Tech

Google has invested in Proxima Fusion’s €411 million funding round to support Europe’s first commercial fusion power plant. The German company is developing stellarator technology, aiming for a demonstrator by the early 2030s. This significant investment highlights Google’s commitment to fusion as a future carbon-free energy source, despite acknowledging the considerable technical challenges ahead in commercializing the technology.

Chinese AI models are gaining traction in the U.S. due to competitive performance and significantly lower costs. These models are closing the gap with U.S. rivals, with some U.S. companies seeing their AI model usage share from China exceed 40%. This trend is driven by escalating token prices for U.S. models, making cost-effective Chinese alternatives increasingly attractive for businesses seeking to scale AI initiatives.

Solstice CEO David Sewell believes Wall Street misinterpreted the market sell-off following the $14.5 billion acquisition of Element Solutions. Sewell asserts the deal creates a global leader in advanced materials for semiconductors, data centers, and AI, capitalizing on a “generational growth opportunity.” He attributes the stock dip to short-term trading, while highlighting the merger’s long-term strategic benefits in expanding Solstice’s AI infrastructure supply chain capabilities.

Alibaba has banned employees from using Anthropic’s AI tools due to security risks and allegations of intellectual property theft. This follows Anthropic’s accusation of Alibaba attempting an “AI distillation attack” and their terms prohibiting use by entities from “adversarial nations” like China. Alibaba now mandates the use of its own AI assistant, Qoder, amidst scrutiny of potential code loopholes in Claude and efforts by Anthropic to close access through proxies.

Swedish fintech Klarna has applied to U.S. regulators to establish its own bank subsidiary, Klarna Bank USA. This move, if approved, would allow the company to bring its banking operations in-house, enhancing its payment, credit, and merchant services. CEO Sebastian Siemiatkowski sees it as a natural step to offer a fairer, more transparent financial approach to U.S. customers, fostering responsible borrowing and injecting competition into the market. This aligns with a broader trend of fintechs seeking banking charters for greater control and cost-effectiveness.

Semiconductor stocks are experiencing a strong rebound, termed a “revenge trade” by analysts, following last week’s decline. This recovery follows concerns over AI players developing custom silicon, which had impacted companies like Micron and AMD. However, renewed investor confidence is evident, with Intel, Arm, and Broadcom showing significant gains. Broadcom’s extended partnership with Apple bolsters its position. Nvidia’s recovery is more cautious due to reports of potential delays, but some believe its stock may be undervalued given its AI leadership.

Microsoft is laying off approximately 4,800 employees (2.1% of its global workforce), with a significant impact on Xbox, which will see nearly 20% of its staff depart by fiscal year 2027. This move is part of a broader cost-cutting strategy driven by rapid AI advancements and market headwinds. The company is also spinning out four gaming studios. These reductions follow previous large-scale layoffs and occur as some business segments, like Windows and Xbox, face revenue contraction.

SpaceX President Gwynne Shotwell is donating a significant amount of SpaceX stock to the Trump Accounts program, which provides investment accounts for children under 18. Her gift will benefit approximately 2 million young recipients, with a slight preference for those near her Texas home. This philanthropic act follows former President Trump’s belief that Elon Musk would also contribute SpaceX stock, potentially sparking broader support for youth investment from the tech sector.

Markets anticipate a mixed open as investors weigh President Trump’s economic priorities: boosting chip manufacturing to 40-60% domestic, recognizing AI’s immense potential, and aiming for 12-13% GDP growth. The World Cup is driving a surge in prediction markets. Meanwhile, the Museum of American Finance unveils an AI-powered Alexander Hamilton, and travel trends show a rise in off-season getaways. Key economic data and corporate earnings are set for release this week.

Even Realities, a Chinese smart-glasses startup founded by an ex-Apple executive, has achieved unicorn status by securing $150 million in funding, valuing the company at $1 billion. The investment, backed by Tencent and Meituan, will accelerate AI integration, global expansion, and product innovation for its privacy-focused smart glasses. This positions Even Realities to compete in the rapidly growing AI wearable market.