The AI hype train hit a prominent bump last month when Microsoft CEO Satya Nadella expressed concern that the sector could be dangerously overvalued if—and here’s the caveat—a wider set of companies don’t start benefitting from the technology soon.

“For this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread,” Nadella said during the World Economic Forum. He added that non-tech firms specifically need to see the upside of AI investment.

Keep reading here.—AV

Sponsored ads from Target and its retail media arm Roundel will appear alongside shopping conversations on ChatGPT, dropping relevant products and deals based on what people are actively searching for, the company said last week. In the past, Roundel has worked with brands like Apple and Mars for its ad business.

The retailer said traffic from ChatGPT to Target grew 40% on average each month. An indicator that consumer behavior is shifting toward conversational commerce. So far, major retailers including Target and Walmart have gone live on ChatGPT.

“We believe ads play an important role in continuing to support broad access to AI,” Asad Awan, ads and monetization lead at OpenAI, said in a statement. “By working closely with partners like Target in this pilot, we’re able to thoughtfully test new ad experiences and learn together to ensure ads are separate and clearly distinct, relevant, and useful while maintaining the trust people place in ChatGPT.”

Keep reading here.—VC

The success of Hasbro’s Magic the Gathering collectable cards brand is widening the gap with its closest rival Mattel. Both companies released their full-year earnings last week, and Hasbro’s results showed a 14% increase in revenue year over year, while Mattel’s net sales declined 1%.

In Q4, Magic showed its strength as a standout seller for the toymaker. While overall revenue grew 30% in the quarter and consumer products grew 7%, the Magic brand alone saw an 86% spike in sales growth, topping off 60% sales growth for the year.

CEO Chris Cocks told shareholders the momentum is carrying over into 2026, with a mix of original intellectual property releases and series based on popular franchises such as Avatar: The Last Airbender, Teenage Mutant Ninja Turtles, and Marvel Super Heroes. The latter comes out of the company’s “longest-standing” brand partnership with the Walt Disney Company.

“This balance of tentpole releases, premium offerings, and evergreen play reflects how the Magic system is designed to perform,” Cocks said.

Keep reading here.—AV

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