MORNING BUSINESS REPORT: Frontier Airlines eyes Spirit merger, OpenAI accuses DeepSeek of AI misuse
OpenAI claims DeepSeek copied its AI tech, Spirit Airlines rejects Frontier's $2.2 billion offer, and the Fed keeps interest rates steady amid inflation concerns.
NEW YORK (LILAMAX MEDIA)— Frontier Airlines is once again attempting to merge with Spirit Airlines, but Spirit has rejected its $2.2 billion buyout offer, calling it too low. However, Spirit has left the door open for discussions if Frontier increases its bid.
Meanwhile, OpenAI, the company behind ChatGPT, alleges that Chinese AI startup DeepSeek improperly used its technology to create a competing artificial intelligence model. OpenAI claims DeepSeek utilized a process called “distillation”, which allows smaller AI models to learn from larger ones. While this technique is common in AI development, OpenAI argues that DeepSeek violated its rules.
In other business news, the Federal Reserve has kept interest rates unchanged, citing continued inflation concerns. This decision means borrowing costs for short-term loans, such as car financing and credit cards, will remain steady.
On Wall Street, stocks fell sharply on Wednesday, marking one of the worst trading days of the year.
Additionally, Chili’s parent company, Brinker International, reported a 30% sales increase at its casual dining chain. The surge was driven by a nearly 20% rise in customer traffic, largely fueled by social media buzz around the restaurant’s popular Triple Dipper appetizer, which accounted for 14% of sales.