Tech

Nvidia’s substantial investment in OpenAI, potentially reaching $100 billion, focuses on AI supercomputing with the first deployment in late 2026. A key aspect is OpenAI’s strategy to lease Nvidia’s GPUs, optimizing capital expenditure and shifting financial burden. OpenAI aims to address compute scarcity, financed partly through Nvidia’s equity and Oracle’s balance sheets. Analysts highlight potential interdependencies and question the generation of tangible assets, while Altman emphasizes focusing on real demand and revenue from services.

Xiaomi plans to launch its EV business in Europe by 2027, including opening showrooms. Xiaomi will assess the future viability of manufacturing locally but will likely modify an existing model rather than developing a new one specifically for Europe. This move positions Xiaomi alongside other Chinese EV manufacturers competing for market share in Europe amid increasing tariffs on Chinese-made EVs. The company aims to be a top-five global player within 15-20 years, making a local factory a potential necessity.

Instagram has reached 3 billion monthly active users, as announced by Meta CEO Mark Zuckerberg. This marks a significant growth from the 2 billion users reported in October 2022. The platform’s success is attributed to its visual format and evolving features. In related news, Instagram has implemented new default privacy settings, setting all underage accounts to private. This reflects growing concerns about online safety for younger users.

Xiaomi has launched its Xiaomi 15T series globally, challenging Samsung in the smartphone market. The 15T and 15T Pro offer high-end specs at competitive prices (649 and 799 euros respectively), targeting consumers seeking premium features without the premium price. With improved camera capabilities, a large display, and substantial battery, the series aims to compete with Samsung’s A and S series. Xiaomi is expanding its product ecosystem beyond smartphones into home appliances, mirroring Samsung’s strategy and intensifying competition across various sectors.

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.