difficult to codify the subtle judgments that make a potential investment attractive, Marco Argenti, chief information officer at the $625 billion financial institution, said during the Evident AI Symposium […]
It seems clear that AI is having an impact on the jobs market, mainly in the technology sector, and mostly impacting entry-level positions. A new report from Goldman Sachs confirms and expands on this trend, and also sketches out a near future where companies will see their productivity grow mainly thanks to improving AI tech, with only a small contribution from increasing their headcount. This is a “jobless growth” situation, Goldman economists David Mericle and Pierfrancesco Mei wrote in an investor note this week.
What Mericle and Mei actually predicted was “modest job growth” in the coming years, even as the economy sees “robust GDP growth.” This disparity implies that the solid increases in productivity aren’t coming from more and more people entering the workforce — instead something else will drive up companies’ output, and that something is AI. As to why there will only be “modest” labor supply rises, the economists suggest it’s a mix of “population aging and lower immigration,” Fortunereported.
The other effect the report highlights is that while we’re seeing AI impact certain jobs, the bigger impacts and long-term structural changes to the job market won’t really be visible until a recession hits. In a poor economic environment where cost cutting gets prioritized, “companies use recessions to restructure and streamline their workforce by laying off workers in less productive areas.”
But we’ll also see AI hitting jobs more in the near future too — Fortune notes that the share of company leaders mentioning “both AI and employment in the same context on earnings calls,” has reached “historic highs.” Given that the modern AI era, kicked off by OpenAI’s ChatGPT, is really only a handful of years old, the use of “historic” may be overblown here.
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Or maybe not. Bloomberg reports that Goldman Sachs told its own staff this week that they can expect to see another round of layoffs, driven by the bank’s efforts to cut costs. Goldman’s also decided to “constrain headcount growth” until the end of the year. One simple way for a company — particularly one in the financial sector — to cut costs is AI adoption at scale, tasking new tech tools to tackle mundane duties that lower level workers may have performed beforehand.
Meanwhile, sales software giant Salesforce has put a number on AI cost savings to date: $100 million, yearly. Bloomberg notes the company has been “vocal” about its own adoption of AI technology, even as it sells agent-powered AI tools to its many customers through its new Agentforce platform. The AI moves have been driven by Salesforce CEO Marc Benioff, who said recently that he’d “never been more excited about anything in my entire career.” Speaking at the company’s Dreamforce conference this week, Benioff said that AI tech has allowed the company to reach out to customers who’d previously have fallen through the net, with human workers not having the capacity to call them back.
This means as well as saving the company millions (thanks to aggressively slashing its customer support worker numbers) AI is helping bring in more revenue. This combo is exactly the kind of benefit AI evangelists promise the technology can deliver if it’s applied carefully.
What’s the lesson here for your company?
You may see these different headlines as a solid thumbs-up for the potential benefits of deploying AI technology across your own enterprise, in search of some of those promised savings and worker productivity boosts. Salesforce’s example is particularly eye-catching. But remember: this company is a sales-focused software outfit that is deploying carefully developed AI tools it’s in control of throughout its own sales-centric operation. This is a reminder that you need to very carefully choose which third-party AI tools you’re using, and make certain you’re deploying them in the right way in the right places in your operation.
The other takeaway is that you’ll likely see some dramatic shifts in the talent pool when you’re looking to hire new staff members, both because there may be more people looking for entry level work than before, and also over the longer term as AI begins to reshape the job market.
Goldman Sachs is leaning into AI to drive efficiency as it launches a new AI operating model across the institution. The One Goldman Sachs 3.0 model is “propelled by AI,” David Solomon, chief executive, said during the bank’s third-quarter earnings call today. “This is a new, more centralized operating model that we expect to drive […]
Goldman Sachs has agreed to acquire Industry Ventures, a 25-year-old, San Francisco-based investment firm with $7 billion in assets under management, CNBC was first to report on Monday. The deal underscores the growing importance of secondary markets and buyouts as traditional venture exits remain sluggish.
The investment bank is paying $665 million in cash and equity, with up to $300 million more tied to the firm’s performance through 2030, according to a release from Goldman. The deal is expected to close in the first quarter of next year, and all 45 Industry Ventures employees are expected to join Goldman.
We’ve reached out to Swildens for more information.
The acquisition comes as venture funds increasingly turn to non-traditional exits amid a prolonged IPO drought. Speaking on TechCrunch’s StrictlyVC Download podcast earlier this year, Industry Ventures founder and CEO Hans Swildens said that tech buyout funds now account for 25% of all liquidity in the entire venture ecosystem—”a huge chunk of liquidity,” he said.
Swildens explained that venture managers are being forced to adapt their approach. “Just going out and seeing companies, putting them in your fund and then waiting for an IPO or strategic M&A exit probably won’t work anymore,” he said in the podcast interview. “[VCs] need to start working on alternative liquidity solutions.”
At the time — in April — he noted that at least five major venture funds had hired full-time staff dedicated to manufacturing non-traditional exits, including secondary transactions, continuation funds, and buyouts. “All the brand name funds are all staffing and thinking through liquidity structures,” Swildens said.
Goldman is making the acquisition to bolster its $540 billion alternatives investment platform, which the bank has identified as a key growth engine.
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“Industry Ventures’ trusted relationships and venture capital expertise complement our existing investing franchises and expand opportunities for clients to access the fastest growing companies and sectors in the world,” Goldman CEO David Solomon said in a prepared statement. “By combining the global resources of Goldman Sachs with the venture capital expertise of Industry Ventures, we are uniquely positioned to serve the increasingly complex needs of entrepreneurs, private technology companies, limited partners, and venture fund managers,” the statement continued.
Industry Ventures says it has made more than 1,000 investments, has stakes in more than 700 venture firms, and that it boasts an internal rate of return of 18%.
JPMorgan CEO Jamie Dimon supports amending quarterly earnings report requirements. Michel Euler/POOL/AFP via Getty Images
Since 1970, U.S. public companies have been mandated by the Securities and Exchange Commission (SEC) to provide financial updates every three months via quarterly earnings reports. This 55-year-old tradition could soon be cut in half under the Trump administration, which is seeking to move to semi-annual reports. The proposal has drawn both praise and criticism from some of Wall Street’s most influential leaders.
Jamie Dimon, CEO of JPMorgan Chase, voiced his support for President Donald Trump’s suggestion during an interview with Bloomberg TV yesterday (Oct. 7). “I would welcome it,” he said, noting that quarterly forecasts make “CEOs get their back up against a wall.” “They have to meet these things—earnings—and then they start doing dumb stuff,” he added.
Trump floated the proposal last month, arguing that reporting earnings every six months instead of three would “save money and allow managers to focus on properly running their companies.” The President previously pushed for a similar change in 2018 during his first term, when the SEC solicited public feedback but ultimately left the quarterly requirement in place.
This time, however, the SEC appears more willing to act. The agency has indicated that the proposal will be a priority, with Paul Atkins, the SEC’s chair, calling the President’s request “timely” and something the SEC is “working to fast-track.” A draft proposal could be released in the next few months, according to Atkins.
Dimon said JPMorgan would still report earnings quarterly, but with “much less stuff.” He described the requirement as part of a larger problem of “endless rules” that make it harder for companies to go public. “We’ve gone from 8,000 public companies in 1996 to, like, 4,000 today,” he told Bloomberg. “You want an active market, and we’ve kind of crushed it.”
Dimon isn’t alone in supporting the potential shift. Adena Friedman, CEO of Nasdaq, praised Trump’s proposal after it was announced, arguing that quarterly reporting encourages “short-termism“—an excessive focus on immediate results. In a LinkedIn post, she called for “common-sense reforms to reduce the burden on publicly listed companies.”
What financial leaders think of quarterly reporting
Still, Solomon admitted that eliminating quarterly reports could reduce transparency. “I’m still thinking it through, and the firm’s still thinking it through,” he added, noting that he has yet to decide whether he supports the change.
Citadel CEO Ken Griffin, however, has made up his mind. “I don’t understand the merits of holding back from the market, readily knowable information,” he told CNBC in September, warning that accountability could suffer if longer gaps between reports are allowed. “In this day and age, quarterly reporting is fair,” added Griffin. Griffin agreed with Dimon’s view that overregulation discourages initial public offerings, saying barriers to expanding the number of publicly owned companies should be addressed.
This isn’t the first time financial leaders have questioned the quarterly reporting model. In 2018, Dimon and Warren Buffett co-authored a Wall Street Journal op-ed urging companies to reduce or eliminate quarterly earnings forecasts. They argued that such forecasts push companies toward short-term thinking and discourage those with longer-term goals from going public. “Our views on quarterly earnings forecasts should not be misconstrued as opposition to quarterly and annual reporting,” wrote Dimon and Buffett, who maintained that transparency remains “an essential aspect of U.S. public markets.”
Many Americans are eager to put money away for retirement, but that goal is increasingly out of reach because more workers are living paycheck to paycheck, a new Goldman Sachs study finds.
Roughly 42% of younger working Americans — spanning Gen Z, millennials and Gen X — report having no spare savings after covering their basic living expenses, according to the analysis, which surveyed about 3,600 workers and 1,500 retirees. Among those just getting by, about three-quarters said they are struggling to save for retirement, the survey found.
The share of U.S. workers in this precarious financial position has grown significantly since 1997, when 31% lived paycheck to paycheck, according to Goldman. The investment bank projects that figure could climb to well over half of Americans by 2033 as essentials like housing and health care continue to rise in cost.
“Save more” ignores reality
The findings underscore the challenges millions of Americans now face just making ends meets while also managing to set aside money for retirement, a financial pinch that Goldman Sachs calls a “financial vortex.” That money crunch helps explains why more than a quarter of older Americans are nearing retirement without anything saved — a gap that could widen given the financial pressures facing younger workers.
“These findings force us to ask a very critical question: Does the retirement math still work? The answer is no,” said Greg Wilson, head of retirement at Goldman Sachs Asset Management, in a conference call to discuss the report. “Telling workers just to ‘save more’ ignores the realities they face.”
Skipping a latte or avocado toast isn’t likely to make much of a dent in the financial dynamics facing workers today, with Goldman finding that basic expenses are consuming an ever growing share of people’s after-tax income.
For instance, homeownership now eats up 51% of income, up from 33% in 2000, while health care costs account for 16% of after-tax earnings, up from 10% a quarter century ago, the analysis found.
“The mounting challenges American workers face … make it harder than ever to save for retirement,” Wilson said.
Such financial pressures come as many Americans are on their own to plan, and save for, their retirement, largely because of the shift in the 1980s from company-sponsored pensions to 401(k) plans.
As a savings vehicle, 401(k) shifts the burden onto workers, who must decide how much to save, how to invest and how to draw down their money in retirement — a do-it-yourself approach that retirement experts such as Teresa Ghilarducci, a labor economist at The New School for Social Research in New York, describe as inadequate.
Hoping for a miracle
Financial professionals say it’s no coincidence that members of Generation X, which entered the workforce just as the shift to 401(k)s became mainstream, is feeling unprepared as they get closer to retirement. Now 45 to 60 years old, almost half said they believed it would take a “miracle” for them to be able to retire, a Natixis study found last year.
Goldman acknowledged that it can be difficult to close a retirement funding gap with savings alone, but noted that some strategies could help. Some approaches may be out of reach for older workers, like Gen X and millennials, but could be of use for their children — for instance, setting aside $500 a year from ages 1 to 20, a move Goldman found could increase retirement savings by 14%.
Adding private market investments to a portfolio could also help boost retirement savings by 14% through higher returns, according to Goldman. Those strategies might become more accessible for workers under a Trump administration plan to open up 401(k) plans to private equity, cryptocurrencies and other alternative investments.
Lastly, if possible, workers should take advantage of benefits from their employers such as funding an emergency savings account, which can help them avoid raiding their 401(k) in case of an unexpected expense, such as medical bills, the bank notes.
Even so, while those approaches might work for workers with access to employer-sponsored retirement plans, about half of all U.S. private-sector workers lack access to such programs, an analysis from the Pew Charitable Trusts found earlier this year. Although it’s possible to save for retirement without a 401(k), many workers without access to an employer retirement plan said they struggled to build wealth, the Pew survey found.
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
NEW YORK (Reuters) -Goldman Sachs (GS) and Morgan Stanley (MS) defeated appeals by investors who said the banks’ market manipulation and insider trading fueled the March 2021 collapse of Archegos Capital Management, the $36 billion family office run by the since-convicted Bill Hwang.
In a 3-0 decision on Tuesday, the 2nd U.S. Circuit Court of Appeals in Manhattan said Archegos was not an insider that owed fiduciary duties to companies whose stocks it owned.
This meant Archegos did not make Goldman and Morgan Stanley liable for allegedly front running the market by tipping them about its impending collapse, the court said.
Goldman and Morgan Stanley were accused in seven lawsuits of using their knowledge of Archegos’ illiquidity to dump billions of dollars of Hwang’s favorite stocks including ViacomCBS, Discovery, and five Chinese companies such as Baidu.
Investors in those stocks said the Wall Street banks, which had been two of Archegos’ prime brokers, should cover their losses because they knew Hwang could not meet margin calls and also had to sell.
Lawyers for the investors did not immediately respond to requests for comment. Goldman and Morgan Stanley declined to comment.
Archegos’ collapse stemmed from Hwang’s use of financial contracts known as total return swaps to build an estimated $160 billion of stock exposure.
The collapse also caused billions of dollars in losses for banks such as Credit Suisse, which was later bought by Swiss rival UBS, and Japan’s Nomura Holdings.
Writing for the appeals court, Circuit Judge Maria Araujo Kahn also said Goldman and Morgan Stanley did not agree to act in Archegos’ best interest, and found no proof they tipped preferred clients about its travails.
Hwang and former Archegos chief financial officer Patrick Halligan were convicted of fraud in July 2024, and later sentenced to 18 years and eight years in prison, respectively.
Both are appealing and free on bail. Hwang created Archegos in 2013, after his Tiger Asia funds settled a U.S. Securities and Exchange Commission insider trading case the prior December.
In July, Goldman, Morgan Stanley and Wells Fargo agreed to pay a combined $120 million to settle a lawsuit by former ViacomCBS shareholders who said the banks hid conflicts of interest.
Tuesday’s decision upheld a March 2024 dismissal by U.S. District Judge Jed Rakoff in Manhattan.
The cases are In re Archegos 20A Litigation, 2nd U.S. Circuit Court of Appeals, Nos. 24-1159, 24-1161, 24-1162, 24-1166, 24-1173, 24-1177 and 24-1178.
(Reporting by Jonathan Stempel in New York; Editing by Matthew Lewis)
Peter Thiel’s Founders Fund led Cognition’s latest $400 million funding round. Photo by Nordin Catic/Getty Images for The Cambridge Union
Cognition AI, the San Francisco-based startup known for its A.I. software engineer Devin used by Goldman Sachs, has more than doubled its valuation to $10.2 billion after raising more than $400 million in a round led by Peter Thiel’s Founders Fund. The deal, announced yesterday (Sept. 8), also drew participation from existing backers including angel investor Elad Gil, Lux Capital, 8VC, Neo, Definition Capital and Swish VC. The fresh financing marks a stark increase from the $4 billion valuation Cognition received earlier this year.
Cognition was launched in 2023 by Scott Wu, Steven Hao and Walden Yang. Wu, the company’s CEO, previously co-founded Lunchbox, an A.I. networking platform. The founding team also includes alumni of Scale AI, Google DeepMind and self-driving software maker Waymo, as well as a number of elite coders who medaled at the International Olympiad in Informatics, a global programming competition.
Cognition’s flagship product is Devin, an A.I. software engineer. The company also made waves through acquisitions, most notably when it snapped up software firm Windsurf just days after Google hired away much of its leadership. While OpenAI had reportedly pursued Windsurf before complications with its partner Microsoft, Google in July struck a multibillion-dollar licensing deal for Windsurf’s technology and acqui-hired several top staffers. Cognition then acquired what remained of the company: its team, intellectual property and product.
Even before the Windsurf deal, Cognition’s annual recurring revenue (ARR) had climbed rapidly—from $1 million in September 2024 to $73 million by this June, Wu said in a press release. Since the acquisition, ARR has more than doubled. “We’ll continue to invest significantly in both Devin and Windsurf, and our customers are already seeing how powerful the combination is together,” Wu added, noting that clients include Goldman Sachs, Dell and Palantir.
Looking ahead, Cognition plans to expand the ways its users can leverage the combined power of Devin and Windsurf. “We’re looking forward to enabling engineers [to] manage an army of agents to build technology faster,” said Jeff Wang, Windsurf’s interim CEO since former leader Varun Mohan departed for Google, in a LinkedIn post. “It’s been quite an eventful last few months, and now it’s time to show what we’re made of.”
Goldman Sachs Group Inc. and Apple Inc. will pay more than $89 million to resolve a long-running investigation into their credit-card joint venture after the top US consumer watchdog said the pair misled customers and mishandled disputes. The Consumer Financial Protection Bureau said customer service breakdowns and misrepresentations affected hundreds of thousands of Apple Card […]
Apple and Goldman Sachs must pay more than $89 million over failures related to their joint Apple Card, federal financial regulators announced Wednesday.
The Consumer Financial Protection Bureau (CFPB) said the companies provided inadequate customer service and misrepresented transactions and card features to hundreds of thousands of Apple Card users.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” CFPB Director Rohit Chopra said in a statement. “Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law.”
The CFPB alleges that Apple failed to send tens of thousands of consumer disputes of transactions on their accounts to Goldman Sachs. When the tech company did share those reports with the investment bank, Goldman Sachs failed to follow federal requirements for investigating them, regulators said.
Both companies also misled consumers about interest-free payment plans for Apple devices, the CFPB found. That lead customers to believe that they would qualify for interest-free payment when they used an Apple Card to buy iPhones and other Apple devices, according to the agency.
Additionally, Goldman Sachs misled consumers about the application of some refunds, which led to their paying additional interest charges, the CFPB said.
In a statement to CBS MoneyWatch, Apple took issue with the CFPB’s assessment of its conduct, while saying it is “committed to providing consumers with fair and transparent financial products.”
“Upon learning about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address them and help impacted customers,” the company added. “While we strongly disagree with the CFPB’s characterization of Apple’s conduct, we have aligned with them on an agreement. We look forward to continuing to deliver a great experience for our Apple Card customers.”
Goldman Sachs maintains that “Apple Card is one of the most consumer-friendly credit cards that has ever been offered,” a spokesperson said in a statement to CBS MoneyWatch. “We worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers. We are pleased to have reached a resolution with the CFPB and are proud to have developed such an innovative and award-winning product alongside Apple.”
The order requires Apple to pay $25 million into the CFPB’s victims relief fund. Goldman Sachs must pay victims nearly $20 million, plus a $45 million civil penalty, according to the agency’s order.
Chopra also said it is banning Goldman from offering another credit card geared to consumers “unless it can demonstrate that it can actually follow the law.”
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
Goldman Sachs is trimming its consumer business in the third quarter, turning its attention to bread-and-butter segments including wealth management, dealmaking and trading. “We have been pretty clear with our messaging that we continue to narrow our consumer footprint,” Chief Executive David Solomon said today during the bank’s third-quarter earnings call. In its most recent […]
According to the WSJ JPMorgan Chase is in advanced talks to purchase the Apple card portfolio from Goldman Sachs. Goldman just sold the GM card portfolio to Barclays in a discounted deal worth $2 billion and is looking to exit the consumer card market altogether.
As part of the deal JPMorgan are looking for a number of concessions from Apple that include things such as spreading out card billing (currently all cardholders are billed at the start of the month).
Goldman Sachs is recognizing opportunities for AI-related financing activities as companies continue to adopt the technology. “Recently, our board of directors spent a week in Silicon Valley, where we spoke with the CEOs of many of the leading institutions at the cutting edge of technology and AI, and we all left with a sense of […]
Point: Hillary Clinton Is Polling Ahead Of Joe Biden
Russell Kelley
For Joe Biden, the next few days will be a make or break moment for his campaign. After a bad debate performance, many high-ranking officials and Democratic donors have called for him to bow out, and for another candidate, perhaps Kamala Harris, Gretchen Whitmer, or Gavin Newsom, to step up.
Biden’s Approval Rating Skyrockets After Announcing He Taking Nation To The Circus
But one name being floated around may surprise you. According to a recent survey, former Secretary of State Hillary Clinton is polling ahead of President Biden, and—
Counterpoint: Did Somebody Say Hillary Clinton?
Hillary Clinton
Yoo-hoo! Oh, hello there. Sorry, I didn’t mean to interrupt. I couldn’t help but overhear someone saying the name “Hillary Clinton,” and since I’m the one and only Hillary Clinton, I figured I’d pop in and see what all the fuss was about!
So, what’s going on? Anything fun? Anything cool? Tell me, what can ol’ Hillary Clinton do for you today?
Don’t be shy. You see, I love meeting regular, everyday Americans! I was just on my way to a Goldman Sachs conference when I decided to put my ear to this wall and listen to your conversation for five minutes straight. So, what can I do you for, stranger?
Do you want a photo? Do you want to thank me for all I’ve done for women across the world and to lavish me with praise? Or do you want to tell me I should run for president?
Wait, who said anything about running for president? Certainly not me. Unless you did? Did you? Did you say I should run for president?
Did you say I should run for president? Did you say I should run for president?
Seriously, don’t let me interrupt. You were just in the middle of what must have been a very important conversation. Especially if it involved you and the American people finally honoring my God-given right to ascend to the highest office in the United States of America and rule this nation with an iron fist.
This is my fight song (hey) Take back my life song (hey) Prove I’m all right song (hey, ha) My power’s turned on (hey) Starting right now, I’ll be strong (hey) I’ll play my fight song (hey) And I don’t really care if nobody else believes (ha) ’Cause I’ve still got a lot of fight left in me
Anywho! I’ve got to get going. But if anyone asks, I’m 76 years old, I remember all my grandchildren’s names, and I’m totally free for the next four years. If you need me, just close your eyes, say my name three times, and I will appear.
Goldman Sachs Group Inc. is closing down its automated-investing business for the masses after clinching a deal with Betterment. The bank has struck an agreement to transfer clients and their assets from the unit known as Marcus Invest to Betterment, a $45 billion digital investment-advisory firm. The transfer is expected to be completed by the […]
Markets are still just in the first phase of an AI-led upsurge, Goldman Sachs wrote in a recent research note.
Nvidia is the central piece in the opening inning, but analysts still see more upside in further phases of the AI story.
The firm says eventually, AI will broaden to benefit other sectors, such as computer services.
Artificial intelligence has already propelled markets into overdrive, and yet this equity power fuel is nowhere close to running low, Goldman Sachs said.
Instead, stocks are just in the first phase of the AI-led upsurge, which will broaden out to uplift more and more sectors, the bank said in a Tuesday post.
“If Nvidia represents the first phase of the AI trade, Phase 2 will be about other companies that are helping to build AI-related infrastructure,” it said. “Phase 3 deals with companies incorporating AI into their products to boost revenue, while Phase 4 is about the AI-related productivity gains that should be possible across many businesses.”
Here’s a deeper rundown of Goldman’s AI timeline:
First phase
Ever since ChatGPT sparked the AI race in late 2022, chipmaker Nvidia has catapulted in markets. Given that its semiconductors are the basis for this emerging software, the company has made itself a cornerstone of the technological transition, climbing as much as 590% in this period.
“Remarkably, though, those gains have been entirely driven by earnings growth: The company’s price-to-earnings ratio is barely higher than it was at the start of last year,” Goldman said.
Supporting the view that the first phase is not over, analysts see even more gains ahead. Recently, Evercore ISI put out a bull target of $1,540, representing 81% upside from Friday’s stock price.
“We think investors underestimate the importance of the chip+hardware+software ecosystem that Nvidia has created,” analysts said.
Second phase
Eventually, Goldman expects other firms to benefit from the AI buildout, though this isn’t limited to just semiconductor producers and designers. Cloud providers, computer equipment makers and security software developers will all have a part to play.
That also extends to real world infrastructure, as AI will need expansive data centers to run it — a boost to everything from real estate to the utility sector.
As generative AI advances, firms that can integrate the technology into their offerings will win out, Goldman said.
Already, top tech firms are racing to implement services that lean on AI, and investors have rewarded those that best do so. For instance, Wedbush Securities’ Dan Ives has long celebrated Microsoft’s CoPilot tool as one example, calling it an “iPhone moment” for the company.
Its stock has gained as much as 14.4% this year.
Fourth phase
With infrastructure and services established to support AI over the long-haul, the technology will have free reign to maximize company productivity across the economy, Goldman said.
“Software and services companies and commercial and professional services firms appear to have the biggest potential for earnings gains from AI, because they have a combination of relatively high labor costs overall and a high share of their labor bill that may be exposed to AI automation,” it wrote.
