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Welcome back to our Sunday edition, where we round up some of our top stories and take you inside our newsroom. This week, BI's Polly Thompson took an inside look at how artificial intelligence is set to upend a pillar of the white-collar world: the Big Four.
On the agenda today:
- Many millennials face a cursed inheritance with their parents' homes.
- Internal memos reveal how an ex-Facebook exec leads Microsoft's new AI unit.
- Losing faith in the ROI of college, Gen Z is pivoting to blue-collar jobs.
- Wall Street bigwigs are questioning the safety of government bonds. Now what?
But first: Tesla's robotaxis are taking the wheel.
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This week's dispatch
Robin Marchant/Getty, Sean Gallup/Getty, Tyler Le/BI
Tesla's big bet
I remain in awe of self-driving cars.
I took my first Waymo earlier this year in San Francisco. Like any newbie, I immediately pulled out my phone, recorded the ride, and then gleefully shared videos with friends and family.
The market for robotaxis is well beyond the shock and awe phase. For Tesla, the stakes are high to get it right.
The EV maker's long-awaited autonomous ride-hailing service is expected to debut next month in Austin. It will join Waymo, owned by Google's parent company Alphabet, which is already entrenched in San Francisco and expanding into other cities.
My BI colleagues Lloyd Lee and Alistair Barr tried to see which company offers the better self-driving experience: Tesla or Waymo. They test drove both, expecting the results of their not-so-scientific test to come down to minute details. (They couldn't compare the robotaxi services because Tesla hasn't launched its yet).
The results surprised them.
While the rides were mostly similar, the differentiator was Tesla running a red light at a complex intersection. It was an error too big to overlook. Waymo won the test.
Lloyd and Alistair's story ricocheted around the internet and social media. On Tuesday, CNBC's David Faber pressed Tesla CEO Elon Musk about it, particularly the Tesla running a red light.
Musk didn't address specific details in BI's reporting. Instead, he said Tesla's robotaxis will be "geo-fenced" — meaning they will avoid some intersections and certain parts of Austin.
Waymo already uses geo-fencing. Its car avoided the intersection where the Tesla ran the red light, instead taking a route that was farther away and less time-efficient but perhaps safer to navigate, according to the BI story.
Tesla's robotaxi plans come at a critical time for a brand that's taken a hit from Musk's work with the Trump administration. Overseas competition is also ramping up, and prices for used Teslas, including Cybertrucks, are falling.
The excitement around the robotaxis is helping, though. Tesla's stock has risen about 40% since Musk talked up the robotaxi last month and signaled he was re-committing to Tesla and stepping back from DOGE.
We'll stay all over this coverage for you, including the big debut.
The new millennial home dilemma
Millennials are set to benefit from a massive wealth transfer from their boomer parents, most of which is held up in real estate.
But because boomers tend to stay in their homes for decades, many children will inherit properties in need of some serious TLC.
There's an entire industry designed to help.
Microsoft's "age of AI agents"
Microsoft
CEO Satya Nadella recently tapped Jay Parikh, formerly Facebook's global head of engineering, to spearhead Microsoft's new AI unit, CoreAI. BI viewed internal memos to get a glimpse of Parikh's vision and progress.
Parikh is focusing on cultural shifts, operational improvements, and customer experience as he leads Microsoft into a new era.
He has plans for an AI "agent factory."
From PowerPoint to plumbing
Peter Dazeley/Getty Images
AI is decimating jobs, and the cost of college is ever-rising. Gen Zers are losing faith in the ROI of a degree, but they've got another option: the trades.
White-collar jobs are stagnating, but fields like plumbing, construction, and electrical work are projected to grow. Blue-collar jobs offer a work-life balance and a path to becoming your own boss.
Plus, some of them pay six figures.
The shaky bond market
Mario Tama/Getty Images
Bonds have always been viewed as a safe haven, especially ones backed by the US government. But concerns over the growing deficit are changing investors' perspective on the asset.
KKR has cast doubt over bonds, and JPMorgan CEO Jamie Dimon has been vocal about US credit being a "bad risk." Here's what investors have to think about amid the turmoil.
Also read:
- Return of the "bond vigilantes": Spiking yields show investors are getting worried about government debt
- Forget "Sell America": Morgan Stanley makes the case for US stocks and bonds to dominate global markets
This week's quote:
"But if you want one of these jobs, you've got to play the game."
— A recent graduate who moved to New York City early to be in a good position for the private-equity recruiting process.
More of this week's top reads:
- Duolingo drama underscores the new corporate balancing act on AI hype.
- Elon Musk went on a media blitz. Here are five takeaways from his interviews.
- See inside the luxurious Boeing 747 Qatar is giving to Trump to serve as Air Force One.
- Instagram head Adam Mosseri on the "paradigm shift" from posting in public to sharing in private.
- Four reasons Walmart is raising prices and Home Depot isn't.
- Please, Jony Ive, I beg you not to make a voice device.
- Meet the Yale student and hacker moonlighting as a cybersecurity watchdog.
- Inside the little-known perks that come from a stock exchange "bake-off."
Why these Americans agree with the DOGE firings: "Welcome to the real world."
The BI Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Elizabeth Casolo, fellow, in Chicago.