Tech

OpenAI is acquiring Statsig, a product development startup, for $1.1 billion to enhance its capabilities in feature testing and data optimization. Statsig CEO Vijaye Raji will become OpenAI’s technology chief within the applications unit, reporting to Fidji Simo. Statsig will operate independently, serving existing customers. This acquisition follows OpenAI’s purchase of Jony Ive’s AI devices startup, IO, and analytics database company Rockset, demonstrating its aggressive expansion strategy. A previous attempt to acquire AI-assisted coding tool Windsurf was unsuccessful.

Tesla CEO Elon Musk predicts the company’s Optimus robots will drive 80% of its future value, potentially reaching a $25 trillion valuation. Facing challenges with EV competition and public perception, Musk aims to shift focus to AI-powered robotaxis and humanoid robots. While Tesla is on track to produce 5,000 Optimus robots in 2025 and deploy them in factories, it trails competitors like Waymo, Unitree and Boston Dynamics in both robotaxi and humanoid robot markets. A recent leadership change in Tesla’s robotics division adds further complexity. Optimus is envisioned as a versatile robot for various tasks.

Bitcoin rose to $111,000 amidst falling stocks and gold’s record high. Cryptocurrency is benefiting from expectations of future rate cuts and geopolitical uncertainty, though Ethereum’s rise has impacted Bitcoin’s dominance. Analysts believe a dovish Fed pivot could help Bitcoin break through resistance. Ether remained stable, while Solana’s token (SOL) outperformed Bitcoin and Ether recently. Crypto-related stocks showed mixed performance.

Klarna, the BNPL giant, is preparing for its NYSE IPO under the ticker “KLAR,” potentially raising $1.27 billion at $35-$37 per share, valuing the company up to $14 billion. Existing shareholders will offer a significant stake alongside Klarna’s new share issuance. Goldman Sachs, JP Morgan, and Morgan Stanley are joint bookrunners. Klarna’s Q2 revenue grew 20% to $823 million, but net loss widened to $53 million. The IPO marks a significant step for the fintech firm aiming to become a comprehensive financial “super app.”

Microsoft secured a deal with the U.S. GSA, promising $3.1 billion in savings on cloud services for federal agencies. This aligns with the “OneGov” initiative, aimed at reducing government costs. The deal covers Office, Azure, Dynamics 365, and Sentinel, and includes free Copilot access for some users. GSA Commissioner Josh Gruenbaum cited seamless price switching and Microsoft’s desire to partner on AI adoption and gain market share from rivals like Amazon and Google. This agreement highlights Microsoft’s crucial role as a technology partner for the U.S. government.

SAP will invest €20 billion over the next decade to expand its sovereign cloud infrastructure in Europe, including IaaS and on-premise options. This initiative aims to address data sovereignty concerns and GDPR compliance by ensuring customer data remains within the EU. The move positions SAP to compete with Microsoft and Amazon while aligning with the European Commission’s focus on technological sovereignty and AI development. SAP is also involved in the EU’s “AI gigafactory” initiative.

Alibaba’s Hong Kong shares surged over 19% driven by strong cloud computing results and AI chip development news. Cloud revenue grew 26% YoY, fueled by AI services, with AI-related product revenue experiencing triple-digit growth for the eighth consecutive quarter. The company’s investments in AI and its entrance into China’s competitive “instant commerce” market are viewed favorably despite temporary earnings pressure. Overall, positive sentiment followed a solid earnings report with significant net income increase and promising e-commerce revival signs.

The global push for online child safety is driving AI-powered solutions and regulatory scrutiny. The UK’s Online Safety Act and similar US legislation compel tech firms to protect minors from harmful content, with hefty penalties for non-compliance. Companies like Yoti are developing age verification technologies, raising privacy concerns. HMD Global’s Fusion X1 smartphone uses AI to block explicit content. The industry faces pressure to balance child protection with user privacy, requiring ethical implementation and responsible technology development.

Enterprise tech stocks, including MongoDB, Pure Storage, Snowflake, and Autodesk, rallied fueled by the artificial intelligence boom. MongoDB saw a 44% surge, while Pure Storage skyrocketed 33% after its deal with Meta. Snowflake’s AI Data Cloud is attracting customers, influencing nearly 50% of new logos. Autodesk, despite some challenges, is developing “AI-driven CAD engines.” These companies’ quarterly reports and executive commentary suggest the financial benefits of AI are broadening beyond Nvidia and cloud giants.

Tesla is challenging a $242.5 million verdict in a product liability and wrongful death suit stemming from a fatal 2019 Autopilot crash in Key Largo, Florida. The company requests the court overturn the verdict or grant a new trial, arguing the damages are excessive and challenging both compensatory and punitive awards. Tesla claims the driver’s negligence, not design defects, caused the accident where the Model S accelerated through an intersection, killing one and severely injuring another. The plaintiffs maintain Tesla’s Autopilot system’s misrepresentations contributed to the crash.