Andrew Ross Sorkin here. This morning, a major topic of discussion is Bill Gates’s fresh perspective on climate change. The renowned billionaire and climate advocate suggests that the prevalent ‘doomsday outlook’ is an overreaction and won’t lead to humanity’s end. Instead of solely chasing temperature reduction goals, Gates is championing a new approach: prioritizing initiatives that actively ‘improve lives’ in an already warming world. During my conversation with Gates, he emphasized that this isn’t a retreat from his previous commitments. He believes we can acknowledge rising temperatures while simultaneously broadening our focus. This stance, however, is likely to spark considerable debate, with some critics potentially interpreting it as a critique of current climate efforts, even if that’s not his intention.
The Hard Truths of Climate Change
After investing billions in the battle against climate change, Bill Gates has announced a significant ‘strategic pivot’ in his approach.
This new perspective might ruffle some feathers among climate activists, but it could also inspire entrepreneurs who have long advocated for increased investment in groundbreaking solutions.
A New Viewpoint: In a recently published memo titled ‘Three Tough Truths About Climate,’ the tech titan and philanthropist didn’t hold back. He argues that the ‘doomsday scenario’ predicting humanity’s demise due to climate change is flawed.
He further elaborated:
“Unfortunately, the doomsday outlook is causing much of the climate community to focus too much on near-term emissions goals, and it’s diverting resources from the most effective things we should be doing to improve life in a warming world.”
Interestingly, his 2021 best-seller, ‘How to Avoid a Climate Disaster,’ outlined a strategy for reducing emissions. Now, he asserts that ‘Emissions projections have gone down, and with the right policies and investments, innovation will allow us to drive emissions down much further.’
However, this perspective isn’t universally accepted. The Paris climate pact, established a decade ago, aimed to control emissions to limit global temperature rise below 1.5 degrees Celsius. Just last week, U.N. Secretary-General António Guterres stated that ‘overshooting is now inevitable.’
Looking Ahead: While Gates acknowledges the critical importance of every degree of warming, he urges policymakers at the upcoming COP30 climate summit in Brazil to expand their agenda. He calls for a focus beyond just emissions, urging attention toward preventing disease and combating poverty.
Strong Words on Aid: Gates is also outspoken on foreign aid. Following cuts to foreign aid budgets and the U.S. Agency for International Development during a previous administration, the Gates Foundation has increased its own funding for health and poverty initiatives in developing nations. He firmly believes these issues are intertwined with climate challenges, stating: “We can’t cut funding for health and development — programs that help people stay resilient in the face of climate change.”
(It’s worth noting that in May, Gates, who celebrated his 70th birthday recently, unveiled a 20-year spending plan that would see his foundation eventually close its doors.)
A Divisive Stance: Gates anticipates controversy over this revised approach. He told reporters prior to the memo’s release: “If you think climate is not important, you won’t agree with the memo. If you think climate is the only cause and apocalyptic, you won’t agree with the memo.”
Top Business Stories This Morning
Amazon announces major job cuts. The e-commerce giant revealed Tuesday it would lay off approximately 14,000 corporate staff. Reports from The Wall Street Journal suggest this figure could swell to 30,000. These reductions reflect the company’s efforts to curb expenses and correct for excessive hiring during the initial phase of the pandemic. Separately, PwC has reportedly halted plans to recruit 100,000 new employees, with The Financial Times highlighting warnings from recruitment experts about a looming ‘Great Freeze’ in the job market.
David Solomon dismisses ‘systemic crisis’ in private credit. During the Future Investment Initiative in Riyadh, Saudi Arabia, the CEO of Goldman Sachs downplayed concerns regarding the private credit market. This comes after the notable failures of First Brands Group and Tricolor Holdings. Despite Solomon’s reassurance, some analysts remain wary that the expansion of ‘shadow banks’ could conceal underlying financial risks. Jamie Dimon of JPMorgan Chase famously remarked on these failures, cautioning that “when you see one cockroach, there are probably more.”
AMD and Energy Department ink $1 billion supercomputer deal. A new partnership will see AMD and the Energy Department collaborate on building two supercomputers. These machines are designed to handle intricate experiments demanding immense data-processing power. Energy Secretary Chris Wright emphasized that this initiative aims to ‘supercharge’ advancements in areas like fusion energy, drug development, and defense technologies. The first supercomputer is slated for activation within six months and will integrate advanced AI chips, similar to those utilized by OpenAI for various applications.
Global Trade Deals: A Mixed Bag
The global stock market rally paused on Tuesday, as investors keenly awaited the concrete outcomes of President Trump’s recent trade tour in Asia. Here’s a quick look at the developments:
Trump’s Japan visit yielded more headlines than specifics. During his trip, President Trump and Japan’s new Prime Minister, Sanae Takaichi, signed two agreements. One focused on strengthening cooperation for rare earth metal supply chains, and the other built upon an initial framework deal from a previous administration in July. Trump declared, “We are an ally at the strongest level.”
Lack of specific details in agreements. Despite the White House’s announcement confirming a ‘strong commitment’ to ‘implementing this GREAT DEAL,’ the trade documents themselves were notably vague. They lacked concrete information regarding Japan’s July commitment to purchase American agricultural products (rice, soybeans) and automobiles, or its pledge to invest $550 billion in the United States.
- Likewise, the accord aimed at increasing the supply of vital minerals and rare earths offered few specific details.
- Earlier in the trip, Trump had also secured similar agreements with Malaysia, Thailand, and Cambodia, seeking to enhance U.S. access to these crucial resources and lessen global reliance on China.
- A more concrete outcome from the Japan visit was Prime Minister Takaichi’s promise to boost Japan’s military spending to 2% of its GDP by March, accelerating the target by two years. This aligns with the previous administration’s broader push for allied nations, particularly those hosting U.S. bases, to contribute more to their own defense.
China remains a central point of discussion. President Trump’s upcoming meeting with Chinese President Xi Jinping in South Korea on Thursday is confirmed. Treasury Secretary Scott Bessent indicated that discussions on Air Force One would cover the recently established U.S.-China trade deal framework, alongside issues such as fentanyl, rare earth minerals, and China’s agricultural product purchases from the U.S.
Xi Jinping’s diplomatic objectives. President Xi is anticipated to use the meeting to advocate for a reduction in U.S. diplomatic support for Taiwan.
In other trade developments, the Mexican peso saw a boost on Monday. This followed news that Mexico and the U.S. had agreed to postpone a November 1 deadline for a trade deal by several weeks, thus averting punitive tariffs.
Exclusive: Livestream Shopping Start-Up Secures Significant Funding
Livestream shopping, a vibrant e-commerce format often likened to a modern QVC experience tailored for the TikTok generation, has seen a surge in popularity across Western markets recently.
DealBook exclusively reports that Whatnot, a leading platform in this burgeoning sector, is set to reveal a substantial new funding round, attracting significant investment at a high valuation.
Whatnot secures $225 million at an $11.5 billion valuation. The Los Angeles-based company is slated to announce Tuesday that it has raised $225 million, pushing its valuation to an impressive $11.5 billion. This latest funding round follows closely on the heels of its previous one, less than a year ago, when the company was valued at just under $5 billion.
The investment round was spearheaded by DST Global and CapitalG, Google’s growth-capital arm. Notable new investor Sequoia Capital also participated, alongside existing backers Greycroft, Andreessen Horowitz, Avra, and BOND.
In addition to the new capital, Whatnot plans to allow its current shareholders to sell up to $126 million in company stock.
Investment fuels belief in livestream shopping’s growth. This significant funding round underscores strong investor confidence in the expanding appeal of livestream shopping. The format, which originated in China in 2016, involves sellers broadcasting interactive product presentations, often resembling highly produced entertainment shows.
A testament to Whatnot’s rapid expansion. The investment also reflects a belief in Whatnot’s impressive growth trajectory. The platform, which launched in 2019 primarily for selling Funko collectible figurines, has since dramatically broadened its scope:
- The platform recently surpassed $6 billion in total merchandise sales, a figure that has doubled since the close of 2024.
- On average, viewers are now engaging with livestreams on Whatnot for over 80 minutes.
- Initially focused on collectibles, the company now hosts a diverse array of categories, including fashion, electronics, and even live plant sales.
Laela Sturdy, a managing partner at CapitalG and a Whatnot board member who has followed the company since 2021, expressed confidence to DealBook, stating, “We have gained conviction with each round.”
Challenges ahead for Whatnot. Despite its success, Whatnot navigates a competitive landscape. It faces rivals from other specialized livestream shopping platforms, as well as established e-commerce giants like Amazon and Poshmark. A particularly formidable competitor in the livestream shopping arena is TikTok Shop.
The broader question for the industry is its ultimate market size. According to eMarketer, the livestream shopping sector is projected to reach $49 billion in sales this year, potentially expanding to $60.6 billion by 2028. However, eMarketer also notes a predicted significant slowdown in growth over this period, with sales outside of China considerably lagging behind the Chinese market.
Ambitious expansion plans. Whatnot’s co-founder and CEO, Grant LaFontaine, shared with DealBook his vision for international expansion. He aims to bring the company to additional markets by the end of 2026, with a keen eye on Asia, including Japan.
AI Perceptions: A Divide Between Investors and the Public
The promise of artificial intelligence to dramatically boost workplace productivity has fueled widespread corporate adoption and sparked a surge in investment.
A recent survey by JUST Capital, released Tuesday, reveals a striking consensus among investors: 96% of those polled are optimistic about AI’s capacity to enhance workplace efficiency. This robust confidence, perhaps, comes as no surprise given the significant capital flowing into AI.
Public sentiment shows caution. In stark contrast, only 47% of non-investors surveyed believe AI will positively impact workplace productivity. The survey specifically differentiated between the perspectives of investors and the general public.
However, both groups found common ground on one crucial aspect: the necessity of increased investment in AI safety measures.
Consensus on AI safeguards. A majority, comprising 57% of investors and 53% of all other respondents, agreed that companies should allocate over 5% of their total AI budget towards ‘guardrails.’ These safeguards are deemed essential to prevent the technology from causing negative impacts on specific societal groups or society at large.
Quick Business & Tech Headlines
Key Deals:
- Keurig Dr Pepper’s stock surged following news of a $7 billion funding round from Apollo and KKR, aimed at financing its acquisition of JDE Peet’s.
- Lukoil, Russia’s second-largest oil producer, announced plans to divest its international holdings shortly after facing new sanctions.
Politics, Policy & Regulation:
- Reports indicate that the Consumer Financial Protection Bureau intends to prevent states from excluding medical debt from certain individual credit reports.
- The largest federal workers’ union has urged Congress to pass a spending bill to resolve the government shutdown, thereby aligning with Republican positions against previous Democratic proposals.
Other Noteworthy Updates:
- An investigative report details ‘the Trump family’s global crypto cash machine.’
- JPMorgan Chase is said to be permitting employees to utilize its internal AI chatbot for generating year-end performance reviews.
We value your thoughts and suggestions! Please send any feedback to our team.