Tech

The DOJ is suing Uber, alleging ADA violations due to systemic discrimination against riders with disabilities. The lawsuit claims Uber drivers routinely deny service to individuals with service animals or requiring wheelchairs, and impose unwarranted fees. The DOJ alleges discriminatory driver behavior includes refusals, inappropriate questioning and impermissible surcharges. Uber denies the allegations, citing its zero-tolerance policy and accessibility features. The DOJ argues Uber’s efforts are insufficient under the ADA. The lawsuit could have significant financial and operational consequences for Uber and impact the ride-hailing industry’s responsibility in ensuring equal access for users with disabilities.

Oracle shares dipped 7% following a record high, driven by concerns over reliance on OpenAI, potentially committing $300 billion over five years. This news followed strong first-quarter results, fueled by multi-billion-dollar contracts and a 359% surge in remaining performance obligation to $455 billion. Oracle forecasts a 14-fold cloud infrastructure revenue expansion by 2030 to support AI. Analysts worry about the sustainability of Oracle’s revenue, highlighting risk concentration and the importance of diversification in the competitive cloud market.

A lawsuit filed by a former executive accuses Alphabet’s Verily of HIPAA violations affecting over 25,000 patients in its Onduo diabetes program. The lawsuit alleges unauthorized use of protected health information for research and marketing, and claims Verily concealed the breaches and terminated employees who raised concerns. A judge denied Verily’s request for dismissal. The lawsuit details alleged breaches involving partners like Walgreens and Delta. Verily denies the allegations and will defend itself. It comes as Verily navigates strategic shifts and funding rounds.

The FTC is investigating seven AI companies, including OpenAI, Alphabet, and Meta, to assess the impact of their chatbots on children and teenagers. The inquiry focuses on potential manipulation, exploitation, or undue influence AI companions may have on young users. The FTC seeks detailed information on companies’ safety evaluations, monetization strategies, data handling practices, and mitigation strategies. Concern stems from AI’s ability to simulate human-like interactions and the rise in loneliness, which may make vulnerable children susceptible to harmful interactions. The investigation follows reports of inappropriate chatbot conversations with children.

Opendoor (OPEN) shares surged 50% after appointing Kaz Nejatian as CEO and Keith Rabois as Chairman, boosting investor confidence. The stock, up over 400% year-to-date, hit a 52-week high. The leadership change, following the previous CEO’s resignation due to investor pressure, is seen as a potential turnaround. Hedge fund manager Eric Jackson has actively supported Opendoor’s resurgence. Analysts are monitoring Opendoor’s ability to scale and manage inventory risk for long-term success.

Opendoor appointed Kaz Nejatian as CEO, replacing Carrie Wheeler, while co-founder Keith Rabois becomes chairman. The news triggered a 30% stock surge after hours, rebounding from a record low. Rabois and Eric Jackson had publicly criticized Wheeler’s leadership. The leadership change follows a period of high volatility, including a potential Nasdaq delisting and subsequent “meme stock” surge. Nejatian’s experience at Shopify is expected to benefit Opendoor’s platform. The company aims for sustained profitability in the challenging iBuying real estate market.

Oracle’s stock soared, boosting Larry Ellison’s net worth by over $110 billion after bullish cloud growth projections. Ellison’s continued leadership role and significant shareholding contrast with other tech leaders. Oracle is expanding into healthcare and AI, partnering with OpenAI, Meta, and others. The company forecasts substantial cloud infrastructure revenue growth, driven by AI demand. Oracle’s success extends beyond AI, maintaining dominance in established software businesses and attracting leading AI players, positioning itself as a key infrastructure provider.

Klarna, the BNPL giant, debuted on the NYSE with shares surging 30% above the $40 IPO price, valuing the company at $15 billion. The IPO raised $1.37 billion. CEO Sebastian Siemiatkowski likened the event to a wedding, marking a milestone but highlighting ongoing challenges. Klarna’s strategic shift to banking services, particularly in the US, faces competition from Affirm and others. The BNPL sector is intensely competitive and faces increasing regulatory scrutiny, particularly in Europe. Sequoia, an early investor, saw significant returns, while SoftBank’s later investment faced valuation decline.

Oracle projects cloud sales reaching $114 billion by fiscal year 2029, driven by AI demand and a massive data center expansion. This bullish forecast boosted stocks of Nvidia (up 4%), TSMC (up 4%), Broadcom (up 9%), AMD (up 3%), Micron (up 4%), Super Micro and Dell (up 4% each). UBS analyst notes the projections are decidedly bullish for Nvidia, other AI hardware vendors, and ecosystem partners. Competitor CoreWeave surged over 20%. Oracle’s increased capital expenditure emphasizes cloud infrastructure’s growth.

Amazon’s Zoox launched its robotaxi service in Las Vegas, challenging Waymo in the autonomous vehicle market. Zoox’s purpose-built electric vehicle, without steering wheel or pedals, differentiates it from competitors like Waymo and Tesla. Following Las Vegas, Zoox plans expansion to San Francisco, Austin, and Miami. Zoox emphasizes safety and passenger experience, aiming for a communal ride with panoramic views. While profitability is years away, Amazon is committed, highlighting Zoox’s unique approach and long-term potential.