Samsung and SK Hynix Shares Hit Record Highs as Nvidia Earnings Boost AI Chip Demand 
Hyundai Motor Plans Multibillion-Dollar Investment in Robotics, AI and Hydrogen in South Korea 
Toyota Plans $19 Billion Share Sale in Major Corporate Governance Reform Move 
Synopsys Q2 Revenue Forecast Misses Expectations Amid China Export Curbs and AI Shift 
OpenAI Hires Former Meta and Apple AI Leader Ruomin Pang Amid Intensifying AI Talent War 
FAA Plans Flight Reductions at Chicago O’Hare as Airlines Ramp Up Summer Schedules 
APEX Tech Acquisition Inc. Raises $111.97 Million in NYSE IPO Under Ticker TRADU 
Samsung Stock Hits Record High on Nvidia HBM4 Supply Deal, Boosting AI Chip Rally 
BlueScope Steel Shares Drop After Rejecting Revised A$15 Billion Takeover Bid 
Meta Signs Multi-Billion Dollar AI Chip Deal With Google to Power Next-Gen AI Models 
Middle East Airspace Shutdown Disrupts Global Flights After U.S.-Israel Strikes on Iran 
Coupang Reports Q4 Loss After Data Breach, Revenue Misses Estimates 
Trump Orders Federal Agencies to Halt Use of Anthropic AI Technology 
Pentagon Weighs Supply Chain Risk Designation for Anthropic Over Claude AI Use 
Netflix Declines to Raise Bid for Warner Bros. Discovery Amid Competing Paramount Skydance Offer 
OpenAI Targets $600B Compute Spend as IPO Valuation Could Reach $1 Trillion 
Nintendo Share Sale: MUFG and Bank of Kyoto to Sell Stakes in Strategic Unwinding 
Apple Card’s losses have exceeded $6 billion, leaving Goldman Sachs searching for a way out of the partnership. The bank’s consumer division continues to suffer financially, with no clear path to recovery in sight.
Apple Card Partnership Drags Goldman into Billions in Losses
As losses keep piling up, Goldman Sachs is still considering ending its alliance with Apple.
The Wall Street Journal has reported that Goldman Sachs' consumer business will be in disarray this quarter, costing the company $400 million.
David Solomon, CEO of Goldman Sachs, said at a conference this week that the sale of real estate loans and the dissolution of the company's credit card association with General Motors are the two main sources of this $400 impact.
General Motors’ Credit Card Business Heading to Barclays
The card business of General Motors, which has over $2 billion in balances, will reportedly be sold to Barclays.
Since the start of 2020, "on a big chunk of its consumer-lending businesses, including its credit cards," Goldman Sachs has lost more than $6 billion before taxes.
Apple Card Losses Double Industry Charge-Off Rates
Past reporting has shown that charge-off rates roughly double those of comparable credit cards, which is one of several reasons contributing to Apple Card's enormous losses for Goldman.
Apple Card was supposed to help Goldman Sachs' consumer banking expansion ambitions, according to 9to5Mac. However, the bank has chosen to leave the consumer industry entirely in the years that have passed, including consumer loans and other products.
Goldman Sachs Eyes Exit from Apple Partnership
In the long run, Goldman Sachs hopes to end its agreement with Apple—the one that includes the Apple Card and the Apple Card Savings Account—as soon as possible.
There is a total of $17 billion on Apple Card balances at the moment. Goldman Sachs may incur even greater losses from the sale of its Apple partnership than it did from the sale of General Motors to Barclays, according to the Wall Street Journal.
“Sent a proposal to Goldman to exit from the contract in the next roughly 12-to-15 months.” Apple was reportedly informed of this in November by The Wall Street Journal. What will happen to that proposal now is anybody's guess.
Rumor has it that Goldman has approached American Express and Synchrony Financial about potentially acquiring Apple's card business.
