• YouTube's ad revenue fell short of analysts' expectations for the third quarter.
• Its parent reported $11.2 billion in Q3 ads revenue, under analysts' $11.43 billion estimate.
• The company said it now has 150 million YouTube Music and Premium subscribers, up from 125 million in March 2025.

YouTube's ad revenue growth slowed down, missing analysts' estimates in the third quarter.

Its parent company, Alphabet, reported $11.2 billion in third-quarter YouTube ads revenue, a 9% increase from a year ago. That falls below the $11.43 billion analyst consensus estimate. Its ads revenue growth also slowed from the previous quarter, when it pulled in about $11.1 billion, a 13% increase from the previous year.

Beyond YouTube, Alphabet missed expectations in other areas of its business, including on overall revenue. In a bright spot, it beat revenue estimates for its cloud business.

The company's shares were down over 10% in after-hours trading.

While YouTube's ad revenue was weaker than expected, it wasn't all bad news. The company said it now has over 150 million YouTube Music and Premium subscribers, up from 125 million in March 2025. The company said its subscriptions business was growing faster than ads.

YouTube has also been the envy of rivals in key areas like TV viewership. Its share of US television viewership was about twice that of Netflix in August, according to recent Nielsen estimates. Over a third of YouTube's third-quarter ad revenue came from the living room, Google's chief business officer Philipp Schindler said on Wednesday.

Netflix, meanwhile, walked back its full-year ad revenue expectations during last week's earnings. The streamer lowered its ad revenue forecast from $3 billion to $2.7 billion after experiencing delays around the rollout of its ad products. It laid off about 1,000 workers earlier this month.

This week, Instagram unveiled an overhaul of long-form video features seemingly designed to counter YouTube and bolster its presence on TV screens.

"Everyone in streaming is chasing YouTube, and even Instagram is going to pivot their strategy based on the success that YouTube's had," said Ross Benes, a senior analyst at EMARKETER, Business Insider's sister company.

• Microsoft is offering buyouts to about a quarter of its workforce.
• In an internal memo, Microsoft's finance boss said the company expects "very few people" to accept.
• Employees had been questioning the rationale behind the offer, the memo said.

Microsoft expects 3,000 or fewer employees to accept the buyout it offered this week to more than a quarter of its workforce, a spokesperson told Business Insider.

The point was reiterated on Wednesday by Chief Financial Officer Amy Hood, who wrote in an internal memo that employees have been questioning the rationale behind the buyout.

"I know there have been some questions on the rationale behind the voluntary exit offer that we announced this week," Hood wrote. "Our intent is to offer employees agency if they choose to leave the company on their own terms. We expect very few people to select this offer because of the growth opportunities here at Microsoft."

The memo statement was part of a quarterly earnings email Hood typically sends internally to employees every quarter when Microsoft discloses its financials.

These memos mostly repeat what the company reports publicly, but this time Hood went out of her way to address the buyout offer, which caused quite a stir across the tech industry this week.

Earlier this year, Microsoft offered a different retirement buyout. In that situation, about one-third of eligible employees took the offer, and that helped Microsoft cut fewer employees in subsequent layoffs.

This week's buyout is getting a lot less uptake, according to the company.

Read the CFO's full memo

Team,

This afternoon, we announced our first-quarter financial results. We exceeded Wall Street expectations, growing revenue 19% and operating income 21%.

With the start of FY27, we also made an important change to how we report our business. We announced that we changed our reporting structure for the first time in 12 years, moving from three segments to two: Agents and Infra, and Devices and Consumer. This change better reflects how we are running the business today — from how we build products and allocate resources to how we create value for customers across the connected layers of our platform. To give you a sense of the two segments, looking back to last fiscal year, Agents and Infra would have represented about 81% of our revenue while Devices and Consumer would have been 19%.

A few highlights from the quarter across our two new segments:

• Agents and Infra grew revenue 23% this quarter
• Microsoft Cloud revenue was $63.9 billion and accelerated to 30%.
  Azure revenue increased 48% reflecting accelerating Foundry demand.
• Microsoft 365 commercial cloud revenue increased 18% in constant currency driven by growth in our premium seat offerings like Copilot and E7 as well as usage-based services across M365 Copilot and GitHub Copilot.
• Microsoft 365 commercial seats increased 5% and the number of customers with more than 50,000 M365 Copilot seats increased 8x year-over-year.
• Microsoft 365 consumer cloud revenue increased 17% with subscriber growth of 7%.
• Industry solutions cloud revenue increased 10% with growth in Dynamics 365 and LinkedIn Talent Solutions.
• Devices and Consumer declined 3% this quarter
• Search and advertising revenue ex-TAC increased 12%, with growth across LinkedIn, Bing, and Edge.
• Windows OEM and devices revenue decreased 22%, reflecting the prior-year benefit from Windows 10 end of support, inventory drawdowns by OEM partners, and weaker PC market demand.
  XBOX content and services revenue decreased 2%. Last week, we launched Call of Duty: Modern Warfare 4, as we continue to bring great games to more players across more devices.

Thank you for everything you did to deliver a strong start to the year. In particular, I want to thank our engineering and capacity delivery teams who are working to help us deliver more capacity faster and with high reliability. These teams are also using the capacity we have more efficiently to create room for us to better meet customer demand for the Azure platform, which continues to exceed our supply.

I know there have been some questions on the rationale behind the voluntary exit offer that we announced this week. Our intent is to offer employees agency if they choose to leave the company on their own terms. We expect very few people to select this offer because of the growth opportunities here at Microsoft. We'll continue to provide a broad set of options for employees to learn, gain new skills, and advance their careers here.

We have tremendous opportunity ahead of us. To meet the moment, we are focused on delivering great products and solutions that help our customers to achieve their many goals — security, innovation, growth — to name a few. Thank you for keeping positive, value-creating outcomes for our customers at the top of the list.

To hear more details about the quarter and our outlook for Q2, you can join live today at 2:30PM Pacific Time, listen on-demand, or read the transcript on the Investor Relations website. Finally, mark your calendars for Microsoft Ignite, on November 17-20, where we'll show how our innovation across AI, cloud, data, security, and Copilot is coming together to help customers transform their businesses.

With appreciation and gratitude,

Amy

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• Google's AI chip business is turning into a TPU-shaped headache for Nvidia.
• A blockbuster deal with Oracle will put Google's TPUs inside another hyperscaler.
• Is the market underestimating the potential of Google's chip business?

Earlier this year, Nvidia CEO Jensen Huang downplayed the threat of other companies building competing AI chips, including Google.

"Without Anthropic, why would there be any TPU growth at all?" he said in an interview with podcaster Dwarkesh Patel, referring to Google's custom chips. "It's 100% Anthropic."

That is no longer the case.

On Tuesday, Google and Oracle announced a blockbuster deal that will see Google's TPUs, short for Tensor Processing Units, made available to Oracle cloud customers from next year. As the companies underscored in a joint announcement, it's the first time Google's TPUs have been offered on a hyperscaler's platform beyond its own.

Anthropic isn't the only one Nvidia should be worried about. OpenAI has a job listing for a software engineer to optimize its models for TPUs, and The Information reported Tuesday that OpenAI plans to buy TPUs from Google.

Meanwhile, several analysts have predicted Google's TPU business is about to explode as more companies hedge their bets with a multichip strategy — providing an opening for Google and others to further move onto Nvidia's turf.

Despite this, Nvidia's chip business still eclipses everyone else's, including Google, which is also a big customer of Nvidia's GPUs. Yet Google's AI chips, which the company began building more than a decade ago to power search and other products, might be poised for takeoff.

On Wednesday, during Google's third-quarter earnings call, chief financial officer Anat Ashkenazi said the company expects a "meaningful revenue ramp in 2027" in TPU sales.

Cloud chief Thomas Kurian also said on the call that TPU sales were a "meaningful contributor" to the company's Q3 financials.

In its IPO paperwork filed this week, Anthropic said it planned to spend $114.5 billion on Google compute between April 2026 and July 2033. While it didn't specify how much of that would go to TPUs specifically, it estimated spending between $125 billion and $150 billion on TPU capacity from Google and other providers.

In the same filing, Anthropic said it's also using Amazon's Trainium chips and AMD's GPUs, as well as chips from Nvidia and Google.

All told, this might be Nvidia's nightmare scenario coming true. If companies are increasingly using a multichip strategy, it could hamper Nvidia's pricing power.

Google declined to comment, and Nvidia and OpenAI did not respond to requests for comment.

TPU takeoff?

Google's TPU business may only be getting started.

In notes published this month, Japanese banking group Mizuho projected TPU revenue of $28 billion for 2026 and $67 billion in 2027. Mizuho said Google could see that number reach as high as $100 billion in 2028, while TD Cowen's John Blackledge projected it could reach $138 billion, accounting for 34% of Google Cloud's 2028 revenue.

That number is still dwarfed by Nvidia, which reported $96.2 billion in revenue in the previous quarter alone, and the market reacted with a shrug on Wednesday as its share price stayed flat.

Some analysts, though, think the market is underestimating Google, especially as more companies look to reduce their reliance on Nvidia's GPUs.

"We believe Google's TPU hardware business is emerging as a materially larger opportunity than what is currently reflected in consensus estimates," Mizuho analysts wrote in a note published October 18, adding that selling TPUs outright — rather than renting them from Google's own data centers — could ease Google's aggressive capex spending.

And even if that spending continues to soar — and right now, there are no signs the foot is coming off the accelerator — analysts at Bank of America said Google's cash-splashing looks "relatively efficient" compared to its peers, as TPUs continue to power the company's own AI efforts.

For Google, it's the payoff of a decade-plus investment in silicon that was originally designed to make Search smarter. It could also act as something of a buffer against damage to its core search business as AI agents eat Google's lunch, Mizuho also said this month.

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• AI coding startup Cogniton is fielding offers for a new funding round.
• The round could value Cognition between $70 billion and $80 billion, according to people familiar with the matter.
• The new offers come weeks after the company announced a $2 billion round at a $48 billion valuation.

Just weeks after announcing a new round of funding at a $48 billion valuation, AI coding startup Cognition is fielding new investor interest at a much higher price.

The startup has received offers valuing it at between $70 billion and $80 billion and is seriously considering a round before the end of the year, according to sources familiar with the matter.

The talks around the financing are still early, and valuation targets could still change.

Founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, Cognition is best known for Devin, an AI coding agent designed to automate software engineering tasks. The San Francisco-based company's existing investors include a16z, Accel, Founders Fund, Khosla Ventures, Elad Gil, and Pear VC.

Cognition's rapid valuation climb underscores the investor frenzy around AI coding, one of the hottest and most competitive corners of the AI market. As companies race to sell AI coding agents that can take on more of the work engineers do, investors are placing increasingly expensive bets on the few startups they think could emerge as leaders.

A $75 billion valuation wouldn't be so far-fetched, as SpaceX just acquired fellow AI coding giant Cursor for $60 billion a few months ago.

Last month, Cognition was drawn into a public feud with rival Factory AI, which accused Cognition employees of posing as job applicants to seek product information and faulted a former Factory adviser for meeting with Cognition executives. Cognition and the former adviser denied that confidential information was sought or shared.

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• The startup world is littered with companies that tried to become the next YouTube.
• Andrew Morse is trying it again, anyway.
• Morse's pitch: a curated app that gives creators incentives a reason to give it exclusive content.

Are you sick of the algorithms that serve you video on giant platforms like YouTube and TikTok?

Or are you a video-maker who's sick of the algorithms that don't serve your stuff to would-be watchers?

Andrew Morse would like to talk to you.

Morse, who spent years working in big media (Bloomberg, CNN) and most recently in local news (The Atlanta Journal-Constution), is building Phareo, a startup he hopes will one day rival internet media heavyweights. The secret sauce, he says: his own AI-powered discovery engine that will make both video-watchers and video-makers happy.

This is, to put it politely, a very tall order.

But it's still worth talking about, since Morse is homing in on a problem you hear a lot about in creator circles these days: the sense that people who make content are getting increasingly bad deals from platforms, because they can't control who sees their stuff.

Phareo (the name is an allusion to Pharos, the ancient lighthouse of Alexandria) says it can solve that problem by giving creators real incentives to make exclusive stuff for the company, via levers like revenue share and options. Morse plans to launch in January with an initial group of 25 creators. The app will start out as a free, ad-supported service, but he hopes to eventually offer a paid tier.

I talked to him this week about his plans, the shifting media landscape, and why he's increasingly worried about the creator economy — at the same time he's launching a creator economy app. This is an edited excerpt of our conversation:

Peter Kafka: You have a classic chicken/egg problem: Consumers are not going to use a new app unless it has compelling content they can't get somewhere else. 
Content-makers don't want to put their stuff there unless there's a big audience.

Andrew Morse: It is the most important question we have to solve.
It starts with dissatisfaction, and it starts with a belief from consumers and creators, that they're not being currently served as well as they could be. So we're working with creators who believe that there has to be a better alternative.

We don't really have anything to lose, given the direction that the platforms are taking and given the overreliance that their creative work has on algorithms that don't serve them. We're going to build with creators and try to build a super-passionate core and grow from there.

But YouTube, TikTok, Reels, etc do a great job of giving me tons of video. And they have unlimited content. How do you move me over from the platforms I'm already using?

It's an ironic conundrum — we're trying to solve the discovery problem, but we have to be discovered ourselves.

Over the years, I've seen many companies say they're trying to solve a discovery problem. 
But it doesn't seem like consumers have a discovery problem. It's the content owners who have a problem getting their stuff in front of consumers. What's the incentive for consumers to move to a platform content-owners like? 


There's an inherent assumption that consumers are satisfied with the platforms. I don't think that that's true. I think consumers are on these platforms because they have to be. Whether they're getting what they want in an efficient way is an entirely different story.

Any advice for your former CNN colleagues who are now working for David Ellison?

Stay focused on the work. It's always the journalism that matters. 
And the truth and the facts and great storytelling will always rise to the top.

We have seen a steady stream of journalists leaving places like CNN and starting their own thing. Do you think that trend accelerates or stalls out as people realize how difficult it is to do solo media for a living?

I'm concerned about this creator economy — which is really about about businesses that have built themselves on the back of YouTube. If you go back to 2016, 2017, a number of really clever, really creative businesses were built on the back of social platforms. When the algorithms changed, it became almost impossible for these businesses to stay afloat. It was hard for us at CNN, but we had a big enough business that we were able to mitigate and ride the wave. For these other companies, it was disastrous. 


I think you're going to see more and more people trying to go out on their own — and that's what scares me. 
Because I think that the sands may begin to shift a little bit.

• Dalet Labs, an AI commerce startup, is coming out of stealth mode with a $7 million pre-seed round.
• It's launching a new app called Scene, where you can scroll through shoppable, AI-generated images.
• Read the 5-page pitch deck the startup used to raise capital — months before finalizing its product.

Would you shop from a feed of AI-generated images?

The startup Dalet Labs is betting you will.

The AI-commerce company exclusively told CMO Insider that it raised a $7 million pre-seed round led by Lightspeed Venture Partners and is launching its first product, a shopping app called Scene.

Founded by Omer Bar-Tal in 2025 after he left the AI video startup Runway, Dalet Labs recently came out of stealth mode. The startup raised its pre-seed in late 2025, before finalizing its product road map. In addition to Lightspeed, venture capital firm SV Angel and individual angel investors participated in the round.

Lisa Han, the Lightspeed partner who led the round, said that Bar-Tal has a combination of "video AI research expertise" and a "deep understanding of what consumers want."

Scene, which became available on the Apple App Store in the US on Wednesday, lets people scroll through a feed of shoppable AI-generated images. The app will be invite-only at launch, and isn't yet available on Android. While the images of people or scenes are AI-generated, the products themselves come from real brands across categories like fashion, home decor, and sports.

Bar-Tal envisions Scene as a tool people can turn to when they want to buy something but are still uncertain about exactly what they have in mind. It's similar to scrolling through Pinterest or TikTok in hopes of being inspired to buy something, but Bar-Tal said there's a key difference: You come to Scene to shop, not be entertained.

Bar-Tal sees Scene as a virtual "mall" where users can window-shop, save items to their cart, and make purchases.

Commerce has become an increasingly attractive use case for AI tools like chatbots and agents (including Meta's Muse). However, Bar-Tal argues that AI shopping tools are missing something.

"AI is amazing when you know what you want, but it's really important to actually have an ability to discover and to see things," Bar-Tal said. Agentic commerce, he added, "misses the point in shopping — which is essentially a delightful experience."

As a Scene user scrolls and interacts with products linked in the app, the feed adapts to what type of brands or items the user is interested in. Then, Scene uses AI to generate scenes with people wearing or using those items.

Bar-Tal did not comment on which third-party models Dalet Labs uses.

Bar-Tal said Dalet Labs doesn't see its product as replacing influencers, but rather as "complementary."

"The content here is AI, but it is not aiming to replace creators because we are not aiming to create entertainment," he said.

However, even if Scene isn't competing with influencers for entertaining content, it's still competing with their business model: making money by promoting brands' products and ultimately driving sales.

Scene has a catalog of hundreds of brands and retailers, Bar-Tal said, and is making more partnerships. The company did not share further details on what brands Dalet Labs has already established relationships with.

Bar-Tal said the company is also leveraging affiliate marketing to monetize the app early on, working with affiliate networks to earn from each in-app transaction.

Dalet Labs' Scene is entering a crowded market of apps offering people ways to discover brands and goods, like TikTok's growing Shop presence in the US or Pinterest's visual search prowess. Startups like Doji and Alta have also raised millions on the promise of tech that lets people try on clothes using AI-generated versions of themselves.

How will Dalet Labs get people to download an entirely new app?

Using influencers and social media to promote the app will be a core part of Dalet Labs' user acquisition plan. It also plans to roll out a coupon campaign during the holidays, offering new users discounts on purchases made through the Scene app. Bar-Tal didn't share whether the discounts would be funded by Scene or by brand partners.

The New York-based startup, meanwhile, is using its pre-seed funding to hire more engineers and researchers to build out Scene.

Read the 5-page pitch deck Dalet Labs used to raise its $7 million pre-seed:

The deck starts with background on the technology

Here's what the slide says:

For over half a century, every major shift in computing has been driven by an interface revolution.

The move from terminals to graphical user interfaces (GUIs) transformed computers from expert tools into mass-market products.

The rise of the web and mobile extended that pattern: each new medium made digital interaction more visual, intuitive, and consumable.

Text, by nature, demands active cognitive effort; Visual interfaces go a step further by allowing users to grasp high bandwidth information almost instantly with minimal cognitive effort.

Then it explains Dalet Labs' thesis

Here's what the slide says:

Today, artificial intelligence represents the most profound computing shift since the PC. Yet, paradoxically, our interface to AI remains stuck in the terminal era.

We converse with models through text prompts and receive text streams in return in synchronous manner. Our product thesis is simple and inevitable: AI requires a native GUI.

We believe the GUI to AI will not be code-based, but rather generated by media models.

It then outlines the competition

Here's what the slide says:

The core product of AI consumption platforms is inseparable from their textual chat interfaces.

For example, the OpenAI brand is strictly associated with the chat interface of ChatGPT.

Moreover, by decoupling the user interface from any specific model provider, we can integrate multiple frontier models (OpenAI, Anthropic, Google, or open-source systems) and focus our innovation on the new media generation GUI platform. This modularity becomes increasingly valuable as AI models are commoditized. In addition, their technical stacks are anchored in the code generation paradigm, in contrast to our focus on Media Models.

Finally, it introduces Dalet Labs' founder

Here's what the slide says:

Omer Bar-Tal

• Research experience from Weizmann Institute.

  • Built the first method for editing real-world videos using text
  • Papers in CVPR, ECCV, ICML, ICLR etc.
• Trained video foundation models (Google, Pika, Runway)
• Built creative applications with media models (eg video editing, reference-to-video, etc.)
• Led applied research teams and product launches

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Keep calm: We have a plan.

That's essentially been the adtech industry's response to Apple's latest crackdown on web trackers.

The workaround may only be a temporary fix, however.

Apple recently implemented new restrictions in its Safari browser designed to stamp out "identity resolution," a method used to track users across different devices and websites by linking data points such as IP addresses, email addresses, and other identifying information collected about them.

Adtech has largely united around a proposed solution: Move the identity resolution process so it takes place inside publishers' and adtech companies' servers rather than in the browser, where Apple has more control. Adtech industry execs have said the move will mitigate disruptions to publishers' revenue and measurement from Apple's blockers, while still allowing them to respect users' privacy choices.

Privacy experts, on the other hand, say that while the server-side shift might succeed temporarily, it's far from a permanent solution. Apple has made it clear that attempts to circumvent its tracking protections could trigger further restrictions on adtech companies.

"It's tough to predict how long Apple would need to find ways to block workarounds, but adtech companies that bet against the browser are in for a rude awakening at some point in the future," said Zach Edwards, a cybersecurity researcher and cofounder of the adtech transparency platform DecryptAds.

The stakes extend beyond the adtech companies whose technology Apple is blocking. Publishers and advertisers have increasingly relied on identity resolution to target specific audiences and to measure whether campaigns are working. If identity resolution becomes less effective, advertisers could shift more of their budgets away from web publishers and to platforms like Google and Meta that have reams of their own logged-in user data.

Anthony Katsur, CEO of the IAB's Tech Lab, which created the Trusted Server project, said its estimates show that the Apple-powered browser ecosystem accounts for 40% of total web traffic, which leaves a large chunk of potentially unaddressable ad inventory.

"That creates tremendous downside for media companies to then prove themselves to agencies and brands they work with that, yes, a consumer saw this ad, and they converted," Katsur said.

How Apple could thwart adtech's server-side solution

How could Apple block identity resolution if the data matching occurs only on servers outside its control?

There is a precedent. When Apple blocked third-party tracking cookies in Safari, some adtech companies used a workaround called CNAME cloaking. It made third-party trackers appear to Safari as if they belonged to the website a reader had chosen to visit — known as "first-party" activity. Apple soon identified and developed protections against that tactic.

Edwards said many server-side tracking systems still rely on cookies or other identifiers stored in a user's browser to recognize them across websites. Apple can block the collection of identifying information before it reaches the server.

Privacy-focused browser company Brave, for example, already blocks scripts that are known to collect and record information used for server-side identification, said Pete Snyder, the company's principal researcher.

Katsur of the IAB Tech Lab said the switch to server-side isn't an attempt to trick the browser.

"This isn't about circumventing consumer privacy preferences; this isn't about circumventing regulations; it's about moving the advertising stack to a publisher-controlled server-side solution that complies with legal regulations," Katsur said.

He added that through the Trusted Server, publishers can also strip out unwanted third-party tracking identifiers from ads.

Katsur acknowledged Apple was likely to clamp down on server-side identity resolution eventually, but that the tech giant risks breaking essential web functionality if it goes too far.

The consumer opt-out option

Some server-side matching may be impossible for Apple to stop through browser technology alone. If someone provides their home address to an e-commerce site for delivery of their purchase, Apple's Safari can't prevent the retailer from knowing it. The retailer could then potentially use that information to match the customer against other databases.

Snyder said it's why Brave supports consumer opt-out mechanisms like the Global Privacy Control signal, a browser setting that tells a website a user doesn't want their data sold to or shared with third parties for targeted advertising, a preference companies must honor where the law requires it. Starting January 1 next year, the state of California will require browsers to provide an easy-to-find setting that lets users opt out of having their personal data sold or shared.

"Protecting users against this kind of tracking requires 'privacy in depth,' or using a wide range of privacy protections, by default and automatically, to minimize how often users share identifiers, and to, whenever possible, block sites trying to collect those identifiers," Brave's Snyder said.

Moving identity resolution to servers may temporarily put the method out of Safari's current reach, but not necessarily out of Apple's sights.

"This is basically a cat-and-mouse game, but the cat in this instance is a trillion-dollar company controlling one of the most valuable user data supply chains in the world," Decrypt Ads' Edwards said.

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Hugo Veiga and Diego Machado — the former AKQA global chief creative officers — spent two decades building brands at some of advertising's most storied creative agencies. Their next bet: a new type of agency that wants to be paid not just in cash, but in a share of the businesses it helps build.

Veiga and Machado exclusively told CMO Insider this week that they have launched !F Creative Capital, a company that combines conventional commissions with equity partnerships and revenue-sharing arrangements tied to clients' sales.

Rather than charging an upfront fee alone, !F Creative Capital offers creative consultancy in exchange for equity in companies it believes can grow. For example, it took a stake in the superfoods brand Authentic Fruits in a deal that includes a three-year creative engagement, a share of sales, and additional equity tied to sales performance. It has equity in CheckMy.Music, an AI platform that scans songs for plagiarism, and an equity partnership on a new project led by former Chelsea FC and Real Madrid manager Carlo Ancelotti.

A long-held complaint on Madison Avenue is that agency holding companies prioritize businesses such as media buying — and, increasingly, data, technology, and AI services — because they are easier to package, measure, and sell repeatedly than bespoke creative work. Veiga and Machado said that !F Creative Capital was born out of a desire to create a model that more effectively ties the value of creative ideas to business results.

"In many of the creative industries, everyone is too busy doing decks, doing keynotes, and losing the connection with the final thing," Machado said.

!F Creative Capital has also launched its own brands, including SNIFF, a pet company that lets dogs smell food before their owners buy it, and Baitts, a toothpick brand.

Elsewhere, the company is coproducing a feature film set for release next year, and it's preparing to launch an eight-week "School of Creative Entrepreneurship" to help people turn their ideas into businesses.

While !F Creative Capital has taken on commission-based creative work for brands including Corona and Cristiano Ronaldo's Globe Sports Award, Veiga and Machado said they are reinvesting that money into the equity-focused side of the business and their in-house projects. !F Creative Capital is self-funded and has a team of around 15 people spanning seven countries, along with a broader network of contributors.

'You have an idea, and you give it for free'

Veiga said the long-term vision is for !F Creative Capital to become independent from commission work as it builds its own brands and effectively becomes its own client. The result might look more like a holding company for brands than the creative agencies where the duo made their name.

"A lot of times you have an idea, and you give it for free, or you push to make it happen without owning that," Machado said of the agency business.

Adland's creative agencies have explored similar equity-focused business models in the past. Uncommon, the London-based studio in which Havas acquired a majority stake in 2023, took equity in the compostable coffee pod company Halo and the finance app Communion. In 2010, former Deutsch exec Mike Duda cofounded the hybrid early-stage venture firm and creative agency that later became Bullish. Anomaly, now owned by Stagwell, began incubating and acquiring stakes in brands in the 2000s.

Brian Wieser, CEO of the advisory and consulting firm Madison and Wall, said that while the equity model still persists in the agency industry, the practice isn't common and mostly ties to the individuals running those companies because the skill sets are different.

"Most people who can do venture well focus on venture capital," Wieser said. "But the right person with the right relationships can make this happen."

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McDonald's is exiting the playing field.

The fast-food giant's surprise decision to end its 32-year run as a FIFA World Cup sponsor shows how major global brands are reassessing the cost, clutter, and commercial return of sports' biggest properties.

McDonald's ran its largest-ever World Cup marketing push during this summer's tournament, and McDonald's CFO Ian Borden said on an August earnings call that the effort "underperformed versus our expectations."

The company said last week that it had decided not to renew its current deal, which is due to end this year. It also indicated to FIFA that it isn't looking to invest in next year's Women's World Cup, according to a person familiar with the matter.

Sports sponsorship is seen as a way for brands to tap into huge, live global audiences and associate themselves with the feel-good factor of athletes' achievements. Management consultancy Kearney estimated the global market for sports sponsorship and in-venue advertising at $52 billion in 2025 and expects it to grow by 8% to 9% annually through 2030, reaching about $80 billion.

While many marketers continue to spend heavily on sports, they often find it hard to measure the commercial uplift from their sponsorship outlays. Research from Forrester, published in 2025, found that 76% of US business-to-consumer marketing executives who invested in sponsorships the prior year reported struggling to calculate the return on investment, or ROI, of their sports sponsorships.

"They are gaining a lot of traction around brand awareness, but can't necessarily calculate the hard and fast ROI numbers to prove to their CFOs that the money and long-term commitment for these kinds of sponsorships are necessary," Mike Proulx, a Forrester VP, told me.

For McDonald's, the figures evidently didn't justify a renewal. The deal was valued at $40 million annually, per the research firm GlobalData Sport.

For a globally recognized brand such as McDonald's, the scope for the World Cup to deliver another spike in brand awareness and associated sales may have reached its ceiling. Heineken appeared to make a similar recalculation last year when it said it would end its 30-year UEFA Champions League partnership in 2027. The brewer said it was shifting its sponsorship focus to platforms "where spend is proportionate to value creation," while retaining Formula 1 and adding Premier Padel.

McDonald's CMO Morgan Flatley said in a statement last week that sports remains important to its marketing strategy. At the company's September investor day, Flatley said she was focusing her campaigns "on McDonald's collection of iconic IP, not someone else's." The company continues to sponsor dozens of sports properties, including France's Ligue 1 top-flight soccer league and the All-American Games.

The 2026 World Cup reached nearly 6 billion people worldwide across different platforms, according to FIFA, which helps explain why brands continue to spend heavily to be associated with it. While FIFA has not disclosed a final sponsorship total for the 2026 World Cup, its latest budget forecasts $2.8 billion in marketing-rights revenue across all commercial partnerships in the 2023 to 2026 cycle. That would be about 59% more than it generated across the 2019 to 2022 Qatar cycle. For the 2026 tournament, FIFA also introduced a program that allowed host cities to sell local supporter packages, making the sponsorship market increasingly crowded compared to previous years.

Rory Natkiel, founder of sponsorship effectiveness consultancy Box Count, said the additional host-city partners risked shrinking McDonald's "share of property" — the portion of the event's commercial attention it could realistically command.

That dynamic could make smaller or newer sports properties more attractive to mature global brands. While they might not offer the global scale of long-standing events like the World Cup, they can provide greater flexibility to tailor marketing to specific audiences and channels than the tightly controlled multiyear packages from major rights holders allow. For a company like McDonald's, that could open up an opportunity to offer consumers an experience they remember rather than a sponsorship they simply expect.

"If they start going into new sports and trying to attract a different audience to the global football audience — padel for a slightly more premium audience, or whatever it might be — it does create a new compelling angle and a new avenue for creativity," said Rory Stewart-Richardson, a longtime sports sponsorship executive.

Stewart-Richardson said he wouldn't be surprised if other legacy brands start recalibrating their sponsorship deals, focusing more on local markets and digital activations, with an emphasis on "building from the consumer out rather than trying to buy into temporary cultural relevance."

Amazon warehouse workers used to spend much of their days walking, pushing carts through long aisles to manually retrieve customer orders from shelves.

Today, hundreds of "Hercules" robots do this instead, carrying towering yellow storage pods filled with inventory to employee workstations.

"I'd walk like 10 miles a day on average," said Mohammed Khan, who started as an entry-level picker 12 years ago and is now a senior manager at an Amazon warehouse in Tracy, California.

Amazon's robots "cut down all that walking time," he told Business Insider during a recent tour of the facility.

This site is ground zero for a wave of automation that's beginning to wash over the industry. The warehouse and logistics sectors have been powerful sources of job growth since Amazon kicked off the e-commerce revolution 30 years ago, as Business Insider's award-winning Warehouse Nation series revealed in 2022.

If robots automate many warehouse tasks, this powerful engine of job growth could grind to a halt, wiping out thousands of positions and countless opportunities for future workers.

Amazon says employees are being retrained to do more valuable work, such as managing and maintaining robots. Will these new jobs be enough to cover what might be lost? Or could we actually end up with more or better jobs?

Business Insider went looking for answers inside the giant facility in Tracy, a city in California's Central Valley where suburban neighborhoods give way to open farmland.

"Autonomous to an extent"

Across 1.4 million square feet — the equivalent of 23 football fields — robots with names like Hercules, Robin, Cardinal, Pegasus, and Proteus move inventory and sort packages. But they don't run the warehouse alone. Human workers still pick and pack orders, load trucks, and intervene when automated systems fail.

Jobs have not disappeared, but they're changing. Machines increasingly handle work that once required employees to walk miles and lift boxes, while workers monitor and troubleshoot them. The Tracy site employs more than 3,000, up from roughly 1,000 when it opened in 2023, an Amazon spokesperson told Business Insider.

"They're autonomous to an extent," Khan said of his robot counterparts. "They still need a lot of help and maintenance and oversight."

An Amazon spokesperson said rising customer demand drove the facility's workforce growth and that robots help workers process more packages safely and efficiently rather than simply replacing them.

Amazon's more automated, next-generation fulfillment centers are about 25% more productive and cut order-processing time by as much as 25%. And these sites support roughly 30% more skilled jobs in areas including reliability, maintenance, and engineering.

The "Quarterback" watches robots

One of the workers now doing that kind of job is Briana Brager.

She joined Amazon about two years ago as an entry-level employee after spending years caring for her family. She had no prior experience in a traditional workplace.

Today, she's a process assistant who helps oversee the warehouse's robotic systems. When a chute jams or a robot stops working, she coordinates the response to keep packages moving.

"The robots do a lot, but we still have to maintain them," she said.

Brager began as a picker before moving into a specialized role supporting robotic-floor operations. She got two weeks of intensive training, followed by additional job shadowing, to learn how to work safely around the equipment. Her current job is less physically demanding than her previous one, she said.

Her role is informally known as the "quarterback" position. She monitors fleets of robots and dispatches employees when a machine needs intervention.

"We call the shots," Brager said.

Meet Robin

At the Tracy warehouse, humans and robots move orders together from storage to the loading dock. Employees stow individual items in fabric inventory pods, which Hercules robots carry to pick stations. Workers retrieve the items, then pack and label them.

Robin, a large robotic arm, picks finished packages off a conveyor and places them on small Pegasus mobile robots. Pegasus carries the packages to staging areas alongside other orders headed to the same destination. Cardinal then loads the sorted orders into carts, and Proteus ferries the carts toward outbound trucks.

Khan, the warehouse manager, said workers performed Robin's task manually until a few years ago. They handled packages one at a time, checked them for damage, scanned them, and fed them into the sorting system. He estimated that one Robin can perform roughly the work of two to seven people doing that process manually.

Amazon said that when it introduces systems such as Robin, employees take on other work at the site, including operating robots, clearing jams, monitoring the robotic floor and quality control, and maintenance engineering.

Robots move the carts, too

Proteus offers a clear example of how these new warehouse jobs are taking shape. Amazon brought the robots to Tracy last year.

Unlike Hercules, which operates in fenced-off areas, Proteus can move through spaces shared with people. There are roughly 200 of the robots at the Tracy facility, Amazon said.

Before Proteus arrived, workers manually pushed carts filled with packages to the loading dock. Now the robots pick up full carts, carry them to staging areas near the dock, and retrieve empty carts for the return trip.

Some employees who once moved those carts now work as "ground-floor monitors," Amazon said. Instead of spending their shifts moving packages, they respond when a Proteus reports a fault. If the problem is simple, they can reset the robot; otherwise, human maintenance staff take over.

Some workers trained in these jobs have gone on to Amazon's mechatronics apprenticeship program, which can lead to more technical maintenance work.

When automation hits the "jackpot"

For all the robots moving through the Tracy warehouse, people remain essential when automation breaks down.

Amazon calls one such destination the "jackpot." When an item loses its routing information while moving through the facility, the automated system sends it to this area, which works a bit like a lost-and-found for packages.

Here, a human worker must determine where the wayward package belongs and return it to the correct flow. "It will require manual intervention," an Amazon representative said.

Other situations require human judgment, too. Products can fall from storage pods and inventory can be damaged or mislabeled. Packing individual products into boxes and loading them onto delivery vehicles are tasks that also remain heavily dependent on people.

This helps explain why even a highly automated Amazon warehouse still employs thousands of workers. The company said it needs people for new packing stations as well as roles across the facility that keep operations running safely and efficiently.

Current and future Tetris

By the time packages get to the loading dock at the Tracy facility, the robots are gone. At least for now.

A person loads each trailer. Amazon uses equipment that extends into the trailer and adjusts to a worker's height, reducing bending and back-and-forth walking. But workers still arrange the packages themselves, trying to fill the trailer to use as much of the space as possible.

"It's a lot of Tetris," one Amazon representative said.

Amazon is already exploring how to automate this task, though. As Business Insider previously reported, Project Tetromino aims to use AI and robotics to automate sorting and vehicle loading at delivery stations, where the work has long remained stubbornly manual.

But that vision remains a work in progress. Amazon's machines can carry shelves, sort packages, stack boxes, and move carts around people. Workers still pack orders, load trailers, perform quality checks, handle hiccups and exceptions, and keep the machines running when they fail.

For Amazon, the immediate payoff is not necessarily a warehouse with fewer people, but one where the same workforce can accomplish more. Tracy employs roughly the same number of people as a nearby Amazon facility with fewer robots, company officials said, but the Tracy location processes more volume.

Khan compared the technology to something far less futuristic: a calculator.

The robots streamline work that once consumed employees' time without necessarily eliminating the work itself, he said. "It's not that the amount of work has changed," he said. "It's how we approach it."

Asked whether robots could eventually replace more jobs, including his own, Khan did not try to predict the future.

"Who knows? That's not in our purview right now," he said. "But I would say roles are evolving, and that's the cool aspect about it."

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