Tech

Markets hit new records as S&P 500 and Dow Jones climb. Geopolitical tensions remain, with conflicting statements regarding Iran. A new acting Director of National Intelligence sparks debate. Macy’s and Ulta Beauty report strong Q1 earnings. An executive order seeks AI model access for government review, while Anthropic expands its AI model’s reach.

The European Commission proposes new regulations to boost technological sovereignty in AI, semiconductors, and cloud computing. Aimed at reducing reliance on US and Chinese tech, these measures will enhance EU chip manufacturing and cloud infrastructure. The Cloud and AI Development Act (CADA) seeks to secure sensitive data within the EU, addressing concerns about US cloud providers’ access to data. Chips Act 2.0 will further strengthen the semiconductor sector, prioritizing advanced manufacturing for AI. These initiatives represent a significant shift towards greater European self-sufficiency in critical technologies.

Morgan Stanley is opening its wealth management platforms to thousands of corporate clients’ AI agents, allowing direct data extraction from stock administration systems. This pioneering move bypasses traditional interfaces and signals a shift towards agentic AI in financial services. By next year, all 3,400 administration clients will have this capability, positioning Morgan Stanley as a leader in integrating AI for client and internal operations.

Meta is expanding its AI focus beyond advertising to target the AI agent market with Meta Business Agent. Integrated into WhatsApp, Messenger, and Instagram, it will automate customer interactions for businesses of all sizes, from inquiries to bookings. This move diversifies Meta’s revenue, aligning with CEO Mark Zuckerberg’s vision to compete with AI leaders and offer advanced business management capabilities through evolving agentic technologies.

SpaceX is set to launch its historic IPO on June 12th on Nasdaq under the ticker SPCX, aiming for a $135 per share price and a $1.75 trillion valuation, potentially becoming the largest IPO ever. This aggressive pricing reflects its dominance in the commercial space sector, boosted by Starlink and successful missions. The company plans to sell 555.6 million shares, raising $75 billion, contingent on key acquisitions. SpaceX’s debut occurs amid other tech giants like Anthropic and OpenAI preparing for public offerings, highlighting significant investor interest in future-shaping technologies.

OpenAI CEO Sam Altman is actively engaging with US lawmakers in Washington D.C. to discuss artificial intelligence policy, following President Trump’s executive order on AI development. Altman’s meetings with key administration officials and congressional leaders aim to shape AI regulation. He supports a balanced approach promoting U.S. leadership through innovation and safety, emphasizing responsible AI development and public accountability. OpenAI advocates for thoughtful regulation and rigorous safety standards, transparently engaging in policy discussions.

Uber is cutting 23% of its People division staff, including recruitment and HR, to streamline operations and improve efficiency. This move, led by new President Jill Hazelbaker, aims to create a more connected and modern organization. While not directly attributed to AI, the cuts occur as Uber invests heavily in AI tools and explores their potential for automation and scaling, reflecting a broader tech industry trend.

Perplexity CEO Aravind Srinivas asserts that AI success hinges on maximizing economic value from computational power, measured by “token value per watt per user.” This involves balancing accuracy, latency, cost, privacy, and intelligence. Perplexity’s strategy focuses on “agentic AI” and an “orchestrator” tool that intelligently routes processing to optimize efficiency, aiming for on-device computation and a platform-agnostic approach to build a durable advantage in the competitive AI landscape.

Alphabet’s massive $80 billion share offering for AI development marks an unprecedented moment for capital markets. A $10 billion allocation to Berkshire Hathaway highlights the critical need for AI infrastructure. This move, alongside anticipated record IPOs from SpaceX, OpenAI, and Anthropic, signals a new era of tech funding and investor appetite for transformative technologies. Goldman Sachs sees strong demand for significant equity issuances.

Tesla’s China sales rose nearly 40% in May, with 85,982 units delivered from its Shanghai Gigafactory. This surge signals a strong market recovery, as total Chinese EV sales increased by 12% year-on-year. BYD saw a slight growth, while Leapmotor and Zeekr experienced over 80% surges. Nio and Xiaomi also reported significant gains. However, Li Auto and XPeng faced sales declines. Meanwhile, Tesla is entangled in a lawsuit over alleged false advertising of its FSD capabilities in China.