Starbucks Invests in In-House AI Software to Cut Costs
Starbucks (NASDAQ: SBUX) is developing AI-powered tools to replace existing systems from Microsoft (NASDAQ: MSFT) and IBM (NYSE: IBM), aiming to slash its estimated $400 million annual software spending. This decision comes amid efforts to reduce costs by over $2 billion in total.
In response to this news, shares of Starbucks rose more than 3%, while Microsoft and IBM saw declines of 2.4% and 5.2%, respectively. Starbucks has faced challenges with internal AI initiatives in the past, reverting to manual asset counts when previous attempts failed.
Simultaneously, Toast (NYSE: TOST) reported a 22% year-over-year increase in live locations to 171,000 and aims to offer integrated platforms that could address operational pain points for large enterprises like Starbucks in the long run.
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