Tobias

Nvidia is significantly expanding its investment portfolio, fueled by the generative AI boom. Recent moves include a proposed $100B investment in OpenAI and commitments to Intel, Wayve, and Nscale. Nvidia leverages its AI chip dominance to secure equity and insights into promising startups. Its publicly traded holdings reached $4.33B, with nonmarketable equity securities at $3.8B. Investments span AI models, quantum computing, and more. While not requiring exclusivity, Nvidia’s backing enhances investor appeal, as seen in Intel’s stock surge after Nvidia’s investment announcement. The strategic investments reflect Nvidia’s growing influence in the AI landscape.

China’s silence following Trump’s tentative approval of a deal to preserve TikTok’s U.S. operations fuels uncertainty. Despite Trump’s claim of Xi’s approval, Beijing has offered no official confirmation. State media has been restrained, and ByteDance remains silent. Reports of a potential two-entity structure for TikTok’s U.S. operations add complexity. Concerns remain about algorithmic control and whether the proposed deal addresses U.S. national security risks, particularly given TikTok’s growing influence as a news source. The deal’s fate hinges on Beijing’s endorsement and satisfying both countries’ interests.

Xiaomi is intensifying its focus on in-house chip development, following its debut of the XRing 01 SoC. While not committing to annual releases like Apple, Xiaomi aims to improve hardware and software integration within its ecosystem, HyperOS and HyperAI. The company is investing heavily and recognizes long-term profitability will require high production volumes. Despite this push, Xiaomi will maintain partnerships with Qualcomm and MediaTek, utilizing a dual-sourcing strategy for its devices. This strategic move could enhance cross-platform synergy and innovation across Xiaomi’s diverse product range.

Checkout.com, a fintech firm, is offering employees a share buyback program based on a $12 billion internal valuation, a decrease from its $40 billion valuation in 2022. This allows employees to monetize equity amidst a challenging IPO market. The company, which competes with Stripe and Adyen, facilitates billions in transactions for clients like Coinbase and H&M. Checkout.com projects 30% revenue growth and $300 billion in payment volume, focusing on AI and agentic commerce. This follows similar moves by Stripe and Revolut, providing liquidity in a volatile market.

Tesla shares fell over 4% after European sales data revealed a 23% year-over-year decline in August EV registrations, contrasting with a 26% rise in overall European EV market. RBC analysts remain optimistic, projecting strong Q3 deliveries driven by U.S. tax credit incentives. Despite a challenging start, Tesla’s stock is up 5% YTD. Analysts suggest Elon Musk’s political involvement might affect the brand. Tesla plans a more affordable model to counter increasing competition.

NASA’s Marshall Space Flight Center Director, Joseph Pelfrey, has resigned amidst the agency’s intensified Artemis program. Pelfrey cited the need for leadership alignment to execute lunar return missions. NASA is initiating a public search for his replacement at the center, which manages a $5 billion budget and over 6,000 employees. The resignation, considered unexpected by insiders, has raised concerns about potential disruptions to Artemis hardware development, especially given recent budgetary pressures and workforce efficiency initiatives within NASA.

A proposed deal to keep TikTok operational in the U.S. is gaining traction, with former President Trump approving a transaction valuing the U.S. TikTok business at $14 billion. The agreement aims to address national security concerns by requiring ByteDance to divest its U.S. operations to a new joint venture, retaining a minority stake. Oracle, Silver Lake, and MGX are expected to control approximately 45% of the venture. While ByteDance hasn’t formally acknowledged the deal, it needs Chinese regulatory approval. Oracle will oversee security. The deal aims to ensure American operation.

A federal judge preliminarily approved Anthropic’s $1.5 billion settlement in a copyright infringement class-action lawsuit. Authors claimed Anthropic illegally used their works, downloaded from pirated databases, to train its AI model Claude. The settlement, potentially the largest copyright recovery, involves Anthropic paying authors and destroying the datasets. This case highlights the conflict between AI innovation and intellectual property rights, setting a precedent for future AI training practices and copyright law. Anthropic aims to focus on safe AI development after resolving the claims.

Oracle, Silver Lake, and MGX are reportedly investing in TikTok’s U.S. operations, holding a combined 45% stake. ByteDance will retain 19.9%, with the remaining 35% distributed among existing and potentially new investors. This deal aims to address U.S. national security concerns that led to the divestiture mandate. The new TikTok USA will have a majority-American board, with Oracle overseeing security. The U.S. government will not take an equity stake. Existing ByteDance investors like Susquehanna and General Atlantic are expected to invest further.

Amazon will pay $2.5 billion to settle FTC accusations of deceptive Prime enrollment practices. The FTC alleged Amazon used manipulative tactics to enroll users and obstructed cancellations. The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected customers. Amazon, while agreeing to the settlement, doesn’t admit wrongdoing. The agreement mandates clear Prime program disclosures and a straightforward cancellation process. The case highlights increasing regulatory pressure on big tech, as Amazon also faces a larger antitrust lawsuit from the FTC.