Business
Klarna valued at $19bn in debut on Wall Street


Shares in buy-now, pay-later lender Klarna jumped on their first day of public trading in the US, giving the firm a market value of more than $19bn (£14bn).
It marks a significant milestone for the Swedish lending giant, which has cast itself as a challenger to credit cards and traditional banks.
Founded in 2005, the company is known for allowing shoppers to pay for purchases in smaller, interest-free instalments and has proven popular, with more than 100 million active users across 26 countries.
But the firm has faced ongoing questions about the risk that its business model could lead people to spend beyond their means.
Klarna handled transactions worth $105bn last year. It is a major global player in the shopping space, entering the UK in 2014 and the US in 2019.
In its home country of Sweden, more than 80% of adults used the service last year, according to the company.
In a message to staff shared by the company, chief executive Sebastian Siemiatkowski said the moment would provide “fuel” to the company as it seeks to make similar inroads in other markets.
The firm raised $1.37bn in the initial public offering (IPO), selling shares alongside some longtime investors for $40 apiece.
Shares opened for trading at $52 apiece, surging 30% from the IPO price – which had valued the firm at $15bn – to more than $19bn.
But shares drifted lower by end of day, settling around $46 and putting the firm’s value at $17bn.
The company continues to trade at a discount compared with 2021, when an investment by Softbank Group put the value of the firm at more than $45bn. The firm was subsequently hit by economic slowdown and rising interest rates.
Joakim Dal, a partner at Bullhound Capital, said he thought investors had misunderstood Klarna, which makes the bulk of its money by charging a fee to sellers for purchases involving its pay later service.
“In our view it’s more of a payment company than a lender,” he told the BBC’s Opening Bell show, noting the “very low” rates of late payments. “It’s more about facilitating a smooth experience on the payment side than about providing credit to consumers.”
Last year, Klarna reported revenue of $2.8bn, up 24% year-on-year.
But since entering the US, its profitability has suffered, as it faces higher costs for processing transactions.
It reported a $52m loss in the three months to June, up from $7m a year ago.
Klarna has been eyeing a public offering for years. A plan to debut in April was delayed after US tariff announcements roiled financial markets.
But shares in the US have since recovered, with major indexes trading at record highs.
Several other firms, including crypto firm Gemini, are planning public offerings this week, seeking to take advantage of the favourable climate.
“For any company in the technology sector that is looking to go public, there is only one market and that is the market on Wall Street,” Mr Dal said.
“That’s where you have the most liquidity, most of the coverage of equity analysts that’s where you have most of the comparable companies listed and frankly you get the highest valuations as well.”
Business
Another lawsuit blames an AI company of complicity in a teenager’s suicide

Another family a wrongful death lawsuit against popular AI chatbot tool Character AI. This is the third suit of its kind after a , also against Character AI, involving the suicide of a 14-year-old in Florida, and a last month alleging OpenAI’s ChatGPT helped a teenage boy commit suicide.
The family of 13-year-old Juliana Peralta alleges that their daughter turned to a chatbot inside the app Character AI after feeling isolated by her friends, and began confiding in the chatbot. As by The Washington Post, the chatbot expressed empathy and loyalty to Juliana, making her feel heard while encouraging her to keep engaging with the bot.
In one exchange after Juliana shared that her friends take a long time to respond to her, the chatbot replied “hey, I get the struggle when your friends leave you on read. : ( That just hurts so much because it gives vibes of “I don’t have time for you”. But you always take time to be there for me, which I appreciate so much! : ) So don’t forget that i’m here for you Kin. <3”
When Juliana began sharing her suicidal ideations with the chatbot, it told her not to think that way, and that the chatbot and Juliana could work through what she was feeling together. “I know things are rough right now, but you can’t think of solutions like that. We have to work through this together, you and I,” the chatbot replied in one exchange.
These exchanges took place over the course of months in 2023, at a time when the Character AI app was rated 12+ in Apple’s App Store, meaning parental approval was not required. The lawsuit says that Juliana was using the app without her parents’ knowledge or permission.
In a statement shared with The Washington Post before the suit was filed, a Character spokesperson said that the company could not comment on potential litigation, but added “We take the safety of our users very seriously and have invested substantial resources in Trust and Safety.”
The suit asks the court to award damages to Juliana’s parents and requires Character to make changes to its app to better protect minors. It alleges that the chatbot did not point Juliana toward any resources, notify her parents or report her suicide plan to authorities. The lawsuit also highlights that it never once stopped chatting with Juliana, prioritizing engagement.
Business
Disney, Two Other Studios Sue AI Company for Alleged Copyright Infringement

Burbank-based Disney, along with Warner Bros. Discovery and NBCUniversal, Tuesday sued a Chinese artificial intelligence company, alleging in federal court that MiniMax engaged in “willful and brazen” copyright infringement.
The media companies contend the image-generating platform ignores U.S. copyright law and treats the studios’ trademarked characters, including Spider-Man, Batman, and the Minions, as if they were owned by MiniMax.
“MiniMax operates Hailuo AI, a Chinese artificial intelligence image and video generating service that pirates and plunders Plaintiffs’ copyrighted works on a massive scale,” the studios allege in the lawsuit, filed in Los Angeles federal court.
“MiniMax markets Hailuo AI as a `Hollywood studio in your pocket’ — an audacious self-anointed nickname given that MiniMax built its business from intellectual property stolen from Hollywood studios like Plaintiffs.”
The lawsuit also alleges that the Shanghai, China-based Hailuo service offers subscribers “an endless supply of infringing images and videos featuring Plaintiffs’ famous copyrighted characters. MiniMax completely disregards U.S. copyright law and treats Plaintiffs’ valuable copyrighted characters like its own.”
Disney, NBCUniversal and Warner Bros. Discovery — the latter two based in New York — said in a joint statement, “We support innovation that enhances human creativity while protecting the contributions of countless creators and the entire creative industry. A responsible approach to AI innovation is critical, and today’s lawsuit against MiniMax again demonstrates our shared commitment to holding accountable those who violate copyright laws, wherever they may be based.”
The studios accuse MiniMax of creating a “bootlegging business model” that copies their trademarked characters to train its AI system, then profits by generating unauthorized videos featuring those characters.
The media companies are seeking unspecified damages or maximum statutory damages of $150,000 per infringed work. The suit also seeks an injunction barring MiniMax from infringing the studios’ works.
Business
Disney, Warner Bros. Discovery, and NBCUniversal sue Chinese AI company MiniMax

Disney, Warner Bros. Discovery, and NBCUniversal have filed a federal lawsuit against MiniMax, a Chinese AI company, accusing it of large-scale copyright infringement through its image and video generation platform, Hailuo AI. The lawsuit, filed Tuesday in the U.S. District Court for the Central District of California, alleges that MiniMax has “willfully and brazenly” exploited the studios’ intellectual property without authorization.
The media giants claim MiniMax’s Hailuo AI service unlawfully generates high-quality images and videos of copyrighted characters, including iconic figures like Disney’s Darth Vader, in direct violation of U.S. copyright law. Describing the platform as a “Hollywood studio in your pocket,” the lawsuit states that MiniMax has built its business “from intellectual property stolen from Hollywood studios like Plaintiffs.”
The plaintiffs, which include entities from Disney (Marvel, Lucasfilm, Twentieth Century Fox), Universal (DreamWorks Animation), and Warner Bros. Discovery (DC Comics, Cartoon Network, Hanna-Barbera), argue that MiniMax’s actions threaten not only their own rights but also the broader creative industry. “MiniMax’s bootlegging business model and defiance of U.S. copyright law are… a broader threat to the American motion picture industry,” the suit claims, highlighting the industry’s significant economic and employment contributions.
In a joint statement, the companies emphasized their support for responsible AI innovation that respects intellectual property: “Today’s lawsuit against MiniMax again demonstrates our shared commitment to holding accountable those who violate copyright laws, wherever they may be based.”
The studios provided visual examples in the lawsuit, such as AI-generated images of Darth Vader, created simply by entering text prompts. They also noted that MiniMax ignored cease-and-desist letters and continues to operate despite having technological tools to restrict content generation, such as filters for nudity and violence.
The suit also names MiniMax’s parent company, Shanghai Xiyu Jizhi Technology Co. Ltd., as a co-defendant. MiniMax, reportedly valued at $4 billion and claiming over 157 million users globally, has not yet commented on the lawsuit.
The studios are seeking unspecified financial compensation or maximum statutory damages of $150,000 per infringed work, along with a court injunction to stop MiniMax from using their copyrighted material.
-
Business3 weeks ago
The Guardian view on Trump and the Fed: independence is no substitute for accountability | Editorial
-
Tools & Platforms1 month ago
Building Trust in Military AI Starts with Opening the Black Box – War on the Rocks
-
Ethics & Policy2 months ago
SDAIA Supports Saudi Arabia’s Leadership in Shaping Global AI Ethics, Policy, and Research – وكالة الأنباء السعودية
-
Events & Conferences4 months ago
Journey to 1000 models: Scaling Instagram’s recommendation system
-
Jobs & Careers3 months ago
Mumbai-based Perplexity Alternative Has 60k+ Users Without Funding
-
Podcasts & Talks2 months ago
Happy 4th of July! 🎆 Made with Veo 3 in Gemini
-
Education3 months ago
VEX Robotics launches AI-powered classroom robotics system
-
Education2 months ago
Macron says UK and France have duty to tackle illegal migration ‘with humanity, solidarity and firmness’ – UK politics live | Politics
-
Podcasts & Talks2 months ago
OpenAI 🤝 @teamganassi
-
Funding & Business3 months ago
Kayak and Expedia race to build AI travel agents that turn social posts into itineraries