Tobias

The US tech sector faces uncertainty due to potential immigration policy changes, specifically a proposed $100,000 fee on new H-1B visa sponsorships. This could disproportionately impact startups and limit access to crucial global talent. While some, like Netflix’s Reed Hastings, see benefits in prioritizing higher-skilled roles, concerns persist about incentivizing talent to seek opportunities elsewhere and the negative impact on US innovation and competitiveness. Experts warn that the changes could benefit competitors like China and hinder the ability of companies to recruit and compete.

Alibaba’s Hong Kong shares surged to 2021 highs after announcing increased AI investment and new AI product updates. Shares jumped over 6%, boosting year-to-date gains above 107%. CEO Eddie Wu revealed plans to increase spending on AI models and infrastructure on top of the existing 380 billion yuan investment. Alibaba unveiled the Qwen3-Max large language model and updates to its AI portfolio, emphasizing its position as a full-stack AI service provider. Wu projected over $4 trillion global AI investment in the next five years, highlighting Alibaba’s strategic AI pivot.

Micron reported strong earnings, exceeding expectations with $3.03 EPS and $11.32 billion revenue. Fueled by surging demand for memory and storage, particularly High-Bandwidth Memory (HBM) for AI, Micron forecasts $12.5 billion revenue for the next quarter. Net income jumped to $3.2 billion. The company’s stock has nearly doubled YTD. Cloud sales tripled, while core data center sales declined 22%. CEO Mehrotra highlighted Micron’s position to capitalize on the AI opportunity and domestic manufacturing focus.

Tether is reportedly exploring a capital raise of $15-$20 billion through private placement, potentially valuing the stablecoin giant at $500 billion. This move would place Tether among the world’s most valuable private companies, rivaling OpenAI and SpaceX. The company aims to use the capital to diversify reserves, enhance transparency, and solidify its market dominance amid increasing regulatory scrutiny and competition. This comes as Tether expands its presence in the U.S. with a new stablecoin, USAT, targeting institutional clients. The outcome could reshape the stablecoin market.

YouTube is rolling back its policy of permanent bans for certain violations, particularly related to COVID-19 and election integrity misinformation. Previously banned channels can now appeal for reinstatement. This shift follows pressure from lawmakers scrutinizing YouTube’s content moderation and accusations of censorship. The platform ended its COVID misinformation rules in December 2024 and will focus on enabling “free expression,” moving away from third-party fact-checking for content moderation. Some Republican politicians are celebrating that the platform removed vaccine-related political misinformation that was enacted during the Biden era.

OpenAI and Nvidia have finalized a $100 billion partnership to develop next-generation AI supercomputing facilities. Nvidia will invest $10 billion at a time, supplying processors for new data centers. The deal, negotiated by Altman and Huang, was finalized shortly before Altman’s infrastructure initiative unveiling in Texas. This monumental agreement signifies a pivotal moment in AI, with capital and influence concentrating within industry leaders. OpenAI will integrate all infrastructure projects under the “Stargate” umbrella and diversifying its compute sourcing. Nvidia also invested $5 billion into Intel and $700 million in data center startup Nscale.

Amazon is closing all 19 of its UK Fresh supermarkets, shifting its focus to online grocery delivery. A recent review highlighted significant growth opportunities in this area. Five Fresh locations will become Whole Foods Market stores, adjusting the physical retail strategy. This move reflects a broader effort to streamline its grocery business and optimize capital. CEO Andy Jassy emphasizes the strong performance of online grocery, with plans for same-day grocery delivery in the UK. Analysts cite intense competition in the UK grocery market as a factor.

The FTC is suing Amazon, alleging it used “dark patterns” to deceptively enroll consumers in Prime and obstruct cancellations. The FTC claims Amazon violated consumer protection laws by employing misleading interface designs, while Amazon denies these allegations, asserting transparency. A recent ruling found Amazon in violation of the Restore Online Shoppers’ Confidence Act, potentially strengthening the FTC’s case. This trial is a critical test of the FTC’s effort to combat manipulative online designs and could have far-reaching implications for the subscription economy and Big Tech’s business practices.

BYD, the Chinese EV manufacturer, has a contingency plan to address potential disruptions to its Nvidia chip supply, despite no current directive from the Chinese government to cease their use. According to Executive VP Stella Li, BYD’s vertical integration and strong in-house technology offer backup solutions, similar to how they navigated the Covid-19 semiconductor shortage. While Nvidia’s automotive chips are currently unaffected, a potential ban in China could significantly impact the autonomous driving ecosystem, prompting domestic chip development and posing challenges for automakers reliant on Nvidia.

Global semiconductor stocks surged after Nvidia announced a $100 billion investment in OpenAI, signaling a strong commitment to AI infrastructure. TSMC and SK Hynix saw significant gains. European markets mirrored the positive momentum, with STMicro and Infineon rising. However, ASM International’s revenue shortfall impacted other equipment manufacturers like ASML. Analysts remain bullish on the long-term outlook for chip equipment vendors due to strong demand for AI-related technologies.