Top Companies' AI Moves

Today's Stories

1. 1

   Goldman, Morgan Stanley, Citi Demand Big Law Fee Cuts Over AI

   Goldman Sachs, Morgan Stanley and Citigroup are pressing elite law firms to lower fees, arguing AI is sharply reducing the cost of routine legal work such as research, document review and contract analysis. Citigroup has begun asking firms bidding for its business to disclose how much they are saving by using AI, and Morgan Stanley plans to put most of its outside legal work up for competitive bids by the end of the year. The billable-hour model has long made partners at top firms extraordinarily wealthy — top lawyers have "for a long time been compensated on the foundation of [associates billing for long hours]", as Morgan Stanley's general counsel Eric Grossman put it. The banks' push could amount to "a fundamental altering of the revenue foundation for these mega firms", Grossman added.

   Nearly half of large law firms surveyed this year by Citi's law firms group said AI had already affected how they price their work. Big Law's hourly charges have surged since 2023, with associate rates climbing 33% to an average $798 this year, according to Persuit data.

2. 2

   Cleveland Clinic invests $50M in AI patient routing

   Cleveland Clinic is investing $50 million in a 'Digital Front Door' initiative to streamline patient access and navigation using AI-driven solutions. This investment signals a shift in healthcare from pilot programs to core operations, with the CEO emphasizing AI's role in solving systemic issues. It may become the new standard in healthcare delivery.

   The initiative focuses on patient routing and navigation, which could set a precedent for other healthcare systems. The $200 million raised by Gravis Robotics for construction autonomy indicates broader industrial automation trends.

3. 3

   Apple's Ternus Era Begins as AI and Memory Costs Bite

   John Ternus succeeded Tim Cook as Apple's CEO on Tuesday, becoming only the second CEO since Steve Jobs left in 2011. He now oversees everything from software and devices to finance and legal. Ternus takes charge of a $4.7 trillion company that hasn't fully executed its AI strategy. He faces a global memory shortage that forced Apple to raise MacBook and iPad prices in June, with iPhone hikes expected soon.

   His first big public test is Apple's Sept. 9 launch event, where new iPhones and Apple Watches are expected. Some analysts predict a folding phone this fall could cost around $2,500, and price increases may mask sluggish unit sales.

4. 4

   MediaTek jumps 10% on $3.5 billion Nvidia deal

   MediaTek shares closed 10% higher on Tuesday after the Taiwanese chip firm announced a partnership with Nvidia. Nvidia invested $3.5 billion in convertible bonds issued by MediaTek as part of the deal, announced on Monday. MediaTek, the world's biggest smartphone chip company by market share and main rival to Qualcomm, is diversifying by designing custom chips for data centres. The partnership will see MediaTek offer Nvidia's NVLink Fusion platform, meaning its custom semiconductors can be integrated with Nvidia's AI infrastructure, potentially challenging Broadcom, a market leader.

   The two companies will also work on 'local AI computing' — chips for PCs and systems for cars. In June, MediaTek said its custom AI chip business would bring in $2 billion of revenue this year with a total addressable market of up to $80 billion by 2027. CNBC has asked if the Nvidia deal has changed that guidance.

5. 5

   Dell shares surge 10% on AI server strength, raises forecast

   Dell Technologies reported fiscal second-quarter results that beat Wall Street expectations, with adjusted earnings of $7.04 per share against $4.92 expected, and revenue of $46.97 billion against $44.92 billion expected. The company also raised its full-year forecast to $25.50 adjusted EPS on $192 billion in revenue, up from prior guidance. The strong performance was driven by AI-optimized server revenue of $16.40 billion in the quarter, up 89% in the Infrastructure Solutions Group. Dell now expects AI server sales of $74 billion for the fiscal year, a 200% increase, signaling continued robust demand for AI infrastructure as businesses invest heavily in computing power.

   Dell's raised outlook comes amid a backdrop of strong investor interest—shares are up 236% year to date, and the company secured a $9.7 billion contract with the U.S. military during the quarter. The company also noted rising input costs are factored into the higher revenue guidance, which could impact margins going forward.

6. 6

   GE Aerospace Lynn factory embraces AI and robots

   GE Aerospace's Lynn, Massachusetts facility is integrating robots and AI into its manufacturing operations, reshaping how jet engine parts are produced. This shift aims to improve efficiency and precision in aerospace manufacturing, potentially setting a new standard for how industrial plants operate while maintaining workforce roles.

   How the adoption of these technologies at Lynn could influence broader manufacturing trends and whether similar approaches are replicated across other GE Aerospace plants.