Allegro Confirms 2024 Outlook as Q1 Earnings Climb, Focus Shifts to Competing with Temu

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Allegro, Poland’s top e-commerce platform, reported a 4.9% rise in Q1 adjusted core earnings in its domestic market and confirmed its full-year forecast, even as competition from platforms like Temu intensifies.

Incoming CEO Marcin Kuśmierz said the company continues to see strong buyer engagement both domestically and abroad:

“Not only is the number of active buyers rising in Poland and internationally, but they also continue to spend more with us on average.”

Q1 Results Overview

  • Adjusted EBITDA (Poland): 859.4 million zlotys ($229.6 million)
    (slightly below analyst expectations of 875 million zlotys)

  • Gross Merchandise Value (GMV):

    • Poland: Up 8.9% to 14.78 billion zlotys

    • International Markets: Up 82%

  • Active Buyers (Group-wide): 21 million (↑5.4% YoY)

    • Of which 6 million are international

Competitive Strategy and Platform Evolution

Despite “not the best” trading conditions in Q1, Finance Chief Jon Eastick noted that the outlook for Q2 is firmer, with the company remaining optimistic for the latter half of 2024.

To differentiate from Asian e-commerce players like Temu, Allegro has removed listings with long shipping times, particularly those from East Asia. This has helped:

  • Increase shopping frequency

  • Boost the number of local merchants on its international platforms (↑56% YoY)

“Removing most of the long delivery time Asian selection helped Allegro distinguish itself,” Eastick said.

Allegro also continues to invest in logistics infrastructure to lower costs and improve service, expanding its network of:

  • In-house parcel lockers

  • Partner-managed delivery points

The share of delivery volumes managed by Allegro rose to 29% in Q1, up from 24% in Q4 2023.

Market Reaction

Despite the overall positive momentum, Allegro shares slipped ~2% in early trading. Analysts at JPMorgan called the result “moderately negative” due to:

  • Slightly softer Polish profitability

  • No upside surprises in GMV growth

Still, Allegro remains Poland’s dominant player and is steadily building out its international presence in Czech Republic, Slovakia, and Hungary, aiming to consolidate its regional leadership.

AI Labs Wage Bidding War for Elite Researchers as Talent Becomes Key Battleground

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The race to lead the artificial intelligence revolution is no longer just about compute power or datasets — it’s now centered on securing a small pool of elite AI researchers who can make or break the next generation of AI models. Companies like OpenAI, Google DeepMind, and Elon Musk’s xAI are aggressively courting this highly specialized talent, offering compensation packages in the tens of millions of dollars, luxury perks, and personal outreach from tech luminaries.

The explosive growth of generative AI following the 2022 release of ChatGPT has pushed the battle for talent to unprecedented levels, with some researchers receiving “professional athlete-style” incentives, including private jets, multimillion-dollar bonuses, and equity grants of over $20 million.

“The AI labs approach hiring like a game of chess,” said Ariel Herbert-Voss, a former OpenAI researcher. “They are like, do I have enough rooks? Enough knights?”

Elite Talent, Outsized Impact

Known internally as “ICs” (individual contributors), these researchers are seen as 10,000x engineers — a reference to the idea that in AI, the very best aren’t just 10 times better than average but can be 10,000 times more impactful, due to the leverage their innovations bring to large-scale model performance.

While the exact number of such talent is debated, industry insiders estimate there are only a few dozen to a thousand globally. With such scarcity, top labs are deploying every tool available to secure and retain them.

Top Offers and Retention Battles

  • OpenAI researchers have reportedly been offered retention bonuses of up to $2 million, plus equity increases exceeding $20 million, just to stay for one more year.

  • Google DeepMind has offered top researchers $20 million per year, while reducing vesting schedules on stock options to just 3 years, down from the typical 4.

  • Eleven Labs and SSI (founded by former OpenAI chief scientist Ilya Sutskever) have made competitive offers to lure away OpenAI talent, prompting preemptive counteroffers.

The bidding war has gotten so intense that OpenAI CEO Sam Altman famously tweeted in 2023 about the need for “10,000x researchers,” acknowledging their disproportionate value.

“It was actually financially not the best option that I had,” said Noam Brown, an OpenAI researcher recruited by several top labs, explaining that research resources and alignment with goals were more important to him than pure compensation.

Rising Stars and Strategic Hiring

To identify and cultivate new talent, data firms like Zeki Data have started using sports-style recruitment analytics, akin to the “Moneyball” approach, to discover undervalued researchers. Some companies, like Anthropic, have been recruiting heavily from theoretical physics and quantum computing backgrounds.

Meanwhile, Mira Murati, OpenAI’s former CTO, has poached over 20 employees for her still-stealth-mode startup, which is reportedly closing a record-breaking seed round based solely on its team strength.

The Bigger Picture

This frenzied battle for researchers is reshaping the AI landscape in Silicon Valley and beyond. With venture capital surging into early-stage AI startups — sometimes before they even launch a product — and top labs competing over a few hundred minds, the next major AI breakthrough may hinge less on hardware or scale and more on who can assemble the right intellectual firepower.

Grupo Werthein Launches $40 Million Generative AI Company ‘Illumia’ to Enhance Humanized Customer Interaction

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Grupo Werthein, the Argentina-based investment conglomerate, has launched a new generative AI company named Illumia, backed by an initial $40 million investment, the company announced on Wednesday. Illumia will focus on humanized AI solutions for sales, customer service, and business communication, blending multiple AI platforms to simulate human-like conversation.

“We aim to use generative artificial intelligence with digital assistants that can converse the same way humans can,” said Daniel Figueirido, CEO of Illumia, in a statement to Reuters.

The company’s AI service leverages existing AI tools and proprietary technologies to deliver solutions aimed at personalizing interactions between companies and their customers. It has already begun offering services to Werthein-controlled firms and third-party clients in Latin America.

Why It Matters

The investment signals a strategic push by Latin American firms to lead in AI personalization and customer engagement technologies, an area increasingly seen as critical for competitiveness in sectors such as telecom, media, and e-commerce.

“The key to the kingdom with this kind of investment is how do I combine each of these different platforms and technologies,” Figueirido said.

Illumia’s development comes at a time of both high enthusiasm and caution toward generative AI in the region. A recent Reuters study found that while 56% of Latin American respondents expressed excitement about AI, 50% voiced concerns over privacy and data confidentiality.

What’s Next

Figueirido envisions expanding Illumia’s reach beyond Latin America, scaling services across industries and geographies. While early clients have included firms within the Werthein portfolio — which includes DirecTV Latin America and Sky Brazil — the company is now positioning itself for regional and international growth.

Grupo Werthein’s move into AI reflects a broader trend among legacy conglomerates investing in next-gen technologies, with Illumia poised to play a leading role in AI-driven customer engagement and digital transformation in Latin America and beyond.