OpenAI, San Francisco, announced last week that it is launching a test version of their long-awaited search engine. SearchGPT will cite news sources such as News Corp. (publisher of the Wall Street Journal) and the Atlantic magazine (published by the Emerson Collective/publisher is Laurene Jobs — Steve Jobs’s widow). OpenAI has also struck partnerships with numerous news organizations, including Business Insider, the Associated Press, Axel Springer, Le Monde, the Financial Times, and others. SearchGPT will summarize content found on websites and let users ask follow-up questions just as they can with OpenAI’s chatbot, ChatGPT.

R&D World Index: Some highs and lows

The R&D World Index (RDWI) for the week ending July 26, 2024, closed at 3711.35 for the 25 companies in the RDWI. The Index was down -1.70% (or 64.32 basis points).

Eleven RDWI members gained value last week from 0.32% (Oracle) to 18.32% (Bristol-Myers Squibb). Fourteen RDWI members lost value last week from -0.41% (Merck & Co.) to -19.96% (Ford Motor Co.).

Thank you very much, Mr. Roboto: Tesla’s Optimus to perform tasks by end of 2025

Elon Musk said last week that Tesla, Austin, Texas, will produce humanoid robots for internal use in 2025. Tesla will first use these robots for internal use and then aim to produce them for other companies in 2026. Musk said he wants the robots to be priced below $20,000, have conversational capabilities, and have safeguards to prevent wrongdoing.

For several years, Honda, Tokyo, and Hyundai Motor’s Boston Dynamics have been developing humanoid robots. These companies are investing in the potential of these robots to address labor shortages and carry out repetitive or hazardous tasks, such as those in logistics, warehousing, and manufacturing, according to Reuter’s.

GM and Ford Motor Co. slow down EV production

RDW Index member General Motors, Detroit, announced last week that it would delay plans for a new Buick electric vehicle (EV) and push back the opening of an EV truck factory. Reasons for these actions were noted to ensure that the company does not get ahead of demand. GM will still introduce several new EVs in the coming months, which represent the largest growth opportunity for the company. RDW Index member Ford Motor Co., Dearborn, Michigan, also announced last week that it would expand an existing factory in Ontario, Canada, to make combustion engine pickup trucks after moving away from plans to build an electric SUV at the facility.

Bosch acquires HVAC operations from Johnson Controls, Hitachi

Robert Bosch, Gerlingen, Germany, announced last week that it had agreed to acquire the heating and air conditioning operations of Johnson Controls International, Cork, Ireland, and Hitachi, Tokyo, for $8.1 billion in Bosch’s largest deal as the company looks to expand its operations in the U.S. and Asia. Bosch plans to take over the heating, ventilation, and air conditioning operations for residential and light commercial buildings from Johnson Controls, as well as the joint venture that Johnson shares with Hitachi. The deal includes 16 manufacturing sites and 12 engineering locations in more than 30 countries with roughly 12,000 employees. The deal is expected to be completed in about one year. The deal is expected to double Bosch’s global HVAC businesses to nearly $10 billion. The company already has a strong presence in Europe.

AMD and Apple choose Asia for new R&D centers

Advanced Micro Devices (AMD), Santa Clara, California, announced last week that it has chosen Taiwan for its new R&D center. Up to 33 Taiwanese manufacturers will work with AMD on its R&D. AMD is expected to invest about $2 billion in the R&D center, with more than 1,000 new AI staffers being employed. Taiwan’s Ministry of Economic Affairs has approved a total project funding for the center of about $260 million, along with a subsidy of 30%. AMD is establishing silicon photonics, AI, and heterogeneous integration R&D teams in Taiwan to work on next-generation AI processors, AI GPUs (graphics processor units), and a new AI supercomputer based in Taiwan.

RDW Index member Apple, Cupertino, California, announced last week that it had opened a new R&D center in Shenzhen City, Guangdong Province, China. Many of Apple’s top suppliers have facilities in Guangdong. The new Apple lab features materials analysis, reliability testing, and other scientific research capabilities. The Apple lab will help the company advance its collaboration with its suppliers. Apple’s iPhone shipments in China surged 40% in May 2024, continuing a rebound fueled by discounting from major retailers during the country’s mid-year shopping spree.

Company	Ticker	Exchange	2020 R&D billion$	7/5/24	7/12/24	7/5/24 to 7/12/24	1/1/22 to 7/12/24
Alphabet/Google	GOOGL	NASDAQ	27.303	190.60	186.62	-2.09%	28.84%
Microsoft	MSFT	NASDAQ	17.198	467.56	453.70	-2.96%	34.90%
Volkswagen	VWAGY	OTC	17.259	12.12	12.55	3.55%	-57.02%
Apple	AAPL	NASDAQ	18.667	226.34	230.54	1.86%	29.83%
Meta Platforms	META	NASDAQ	13.874	539.91	498.12	-7.74%	48.10%
Intel	INTC	NASDAQ	14.503	32.02	34.50	7.75%	-33.01%
Johnson & Johnson	JNJ	NYSE	13.750	146.48	149.88	2.32%	-12.39%
Roche	RHHBY	OTC	14.143	34.03	35.69	1.04%	-30.95%
Merck	MRK	NYSE	11.381	126.45	127.76	1.04%	66.70%
Novartis	NVS	NYSE	9.387	108.13	111.70	3.30%	27.70%
Toyota	TM	NYSE	10.724	206.45	207.59	0.55%	12.03%
Pfizer	PFE	NYSE	8.336	28.05	28.92	3.10%	-51.02%
Alibaba	BABA	NYSE	6.006	74.52	79.65	6.88%	-32.95%
General Motors	GM	NYSE	6.727	46.52	49.01	5.35%	-16.41%
Honda	HMC	NYSE	8.806	32.45	32.59	0.43%	14.55%
Ford	F	NYSE	9.340	12.84	14.03	9.27%	-32.45%
AbbVie	ABBV	NYSE	13.949	167.25	170.28	1.81%	25.76%
Sanofi	SNY	NYSE	7.750	49.66	51.33	3.36%	2.45%
Cisco	CSCO	NASDAQ	6.331	46.65	47.38	1.56%	-23.65%
Bristol Myers Squibb	BMY	NYSE	7.130	39.66	40.46	2.02%	-35.11%

Financial ups and downs

RDW Index member Intel, Santa Clara, California, announced last week that it had paused several significant investment projects in Europe due to ‘financial losses.’ This changed policy affects planned projects in France and Italy, redirecting the company’s focus to its efforts in Ireland, where it has a leading-edge semiconductor fab. Planned fabs in Germany and Poland will also be supported more aggressively. Intel had planned to establish a new R&D hub for AI and high-performance computing (HPC) near Paris, which was set to open by the end of 2024 with 450 employees. This site is now on hold due to changing economic and market conditions. Intel says it will continue to see France as a future candidate for the R&D hub.

The U.S. Department of Labor reported last week that the unemployment rate ticked up to 4.1% in June, the first time it has crossed above 4% since 2021. That’s still low by historical measures, but it’s up from 3.4% in early 2023. Workers have stopped quitting their jobs at a frenzied pace, and college grads are having a hard time finding jobs. Economists see the current job market as having come back into balance, although some conditions could continue to worsen. Covid-19-based conditions affecting the labor market have seen substantial improvements, according to economists.