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OpenAI Launches GPT-5.6 Model Series, Pricing Starts at $1

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.GPT-5.6 FAMILY OF MODELS:OpenAI said it is launching the GPT-5.6 family of models for general availability following its limited preview. "GPT-5.6 spans three model tiers: Sol, our flagship; Terra, a lower-cost model with performance competitive with GPT-5.5; and Luna, our fastest and most affordable model. The number identifies the generation, while Sol, Terra, and Luna are durable capability tiers that can advance on their own cadence. GPT-5.6 is available starting today across ChatGPT, Codex, and the OpenAI API. The rollout is starting globally now and will continue gradually toward full availability over the next 24 hours... GPT-5.6 is priced per 1M tokens across three model sizes: Sol is $5 input / $30 output; Terra is $2.50 input / $15 output; and Luna is $1 input / $6 output. GPT-5.6 also introduces more predictable prompt caching, including support for explicit cache breakpoints and a 30-minute minimum cache life. For GPT-5.6 and later models, cache writes are billed at 1.25x the model's uncached input rate, while cache reads continue to receive the 90% cached-input discount," the company said.AI CHIP PRODUCTION:Metaplans to begin manufacturing its in-house AI chip, code-named Iris, in September as part of a broader effort to expand computing capacity and use custom silicon to enhance AI capabilities across Facebook and Instagram, Reuters' Katie Paul, Max A. Cherney, and Stephen Nellis, citing an internal memo reviewed by the publication. Meta is working with Broadcomto help design the chip and TSMCto manufacture it, the report notes.MUSE SPARK AI:Meta has released developer access to its Muse Spark AI model and an upgraded version, positioning the company to compete with Anthropic and OpenAI by offering advanced AI coding and agentic capabilities as part of its personal superintelligence strategy, Reuters' Harshita Mary Varghese and Katie Paul. The upgraded model can write and debug code, use software and external tools, understand text, images and video, and carry out complex multi-step tasks with less human intervention, according to the report.IN-HOUSE TOOLS:Starbucksis developing in-house tools with the help of AI that could replace some software applications it now buys from companies such as Microsoftand IBM, Bloomberg's Daniela Sirtori and Brody Ford. The coffee chain is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation reviewed by Bloomberg News. Some of the Starbucks-developed software could roll out by the end of next year, pending the results of testing, the authors add.AI DISCLOSURES FOR ADS:Googleis rolling out global AI disclosures for ads across Search, YouTube, and Discover, allowing users to see whether an ad was created or modified using AI through a new "How this ad was made" section, SearchEngineLand's Danny Goodwin.OPERATING MODEL FRAMEWORK FOR AI:Rackspaceand Palantirannounced an operating model framework to help regulated and sovereign enterprises own and operate AI in production. The framework, delivered through Rackspace, combines Palantir Foundry and AIP with Rackspace's governed private cloud, sovereign cloud, on-prem infrastructure, certified FDEs, and managed operations for customers that require control over data, security, governance, deployment location, and operational outcomes. The framework is built for markets such as healthcare systems protecting patient records, financial institutions running on regulated data, energy operators with air-gapped infrastructure, and sovereign organizations that cannot move data across borders. Rackspace has scaled to approximately 400 Palantir certifications across sales, engineering, delivery, and operations, including a large global cohort of Palantir-certified forward deployed engineers to serve demand across healthcare, financial services, energy, and mid-market. Rackspace is also committing to deploy Foundry and AIP across more than 70% of its own back-office operations under the Rackspace OneOS program. Under the framework, Rackspace serves as a preferred operator for on-premise, private cloud, and sovereign Palantir deployments across critical infrastructure in both the public and private sectors, and for enterprises that demand the same control governments require - with Palantir Foundry and AIP as the data + AI platform layer of the governed enterprise AI stack that Rackspace has been assembling throughout 2026.AIDORA ACQUISITION:Paylocityannounced the acquisition of Aidora, an AI-native leave management compliance software company built on a natural language interaction model that automates highly regulated leave processes. Paylocity does not expect the acquisition of Aidora to have a material impact on first quarter or fiscal 2027 financial results. Paylocity will provide financial guidance in the normal course of business in its next earnings release.AI-POWERED INFRASTRUCTURE MONITORING:ServiceNowhas partnered with Hitachi (HTHY) subsidiary Hitachi Digital Services to strengthen reliable and efficient management of mission-critical infrastructure. Through this collaboration, the companies will advance Hitachi Intelligent Infrastructure Monitoring, or HIIM, an AI-driven solution that provides real-time monitoring and remote inspection while enabling a coordinated response across complex operations environments. As part of the broader partnership ecosystem, this collaboration leverages Hitachi Digital Services' operational technology domain knowledge along with its physical AI and systems integration expertise to help customers connect operational data and enterprise workflows on the ServiceNow AI Platform, enabling teams to act on insights at scale. The combined HIIM and ServiceNow platform aims to provide intelligent solutions that safeguard and enable efficient operations of critical infrastructure.AGENTIC-AI PLATFORM CONTRACT:Voyager Technologieswas awarded a contract to deliver an agentic-AI spectrum operations platform for an undisclosed program. Voyager's agentic platform will support the full lifecycle of autonomous systems operations, from mission planning and execution to data management and exploitation. The yearlong contract focuses on explainable AI, human-machine teaming and modular open architectures, priorities that align with the U.S. government's long-term vision for next-generation mission systems.SPACEXAI API:Rocket Oneannounced that it has added the SpaceXAI APIto its AI technology stack following acceptance into the SpaceXAI API program. The addition provides Rocket One with access to SpaceXAI's latest multimodal artificial intelligence models for coding, reasoning, text, image, video, and voice applications.

Major Averages Rebound as Oil Prices Retreat, Boosting Market Sentiment

The major averages were broadly higher in a reversal of yesterday's losses, with stock futures moving modestly higher as oil prices retreated from recent highs while investors assess the latest developments in the U.S.-Iran conflict and their potential impact on inflation and global growth.Although the U.S. launched another round of strikes against Iran and Tehran retaliated by targeting U.S. military facilities in Bahrain and Kuwait, investors appear encouraged by signs that neither side is seeking a prolonged disruption to energy markets. Oil prices retreated after an early spike, helping improve sentiment across equities and easing some concerns about another inflation shock.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:PepsiCoreportedand reiterated its FY26 EPS outlookLevi Straussprovided areport for Q2Rackspaceannounced anfor AI in production with Palantirand cut its FY26 revenue guidanceMetaintends to put an AI chip into production in September,Meanwhile, Meta is launching developer access to its Muse Spark AI model,2. WALL STREET CALLS:KeyBancSalesforce (CRM) to Sector Weight, with firm saying it isn't seeing AOV growthMattelwasto Sell from Neutral at Goldman SachsAreteParamount Skydanceto Sell, calling the history of media mega-mergers "hardly inspiring"MizuhoFive Belowto Outperform following a 30% retreatToastwasto Buy at Goldman Sachs following underperformance3. AROUND THE WEB:Amazonis advancing its Alexa AI capabilities through Project Moonraker, which aims to enable more complex multistep tasks, though development costs and reliability challenges remain key hurdles as the company expands Alexa+, Business Insider saysThe French competition authority said that its probe into Nvidiais nearing an end, Reuters reportsQiagenis drawing takeover interest from Advent and EQT, Bloomberg reportsSK Hynix'sU.S. listing is over seven times oversubscribed as the South Korean company gets ready to price its offering later this week, Bloomberg saysStarbucksis developing in-house tools with the help of AI that could replace some software applications it now buys from companies such as Microsoftand IBM, Bloomberg reports4. MOVERS:Forte Biosciencesgains after announcing its Phase 1b study ofnLighthigher after beingjoint laser weapon system contractMara Holdingsincreases after announcing it willfrom HIF USAIonislower after AstraZenecareported itsdid not meet its primary efficacy endpointBellRing Brandsfalls after naming Michael5. EARNINGS/GUIDANCE:ASE Technology, with revenue higher year-over-yearSimply Good Foodsand raised its guidance for FY26Honeywellfor FY26 and H2Byrna Technologies, with CEO Conn Davis commenting, "Our second quarter results did not reflect the level of performance we believe Byrna can deliver"AZZand raised its guidance for FY27INDEXES:Near midday, the Dow was up 0.27%, or 143.47, to 52,491.86, the Nasdaq was up 0.81%, or 209.64, to 26,080.30, and the S&P 500 was up 0.58%, or 43.09, to 7,525.80.