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Good morning. In this week’s episode of Leadership Next, Kristin Stoller and I speak with Dani Richa, chairman and group CEO of Impact BBDO International. In the annals of advertising, few agencies have had more cultural heft than BBDO. In the 1960s, it made Boomers feel part of the “Pepsi Generation” and DuPont cool with the tagline “Better Things for Better Living … through Chemistry.” Matthew Weiner even cited BBDO as the model for the fictional 1960s ad agency in his hit TV series Mad Men.  BBDO also created Snickers’ “You’re not you when you’re hungry” ad with Betty White, and many more iconic campaigns in its 134-year history. 

As a Dubai-based CEO who oversees BBDO Worldwide’s business in the Middle East, Africa and Pakistan, Richa argues that risk is a relative concept in fast-changing markets and times. He recalls thanking one CEO for taking a bold risk with a campaign, only to be told, “What? What risk? What do you mean? The biggest risk I would have taken is not doing that.”

“The starting point is choosing partners that share your values,” he said.

In an era where brands can whip up AI-generated ads—Guess’s AI-generated model in Vogue is hopefully not being a harbinger of what’s to come—Richa’s work is a reminder that technology alone will never triumph when it comes to bold ideas and creativity that’s rooted in real issues. “Big ideas that touch people, that move people, that move businesses, that never changes,” said Richa, while noting that BBDO “uses digital and social (media) like never before to amplify that messaging.”

The best ads don’t just sell products, they can change culture, politics, and the way people think. One especially memorable and award-winning campaign under his watch was “the Elections Edition” in 2022 for Lebanon’s An Nahar newspaper, which ran a blank edition, followed by an invitation for people to fill the pages with messages to politicians. It went viral, generating massive public pressure for elections and citizens’ right to vote. 

Richa compares AI to giving a camera to everyone and then realizing the best photographers produce different results. “AI is going to give you tons of stuff,” he says. “To pick the right message takes a lot of experience, a lot of creative judgment.”  

You can listen to our full conversation on Apple, Spotify or YouTube.

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top news

OpenAI looking at $830 billion valuation

Sam Altman’s AI company is in talks for $100 billion in new investment from Softbank and others, the WSJ says. The company is also considering a possible IPO next year.

What that Trump Media-nuclear fusion deal means

The financially struggling Trump Media & Technology Group’s $6 billion merger with a nuclear fusion developer represents either a bet on more taxpayer dollars being invested in the first fusion player to go public—soon owned in part by the Trump family—or a belief that an influx of capital will speed up the launch of clean, limitless electricity that eventually will transform the global grid.

TikTok sale agreed

ByteDance, the Chinese company that owns TikTok, has reached a deal to offload 80% of its U.S. assets to Oracle, Silver Lake, and MGX, according to Reuters. The valuation is not yet known. The deal will help the company avoid being banned in the U.S.—a longstanding promise of President Trump. 

Chanel’s Claire Isnard speaks

Claire Isnard can trace her 40‑year career—including 17 years at Chanel—back to one bad exam. Had she passed, she’d likely still be in a classroom, grading essays on Italian literature. In her first-ever sit-down interview ahead of her retirement, Isnard says she’s come full circle. Despite having zero HR qualifications, she wound up as Chanel’s chief people and chief organization officer. “When you draw my story back, the first compelling and meaningful thing that would end up spread across everything I’ve done is helping people become who they didn’t think they can become,” she told Fortune.

PayPal CEO Alex Chriss on stablecoins

Since January, PayPal’s stock price has dropped more than 30% as it tries to halt competitors from encroaching on its core products of online checkout and peer-to-peer payments. In response, Chriss says the fintech is looking to get a lift from next-generation payment products like stablecoins, and working to incorporate them across its operations and products. 

North Korea is biggest crypto thief

A massive amount of crypto was robbed this year, and most of it went to North Korea. The country accounted for roughly 59% of the more than $3.4 billion in stolen crypto, according to Chainalysis’ 2026 Crypto Crime Report. 

More Epstein photos released

House Democrats released several dozen more photos Thursday from the estate of the convicted sex offender Jeffrey Epstein, showing his associations with the rich and famous, including Bill Gates and Sergey Brin, as the Department of Justice faces a deadline to release many of its case files by the end of the week.

EU agrees €90 billion loan to Ukraine

After a deal to use frozen Russian assets fell apart, the bloc agreed to fund Kyiv’s defense against the invasion by Russia with its own cash. “We committed, we delivered,” European Council president António Costa said.

Trump designates Christmas Eve, Dec. 26 as federal holidays

Government workers will get a five-day weekend, perhaps setting a tone for the private sector.

The markets

S&P 500 futures are up 0.33% this morning. The last session closed up 0.79%. STOXX Europe 600 was flat in early trading. The U.K.’s FTSE 100 was flat in early trading. Japan’s Nikkei 225 was up 1.03%. China’s CSI 300 was up 0.34%. The South Korea KOSPI was up 0.65%. India’s NIFTY 50 was up 0.59%. Bitcoin was at $88K.

Around the watercooler

Southeast Asian economies prove resilient in the face of Trump’s tariffs as supply chains expand by Angelica Ang

Walmart’s women truckers surge thanks to $115,000 starting pay and other perks bringing in nontraditional candidates Marco Quiroz-Gutierrez by Marco Quiroz-Gutierrez

Lovable hits $6.6 billion valuation as its CEO says it wants to be ‘the last piece of software’ companies ever buy by Beatrice Nolan

‘This is a wacky number’: economists cry foul as new government data assumes zero housing inflation in surprising November drop by Eva Roytburg

How Salient, an AI loan processing startup valued at $500 million, grew ARR to $25 million in two years by Lily Mae Lazarus

CEO Daily is compiled and edited by Jim Edwards and Lee Clifford.



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Inside OpenAI’s ‘code red’ | Fortune

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The latest: Amazon reportedly is in talks to invest $10 billion or more in the ChatGPT maker, which already counts giants like Microsoft among its investors. Perhaps the most recent (and loudest) news cycle, however, had nothing directly to do with funding at all—social media lit up with reports that CEO Sam Altman had issued a “code red” to the OpenAI team, saying it was time to double down on improving ChatGPT (the LLM that started it all) or risk falling behind.

Fortune’s tech team recently dove into what’s going on behind the scenes, in a feature published this week and helmed by Jeremy Kahn, Alexei Oreskovic, and Lee Clifford. They wrote: 

The internal call to arms lays bare the very precarious position this market leader is now in, particularly as it confronts industry titans like Google (as well as Microsoft and Meta), with tens of billions of dollars in cash on their balance sheets and massive ecosystems of products to boost their distribution.  

For Altman, a longtime tech entrepreneur, the historic matchups of Silicon Valley’s past, pitting innovators and incumbents in winner-takes-all battles, are surely contributing to the sense of urgency: The annihilation of browser pioneer Netscape by Microsoft or the eclipse of BlackBerry’s handheld communications gadgets by Apple’s iPhone comes to mind. But there’s also the example set by Facebook founder Mark Zuckerberg, whose famous “lockdowns” over a decade ago helped repel the threat of Google’s nascent—and ultimately doomed—social networking product. 

The decisions made by OpenAI and its competitors at this critical juncture in a fast-moving market will decide which company cements its hold on what some have called the most transformative technology since electricity, and which will end up as odd footnotes in the final writing of the history of AI. 

Many Term Sheet readers know I love a good history lesson. (Did you know that venture capital has its roots in the financial structure of whaling ventures?) And lots of people like to say that AI marks an Industrial Revolution-esque change. If I’m honest, for all my skepticism, I do believe that. 

So, that means history is being written right now. One “code red” here or there is incremental, but could make all the long-term difference. Read the whole story here

Term Sheet Next… My colleague Lily Mae Lazarus just published this Term Sheet Next profile of Ari Malik, cofounder of Salient AI. He talks candidly about the company’s $25 million ARR—and how they’ve yet to lose a customer to churn. Read it here.

See you Monday,

Allie Garfinkle
X:
@agarfinks
Email: alexandra.garfinkle@fortune.com
Submit a deal for the Term Sheet newsletter here.

Allie Garfinkle curated the deals section of today’s newsletter. Subscribe here.

Venture Deals

Lovable, a Stockholm-based vibe coding platform, raised $330 million in Series B funding. CapitalG and Menlo Ventures led the round, and were joined by Salesforce Ventures, HubSpot Ventures, Accel, Evantic, Creandum, and others.

Edison Scientific, a San Francisco-based AI platform for scientific R&D, raised $70 million in seed funding. Triatomic Capital, Spark Capital, and an undisclosed major US institutional biotech investor led the round. They were joined by Pillar VC, Susa Ventures, Striker Venture Partners, Hawktail VC, Olive VC, and others.

Endra AI, a Stockholm-based mechanical, electrical, and plumbing engineering platform, raised $20 million in seed funding. Notion Capital led the round, and was joined by Norrsken VC.

Ember LifeSciences, a Westlake Village, Calif.-based cold chain technology company, raised $16.5 million in Series A funding. Sea Court Capital led the round, and was joined by Cardinal Health, Carrier Ventures, and others.

ZeroPhase, a Munich, Germany-based startup building a communication layer for unmanned defense systems, raised €5.8 million in seed funding. BlueYard Capital led the round.

Thread, a New York-based AI service desk platform for managed service providers, raised $18 million in growth equity funding. Susquehanna Growth Equity led the round, and they were joined by Headline.

Private Equity

Arctos Partners acquired a minority stake in Monumental Sports & Entertainment, a Washington, D.C.-based sports and venue management company. Financial terms were not disclosed.



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An AT&T exec manifested his C-suite position when he was earning his MBA

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How do you become a CISO? You make a step-by-step plan and follow it. At least, that’s how Rich Baich, who currently holds the title at AT&T, recalls getting his start.

“I was actually getting my MBA, and my last class was product marketing, and they said, ‘You are the product. Take yourself to the market,’” Baich said. “So, I literally came up with a plan to become a CISO, and I executed on it.”

That plan eventually ended up landing Baich his first gig as a CISO at data broker company ChoicePoint. At the time, he said, the idea of a C-suite role for information security was still nascent.

“When I look back on it was very interesting about what the role and the expectations in the boardroom and the C-suite was for CISO,” Baich said. “The challenges primarily were around helping the organization culturally understand: What does a CISO do and what value does it bring to the organization?”

In the beginning. Baich, who has now worn the CISO hat five times, sat down with IT Brew to discuss his career journey, recalling the first time he realized his interest in computers.

“We started doing computer programming in the Pascal language, and I thought just how interesting it was to create a Boolean logic if-then type of thing which could then cause you to take certain actions,” Baich said.

That fascination stuck with Baich even as he attended the Naval Academy and later completed military service: “I focused in areas like surface warfare and then cryptology, information warfare, and space.”

Critical point. The similarities between the military and Baich’s CISO role at ChoicePoint and later, American Insurance Group and Wells Fargo, were striking.

“Luckily for me, cybersecurity is as close to being in the military as you can get from most jobs, because you’re constantly trying to defend against adversaries that are trying to obviously, either do harm or form some type of mischievous activity.”

When reflecting on his experience at several top companies in the critical infrastructures sector, Baich said regulations have their value, but believes it can slow down organizations.

“Oftentimes, it can cause you to have to focus in areas that may not be the most important, but you need to make sure you meet those regulatory requirements,” Baich said. He was up for the challenge, joining the CIA in 2022 as CISO and director of the office of cybersecurity.

Jennifer Ewbank, founder of Andaman Strategic Advisors and a former deputy director of CIA for digital innovation, told IT Brew that Baich was her pick for the role, given his “ability to translate complex matters into simple,clear priorities” and his “desire to serve his country.” She added that Baich came into the organization with the goal of understanding its needs and made a large impact, despite his short stint there.

“He came in sincerely wanting to study and understand and meet everyone and appreciate the unique skills that they had and the strengths that they brought to the mission,” Ewbank said. “That approach, I thought, was very effective.”

AT&T…&Rich! After a year at the CIA, Baich joined AT&T as CISO and SVP in 2023, with the goal of helping the company modernize.

“Technology has not been [standing] still. Everything from satellites to quantum to AI, all those emerging technologies,” Baich said. “As a result of that, we need to have an appropriate workforce to be able to defend against all those.”

Part of that included building AI literacy among AT&T employees. Baich estimates that, in the past year, his team spent more than 16,000 hours completing AI training and labs. Employees are also creating short videos of AI use cases that are circulated within the organization for learning purposes.

“It’s not just about learning about AI, because it’s like going to school. Just because you learn about biology does not mean you’re going to operate on somebody,” Baich said. “We want to give that foundation for either new employees or older employees, to get everyone comfortable, to understand how AI works.”

The company has also spent time boosting its security down its customer stack. The company disclosed a breach in March 2024 containing a data set from 2019 that impacted 7.6 million current account holders, along with another incident in July 2024 involving customer data from a third-party cloud platform. Earlier this year, it disclosed a strategic agreement with Palo Alto Networks to deliver “secure connectivity solutions” to aid businesses and their security needs. Meanwhile, the company’s threat protection offering, AT&T Dynamic Defense, that “filters out bad traffic” has been hard at work. The company estimates it blocks 30 billion threats per month.

Baich also spends time bolstering the company’s collective defense against threats by collaborating with others in the industry. The company established an information-sharing agreement that allows it to share information with CISOs and operators in 7 countries.

“We’re only as strong as the weakest link amongst us all,” Baich said. “We all want to learn from each other.”

This report was originally published by IT Brew.



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Sneaking unemployment rate means the U.S. economy is inching closer to triggering Sahm Rule

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While America’s labor market may not be collapsing, Moody’s Analytics has highlighted that it is inching steadily closer towards a key recession indicator, with analysts now placing the probability of an economic contraction at around 40%.

According to the Bureau of Labor Statistics (BLS), the unemployment rate for November edged up to 4.6%, continuing the creep higher that analysts have been nervously monitoring throughout the year. The BLS noted a meagre 64,000 roles were created last month, showing little net change from April this year.

While 4.6% is not a dire figure—around 4% is seen as a reasonable rate of unemployment in a relatively stable economy—it is markedly higher than last November, when it was 4.2%. But it’s not necessarily the rate of unemployment that is making economists nervous. Rather, it’s the broader trend of decline and what this demonstrates about the trajectory of the economy.

In its most recent podcast episode of ‘Inside Economics’, Moody’s chief economist Mark Zandi and , senior director of economic research Dante DeAntonio observed that America is close to triggering the Sahm Rule.

The Sahm Rule, invented by former Fed economist Claudia Sahm, is a recession signal that is activated when the three-month moving average of the national unemployment rate rises by 0.5 percentage points or more, relative to the minimum of the three-month averages from the previous 12 months. In November, it stood at 0.43.

“We didn’t quite trigger it this month but we’re sort of on the precipice,” DeAntonio said. “If it stays at 4.6% next month we’ll trigger the Sahm Rule again. It’ll be exactly at the threshold just like we were in the middle of 2024.”

While the Sahm Rule is fairly accurate, the U.S. economy did not in fact fall into recession last year—thanks in part to the Fed engineering a “soft landing” via interest rate cuts. So will the same rule apply now and into 2026?

Cris deRitis, deputy chief economist at Moody’s Analytics, said he’d place a 40% likelihood on a recession occurring next year, explaining: “The trends are not our friends here.” His call is somewhat elevated from the consensus of Wall Street, which places the odds at 30 to 35%.

DeAntonio and Zandi agreed with their colleague, with the latter saying: “The thing that makes me nervous and adds to my level of angst … [is] one reason why job growth is weaker is less labor supply, because of the immigration policy. That gets you to the 50k to 75k breakeven monthly job number. That by itself, if nothing else was going on, is already pretty weak, and that goes to lack of bodies and lack of people to work.” The breakeven number is the monthly jobs growth figure needed to keep the unemployment rate steady.

Demand for workers is falling, and AI is a reason

If the unemployment level is relatively stable because of lack of supply, that means demand from employers is incredibly weak, Zandi said: “We could trace it back to the tariffs, we can trace it back to some of the other deglobalization efforts that the administration has engaged in, including immigration policy because immigrants are consumers … but the other factor is AI.”

So far the impact from AI has been only “modest” the Moody’s economist reasoned, perhaps impacting younger market entrants as opposed to the wider market. But what happens when the productivity gains from AI really become clear?

“That’s at least the betting in the stock markets, stock investors are buying AI stocks thinking that we’re going to see big adoption rates by businesses, that it’s gonna raise productivity growth, it’s gonna raise profitability … if they’re half right or even a quarter right then we’re in a world of outright job decline, all else being equal.”

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.



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