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Should You Upgrade to the iPhone 14? Not So Fast

You may want to think twice before upgrading to the iPhone 14 right now.

You might be eyeballing the iPhone 14 lineup — especially the Pro, which introduces a sharper camera and an always-on display. But if you don’t absolutely need a new phone right now, you’re better off waiting. 

Apple usually announces new iPhones in September, which means the rumored iPhone 15 and iPhone 15 Pro could be right around the corner. Those phones are expected to come with USB-C charging for the first time among other notable changes, such as solid state buttons on the Pro models. Apple sometimes discounts older iPhones after introducing new ones, as it did with the iPhone 13 lineup last year and may do the same with the iPhone 14 this year. So whether you care about having the newest iPhone or not, it’s probably in your best interest to wait a little while longer.

Purchasing decisions will always vary depending on budget, how well your phone works right now and your personal needs, so there’s no simple answer that works for everyone. But if you’re in need of a new phone right away and can’t wait, here are the biggest differences between the iPhone 14 lineup and previous iPhone generations to help you make a decision.

What’s new in the iPhone 14

The $799 (£849, AU$1,399) iPhone 14 brought modest improvements but not game-changing ones. Those changes include nitty-gritty camera improvements and the support for satellite-based emergency messaging. 

The iPhone 14 also has a new internal design, with simpler access to internal components, making it easier to repair than previous models. iFixit, a website that disassembles tech products and assesses how easy they are to fix, called it “the most repairable iPhone in years.” And if you want these features in a larger size, the iPhone 14 Plus starts at $100 more, at $899.

Apple saved its most interesting new features for the Pro lineup, including the Dynamic Island that replaces the notch, the new A16 Bionic processor and a 48-megapixel main camera sensor.

iPhone 13 leaning against surface

iPhone 14 vs. iPhone 13, 13 Pro, 13 Pro Max

The iPhone 14 lineup introduced new features such as car-crash detection, the removal of the physical SIM card for US phones, and enhanced cameras on the rear and front. Despite those changes, iPhone 14 isn’t different enough to justify upgrading from the iPhone 13. And even though Apple finally got rid of the infamous notch in the Pro models, the 14 and 14 Plus still have one — it’s the same smaller notch that debuted on the iPhone 13 series. In fact, the iPhone 14 represents “one of the most minimal year-over-year upgrades in Apple’s history,” according to CNET’s Patrick Holland, who reviewed Apple’s latest phones. 

The iPhone 14 and iPhone 14 Plus have the A15 Bionic chip from iPhone 13 Pro and iPhone 13 Pro Max. The 14’s screen looks exactly like the one on the 13. Perhaps the most prominent change was the introduction of a larger version of the iPhone 14 called the iPhone 14 Plus, which has a 6.7-inch screen like the Pro Max. That means you no longer have to splurge on Apple’s most expensive iPhone if you want the largest screen possible. 

Of course, the iPhone 14 is still highly rated, but we recommend skipping this upgrade. If you need a new iPhone and can’t wait for the iPhone 15, we suggest going for an iPhone 14 Pro or iPhone 14 Pro Max if you can afford it. These phones are expensive, but provide access to some salient changes — namely a high-refresh rate display, Apple’s new Dynamic Island multitasking bar, an always-on display as well as better cameras among other features.

The bottom line: If you have an iPhone 13 or 13 Pro, don’t upgrade to the iPhone 14. But if you are determined to get a new phone, go for the iPhone 14 Pro or 14 Pro Max, especially if you must have the Dynamic Island right now. 

Read more: iPhone 14 Pro and 14 Pro Max Review

The purple iPhone 12

iPhone 14 vs. iPhone 12, 12 Pro 

Even though the iPhone 12 lineup was released in 2020, it still shares many similarities with Apple’s latest phones. Both the iPhone 12 and iPhone 14 support 5G, run on fast processors, offer great cameras and include MagSafe accessory compatibility.

Since the iPhone 14 is more of a refresh than a major upgrade, we recommend hanging onto your iPhone 12 if it’s still in good condition and waiting for the iPhone 15. You can still take advantage of the iPhone’s latest software when iOS 17 comes out in the fall, bringing new features like Standby mode for turning your phone into a mini smart display and improvements to the messaging app among other additions.

The iPhone 14 received a few notable camera upgrades, like a larger sensor, a new lens with a faster aperture, improved photo processing and Action Mode which makes the movements in videos look smoother when you record them.

But the iPhone 12’s cameras remain excellent even though they are almost 3 years old. The iPhone 12 has a 12-megapixel dual camera system, while the iPhone 12 Pro includes a third camera with a telephoto lens. Check out our iPhone 12 review to see how the cameras held up when CNET put them through the paces.

It’s worth remembering that you get more noticeable upgrades with the iPhone 14 Pro and Pro Max. These include everything that’s new in the 14, as well as an upgraded main camera with a larger 48-megapixel sensor, an ultrawide camera that allows you to take Macro photos and a third camera with a telephoto lens. If you can get a good trade-in deal that significantly knocks down the iPhone 14 Pro’s price, upgrading from the regular iPhone 12 is a decent step-up. 

The bottom line: You should wait for the iPhone 15 since the iPhone 14 isn’t dramatically different. However, the iPhone 14 Pro and 14 Pro Max bring more significant changes that could be worthwhile if you can snag a good trade-in deal. 

Read more: All The “New” iPhone Features That Have Been on Android For Years

The iPhone 11.

iPhone 14 vs. iPhone 11, 11 Pro

If you’re using an iPhone 11, we recommend upgrading. Since Apple’s new iPhones may be right around the corner, you should still wait a little longer if you can. But if you do need a new phone right now and can get the iPhone 14 at a solid trade-in discount, there are plenty of improvements to look forward to.

In the last three or so years, Apple has made enough changes to features including battery life, performance, screen quality, cameras and durability to merit buying a new iPhone. 

Upgrading to the iPhone 14 will get you 5G support, more storage (128GB at the base level versus 64GB) a better main camera with a wider aperture lens, new video shooting options like Action mode and Cinematic mode, a better selfie camera with Night mode and Apple’s Photonic Engine processing, compatibility with Apple’s MagSafe accessories, longer battery life and faster performance. That’s in addition to car-crash detection and Apple’s new emergency satellite messaging feature. 

Most of the photography and videography improvements are dramatic changes compared to the iPhone 11. And the longer battery life and additional storage space are welcomed upgrades that you’ll notice on a daily basis.

As previously mentioned, if you go for the 14 Pro instead, you get a new 48-megapixel main camera, a closer 3x optical zoom versus the 11 Pro Max’s 2x zoom, the Dynamic Island instead of the notch and numerous other upgrades like an always-on display.

The bottom line: The iPhone 14 lineup includes enough changes to justify upgrading from the iPhone 11. But if your phone is still in good condition and you’re satisfied with it, wait a little while longer for the iPhone 15 (or a newly discounted iPhone 14).

The iPhone XS

iPhone 14 vs. iPhone XS, XS Max, XR

If you bought the iPhone XS, XS Max or XR at launch, that means your phone is almost 5 years old and is probably starting to feel sluggish. That alone makes a strong case for upgrading, but you should probably still wait for the iPhone 15 if you can.

However, if you need a new phone right now, there’s plenty to gain from upgrading. Compared to the iPhone XS, the iPhone 14 provides six hours of additional battery life (according to Apple’s estimates). In addition to everything that’s new in the iPhone 14 specifically, you’ll also get other upgrades Apple has added to the iPhone over the past few years. 

Those include 5G support, more storage (again, you get 128GB versus 64GB), faster performance and a better camera. The iPhone XS generation lacks Night mode for taking clearer pictures in the dark, and it also doesn’t have Deep Fusion, which is Apple’s name for its image processing technique that improves detail and clarity in darker environments. The XS’s front camera has a lower 7-megapixel resolution compared to the larger and newer 12-megapixel sensor on the iPhone 14. If you’re upgrading from an iPhone XR, you’ll also get an additional camera with an ultrawide lens for taking broader group shots for the first time. 

The iPhone 14 also has a larger 6.1-inch screen compared to the iPhone XS’ 5.8-inch display (the iPhone XS Max has a 6.5-inch screen, while the XR’s screen is also 6.1 inches). The design has also changed quite a bit over the past four years; newer models have flat edges, a slightly smaller notch, different finishes and a new “squircle”-shaped camera module that replaces the pill-shaped rear camera cutout. So your phone will not only feel more modern, but it’ll look newer, too. 

The bottom line: If you have an iPhone XS, XS Max or XR, it’s definitely worth upgrading. You get a noticeable boost in camera quality, battery life and performance among other areas. But again, remember that the iPhone 15 and a newly discounted iPhone 14 may be arriving in just a few weeks.

The iPhone X

iPhone 14 vs. iPhone X

The iPhone X is almost 6 years old, which means it probably feels slow and its battery life isn’t what it used to be. With an iPhone 14, you’ll notice a major upgrade in both categories, as well as design, improved durability, connectivity and camera quality. But if you’re in a position to do so, you should wait and see what the expected iPhone 15 has to offer.

If you can’t wait until September, which is when Apple typically releases new iPhones, here’s what you’ll get by upgrading to the iPhone 14. The iPhone X runs on a much older A11 Bionic chip that’s now roughly 6 years old, while the iPhone 14 runs on Apple’s much more recent A15 Bionic processor. The iPhone 14 Pro and Pro Max run on Apple’s newer A16 Bionic chip. Both new processors are way ahead of the A11 chip, which only has a two-core neural engine compared to the A15 Bionic’s 16-core neural engine. 

The iPhone’s neural engine powers tasks that rely on machine learning and artificial intelligence, which are becoming a bigger part of the iPhone experience. Things like app suggestions in the App Library and Apple’s Translate app rely on machine learning to function, which indicates that the iPhone X may struggle to keep up with newer capabilities.

The iPhone X also has a dual-lens camera similar to that of the iPhone XS, meaning it’s missing the iPhone 14’s camera hardware improvements in addition to Night mode, Deep Fusion and the ability to control depth-of-field and blur levels in Portrait mode. Like the iPhone XS, you’re only getting a 7-megapixel front camera compared to a 12-megapixel selfie camera on Apple’s newer phones.

Apple’s more than five-year-old iPhone also has shorter battery life, with Apple estimating it should last for 13 hours when playing back video compared to 20 hours on the iPhone 14. The iPhone 14’s 6.1-inch screen is bigger than the 5.8-inch display on the iPhone X, and it should also be brighter since it can reach 800 nits of max brightness compared to the iPhone X’s 625-nit screen.

The iPhone 14 supports Dolby Atmos and spatial audio playback, while the iPhone X just has stereo playback. That’s probably not a deal-breaker, but might be crucial if you watch a lot of video on your phone without headphones.

And of course, there’s the benefit of getting car-crash detection, Apple’s new emergency SOS messaging via satellite option, better water resistance (up to 6 meters for 30 minutes versus 1 meter), 5G support, more storage space, Ceramic Shield for the display, a refreshed design and the option to use MagSafe accessories on the iPhone 14.

The bottom line: If you have the iPhone X, it’s time to upgrade. The iPhone 14 will feel new in just about every way, from the camera to performance, battery life and the way it looks and feels. And the iPhone X doesn’t support Apple’s upcoming software upgrade, iOS 17, so you’ll be missing out on new features. But if you’ve waited this long, it’s a good idea to hang in there just a little longer for the expected iPhone 15.

iPhone 8 and iPhone 8 Plus

iPhone 14 vs. iPhone 8, 8 Plus

The iPhone 8 generation has Apple’s legacy iPhone design, which is fitting for a phone that’s now almost 6 years old. If you have an iPhone 8 and are considering an upgrade, many of the reasons to do that are the same as the reasons to upgrade from the iPhone X. The processor is getting old, which could make it harder to use newer iPhone features that rely on machine learning. The cameras are outdated and lack features like Night mode (the smaller iPhone 8 doesn’t have Portrait mode either, since it only has one lens). And it doesn’t support iOS 17. By upgrading, you’ll get more storage, significantly longer battery life, new software, support for 5G connectivity and MagSafe accessories, too.

Again, remember that the iPhone 15 could debut next month, meaning it’s a good idea to wait if you can. But if you need a new phone immediately, the biggest difference you’ll notice by upgrading to the iPhone 14 comes down to design, which is much more than just an aesthetic upgrade. Phones with Apple’s more modern edge-to-edge screen trade Touch ID for Face ID, which lets you unlock your phone and authenticate payments just by looking at your device. If you prefer Touch ID over Face ID, especially since it’s difficult to use Face ID while wearing a mask, you might want to at least consider upgrading to the $429 iPhone SE, since it has the same processor as the iPhone 13, 5G compatibility and plenty of photography improvements inside a similar body to the iPhone 8.

Upgrading to the iPhone 14 has a noticeably large jump in display size and quality. Since newer phones like the iPhone 14 don’t have a home button, there’s more room for Apple to expand the screen without making the device feel cumbersome. The iPhone 14’s screen is even larger than the iPhone 8 Plus’ 5.5-inch screen despite the device itself feeling more compact. (And for more perspective, consider that the iPhone 13 Mini has a 5.4-inch display). If you go for the 14 Pro you get another big change: the Dynamic Island, which transforms the notch area into an area for viewing alerts, system notifications and apps running in the background like Spotify or Apple Music. 

From personal experience, switching from an iPhone 8 (which has a 4.7-inch screen) to the iPhone 12’s 6.1-inch display makes reading, checking email and watching videos much more comfortable. The screen isn’t only larger, but it’s also more vibrant with better contrast since it uses an OLED display rather than LCD.

The bottom line: The iPhone 14 is a huge jump from the iPhone 8. Everything about this phone will feel fast and new: the much larger and bolder screen, Face ID, the speedier processor, its longer battery life and of course the substantially upgraded cameras. Of note however, if you really want to get a newer iPhone but keep the iPhone 8’s design, trade up to the current 2022 iPhone SE. And remember that the iPhone 15 and a newly discounted iPhone 14 could be arriving soon, so it’s wise to wait a little longer if possible.

The iPhone 7 Plus and 7.

iPhone 14 vs. iPhone 7, 7 Plus

If you have an iPhone 7, it’s time to upgrade. It’s almost 7 years old, and it shows in everything from the processor to the camera and storage space. The iPhone 7 doesn’t support iOS 17, providing another incentive for acquiring a newer device. If you can’t afford to wait for the iPhone 15, which is expected to debut in September, here’s what you’ll get by upgrading to the iPhone 14.

While we generally recommend choosing the iPhone 14 Pro over the iPhone 14 in most cases, coming from a phone this old, means you’ll find plenty that’s new in the iPhone 14. 

The iPhone 7 runs on an aging A10 Fusion processor, which doesn’t even have a neural engine and is years behind Apple’s latest technology. It has a single-lens camera without Portrait mode, while the 7 Plus has two cameras. But those cameras lack many modern features like Night mode and Portrait Lighting, which adds specific lighting effects to your portraits. 

Similar to the iPhone 8, the iPhone 7 series includes Touch ID and comes in either 4.7- or 5.5-inch screen sizes. But since the iPhone 7 is a year older than the iPhone 8, it’s also missing wireless charging, which means you must plug it in to charge. 

If you’ve owned an iPhone 7 for several years, it’s probably bursting at the seams since it has substantially less storage space. The entry-level iPhone 7 only came with 32GB of space, which is a quarter of capacity available on the cheapest iPhone 14. 

The iPhone 14 brings major gains in nearly every aspect. The standard model has a larger, bolder and brighter bezel-free 6.1-inch screen that still feels compact since it doesn’t have a home button. It runs on Apple’s A15 Bionic processor, which is better equipped to handle newer iOS features. And it has a drastically improved dual-lens camera with a larger main camera sensor and advanced features like the new Cinematic mode for video and Night mode. Plus, Apple’s estimates indicate it’ll offer seven hours of additional battery life during video playback, which is a huge bump.

The bottom line: If you’re still holding onto your iPhone 7, there’s no question that you’re due for an upgrade. A better screen, compatibility with iOS 17, longer battery life and more advanced cameras are just a few of the gains the iPhone 14 has to offer over the iPhone 7. And similar to my recommendation with the iPhone 8, if you really want to keep the home button and save some money, consider the iPhone SE. It gives you more recent performance upgrades while keeping a similar phone style. Just remember that the iPhone 15 is expected to arrive in just a few weeks, which also means the iPhone 14 might see a price cut soon. So it’s worth waiting just a bit longer if you can.

Technologies

Apple and Meta team up to make Muse AI model run on Mac computers

Apple and Meta are collaborating to make Muse Spark Open easier to run locally on clustered Mac Studio systems, according to the companies.

Tim Cook and Mark Zuckerberg have clashed for years, but with John Ternus taking the reins at Apple

Meta

The collaboration centers on Muse Spark Open, the most capable open-weight model released under a license that allows for limited commercial use, according to Meta. It’s an 816-billion-parameter model using a so-called mixture-of-experts architecture. As an open-weight model, developers can download the technology’s parameters, or weights, from the internet and run the model on a wide range of hardware.

Customers will be able to pair between two and four Mac Studio PCs to use Muse Spark to code, analyze video or do other agentic work. The model runs locally, instead of in the cloud, adding a layer of security and saving users money, the companies said.

Thursday’s announcement, following months of collaboration, is a sign that the AI boom has shifted historical alliances in Silicon Valley. For years, Apple and Meta regarded each other warily and avoided public partnerships, and the relationship hit rock bottom after Apple introduced privacy changes in 2021 that limited the targeting capabilities of digital ad companies.

Meta estimated in early 2022 that the change would cut its revenue that year by $10 billion.

Representatives from Apple and Meta declined to say if the Muse Spark Open collaboration was the start of a deeper relationship.

Zuckerberg posted a picture on X showing the Meta agent working on a Mac computer. He wrote, “Muse Spark Open — weights releasing today — runs great on new Mac Studios thanks to work with @johnternus and Apple.”

Ternus responded, “Congrats to the team! Amazing to run a model of Muse Spark Open’s caliber and scale this efficiently, right from your desk. Mac Studio keeps pushing the boundaries of on-device AI!”

Meta AI chief Alexandr Wang said in an interview that many powerful open-weight models are too big to be run on the majority of personal computers, but Apple’s Mac Studios make enough memory available to users so that it’s practical to run Muse Spark Open.

The move represents an important show of confidence in Meta’s rebooted AI efforts and could pose a challenge to OpenAI and Anthropic. It could also signal Apple’s growing strength in AI chips, a market that Nvidia

″We worked with Apple to bring leading Agent capabilities to your desktop for the first time on the Apple M5 Ultra Mac Studios, so you know we’re really excited about this,” Wang said. Developers can download a version of the AI model from websites like Hugging Face without extra configuration for Apple’s silicon.

Muse Spark Open has also been tuned to run faster on Apple’s hardware, and the iPhone maker revealed new benchmarks for its chips and published technical documentation about its MLX AI framework’s ability to split open-source models across multiple machines.

Mac Studios aren’t cheap though, and this AI model requires the fastest Apple chips and as much memory as possible.

Currently, a Mac Studio with the required M5 Ultra chip and 256GB of memory costs at least $10,799. A more expensive version with 512GB of RAM will be released later this month.

Plus, users will need to buy multiple machines.

Common ground on open source

The two companies are collaborating on open-source AI, which has become a point of contention in Washington as politicians worry that free Chinese models could undercut American AI.

Although Meta once centered its AI strategy on its older open-weight Llama family of models, it has since focused on creating proprietary models under the leadership of Wang, who joined Meta when the company invested more than $14 billion into his former startup Scale AI last year.

While Apple and Meta, then known as Facebook, partnered on iPhone extensions over a decade ago, they haven’t struck any public partnerships since 2017 after Apple removed system-level Facebook integration from the iPhone.

“Most of the animosity predates my tenure at the company, but obviously there’s been a long history between Meta and Apple,” Wang said, pointing to one member of his team, AI researcher and former Apple director Daniel Gross, as a reason for the collaboration. Gross, along with former GitHub CEO Nat Friedman, was a major Zuckerberg hire last year as the Facebook founder was overhauling his company’s AI strategy.

Their leaders have also traded harsh words.

Cook, who was Apple CEO until Ternus succeeded him last month, took a shot at Zuckerberg in 2018, during the Cambridge Analytica scandal, saying, “I wouldn’t be in this situation.” Cook often criticized Meta for compromising user privacy.

Ternus, a hardware engineer, has already started changing things at Apple, including when it releases products.

And Meta’s developers haven’t been able to resist Apple’s products. The company bought hundreds of Mac computers so its Superintelligence team could experiment with local AI and agents earlier this year.

Apple’s multiple partners

Meta is just the latest AI model developer to team up with Apple.

In 2024, Apple announced a partnership with OpenAI to integrate ChatGPT into Siri, although the integration “dramatically underperformed” and didn’t lead to OpenAI user growth, OpenAI said in a filing that’s part of a legal dispute with Elon Musk’s xAI. Apple sued OpenAI in July, alleging trade secret theft, a claim OpenAI denied.

Earlier this year, Apple announced a deal with Google

Still, Apple’s AI strategy has drawn criticism from investors and customers in part because its new version of Siri, released last month, isn’t as advanced as chatbots and agents from leading labs.

Meanwhile, Meta has bet big on becoming a leading lab but has struggled to keep up with the competition and its business remains almost entirely reliant on ads. Recent developments, such as Meta’s Muse personal agent app and its latest proprietary foundation model, Muse Wonder, released earlier this week, have begun to excite investors who are optimistic about new AI business opportunities.

Open source remains part of Zuckerberg’s AI strategy. In August, Meta debuted a small open-weight AI model dubbed Muse Glimmer, with Zuckerberg pledging to eventually release something bigger and more powerful.

Muse Spark Open isn’t as advanced as Muse Wonder, a proprietary offering, but Wang said it’s good enough to potentially entice more coders to upgrade.

“These aren’t the most capable models that we’ve developed or released,” Wang said. “But we think that there will be a lot of companies and developers who sort of use this model and tinker with it at small scale and then seek to ramp up and scale up their usage.”

WATCH: Apple makes its biggest smart-home push yet under CEO John Ternus.

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Technologies

CoreWeave credit default swaps hit distress levels as investors sour on AI debt

Signs of distressed deepened in CoreWeave on Thursday.

CoreWeave’s credit stress continued to spiral on Thursday amid a broader sell-off in AI-related names.

CoreWeave — a so-called neocloud company — has taken on more than $51 billion of debt and obligations to finance its AI infrastructure build-out. It’s now facing a rebellion from stock and bond investors as concerns mount about AI overspending and debt levels.

Yields on CoreWeave debt have continued to climb, with the yield to maturity on its 9.75% bond due in 2031 reaching 15.78%. Bond yields move inversely to prices. Meanwhile, the spread on its five-year credit default swaps, which are insurance against default, at one point soared above 1,140 basis points. It last stood at nearly 1,038 bps — a 16% week-over-week jump and 164% higher than a year ago.

Credit concerns are spreading into AI equities too. CoreWeave’s stock dropped during trading Thursday before recovering and closing 5.94% higher. The moved followed Wednesday’s 15.5% nosedive.

Other neocloud stocks were under similar pressure. Nebius also sank before climbing higher to close 1.29% and and Iren ultimately ended the day down less than 1%.

Anxiety about AI overspending is also spreading. For instance, shares of Micron Technology and Advanced Micro Devices sold off following a big sell-off in South Korean chip stocks. Micron closed up 1.87%, while AMD fell 1.5%.

While AI debt worries have been rising steadily, investors have suddenly grown skittish about the underlying finances of companies borrowing heavily to buy chips, build data centers, and rent out computing power.

Coreweave’s credit default swaps are one place to see that stress.

Credit default swaps are contracts where buyers pay for protection in case the borrower can’t repay its debt. The spread widening in CoreWeave’s CDS means investors view the debt as riskier.

The market is “basically saying ‘no mas’ to AI debt without operating cash flow support,” the Evercore ISI trading desk said.

A spread level of 1,000 basis points or above is generally a sign of credit distress, said Gavan Nolan, executive director of fixed income pricing at S&P Global Market Intelligence.

No one is questioning whether demand for CoreWeave’s services is real, since the company has contracts with all the big hyperscalers, Nolan said. The question is whether the cash flows will ultimately arrive.

“It’s obviously heavily negative free cash flow at the moment, and it needs that cash flow to arrive really to justify all the capex that it’s spending,” Nolan said.

‘Self-fulfilling prophecy’

CEO Mike Intrator dismissed the market moves on Wednesday, according to a memo obtained by CNBC.

“When you are building a new type of technology company there will be periods of time when the market misunderstands and acts irrationally,” he wrote. “We are confident in our backlog which more than supports all of our debt obligations.”

The backlog is over $100 billion, with around two-thirds of it with investment-grade counterparts including Microsoft, Meta, IBM and Caterpillar, Deutsche Bank said in a note Thursday. The firm reiterated its buy-rating on the stock Wednesday, calling the dislocation a buying opportunity.

“The problem is this kind of concern can prove to be a self-fulfilling prophecy, and risks triggering broader issues in other AI-related names,” said Jim Reid, global head of macro and thematic research.

Domino effects may already be happening. Oracle’s five-year CDS spread also spiked this week. It was last at 282 basis points, a roughly 10% increase in one week.

“A downgrade from its BBB rating would risk pressuring IG-only investors into forced sales,” Reid said.

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Technologies

Netflix Chief Content Officer Bela Bajaria is leaving, will be replaced by Peter Rice

Netflix announced Bela Bajaria will be replaced by former Disney exec Peter Rice as the company’s chief content officer.

Netflix on Thursday announced Bela Bajaria will be replaced as the company’s chief content officer by former Disney exec Peter Rice, effective Oct. 26.

Rice most recently oversaw Disney’s cable channels, news programming and coverage of major sporting events.

“Peter is one of the most effective at-scale operators in the entertainment industry,” co-CEO Ted Sarandos said in a statement. “I’m excited to welcome him to Netflix as Chief Content Officer as we continue to scale and deliver members more of the stories they love.”

Before Rice was at Disney, he held roles 21st Century Fox and Fox Searchlight Pictures. Netflix in its announcement called him “one of the entertainment industry’s most respected creative executives.” In his new role, Rice will oversee the company’s global content organization, including scripted and unscripted series, film and live events.

″[Netflix has] shown again and again that they’re willing to take chances on distinctive voices and fresh ideas, and I’m excited to work with the team to help bring even more great stories to members everywhere,” he said in a statement.

Bajaria, who is leaving Netflix after nearly 10 years, most recently worked as the company’s global content team. She had been focused on the company’s live sports strategy, looking to create events out of buzzy games and tournaments.

“I’m incredibly grateful for everything she’s done to help Netflix entertain the world,” Sarandos said in a statement.

The announcement comes a day after Netflix instituted layoffs across its organization, eliminating approximately 6% of its workforce, or roughly 1,000 jobs.

The media company will report its next quarterly earnings on Tuesday.

This is breaking news. Please refresh for updates.

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