Latest News
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Databricks buys Sequoia's Tecton to push AI agents
Databricks, a company that offers AI agents, will expand its AI agent offering by acquiring machine learning startup Tecton. This is the latest of a series of deals aimed to offer full-scale AI tools for enterprise clients, said its chief executive on Friday. Tecton is backed by Sequoia Capital, Kleiner Perkins and provides software to help companies analyze data and deploy it at scale, with low latency. The financial terms of the Databricks private shares deal were not disclosed. Tecton's last valuation was $900 million, in a private funding round for 2022. It has approximately 90 employees. Databricks announced this week it had signed a Term Sheet for a New Funding Round at a Valuation of More Than $100 Billion, an increase of over 60% from 8 months ago. Tecton, founded in 2020, has raised $160M from investors such as Andreessen-Horowitz and Bain Capital Ventures. Former Uber engineers created Michelangelo a platform for AI that Uber uses internally to perform real-time pricing. Databricks CEO Ali Ghodsi stated that Tecton’s technology and talent would help Databricks to develop Agent Bricks, Databricks’ flagship product, which automates workflows using AI agents. This is because the competition to provide AI tools for businesses has intensified. The acquisition will help customers build interactive services to reduce response times for AI applications. He said that the speed of AI applications such as voice interactions is critical. "Many use cases are directly human-facing. Humans hate to wait." Both companies had a close relationship. In 2022, Tecton partnered up with Databricks and its competitor Snowflake. Both platforms are now investors in the startup. Ghodsi stated that many Tecton customers, including the crypto exchange Coinbase, already use Databricks services. He said that the acquisition will help deepen relationships with customers who rely on both technologies. This deal is part of Databricks acquisition spree. Fueled by its soaring valuation, it has been buying venture-backed startups as it develops a comprehensive AI Platform. Databricks purchased generative AI platform MosaicML in 2023 for $1.3 billion, Tabular in 2020 to bring Apache Iceberg creators in-house and Neon earlier this year for $1 billion. Reporting by Krystal H. Hu, Toronto; Editing and proofreading by Edmund Klamann
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Spirit Airlines hires advisors to evaluate options after redesign efforts fail, WSJ reports
Spirit Airlines, according to sources cited by the Wall Street Journal on Friday, has hired advisers to examine strategic options, after its financial restructuring failed. According to a report, the airline has partnered with financial adviser PJT Partner and also consultancies FTI and Seabury Airline Strategy Group. Budget airline did not respond immediately to a comment request. Spirit's future is uncertain, just months after it emerged from bankruptcy. The loss-making airline has raised new doubts over its ability to continue as a going concern due to weak domestic demand and diminishing cash reserves. Spirit Aviation Holdings shares, which are the parent company of Spirit Airlines fell 14.6% in after-hours trade to $1.40. After years of losses and debt, the airline filed for bankruptcy protection in November last year after a failed merger attempt, heavy losses, and years of failure. The bankruptcy was declared in March after a restructuring approved by the court and backed up by the creditors. It is believed to be first major U.S. airline to declare Chapter 11 since 2011. Moody's joined Fitch on Friday in further downgrading Spirit Airlines, which is based in Dania Beach (Florida). The ratings firm highlighted the "higher-than-expected cash burn" when compared with earlier forecasts, at the time the airline emerged out of bankruptcy. Fitch downgraded Spirit's rating last week, citing the high probability of a near-term default. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru)
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Air Canada's labor agreement faces strong opposition on wages and could fail
Sources and cabin crew familiar with the situation have said that many Air Canada flight attendants were not happy with the wage increases included in the tentative agreement reached to end a crippling walkout earlier this week. Union members might also reject the deal. Five flight attendants contacted by said that they intend to vote against the deal because it does not provide a living wages to entry-level employees and doesn't fully address concerns over lack of payment for waiting hours for a plane. The union leader acknowledged that many of his members were disappointed with the agreement, which had been initially hailed as a victory for the union after an overnight blitz. This sentiment was also expressed on social media by people who claimed to be flight attendants but could not confirm this. The flight attendants refused to give in to government pressure to end the strike. This forced Air Canada to return to the bargaining tables, where they reached a settlement to end the four day action that left half a million passengers stranded. The deal raised hopes that Canada’s largest airline would pay crews on the ground, for tasks such as boarding and assisting passengers. As details became available, it became apparent that the proposed contract had limitations in terms of ground pay. One attendee said that this frustrated many attendees at town hall-style events. Sources familiar with the issue said that it was unclear whether the vote will pass. Wesley Lesosky is the president of Air Canada, a component of the Canadian Union of Public Employees that represents flight attendants. He said he understands the frustration of members. He explained that when the government announced it would force flight attendants to arbitration, the union was faced with the dilemma of protecting gains made at the bargaining tables while also wanting to give its members the opportunity to vote on the agreement. He said that if the agreement is rejected, the wage section of it will be decided at arbitration. The remaining items, however, will continue to move forward. The union was successful in getting the company to move forward with the wage item separately from other items. We feel that our members were successful as they remained strong on the picket line. The union has said that flight attendants who reject the offer during the voting period of August 27-September 6 cannot strike again legally. Voting against the contract will prolong the dispute which led Air Canada to withdraw its financial guidance for this year. One flight attendant, who did not want to be identified, said that the offer from Air Canada is still not "livable". There has been some reporting on social media posts. However, we are the first to interview flight attendants who have explained their opposition to the plan. CRY OUT TO TEARS One attendant stated that the frustration of unionists was evident during a virtual meeting held with members. She and other attendants asked to remain anonymous due to rules of the company and stated that some attendees cried when hearing about the contract. The gains over the next four years would amount to an average wage increase of 20% for flight attendants at the entry level and 16% for cabin crew with more experience. The hourly wage increase will be accompanied by 60 minutes pre-flight payment on narrowbody aircraft and 70 minutes for widebody jets with two aisles. In year one, the crew's pay would start at 50%, increasing to 70% in year four. Flight attendant with seven-year experience says she'll vote no citing unpaid and underpaid work. She would not receive payment for the four-hour delay that she experienced on a long-haul flight. Air Canada has not yet commented. Credit rating agency Moody's lowered the outlook of the company on Tuesday. Moody's believes that the strike will have a limited impact on Air Canada's earnings in the near term, but the new contract for flight attendants is expected to increase wage costs and put pressure on margins. Reporting by Kyaw Oo, Allison Lampert, and Rajesh Kumar Singh. Editing by Caroline Stauffer and Peter Henderson.
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Air Canada's labor agreement faces strong opposition on wages and could fail
Sources familiar with the situation have said that many Air Canada flight attendants were not satisfied with the wage increases included in the tentative agreement reached to end a crippling walkout earlier this week. The deal is unlikely to be approved by union members, cabin staff and other sources. Five flight attendants contacted by said that they intend to vote against the deal because it does not provide a living wages to entry-level employees and doesn't fully address concerns over lack of payment for waiting hours for a plane. The union leader acknowledged that many of his members were disappointed with the agreement, which had been initially hailed as a union win. This sentiment was also expressed on social media by people who claimed to be flight attendants but could not confirm this. The flight attendants refused to give in to government pressure to end the strike. This forced Air Canada to return to the bargaining tables, where they reached a settlement to end the four day action that left half a million passengers stranded. The deal raised hopes that Canada’s largest airline would pay crews on the ground, for tasks such as boarding and assisting passengers. As details became available, it became apparent that the proposed contract had limitations in terms of ground pay. One attendee said that this frustrated many attendees at town hall-style events. Sources familiar with the issue said that it was unclear whether the vote will pass. Wesley Lesosky is the president of Air Canada, a component of the Canadian Union of Public Employees that represents flight attendants. He said he understands the frustration of members. He explained that when the government announced it would force flight attendants to arbitration, the union was faced with the dilemma of protecting gains made at the bargaining tables while also wanting to give its members a chance to vote. He said that if the wage part of the tentative contract is rejected, it will be decided at arbitration. The remaining items, however, will continue to move forward. The union was successful in getting the company to agree that the wage item would be moved forward separately from other items. We feel our members were successful because they held firm on the picket line. The union has said that flight attendants who reject the offer during the voting period of August 27-September 6 cannot strike again legally. Voting against the contract will prolong the dispute which led Air Canada to withdraw its financial guidance for this year. One flight attendant, who did not want to be identified, said that the offer from Air Canada is still not "livable". The first time that multiple flight attendants, and other sources have been interviewed to explain why they are against the plan, and to suggest that the vote may not receive the required 50% plus one member support. CRY OUT TO TEARS One attendant stated that the frustration of unionists was evident during a virtual meeting held with members. She and other attendants asked to remain anonymous due to rules of the company and stated that some attendees cried when hearing about the contract. The gains over the next four years would amount to approximately a 20% increase in wages for flight attendants at the entry level and 16% for cabin crew with more experience. The hourly wage increase will be accompanied by 60 minutes pre-flight payment on narrowbody aircraft and 70 minutes for widebody jets with two aisles. In year one, the crew's pay would start at 50%, increasing to 70% in year four. A flight attendant with seven-years' experience has said that she will not vote for the bill, citing unpaid wages and work. She would not have been paid for the four-hour delay that she experienced on a recent transatlantic plane. Reporting by Kyaw Oo, Allison Lampert, and Rajesh Kumar Singh, Editing by Caroline Stauffer and Peter Henderson, and David Gregorio
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Tour bus rolls over on New York highway, causing multiple deaths
Police said that a tour bus with about 50 passengers rolled when the driver lost his control on a highway in western New York, causing dozens of injuries and multiple deaths. James O'Callahan is a Trooper with the New York State Police. He told reporters that they believe there was a child among those who died. The majority of passengers were Asians or people of Asian descent. This included Chinese, Indians, and Filipinos. The accident occurred on Interstate 90 in Pembroke (New York), about 30 miles east from Buffalo, while the bus was travelling from Niagara Falls to New York City. O'Callahan stated that some passengers were still trapped inside the wreckage, while others were ejected when the bus rolled. He said that the driver, who survived, lost control of the bus while it was moving at high speed and caused it to flip over when he attempted to correct its course. There were no other vehicles involved. The police had contacted the bus company that was not identified immediately. Everyone on the bush suffered at least some injuries. After the accident, authorities shut down the highway in both direction, causing major traffic delays on one of the final weekends of summer vacation. Rich McKay reported from Atlanta, Frank McGurty edited by Cynthia Osterman.
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Boeing Defense and striking machinists announce Monday's return to negotiations
Boeing and the officials of the striking Machinists Union are scheduled to resume contract negotiation on Monday, both the company and the union confirmed on Friday. On August 4, about 3,200 members of International Association of Machinists and Aerospace Workers, or IAM, went on strike in the St. Louis area after refusing Boeing Defense's offer of a four-year contract. Boeing's F-15, F/A-18, T-7 trainer jets, munitions and wing sections of the 777X commercial jet are assembled by these workers. Boeing Defense spokesperson Didi vanNierop stated that the company has been able to maintain production and flight testing using non-union employees. Top machinists and U.S. Rep. Wesley Bell (a Missouri Democrat) walked a strike picket with striking workers on Thursday. They pressed the company to reach a similar agreement as last year's with workers in Seattle. Boeing's St. Louis top executive, Dan Gillian responded on Thursday with a written statement defending the offer that was rejected by IAM members of District 837. He said, "Our offer is strong both then and now, with an average wage growth of 40%." IAM International President Brian Bryant said that workers want a contract with higher general wages, faster wage progression and improvements to the company’s 401(k). Bryant, Bell and other union leaders joined the picket line of workers. Workers in the St. Louis area rejected an offer that included a 20% wage increase for all workers, a $5,000 bonus to ratify their resignation and additional vacation and sick time. Boeing stated at the time that the bonus would no longer be offered if the offer was rejected. Bryant stated that the threat was "disrespectful" to District 837 members. "I'm feeling a bit pissed right now." The IAM District 751 members, who build most of Boeing's planes in the Northwest, ended their seven-week strike last November when they approved a contract for four years that included a wage increase of 38%, increased retirement contributions, restoration and reinstatement of an annual bonus as well as a signing bonus of $12,000, plus a promise to build Boeing’s next commercial aircraft in the Seattle region if it is launched during the contract period. Boeing's Defense Division is expanding its manufacturing facilities in St. Louis for the new U.S. Air Force F-47A fighter jet after winning the contract earlier this year. (Reporting and editing by Franklin Paul, David Gregorio, and Dan Catchpole from Seattle)
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Boeing Defense and striking machinists announce Monday's return to negotiations
Boeing and the officials of the striking Machinists Union are scheduled to resume contract negotiation on Monday, both the company and the union confirmed Friday. After rejecting Boeing Defense's offer of a four-year contract, approximately 3,200 members of IAM went on strike on August 4, at its facilities in the St. Louis area. They assemble Boeing F-15 and F/A-18 combat aircraft, the T-7 training jet, munitions and wing sections of the commercial 777X jet. Boeing Defense spokesperson Didi vanNierop stated that the company has been able to maintain production and flight testing as well as other work using non-union employees. Top machinists and U.S. Rep. Wesley Bell (a Missouri Democrat) walked a strike picket with striking workers on Thursday. They pressed the company to reach a similar agreement as last year's with workers in Seattle. Boeing's St. Louis top executive, Dan Gillian responded on Thursday with a written statement defending the offer that was rejected by IAM members of District 837. He said, "Our offer is strong both then and now, with an average wage growth of 40%." IAM International President Brian Bryant said on Thursday that workers want a contract offering with higher general wages, faster wage progression and improvements to the 401(k). Bryant, Bell and other union leaders joined the picket line of workers. Bell's congressional district includes a large number of workers. Workers in the St. Louis area rejected an offer that included a 20% wage increase for all workers, a $5,000 bonus to ratify their resignation and additional vacation and sick time. Boeing stated at the time that the bonus would no longer be offered if the offer was rejected. Bryant stated that the threat was "unrespectful" to District 837's members. "I feel a bit pissed right now." The IAM District 751 members, who build most of Boeing's aircraft in the Northwest, ended their seven-week-long strike in November by approving a four year contract. This contract included a wage increase of 38%, increased retirement contributions, the restoration of an annual incentive, and a signing bonus of $12,000, as well as a promise to build Boeing’s next commercial plane in the Seattle region, if it is launched during the contract period. Boeing's Defense Division is expanding its manufacturing facilities in St. Louis for the new U.S. Air Force F-47A fighter jet after winning the contract earlier this year. (Reporting and editing by Franklin Paul, David Gregorio and Dan Catchpole from Seattle)
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BNSF and CSX launch a new coast-to-coast link to boost freight services
CSX, owned by Berkshire Hathaway, and BNSF, which is also owned by Berkshire Hathaway announced on Friday new coast-tocoast services that will boost freight connectivity across the United States. Shares of CSX dropped about 6% following the announcement but have risen about 5% this year. The new routes will connect Southern California to Charlotte, North Carolina and Jacksonville, Florida. This move follows reports last month that a possible deal could be struck between the two railroad companies to counter a rival merger of Union Pacific and Norfolk Southern. Union Pacific has launched an intermodal domestic service connecting Southern California's Inland Empire to the Chicago area earlier this month. CSX has also been under pressure from activists. Ancora , which calls for a merger, or a change in leadership, and Toms Capital Investment Management Request to meet with the Railroad Operator's Board Better intermodal volumes helped CSX top analyst estimates for Second-quarter profit In July, there are many holidays. Rail operators have long envisioned linking the U.S. Atlantic Coast and Pacific Coast by rail. This is particularly true today, as the industry struggles with increased operational costs and labor shortages. Surface Transportation Board approval is required for any merger due to concerns about pricing power and consolidation in the industry. (Reporting from Nathan Gomes, Bengaluru; additional reporting by Abhinav Paramar; editing by Pooja Deai).
Armenians are increasingly worried about war with Azerbaijan due to escalating ceasefire violations
Khnatsakh residents are anxious at nightfall.
Locals claim that every evening, around 10 pm, Azerbaijani soldiers fire into the night skies from their positions high above.
Villagers say that bullets have been hitting houses regularly, but no one has been injured so far. Azerbaijan has denied that its troops are firing across the border and accused Armenian forces of violating ceasefire.
Karo Andranyan (66), a retired mechanic, said, "It is very tense at home because we have children, little ones and elderly."
Azerbaijani flags and a military position on a hillside are only 100 metres away from his door. This is a reminder that Armenia's bitter enemy is close by. Since the early 1990s, the heavily militarized 1,000-km border is closed.
Two major wars have been fought in the last 40 years. This has destabilised the Caucasus, a region which is important for Russia, Iran, and Turkey because it contains major oil and natural gas pipelines towards Europe.
Experts say that the rising tensions along the border increase the likelihood of a new conflict between Armenia and Azerbaijan, as the two countries approach a crucial juncture in their tortuous peace process.
In March, both sides announced that they had reached an agreement on the outline of a treaty of peace to be signed by 2026. This raised hopes for reconciliation. The draft envisages both sides delineating their shared borders, but requires Armenia to amend the constitution before Azerbaijan can ratify the deal.
After months of relative calm, the reports of ceasefire breaches along the border are now soaring.
Andranyan believes the gunfire at night is meant to intimidate both the local villagers and the small garrison Armenian troops that are stationed in the village. He said that the village, which according to census data had 1,000 residents, was emptying because locals were afraid of a return to war.
What are we to do?
Despite the fact that there has been no death on the border in over a year, cross-border gunfire is reported frequently. Azerbaijan has made the majority of accusations against Armenia since March. These include cross-border gunfire, and damage to property.
Both sides have denied claims of ceasefire violation.
Since 2020, the simmering conflict has decisively shifted in Azerbaijan’s favor. The oil and gas producer regained territory lost during the 1990s. It also progressively reestablished control over Nagorno Karabakh where ethnic Armenians established de facto autonomy since the collapse the Soviet Union. It retook Karabakh in 2023, causing 100,000 ethnic Armenians from the region to flee to Armenia.
Marco Rubio, the U.S. secretary of state, told a hearing of Congress last month that there was "a real risk" of war. He stated that the U.S. wished Azerbaijan to "accept a peace accord that doesn't cause them to invade a neighboring nation, Armenia."
Azerbaijani president Ilham Aliyev has been in power since 2003. He said that in January, Armenia was a "fascist menace" that must be eliminated.
Laurence Broers is an expert in Armenia and Azerbaijan from London's Chatham House. He said that a full-scale conflict was possible but more localised clashes are more likely.
He said Azerbaijan's population, which is 10 million, is three times that of Armenia. It has little incentive to sign a peace agreement quickly and could instead use smaller scale escalation to force its neighbor to make further concessions during the talks.
Ilham Aliyev's strategy of escalation and militarization was a great success, he said.
The Armenian authorities have insisted that there will not be a war. Nikol Pashinyan, the Prime Minister of Armenia, said in a speech delivered last month that "despite all arguments and all provocations", the two countries will not fight again.
Azerbaijan’s Foreign Ministry responded to questions regarding the tensions along its border by referring to previous comments.
In a May statement, Baku said it was committed to peace and had no territorial claims against Armenia. In a statement in May, it said that Yerevan’s actions "call Armenia’s commitment to peace into question".
The Azerbaijani Defence Ministry has denied Armenian reports that cross-border gunfire had taken place.
Tensions in the South
The conflict is centered in Armenia's southernmost region of Syunik, where the majority of ceasefire violations have been reported.
Syunik divides Azerbaijan's main body to the east and the Azerbaijani enclave of Nakhchivan in the west. It is also a crucial trade route between Armenia and Iran, with which it shares a border to the south.
Azerbaijan demands that Armenia build a route through Syunik and Nakhchivan since 2020. Baku said the passage would be Armenian territory, but with minimal control from Yerevan.
Azerbaijani officials also claim that the southern part of Armenia was historically Azerbaijani land, but they haven't made a formal territorial claim.
Armenia has closed its border with Azerbaijan and its frontier with Turkey, a close ally to Baku. This makes its border with Iran the lifeline of trade. Syunik's corridor could cut off the country's access to its remote mountainous border.
Armenia and Iran share a warm relationship, despite Armenia’s Christian faith and its increasingly pro-Western orientation. Iran was Armenia's largest importer in 2022. Tehran's Defence Minister visited Yerevan in May. Iranian media reported that he expressed Iran's opposition against redrawing borderlines in the region.
Armenia's tensions with its traditional ally Russia are a major problem. Russia opposes Armenian efforts to move closer to the west and has strengthened its ties with Azerbaijan.
"Armenia has open borders with Georgia and Iran. "This keeps the country moving," said Tigran Grizaryan, director at the Regional Centre for Democracy and Security, a think tank in Yerevan.
Grigoryan stated that Azerbaijani demands for the corridor may be the spark to future military escalation. He said that the ceasefire violation could be an attempt to force Armenia to make concessions over the issue.
He said: "If Armenia lost its border with Iran that would be a disaster."
Requests for comments from the Iranian and Russian Foreign Ministries were not answered.
The Iranian connection is evident throughout Armenia's south.
Iranian road workers work to widen a mountainside road that is clogged by lorries coming from the south, headed north toward Georgia and Russia.
Some locals are selling red wine in plastic bottles to newly-arrived truckers from Iran where alcohol is prohibited.
Meghri is the historic town at the southernmost point of Armenia, and the gateway to Iran.
Bagrat Zakaryan, Bagrat's deputy mayor, said that the town, which is only 16 km from Azerbaijan and has a population of 4,000, had its everyday life overshadowed due to tensions with Baku.
He said that "given the recent events of Karabakh and what President Azerbaijan says, there's this feeling of terror."
Opportunity for Peace
Some people are more optimistic than others about the prospects of peace.
Armen Davtyan, who was deputy director at Meghri railway station from 1993 to 1993, sat on a crossroads that connected Yerevan with Baku and Iran with the Soviet Union until its dissolution in 1991.
After the Karabakh War of 1988-1994 and the closing of the border, Davtyan began working as a borderguard.
A derelict train with an emblazoned Soviet emblem lingers in the parking lot of the station, just metres away from the Iranian border.
Davtyan said that he remembered fondly the days before the war, when Armenians worked with Azerbaijanis on the railways. He hopes to see cross-border trains again arrive at Meghri Station one day.
He said: "I understand that some people fear that the Azerbaijanis may return if the rail reopens."
"But if people in 2025 are still afraid of us opening up transport links, that seems a bit absurd." (Reporting and editing by Daniel Flynn; Felix Light)
(source: Reuters)