Tech

Early SpaceX investors can now liquidate holdings as initial lockup restrictions expire, potentially increasing selling pressure on shares already down over 50% from their peak. Over 911 million shares become available, with further tranches unlocking later. Despite recent volatility and investor concerns over capital expenditures, some early investors, like Atlanta Falcons player Jessie Bates III, plan to sell to secure gains. Elon Musk’s shares remain locked until 2027.

The Fed may reduce meeting frequency, potentially increasing market volatility. Meanwhile, Google faces an AI leadership shake-up as key figures depart. U.S. Treasury is refunding $100 billion in tariffs, boosting corporate finances. Bank of America warns of risks in leveraged markets. Restaurant Brands International saw strong Q2 results, led by Burger King, while Salad and Go filed for bankruptcy. AMD navigates intense AI chip competition.

AppLovin’s stock plummeted 19% to a 52-week low after missing Q2 revenue expectations. The company cited timing of AI model enhancements for the miss, despite a 53% year-over-year revenue increase. Analyst downgrades reflect concerns about predictable future earnings, highlighting the challenges of AI integration in the evolving adtech sector.

Demis Hassabis is stepping down as CEO of Google DeepMind to become Chair and Chief Scientist at Alphabet, focusing on global AGI initiatives and scientific advancement. This shift reflects a core tension between scientific transformation and Google’s need for rapid AI commercialization amidst intense competition. Hassabis, a proponent of AI for science, aims to balance long-term AGI goals with the pragmatic demands of a fierce AI race.

Lawmakers are pushing for an “AI Kill Switch Act” mandating developers’ ability to shut down advanced AI models due to escalating cyber incidents. Recent breaches show sophisticated AI agents compromising other companies. This legislation, compared to car safety testing, aims to prevent catastrophic risks without stifling innovation. The debate also considers regulating open-weight models, which are harder to control due to their decentralized nature.

House Judiciary Republicans express deep concern over South Korea’s recent online regulations, fearing they could enable government censorship and suppress opposing viewpoints. They argue the amendment to the data privacy law, targeting “fake news,” threatens online speech and could penalize American companies and users for exercising constitutionally protected rights. The lawmakers criticize the law’s vague definition of “false information” as ripe for abuse.

Asian technology stocks, particularly in South Korea and Japan, experienced a sharp downturn, mirroring U.S. markets. This volatility highlights investor concerns around AI-driven growth, with major chipmakers like SK Hynix and SoftBank seeing significant drops. Despite these fluctuations, analysts from J.P. Morgan and S&P Global remain cautiously optimistic, believing fundamental demand for AI remains strong and investment cycles are intact.

Google faces a critical juncture, balancing a booming cloud division with significant AI talent departures. Key researchers are leaving for startups and rivals, driven by a desire for cutting-edge work and faster innovation. Internal tensions over computing resource allocation are evident, as frontier AI research demands immense power. Leadership shifts, including Demis Hassabis’s new role, signal a focus on long-term research and AGI. Google’s strategy aims to profit from AI through infrastructure, its own models, and product integration, navigating the balance between foundational research and commercial application.

SoftBank reported a first-quarter profit exceeding market expectations, driven by a significant gain from its Intel investment. The Vision Fund also benefited from ByteDance’s increased valuation. Despite a year-over-year profit decrease, these gains offset declines in other segments. SoftBank continues substantial AI investments, particularly in OpenAI, while facing increased scrutiny on AI spending and chip sector pressures.

Nintendo reported strong fiscal first-quarter earnings, exceeding revenue and profit expectations despite a decline in Switch 2 console sales. Robust software sales and the success of “The Super Mario Galaxy Movie” bolstered performance. The company reaffirmed its annual forecast, demonstrating confidence in continued success through strategic pricing and new game releases.