Tech

Nvidia and OpenAI are reportedly in talks to invest billions in UK AI infrastructure, collaborating with cloud firm Nscale. An announcement could coincide with President Trump’s UK visit. This reflects a global trend of nations seeking partnerships with US AI leaders for “sovereign AI” development. Nvidia CEO Jensen Huang previously praised the UK as an investment hub. The investment aims to diversify geographic presence and capitalize on AI demand while providing OpenAI access to talent and a supportive regulatory environment.

Microsoft has reached an agreement with the EU to unbundle Teams from its Office 365 and Microsoft 365 suites, averting antitrust fines. The move follows a European Commission investigation prompted by a complaint from Slack regarding anti-competitive bundling. Microsoft will offer suites without Teams at a reduced price and facilitate interoperability with rival platforms. The agreement aims to ensure fair market access and prevent hindering competition. Microsoft has increased the price differential and will more prominently advertise suites without Teams. The EU’s decision signals increased scrutiny of tech bundling practices.

Europe’s tech scene is showing signs of strength, challenging Silicon Valley’s dominance. Recent highlights include AI firm ElevenLabs’ valuation doubling to $6.6B, Mistral AI securing a 1.7B euro funding round, and Klarna’s successful NYSE IPO, valuing it over $17B. Investors see opportunities due to valuation discounts and a “born global” mindset among European startups. Challenges remain, including market fragmentation and the need for increased pension fund investment in venture capital. Initiatives like “EU Inc.” aim to address these issues by creating a unified regulatory framework.

SK Hynix announced it’s ready for mass production of its HBM4 chips, crucial for AI applications and potentially used in Nvidia’s next-gen architecture. HBM4 boasts double the bandwidth and 40% better power efficiency than its predecessor. This move solidifies SK Hynix’s lead over competitors like Samsung and Micron in the high-bandwidth memory market. Experts predict SK Hynix could hold 50% of the HBM market by 2026. The announcement boosted SK Hynix shares, reflecting investor confidence in its AI-driven strategy. Strong HBM demand contributed to record profits.

European tech is showing signs of strength with recent activity including ElevenLabs’ valuation doubling, ASML’s investment in Mistral AI, and Klarna’s NYSE IPO valuing it over $17 billion. This has reignited discussions about Europe’s ability to compete with US and Asian tech ecosystems. However, challenges remain, including macroeconomic pressures, market fragmentation, and the need for pension fund investments in venture capital, hindering expansion. The “EU Inc.” initiative aims to address regulatory hurdles.

Gemini, the cryptocurrency exchange founded by the Winklevoss twins, has priced its IPO at $28 per share, valuing the company at $3.3 billion. The IPO, limited to $425 million, witnessed strong demand exceeding the initial price range. Up to 30% of shares are allocated for retail investors via platforms like Robinhood. Nasdaq’s $50 million investment provides a confidence boost. Gemini, founded in 2014, manages over $21 billion in assets and offers diverse services, including its own stablecoin and a crypto-backed credit card. The IPO’s success will gauge market appetite for crypto-related offerings amid potential profitability challenges.

Adobe reported strong fiscal third-quarter results, beating analysts’ expectations with adjusted EPS of $5.31 and revenue of $5.99 billion. The company’s growth is fueled by its digital media segment and strategic AI integration, with AI-influenced ARR exceeding $5 billion. Adobe anticipates continued growth, forecasting adjusted EPS between $5.35 and $5.40 for the fourth quarter and projecting an 11.3% annualized revenue increase in its digital media business for the fiscal year. Despite this, Adobe’s year-to-date stock performance lags behind the Nasdaq.

Amazon suspended a software engineer, Ahmed Shahrour, for criticizing its ties with the Israeli government, specifically the Project Nimbus cloud computing contract. Shahrour voiced concerns over the project’s potential impact on Palestinians. Amazon cited potential policy violations, while Shahrour alleges selective enforcement of content moderation, creating a climate of fear. This highlights growing tensions within the tech industry regarding freedom of speech, ethical considerations, and business relationships with governments facing human rights concerns. Similar incidents have occurred at Microsoft and Google.

Microsoft CEO Satya Nadella addressed employee concerns about layoffs, return-to-office mandates, and company culture during an internal meeting. He acknowledged the need for rebuilding trust and improving leadership’s empathy. The company’s return-to-office policy has faced mixed reactions despite a broader industry trend. Microsoft’s financial performance remains strong, with a 24% increase in net income, driven by AI investments. Nadella also spoke to concerns about AI’s impact on jobs, ongoing scrutiny related to Azure’s use by the Israeli military, and instances of antisemitism affecting employees.

OpenAI reaffirmed its unique governance structure, ensuring its nonprofit parent retains oversight despite a $500 billion valuation. A non-binding MOU with Microsoft signals further partnership following Microsoft’s $13 billion investment. OpenAI emphasizes safety and collaboration with regulators to solidify its legal framework, addressing concerns about its shift from research to commercial aims. They’re also launching a $50 million grant program to support AI literacy. The company faces a legal dispute with Elon Musk over its for-profit trajectory.