WSJ Tech News Briefing:

TNB Tech Minute – Walmart Testing Ads In AI Shopping Agent Sparky

Date: November 25, 2025
Host: Julie Chang

Episode Overview

This Tech Minute reports on Walmart's experimental advertising within its AI shopping agent “Sparky,” ongoing innovation in AI-driven retail experiences, updates on Warner Music Group’s partnership with Suno (an AI music platform), and the recent volatility in SoftBank’s share price due to evolving sentiment around AI investments.

Key Discussion Points & Insights

1. Walmart Tests Ads in Sparky, Its AI Shopping Agent

• Sparky's Purpose:
  Walmart’s new AI assistant, Sparky, acts autonomously on behalf of users, helping with product discovery, review summarization, and recommendations.
• Ad Experiment:
  Walmart has quietly allowed advertisers to test a new format called "Sponsored Prompt" since September. This feature works similarly to ChatGPT by:
  • Summarizing customer reviews
  • Comparing products
  • Suggesting items for different occasions
• Early Results:
  • Customer Engagement: Low levels of interaction and clicking on test ads, per insider sources.
  • Advertiser Interests: Despite limited engagement, advertisers are eager to experiment with new AI ad formats.
• Bigger Picture:
  • Sparky’s introduction reflects Walmart’s broader organizational drive to integrate advanced AI solutions company-wide.
  • The outcome of these tests will inform Walmart’s next steps in AI advertising.

"[Walmart] has quietly been exploring new ad formats with some advertisers. One ad type, dubbed Sponsored Prompt, is a chatgpt-like feature that can summarize customer reviews, compare products and suggest items for various occasions."
— Julie Chang [00:29]

2. Warner Music Partners with AI Music Generator Suno

• The Deal:
  Warner Music Group settled previous copyright litigation and inked a deal letting Suno launch new AI models trained on licensed songs.
• Platform Capabilities:
  Suno enables users to generate songs from text prompts (AI-driven music composition).
• Terms:
  • New models coming in the following year.
  • Downloads restricted to paid subscribers.
  • Warner’s artists and songwriters can opt in.
• Business Context:
  Suno recently raised $250 million with a $2.45 billion valuation.

"Suno's platform allows users to generate songs based on text prompts, the company said. Suno will launch new models next year and require users to be paid subscribers to download songs, according to the companies."
— Julie Chang [01:12]

3. SoftBank’s Shares Plunge Amid AI Uncertainty

• Stock Movement:
  SoftBank shares have slumped 44% since last month’s peak, including a dramatic 10% drop today — over $100 billion in market value wiped away.
• Underlying Factors:
  • Shifts in investor confidence in AI, especially regarding OpenAI (where SoftBank has committed over $31 billion this year).
  • Worries about OpenAI’s ability to finance massive computing contracts with Oracle, Microsoft, and other large outlays.
• Perspective:
  Despite this downswing, SoftBank’s stock remains 160% above its April low.

"Concerns are mounting over how the loss making OpenAI will pay for the $550 billion in computing contracts it signed with Oracle and Microsoft and a long list of other spending heavy pledges."
— Julie Chang [01:48]

Notable Quotes & Memorable Moments

• On Walmart’s AI ambitions:
  "Launched Sparky is part of a larger company-wide AI push at Walmart."
  — Julie Chang [00:54]

• On advertiser eagerness:
  "Still, advertisers have been eager to test new ad formats."
  — Julie Chang [01:04]

• On SoftBank volatility:
  "SoftBank’s shares have fallen 44% since last month’s peak, including a 10% drop today, erasing over $100 billion in market value."
  — Julie Chang [01:35]

Timestamps for Key Segments

• [00:20] Walmart quietly tests Sponsored Prompt ads in Sparky
• [00:54] Context: Walmart’s company-wide AI initiatives
• [01:12] Warner Music settles with Suno; details of the AI music partnership
• [01:35] SoftBank’s significant share value drop, driven by AI market concerns

Summary

This Tech Minute delivers a concise yet rich glimpse into initiatives and shifts shaping the tech landscape:

• Walmart’s cautious but ambitious AI shopping agent and its experimental ad programs
• The evolving relationship between copyright, music, and generative AI following Warner Music’s deal with Suno
• Repercussions in the financial world as SoftBank’s deep AI bets create volatility and raise questions about AI’s economic sustainability

Listeners get an updated pulse on how leading companies are integrating, monetizing, and adjusting to the next wave of artificial intelligence innovation.