Business
Hatsune Miku is playing Coachella, but she’s not human. Why brands are working with digital avatars
On Friday morning, Hatsune Miku performs songs on her biggest stage yet — Coachella.
The turquoise-haired Japanese icon has been touring North America, singing to thousands of fans in large concert venues. She’s inked branding deals over the years with companies including Google . And on Friday, she’s expected to thrill her followers at one of the world’s biggest music festivals — on the same day as Lana Del Rey and the Deftones.
But Miku is not human. She’s a totally digital creation, like an online avatar or mascot.
Her music — mostly synthesizer-heavy dance pop — is created from software developed by the Sapporo, Japan-based technology company Crypton Future Media.
The technology lets people, including fans, type in lyrics and punch in a melody. The program generates a singing voice for the song. Crypton then licenses the songs from the fans for her to sing at concerts. Miku herself is an illustrated character, resembling a 16-year-old girl from an anime or manga. To “perform” onstage, Miku’s image is displayed on a giant screen as a video behind a live band.
Unlike the “hologram” performances of deceased celebrity artists (think Tupac and Roy Orbison) that took the music industry by storm a few years ago, virtual artists aren’t simply re-creations — they’re avatars performing original music.
As it would be for a local indie rock artist, landing a spot at Coachella is a significant milestone for Miku. And her human creators. One of the people from Crypton who will be there at Miku’s performance at the festival’s Mojave tent is Riki Tsuji, a member of the company’s global business team.
“I’ve never been to Coachella, so I have no idea what kind of people are going there, what the crowds are gonna be like,” said Tsuji, who is traveling with Miku on tour. “But we’ll be putting together a show that hopefully they won’t forget.”
An image of Hatsune Miku.
(Courtesy of Crypton Future Media Inc.)
Hatsune Miku is part of an expanding group of digital, non-human performers that are attracting the attention of brands and music fans.
They’ve generated fans from younger generations of audiences that brands are eager to attract and understand — the kinds of kids who spend two to three hours a day on average on Fortnite and Roblox and are thus comfortable interacting with digital characters and online worlds.
One non-human digital influencer, named Miquela, boasts 2.6 million followers on Instagram and has done commercials for Calvin Klein and BMW. She’s represented by major Hollywood talent firm Creative Artists Agency, best known for working with A-listers including Brad Pitt and Viola Davis.
“There’s a new paradigm in terms of the digital world and the digital landscape,” said Phil Quist, a music and emerging technology agent at CAA. “When you think about what that looks like moving forward, those kids are going to be so used to being in those realms that a lot of their entertainment is going to come from that space as well.”
Hatsune Miku performs at the Doug Mitchell Thunderbird Sports Centre in Vancouver to a crowd of fans on April 4.
(MIKU EXPO 2024 North America Vancouver show)
How much money a nonhuman virtual artist can earn varies widely., Gigs, ranging from social media posts to live performances, can generate up to nearly seven figures, Quist said.
“It ranges, but it’s very commensurate in terms of the following and engagement,” Quist said. “I think it can be comparable to ‘traditional talent’ in terms of what those deals look like.”
In addition to her Coachella appearance, Miku is putting on a North American tour, which includes 21 concerts in 17 cities. Initially, Miku announced 17 performances , but the tour expanded because of demand, Tsuji said.
Miku began as a singing voice synthesizer (a.k.a. a “vocaloid”) in 2007. Her voice has been used in more than 100,000 songs.
“She’s very much a vessel for people to kind of express themselves and come together as a community,” Tsuji said. “It’s not just an artist-listener relationship. Each listener could also be an artist in this community.”
Angelbaby, a Hume digital music artist
(Courtesy of Hume)
But the growth of nonhuman influencers comes at a time when actual performers are worried about how digitization and automation through artificial intelligence could impact future work. The cost of creating a digital avatar could become cheaper as technology evolves. Human influencers could find themselves competing for the same brand deals as nonhuman ones.
The fandom surrounding digital artists can rival that of human musicians. During Austin’s South by Southwest festival in 2022, fans uploaded videos from a concert by digital music artist angelbaby, singing along to the songs.
Angelbaby, a computer-generated humanoid rapping rabbit, is owned by Hume, an L.A.-based metaverse tech and music company, which is now represented by CAA. Angelbaby’s single, “life is good,” which was released in November, hit more than 4 million streams on Spotify.
“At the end of the day, if the music wasn’t good for those artists, people would potentially point fingers and laugh,” Quist said. Looking at angelbaby, “you could tell that people were so engaged and enamored by the performance.”
The idea behind angelbaby came from Hume co-founders David Beiner and Jay Stolar. Stolar is a songwriter and producer who has worked with performers including Selena Gomez and Demi Lovato.
Hume created a backstory for angelbaby, a seven-foot rabbit from the year 3045, who is coping with losing the love of his life. Angelbaby has appeared on recordings with Grammy-winning producer Gino the Ghost and human music artists including boy band Prettymuch. The rabbit’s fans lean male and are in their 20s into their early 30s, Beiner said.
“I think on the emotional level if you do it right, people like to feel like they’re part of a fantasy,” Beiner said. “People have always liked to escape.”
Much of the work for virtual artists comes from partnerships with brands, who want to tap the performers’ younger, digitally savvy followers.
For example, Miquela — whose character is a socially conscious digital influencer from Downey — was featured in a commercial for BMW‘s iX2 electric vehicle. The bulk of Miquela’s fans are under 35.
“When you think about the BMW vehicle that came out that’s 100% electric,” said Ridhima Ahuja Kahn, vice president of business development and strategic initiatives at Dapper Labs, the company behind Miquela. “That was something that was really compelling to her because it tied in with a lot of her goals around sustainability.”
But like human influencers, there can also be some controversy surrounding digital ones.
Miquela’s ad with Calvin Klein showed her kissing model Bella Hadid, which some people online criticized as queer-baiting. Calvin Klein later said, “We sincerely regret any offense we caused.” Dapper Labs said it stands by the direction of the ad, which was to support all different types of backgrounds, genders and preferences.
“With virtual influencers, even they have drama too, just like any real-life influencer,” Ahuja Kahn said.
Many people worry that digital talent could take away human jobs. Last summer, writers and actors went on strike in part for more protections against the use of artificial intelligence.
“Anyone in the entertainment industry at large is very cognizant that a human resource of being on camera or being filmed or even writing a script or even editing a movie is being absorbed by what AI and technology can do,” said Elsa Ramo, a managing partner at Ramo Law PC.
But supporters of nonhuman talent say that the work can lead to more innovation, and, ultimately, jobs for the people who build the non-human influencers, although they acknowledge that AI will lead to more efficiency, which in turn will impact other jobs.
An image of Zlu, a blue alien model.
(Zlu / Ilian Gazut)
Ilian Gazut created Zlu, a blue alien model represented by management firm IMG Models who has done work for fashion designers like Karl Lagerfeld. Gazut said that Zlu’s movements are based on his movements.
“There is always a human behind it,” Gazut said. “So in my case, I didn’t have a job and thanks to him, I have a job.”
The world of digital, nonhuman influencers continue to evolve. Miquela, who made her first post in 2016, was originally conceived as being perpetually 19, but recently, the character made the jump to her 20s. And prospective schools are noticing.
“There are a few colleges who have reached out to us, so she’s looking at those and currently thinking about what the right fit for her would be and if college makes sense,” Ahuja Kahn said. “She’s been exploring what that path would look like for her.”
Business
Environmental groups press to halt Imperial Valley lithium venture
In a case that has become a local flashpoint, environmental groups seeking to halt a lithium operation in Imperial County until it gets further review argued before a state appeals court in San Diego on Thursday.
Controlled Thermal Resources wants to extract lithium from hot brine that will be used to power a geothermal electricity plant it plans to build. This type of lithium removal is different from traditional hardrock mining or evaporation ponds. The project also would need 6,500 acre-feet of fresh water annually for washing the mineral and cooling.
Earthworks, a nonprofit focused on the impacts of mining, and Comité Cívico del Valle, an Imperial County environmental justice group, allege the county didn’t adequately examine the project’s effects on water supply, air quality and tribal cultural resources when it granted approvals.
The groups filed suit in March 2024 and Imperial County Superior Court Judge Jeffrey Jones ruled against them in January 2025, saying the county met its legal requirements.
Before a panel of three judges for the California Court of Appeals 4th Appellate District, plaintiffs’ lawyer Doug Carstens argued that if water becomes scarcer, the project may rely on agricultural runoff that currently feeds the shrinking Salton Sea, exacerbating dust and air quality issues. He also said the environmental review did not account for future water-thirsty projects in the desert area.
“There will be a lot of straws dipping into the pool,” Carstens said.
The project, called Hell’s Kitchen, also failed to adequately involve local tribes in assessing the effect on cultural resources, he said.
Controlled Thermal Resources attorney Suzanne Varco said that the company reached out to 26 area tribes in 2021 and received no reply. She noted that one elder from Kwaaymii Laguna Band of Indians responded with concerns about mud pots and other resources in the area, but it was more than five months after the consultation period closed.
Justice Julia Kelety’s questions suggested the tribes provided names for resources in the area but failed to say how they would be affected.
Justice Truc Do said it was hard to assess fully how the project will affect the region’s water because the environmental review was unclear whether it will last 30 or 50 years. The region primarily relies on water from the overtapped and shrinking Colorado River.
The case is important because Imperial County has pegged its future to lithium, a mineral critical for electric car batteries. Two other companies are trying to reach commercial extraction near the Salton Sea. Gov. Gavin Newsom called Imperial Valley “the Saudi Arabia of lithium” in 2022, and has touted the industry’s potential to bring jobs and community benefits to one of the poorest counties in the state.
Multiple setbacks and deadline extensions later, lithium has yet to materialize even as industry job training programs graduate students into careers that have not arrived in the area. The county has blamed the lawsuit for the slow start. The boom and bust nature of mining as well as shifting federal policies have also played a role.
The court could decide within a few weeks to several months.
Earthworks and Comité Cívico del Valle have repeatedly said they don’t outright oppose lithium development in the area, but want CTR to acknowledge and minimize potential harm.
“We are not trying to stop the Hell’s Kitchen Project, we think it should be fixed, with enforceable protections for the environment, tribal cultural resources, and the health of frontline communities,” said Jared Naimark, senior manager at Earthworks.
Imperial County and CTR declined to comment on pending litigation, but Controlled Thermal Resources spokesperson Lauren Rose articulated a commitment to advancing geothermal and lithium development “as core components of our Hell’s Kitchen Project.” The company recently announced a plan to power local data centers which led some to worry about the company’s commitment to lithium.
Earlier this year the company delayed its plans for lithium production to 2028. Rose said the project is still progressing toward initial construction and will announce timing “as key development, financing, and construction milestones are achieved.”
Business
Netflix reports higher profits as investors worry about growth
Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects.
The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion.
Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion from $51.4 billion.
The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue. The latter is expected to reach $3 billion this year, the company said.
In a presentation with analysts, Netflix executives touted global expansion plans.
“We’re entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure,” said Spencer Neumann, Netflix’s chief financial officer, in the earnings presentation. “We believe we’ve got lots and lots of runway for solid growth ahead of us.”
Those comments appeared intended to assuage investors who’ve grown concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share.
Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data.
The streamer represented 7.8% of all TV viewing in the U.S. in April — the lowest percentage since May 2025. It was 7.5% in April 2025, Nielsen said.
By comparison, YouTube has seen its share of the streaming audience grow. YouTube’s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.
Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing advertising business. It could also undercut Netflix’s ability to raise prices in the U.S. and other countries.
Those worries have caused Netflix’s stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. In after hours trading, the stock fell 8%.
“The engagement elephant continues to rear its head and investors are on edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual,” wrote Morgan Stanley Research analysts in a research note.
On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and “we know not all hours are equal” and that engagement on its platform is “healthy.”
“The entertainment industry remains dynamic and competitive,” Netflix told shareholders. “We aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization.”
The Los Gatos-based company said it plans to allocate more than 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said.
In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller “I Will Find You,” which had 87 million views; and the romantic comedy film “Voicemails for Isabelle,” which garnered 71 million views.
Netflix has been adding new types of content to its platform, including video podcasts to help increase engagement with subscribers during the day.
As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball’s opening day game.
In 2022, Netflix had also faced investor pressure when it reported declining subscribers for the first time in more than a decade. That pushed the company to delve into other areas including advertising, gaming and cracking down on password sharing.
Business
SpaceX stock erases all its gains and slides below IPO price in intraday trading
SpaceX stock dropped below its initial public offering price for the first time on Wednesday, signaling dwindling hype around the Elon Musk company.
Shares dipped below their IPO price of $135 on Wednesday morning for the first time since listing, a humbling loss for the stock, which had skyrocketed more than 50% in its first days of trading last month.
The shares regained some ground later in the day, closing at $135.27.
The initial offering gave the company a market cap of $2.2 trillion, making it one of the world’s most valuable public companies. For a short period, the IPO also made owner Elon Musk the world’s first trillionaire, though his net worth now is about $800 billion.
On July 7, the company was added to the Nasdaq-100 after a rule change allowed companies to join 15 days after their IPOs.
SpaceX raised a total of $86 billion after underwriters exercised their right to sell additional shares, on top of the $75 billion initially raised. It was the largest IPO in history.
SpaceX, based near Austin, Texas, is the leading launch services company in the world, with its Falcon 9 rocket accounting for the vast majority of satellites launched last year.
It is also the leading satellite-based broadband provider with its Starlink service. The extraordinary interest in the IPO was driven by Musk’s plans to make the company an AI leader — including plans to launch orbiting satellite data centers powered by the sun that crunch AI data.
The company’s headquarters moved from Hawthorne to Texas in 2024, but it retains large operations in the South Bay city and blasts off regularly from Vandenberg Space Force Base in Santa Barbara County.
Since the IPO, SpaceX has used its newfound wealth to expand in the AI space.
It announced last month that it was acquiring the AI coding startup Cursor for $60 billion, with the deal expected to close in the third quarter. The San Francisco company, founded in 2022, enables engineers to instruct software in English to run coding tasks autonomously.
Musk also merged his xAI artificial intelligence company into SpaceX earlier this year. The combined entity recently announced it was leasing computing power to rivals Anthropic and Google at two terrestrial data centers it has constructed.
Since the IPO, investors have expressed concerns about the company’s spending plans and debt load.
Even with the volatility of the last month, there’s still more uncertainty to come.
The stock could fall further as locked-up shares held by current and former employees are released.
At least 20% of the shares will be released after second-quarter results are disclosed sometime in the coming months, with all the lockups expiring in December.
But Space X isn’t the only megacap stock to experience ups and downs early on.
Shares of Meta, then named Facebook, fell significantly below the IPO price of $38 before recovering. After its May 2012 launch, shares plummeted by nearly 50% and hit a record low of $19.69 in August 2012.
The company took more than 14 months to rebound, finally surpassing its $38 IPO price in July 2013.
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