Tech

Sam Altman testified in Elon Musk’s lawsuit against OpenAI, detailing his 2023 ouster and addressing Musk’s early proposals, including a failed attempt to make OpenAI a Tesla division. Altman expressed shock and hurt over his removal, stating he wasn’t deceitful. The trial also touched on Shivon Zilis’s dual roles and potential conflicts of interest, as well as OpenAI’s corporate structure and Microsoft’s investment.

Chip stocks fell sharply Tuesday, with Qualcomm down 13% and Intel down 8%, as a hot inflation report and geopolitical tensions triggered a risk-off sentiment. This correction followed a rally that had broadened beyond Nvidia, impacting major semiconductor players and the iShares Semiconductor ETF. Investors are reallocating capital from growth assets amidst concerns of sustained higher interest rates and global instability.

SoftBank has invested over $450 million in AI chip developer Graphcore, reinforcing its commitment to AI infrastructure. This funding is part of SoftBank’s broader strategy to invest heavily in AI, including stakes in OpenAI and foundational infrastructure. The investment in Graphcore, acquired by SoftBank in 2024, aligns with plans to develop Artificial General Intelligence and positions SoftBank to integrate leading AI players.

EBay has rejected GameStop’s unsolicited $56 billion takeover bid, deeming it “neither credible nor attractive.” The online marketplace’s board cited concerns over financing uncertainty, operational risks, and the substantial debt burden. GameStop’s offer was structured as a cash and stock combination at $125 per share. EBay expressed confidence in its current leadership and recent strategic progress.

Amazon plans 30-minute delivery in dozens of US cities. Stock futures dip amid geopolitical tensions and AI’s rise. Trump’s China visit includes tech leaders to discuss trade and Taiwan. Microsoft CEO testified in the OpenAI legal battle. General Motors is cutting IT jobs amidst AI transformation. A proposed gas tax holiday aims to ease fuel price volatility. Housing market data shows cooling sales due to rising mortgage rates.

The EU is intensifying its regulation of social media giants like TikTok and Instagram to combat “addictive design” features. Measures target endless scrolling, autoplay, and push notifications. The EU is also scrutinizing Meta for age verification enforcement and investigating platforms for potentially harmful content. An EU-developed age verification app is planned for integration into digital wallets. This push follows a US court ruling and Meta’s violation of the Digital Services Act, reflecting a global trend towards stricter child online safety measures.

Amazon is accelerating its quick commerce strategy with the nationwide launch of “Amazon Now,” promising 30-minute or less deliveries. This expansion targets tens of millions of consumers by year-end, intensifying competition with gig economy platforms. The service leverages micro-fulfillment centers and Amazon Flex drivers to offer rapid delivery of groceries, electronics, and essentials, aiming to boost conversion rates and customer loyalty.

President-elect Donald Trump is leading a delegation of prominent American CEOs, including Elon Musk and Tim Cook, to China for critical economic and security discussions. The group will meet with President Xi Jinping to address trade, AI, and geopolitical issues. While many industry leaders are attending, some, like Nvidia’s Jensen Huang, are notably absent, suggesting strategic considerations for sensitive technology sectors. The mission aims to leverage private sector engagement to navigate complex U.S.-China relations.

Redwood Materials, an EV battery recycling venture founded by J.B. Straubel, has appointed former Tesla CFO Deepak Ahuja as its Chief Financial Officer. Ahuja brings extensive financial leadership experience from Tesla, where he played a key role in its IPO. His decision to join Redwood was driven by his long-standing respect for Straubel and the opportunity to contribute to a company focused on circular economy principles and securing domestic critical mineral supply chains. Redwood Materials has raised significant funding and is expanding its operations, including battery energy storage systems.

Microsoft CEO Satya Nadella testified in the Musk v. Altman trial, stating Elon Musk never raised concerns about Microsoft’s OpenAI investments violating terms. Nadella defended Microsoft’s substantial financial backing, asserting a clear commercial imperative. He also addressed the 2023 leadership crisis at OpenAI. OpenAI co-founder Ilya Sutskever and board chairman Bret Taylor also testified.