In today's ExchangeWire Digest: Walmart grows ads business by 46%; TikTok draws backlash for mandatory AI tool; OpenAI questions Zuckerberg role in USD$97bn (£71.2bn) Musk takeover offer.

Walmart grows ads business by 46%

Walmart’s advertising revenue increased by 46% year-over-year, as revealed in its latest earnings report. The impressive gains were partially attributed to its acquisition of Vizio, whilst the firm stated its Walmart Connect business grew US revenue by 31%. Despite overall revenue increasing by 5% to USD$177.4bn (£132.0bn) for the quarter, profitability fell shy of investor expectations, contributing to a share price dip following the announcement.

TikTok draws backlash for mandatory AI tool

Brands that pay to advertise products within TikTok Shops will be obliged to use an AI tool, GMV Max, from 1st September according to updated guidelines from the platform. The move by TikTok echoes similar moves from the likes of Google and Meta, however the compulsory and rapid nature of the rollout has drawn the ire of impacted advertisers. Multiple advertisers speaking to Business Insider contended that the rollout is “premature” given that GMV has not yet proven effective across all campaigns.

OpenAI questions Zuckerberg role in USD$97bn (£71.2bn) Musk takeover offer

OpenAI is requesting evidence from Meta related to any communication from Elon Musk, or his xAI platform, regarding potential involvement in Musk’s failed USD$97bn (£71.2bn) bid to take over the startup earlier this year. As part of the brief filed on Thursday (21st August), OpenAI lawyers contend that Musk communicated with Meta chairman and CEO Mark Zuckerberg “about potential financing arrangements or investments”, although they clarified that neither Zuckerberg nor Meta signed the final letter of intent.