Israel's economy contracted by 20% after the war in Gaza, Ukraine's retreat from a key town questioned its military capabilities. Analysis of Ukraine's military tactics and OpenAI's business model, including funding challenges for AI projects.
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Quick takeaways
Israel's economy contracted by 20% due to ongoing conflict with Gaza, impacting output and credit rating.
Ukrainian forces faced setbacks at Deepka due to shortages of weapons and ammunition, raising concerns about military strength.
Deep dives
Israel's economy contracts as conflict with Gaza takes a toll
Israel's economy suffered a contraction of nearly 20% in the last quarter of 2023 due to the ongoing conflict with Gaza. The government's allocation of funds for the conflict, coupled with the departure of over 300,000 reservists from their regular work, has impacted economic output. Additionally, restrictions on Palestinian border crossings have led to a shortage of labor in the construction sector. Moody's downgraded Israel's credit rating, citing concerns about the prolonged conflict's impact on the economy.
Ukrainian forces face setback in Eastern town of Deepka
Ukrainian forces experienced a significant defeat with the loss of the town of Deepka, marking their first big battlefield setback in several months. Deepka, strategically located as a gateway to the Russian-occupied city of Donetsk, holds symbolic importance. Despite this setback, Ukraine has managed to retain control of approximately 50% of the territory captured by Russia in its 2022 invasion. However, concerns arise regarding Ukraine's military strength due to shortages of weapons and ammunition.
The sustainability of OpenAI's business model raised
OpenAI has seen substantial investment and growth since launching its Chat GBT models. However, questions have emerged about the sustainability of OpenAI's business model. Although they generate revenue by selling access to Chat GBT, building and operating these AI models incurs significant costs. Training costs, in particular, have been estimated to range from hundreds of billions to 7 trillion dollars. While OpenAI has attracted users, including over 90% of Fortune 500 companies, uncertainties persist about whether their revenue can cover the immense capital needs. Future funding from investors, including sovereign wealth funds, may be essential for OpenAI's success.
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Josh Gabert-Doyon, Manuela Saragosa, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.