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By Blake Brittain (Reuters) -The maker of celebrity video platform Cameo sued OpenAI in a California federal court on Tuesday, arguing that the new "Cameo" feature of OpenAI's Sora video generation app violates its trademark rights. Cameo said in the complaint that OpenAI's Cameo, which allows users to create and share their virtual likenesses on Sora, is likely to cause consumer confusion and dilute its brand. An OpenAI spokesperson said the company is reviewing the complaint but "disagree[s] that anyone can claim exclusive ownership over the word 'cameo.'" Cameo CEO Steven Galanis said in a statement that the company had tried to resolve the dispute "amicably" but OpenAI refused to stop using the Cameo name. Cameo, founded in 2017, allows users to hire celebrities to appear in short, personalized videos. Artificial intelligence giant OpenAI's Sora, launched as a standalone app on September 30, lets users create and share AI-generated videos. OpenAI calls Sora users' likenesses on the app "Cameos." Cameo said OpenAI chose the name "in blatant disregard for the obvious confusion it would create." Cameo also said that Sora allows users to create videos with celebrity "Cameos" including entrepreneur Mark Cuban and boxer and influencer Jake Paul, putting the AI giant in direct competition with Cameo's platform. "Users seeking a personalized celebrity video now have a choice – use Plaintiff's CAMEO service to book talent and receive an authentic, custom video prepared by that celebrity, or use Sora’s 'Cameo' service to create an extremely realistic AI-generated video featuring a celebrity’s likeness," the lawsuit said. Cameo requested an unspecified amount of monetary damages and a court order blocking OpenAI from using the "Cameo" name. (Reporting by Blake Brittain in Washington; Editing by Sam Holmes and Christopher Cushing)

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By Deepa Seetharaman, Stephen Nellis and Deborah Mary Sophia (Reuters) -Microsoft and OpenAI announced a restructuring deal on Tuesday that frees the ChatGPT maker to move away from its nonprofit roots and likely go public so it can finance CEO Sam Altman's ambitious plans to develop data centers and cutting-edge technology.  The deal refashions the $500 billion company as a public benefit corporation that is controlled by a nonprofit with a stake in OpenAI's financial success. In a livestream broadcast, Altman said an initial public offering was the most likely path for the company's future, given how much money is needed to train and build AI systems like the one that supports ChatGPT.  Altman and chief scientist Jakub Pachocki opened the livestream by outlining plans to shift OpenAI from a product company into a platform that lets others build their own tools, services, and businesses on top of its technology. "We can now take this technology and this user base and this sort of framework we've built and get the whole world to build amazing new companies and services and applications on top of it," Altman said. The restructuring has been one of many initiatives under way at OpenAI, which is betting that its generative AI technology will ultimately transform the global economy. The moves have heartened OpenAI's investors and business partners, including Nvidia's CEO Jensen Huang, who was asked about the news at a developer conference on Tuesday.  "I wish back in the earlier days that we had invested a lot more," Huang said. "If you told me that OpenAI is going to go public next year, I'm not surprised, and in a lot of ways, I think this can be one of the most successful public offerings in history."  CAPITAL CONSTRAINTS CAUSED TENSIONS Tuesday's agreement removes major constraints on OpenAI's ability to raise capital and secure computing resources from Microsoft that have been in place since the two companies forged their agreement in 2019. Once AI assistant ChatGPT exploded in popularity three years ago, those limitations sparked tensions between the firms. The discussions to restructure OpenAI started after Altman was pushed out of OpenAI temporarily. The episode in late 2023 highlighted how the startup's unusual structure limited the power of its investors and business partners, including Microsoft.  Altman will not get equity in the restructured company, an OpenAI spokesperson said, in a reversal from discussions last year that would have given him a stake. The spokesperson added there will be no changes to his compensation from OpenAI, which pays him some $76,000 a year.  Altman said OpenAI has financial obligations of $1.4 trillion to help build roughly 30 gigawatts of data-center infrastructure over the next few years.  Eventually, OpenAI would like to build a data center that can produce one new gigawatt of power per week, Altman said, without offering more details. Each gigawatt costs as much as $50 billion to build, and Altman said he would like to help bring the cost down to $20 billion.   MICROSOFT TO KEEP 27% STAKE The new OpenAI Group PBC will function more like a traditional company, cementing Altman's power and giving him more leeway to strike deals, raise money and shape the broader AI industry. Microsoft will not have rights to any consumer hardware produced by OpenAI, and no longer has the right of first refusal to be OpenAI's compute provider.  Even so, Microsoft will hold a 27% stake in OpenAI and remain a significant player in its future. OpenAI will continue to share about 20% of its revenue with Microsoft for years to come, people familiar with the matter said.   Microsoft's previous 2019 agreement had many provisions that rested on when OpenAI reached artificial general intelligence, and the new deal requires an independent panel to verify OpenAI's claims that it has reached AGI, the point at which AI systems can match a well-educated human adult. Microsoft will still hold a stake of about $135 billion in OpenAI Group PBC, which will be controlled by the nonprofit OpenAI Foundation, the companies said.  The Redmond, Washington-based firm has invested $13.8 billion in OpenAI, with Tuesday's deal implying that Microsoft had generated a return of nearly 10 times its investment. Microsoft shares rose 2%, sending its market value above $4 trillion again.   The deal keeps the two firms intertwined until at least 2032, with a massive cloud computing contract and with Microsoft retaining some rights to OpenAI products and AI models until then, even if OpenAI reaches AGI. OpenAI and Microsoft expect to end the revenue-share agreement once an independent panel declares AGI, but OpenAI can also make those payments later. Both companies declined to say when they expect those commitments to end.  With some 800 million weekly users as of October, ChatGPT has exploded in popularity to become the face of AI for many consumers after OpenAI's founding as a nonprofit AI safety group. As the company grew, the Microsoft deal constrained OpenAI's ability to raise funds from outside investors and secure computing contracts as the crush of ChatGPT users and its research into new models caused its computing needs to skyrocket. The requirement that OpenAI exclusively rely on Microsoft for computational resources was among the largest sources of tension.  "OpenAI has completed its recapitalization, simplifying its corporate structure," Bret Taylor, the OpenAI Foundation's board chair, said in a blog post. "The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives." Taylor and other board members – including Altman – have the power to appoint and remove members of the PBC's board. The OpenAI Foundation has a 26% stake in OpenAI Group and a warrant to receive additional shares if the company hits certain milestones.  "OpenAI still faces ongoing scrutiny around transparency, data usage, and safety oversight. But overall, this structure should provide a clearer path forward for innovation and accountability," said Adam Sarhan, CEO of 50 Park Investments. Microsoft also said that it has secured a deal with OpenAI where the ChatGPT maker will purchase $250 billion of Azure cloud computing services. In exchange, Microsoft will no longer have the right of first refusal to provide computing services to OpenAI. (Reporting by Deborah Sophia in Bengaluru and Stephen Nellis in Washington; additional reporting by Krystal Hu; Editing by Devika Syamnath, Franklin Paul, Rod Nickel)

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SEOUL (Reuters) -South Korea's SK Hynix posted on Wednesday a record quarterly profit, spurred by an artificial intelligence boom that has driven up demand for both advanced chips and conventional products. The Nvidia supplier reported an 11.4 trillion won ($8.02 billion) operating profit for the July-September period, up 62% from a year earlier. The figure was in line with an 11.4 trillion won forecast by LSEG SmartEstimate, which is weighted toward analysts who are more consistently accurate. Quarterly revenue for the South Korean firm rose 39% in the third quarter to 24.4 trillion won. SK Hynix said it had completed discussions with key customers regarding high-bandwidth memory (HBM) supply for next year. The company added that it planned to begin shipments of its latest HBM4 products in the fourth quarter after completing development in September and entering mass production. A full-scale sales expansion of HBM4 products is planned for next year, SK Hynix said in a statement. ($1 = 1,421.4800 won) (Reporting by Heekyong Yang, Hyunjoo Jin and Joyce Lee; Editing by Leslie Adler and Jamie Freed)

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BRASILIA (Reuters) -Some automakers may halt operations in Brazil within two to three weeks if the global chips supply crisis continues, an official said on Tuesday, adding the Brazilian government is contacting Chinese authorities to find a solution. Uallace Moreira, a secretary in Brazil's Development, Industry, Trade and Services Ministry, did not specify which automakers in Latin America's largest economy could be hit first by the global crisis, triggered by a stand-off between China and the Netherlands over chipmaker Nexperia. "If there is no solution in this short period of time, in two or three weeks, there may be a shutdown for some automakers," Moreira told journalists after a meeting with the president of Brazilian automakers association Anfavea. Brazil's Vice President Geraldo Alckmin, who also heads the ministry, attended the meeting as well. In September, the Dutch government took control of Nexperia, which manufactures chips for cars and consumer electronics, as it cited worries about the possible transfer of technology to the firm's Chinese parent company, Wingtech. In response, the Chinese government blocked Nexperia from exporting its products from China. While most of the company's chips are produced in Europe, around 70% are packaged in China before distribution. Moreira noted Alckmin has already contacted both the Brazilian ambassador to China and the Chinese ambassador to Brazil to initiate discussions about the matter as the local private sector requests dialogue between the parties. (Reporting by Victor Borges in Brasilia; Writing by Andre Romani and Fernando Cardoso; Editing by Kylie Madry and Aurora Ellis)

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By Stephen Nellis, Alexandra Alper and Arsheeya Bajwa WASHINGTON (Reuters) -Nvidia CEO Jensen Huang came to Washington on Tuesday with a message for the Trump administration: the U.S. can win the AI battle if the world, including China's massive developer base, runs on Nvidia systems.  In his address at the first Nvidia developers' conference held in Washington, Huang walked a fine line between praising President Donald Trump, whose "America First" agenda Huang credited with spurring greater investment in U.S. manufacturing and AI leadership, and risking further antagonism of China. Huang said the artificial intelligence chip leader will build seven new supercomputers for the U.S. Department of Energy and had $500 billion in bookings for advanced chips, but also lamented that the Chinese government has shut it out of its market. Nvidia is at the core of the global AI rollout, and it is striking deals around the world while also navigating a U.S.-China trade war that could determine which country's technology is most used around the world. Trump is touring Asia ahead of an expected meeting with Chinese President Xi Jinping on Thursday where China's use of Nvidia's chips could be a key issue. "We want America to win this AI race. No doubt about that," Huang said. "We want the world to be built on American tech stack. Absolutely the case. But we also need to be in China to win their developers. A policy that causes America to lose half of the world's AI developers is not beneficial long term, it hurts us more."  Huang said his company had not applied for U.S. export licenses to send its newest chips to China because of the Chinese position. "They've made it very clear that they don't want Nvidia to be there right now," he said at a news conference during the company's GTC developers event. "I hope that will change in the future because I think China is a very important market." U.S. administrations have swung back and forth on allowing Nvidia's advanced chips into China, vacillating on whether access would make China more dependent on the U.S. technology or give its military and tech companies a competitive boost. Huang praised Trump while announcing new products and deals. These included network technology that will let Nvidia AI chips work with quantum computers, a telecom deal with Finland's Nokia and self-driving car technology with Uber and Stellantis. The supercomputers Nvidia is building for the Energy Department will in part help the United States maintain and develop its nuclear weapons arsenal. The supercomputers will also be used to research alternative energy sources such as nuclear fusion. The largest of the supercomputers for the Department of Energy will be built with Oracle and contain 100,000 of Nvidia's Blackwell chips. "Putting the weight of the nation behind pro-energy growth completely changed the game," Huang said. "If this didn't happen, we could have been in a bad situation, and I want to thank President Trump for that." Nvidia shares closed 5% higher at $201.03 on Tuesday. Blake Anderson, an associate portfolio manager at Carson Group,  estimated that one of the supercomputers, dubbed "Solstice," could alone feature Nvidia chips worth about $3 billion to $4 billion.  However, since federal customers are likely to receive discounts, the pricing could vary from the $30,000 to $40,000 price tag Blackwell chips tend to carry, Anderson added. Nvidia declined to comment on the size of the Energy Department deals, and the Energy Department did not immediately respond to requests for comment.  Among the deals Huang discussed, Nvidia and Nokia will target the AI communications market. Nvidia will invest $1 billion for a 2.9% stake in Nokia and it also introduced a new product line called Arc, designed to work with telecommunications equipment. Huang said Nvidia will work with Nokia to improve the power efficiency of the company's base stations for 6G, the next generation of wireless data technology. “We're going to take this new technology and we’ll be able to upgrade millions of base stations around the world,” Huang said. Nvidia also announced a partnership with Palantir Technologies, a company that works closely with the U.S. government, to improve logistics for companies.  Nvidia announced a new self-driving car technology platform called Hyperion. Huang said that Nvidia is partnering with Uber to create a network of robotaxis.  "These announcements all show Nvidia's ability to extend its reach beyond its core data center customers," said Gil Luria, an analyst at D.A. Davidson. "While these projects pale in comparison to the capex by the hyperscalers such as Microsoft, Amazon, Google and Meta, they could create new markets for Nvidia down the line." Trump in his second term at first restricted exports of Nvidia's AI chips designed for the China market before reversing course in July.  Huang has argued that Nvidia needs access to some $50 billion in potential sales from the Chinese market to fund U.S.-based research and development to maintain his company's edge. Reuters has previously reported that Chinese developers still want Nvidia's chips, despite pressure from Beijing to purchase domestic chips from Huawei Technologies Co. Nvidia outlined how it is making chips in Arizona at TSMC's facilities, and assembling servers in Texas and networking gear in California. “We are manufacturing in America again – it is incredible. The first thing that President Trump asked me is, 'bring manufacturing back,'" Huang said. He said that TSMC is bringing its most advanced technology for packaging chips to the United States in the next several months. (Reporting by Stephen Nellis and Alexandra Alper in Washington; Additional reporting by Arsheeya Bajwa in Bengaluru; Editing by Peter Henderson and Matthew Lewis)

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(Reuters) -Teradyne on Tuesday forecast fourth-quarter revenue above Wall Street expectations, banking on robust demand for its chip-testing equipment, and named a new chief financial officer. Shares of the company surged more than 21% in extended trading, after it also surpassed estimates for third-quarter revenue. Teradyne said Michelle Turner, former CFO at defense contractor L3Harris Technologies, has been appointed as its finance chief effective November 3. Turner will succeed Sanjay Mehta, who has been the company's CFO since 2019 and plans to retire in 2026. It forecast fourth-quarter revenue to be between $920 million and $1 billion, compared with analysts' average estimate of $814.3 million, according to data compiled by LSEG. The upbeat outlook underscores how the artificial intelligence investment boom is reverberating across the semiconductor supply chain, driving demand for companies such as Teradyne that provide testing and automation tools essential for chip quality assurance and mass production. Teradyne's fourth-quarter sales are expected to increase 25% sequentially and 27% from the year earlier, CEO Greg Smith said. The company also expects adjusted earnings per share to be between $1.20 and $1.46 for the fourth quarter, while analysts estimate $1.02. Its third-quarter revenue of $769.2 million beat expectations of $743.8 million. (Reporting by Kritika Lamba and Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)

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(Reuters) -Computer chip equipment maker ASM International reported third-quarter bookings below market expectations on Tuesday, hit by a larger-than-expected drop in orders from Chinese chipmakers Although ASM reported higher AI-related spend from clients, the rise was less than it had expected. Bookings, the industry's most closely watched figure, came in at 637 million euros ($743 million) in the third quarter of the year, down 9% on the last quarter and 22% on the same period the year before. That compared with an average 719 millions euros forecast by analysts, according to Visible Alpha. The Dutch firm in September cut its 2025 revenue forecast anticipating weaker demand as major customers Intel and Samsung face challenges. "We expect the subdued order trend to bottom out in Q4 at a slightly higher level than Q3. Quarterly orders are projected to pick up again as 2026 progresses", ASM said in a statement. Bookings fueled by artificial-intelligence related demand were higher than in the last quarter, but did not meet expectations, ASM said. "China spend weighs more on ASM's margins than AI related demand", analyst Michael Roeg of Degroof Petercam said in an email. The world's largest chip equipment maker ASML beat orders estimates earlier this month as demand for AI megadeals outweighed a steeper loss in Chinese orders. ($1 = 0.8575 euros) (Reporting by Nathan Vifflin in Gdansk; Editing by Matt Scuffham)

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(Reuters) -Eli Lilly said on Tuesday it was collaborating with Nvidia to build a supercomputer to help with drug discovery and shorten development cycles, getting medicines to people faster. Using the supercomputer, scientists at Lilly will be able to train AI models on millions of experiments to test potential medicines, expanding the scope of drug discovery efforts, the company said. A number of these proprietary AI models will be available on Lilly TuneLab, a federated artificial-intelligence and machine-learning platform that allows biotech companies access to drug discovery models trained on years of its research data. The federated model is a privacy-preserving approach that enables biotechs to tap into Lilly's AI models without directly exposing either their or Lilly's proprietary data. Beyond discovery, Lilly plans to leverage the supercomputer to shorten drug development cycles. Additional applications include manufacturing, medical imaging and enterprise AI agents, Lilly said. Drug developers are increasingly adopting AI technologies for discovery and safety testing to get faster and cheaper results, in line with the U.S. Food and Drug Administration's push to reduce animal testing in the near future. "Lilly is shifting from using AI as a tool to embracing it as a scientific collaborator," said Thomas Fuchs, senior vice-president and chief AI officer. Earlier in the year, Jefferies analysts had pegged AI-related research and development spending to reach between $30 billion and $40 billion by 2040. The supercomputer, to be owned and operated by Lilly, is an Nvidia DGX SuperPOD with DGX B300 systems. (Reporting by Sneha S K in Bengaluru; Editing by Pooja Desai)

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(Reuters) -Teradyne on Tuesday forecast fourth-quarter revenue above Wall Street expectations, banking on robust demand for its chip-testing equipment, and named a new chief financial officer. Shares of the company surged more than 21% in extended trading, after it also surpassed estimates for third-quarter revenue. Teradyne said Michelle Turner, former CFO at defense contractor L3Harris Technologies, has been appointed as its finance chief effective November 3. Turner will succeed Sanjay Mehta, who has been the company's CFO since 2019 and plans to retire in 2026. It forecast fourth-quarter revenue to be between $920 million and $1 billion, compared with analysts' average estimate of $814.3 million, according to data compiled by LSEG. The upbeat outlook underscores how the artificial intelligence investment boom is reverberating across the semiconductor supply chain, driving demand for companies such as Teradyne that provide testing and automation tools essential for chip quality assurance and mass production. Teradyne's fourth-quarter sales are expected to increase 25% sequentially and 27% from the year earlier, CEO Greg Smith said. The company also expects adjusted earnings per share to be between $1.20 and $1.46 for the fourth quarter, while analysts estimate $1.02. Its third-quarter revenue of $769.2 million beat expectations of $743.8 million. (Reporting by Kritika Lamba and Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)

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By Zaheer Kachwala (Reuters) -Electronic Arts missed Wall Street expectations for second-quarter bookings on Tuesday, weighed down by uncertain spending on its core sports portfolio and difficult growth comparisons to a strong launch of "College Football 25" last year. The results are EA's first since announcing its decision to be acquired by a group of private investors, including Saudi Arabia's Public Investment Fund, for $55 billion. EA is betting heavily on its core action and sports titles to weather an uncertain gaming market marked by high console prices, and gamers sticking to proven franchises amid a highly competitive year-end period. EA launched "College Football 25" last year, reviving the franchise after a long hiatus and attracting strong spending from core fans, becoming one of the best-selling games. The take-private deal was announced just before EA was set to launch the latest installment in its best-selling "Battlefield" franchise, which went on to sell over seven million copies during the first three days. With "Battlefield 6" off to a strong start and close rival "Call of Duty" seeing player fatigue, investors are now focused on the game's long-term financial prospects as EA plans to release regular content updates to keep players engaged and spending. EA said bookings for its prominent soccer title "FC 26" were up mid-single digits compared to the title's predecessor, despite some analyst warnings of softer performance. "EA Sports FC will prove resilient due to the sport's global popularity in the years ahead. However, I predict we will soon see a second marriage that reunites EA with FIFA, brokered by its Saudi owners," said Joost van Dreunen, games professor at NYU's Stern School of Business. The company's second-quarter bookings fell 13% to $1.82 billion, compared with the average estimate of $1.88 billion, according to data compiled by LSEG. The company reported net income of $137 million in the second quarter, compared with $294 million a year earlier. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Anil D'Silva and Alan Barona)

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