Tech

This earnings season highlights a split in tech’s AI approach. Meta’s stock soared on strong revenue and ambitious AI infrastructure plans, assuaging investor concerns. Conversely, Microsoft faced a significant stock drop due to decelerating Azure growth and increased capital expenditures, despite a massive backlog driven by its OpenAI partnership. IBM also saw gains with its AI business doubling. However, broader software companies like ServiceNow experienced declines amidst fears of AI disrupting traditional software models.

Waymo is under NHTSA investigation after a driverless vehicle struck a child near a Santa Monica elementary school. The child sustained minor injuries. Regulators are examining the AV’s caution near schools and Waymo’s response. This incident follows recent scrutiny regarding Waymo vehicles speeding in Los Angeles and illegally passing school buses in Austin, leading to separate NTSB and NHTSA probes. These events highlight the challenges and intense oversight of autonomous vehicle deployment.

Apple’s Q1 earnings surpassed expectations with a 16% revenue increase to $143.76 billion, driven by a 23% surge in iPhone sales and strong growth in its Services segment. Greater China also showed impressive 38% growth. Despite declines in Mac and Wearables, the company anticipates continued revenue growth, supported by increased R&D spending, particularly in AI.

The U.S. Senate Agriculture Committee advanced a cryptocurrency market structure bill, granting the CFTC authority over digital commodities. This marks the first time such a comprehensive bill has cleared a Senate committee. The legislation, which passed along party lines, aims to define digital commodities and establish regulatory oversight for intermediaries, enhancing consumer protections. Further progress requires approval from the Senate Banking Committee and reconciliation of differing versions of the bill.

Apple has reportedly acquired Israeli AI startup Q.ai, signaling a strategic move into audio-focused artificial intelligence. This acquisition, led by CEO Aviad Maizels, whose previous venture PrimeSense was acquired by Apple, could enhance Apple’s existing audio features and accelerate its AI roadmap. The move aligns with investor calls for more substantial AI acquisitions and complements Apple’s ongoing development of features like “Apple Intelligence” and an enhanced Siri.

Tesla’s energy division sold $430 million in Megapacks to Elon Musk’s AI venture, xAI, in 2025. This deal, along with a $2 billion investment, highlights Tesla’s energy sector growth amid automotive decline. xAI plans to use the battery systems for its data centers. However, xAI faces scrutiny over its AI’s misuse and environmental concerns at its facilities, while Tesla shareholders question Musk’s resource allocation.

Waymo is expanding its fully autonomous ride-hailing service to San Francisco International Airport (SFO). Initially operating from the rental car center, Waymo plans to extend services to terminals soon. This strategic move, following Waymo’s integration of freeway driving, aims to capture a significant portion of airport transportation. SFO marks Waymo’s third major airport destination, reinforcing its ambition to lead in the autonomous mobility sector and potentially accelerating its path to profitability.

Businesses are investing heavily in AI-powered agents for both customer interactions and internal operations, with companies like Walmart integrating AI into shopping experiences. While AI promises increased productivity and enhanced efficiency, concerns about job displacement persist. Experts advise a strategic, phased approach to AI integration, focusing on augmenting human capabilities and building trust, rather than solely aiming for automation. True agency in AI is still emerging, but “systems of execution” are poised to revolutionize how work is done.

Google is embedding its Gemini AI capabilities directly into Chrome, enhancing the browser with features like image generation, personalized responses using user data, and an “Auto browse” function for complex tasks. This move deepens competition with rivals and aims to create a more seamless, personalized web experience. The integration includes a refreshed design with a persistent Gemini panel and a “universal assistant” vision, challenging OpenAI’s Atlas browser and solidifying Google’s AI-powered internet strategy.

Meta’s metaverse ambitions continue to incur significant losses via its Reality Labs division, nearing $80 billion in cumulative operating losses. Despite this, CEO Mark Zuckerberg anticipates 2024 losses to match 2023’s, suggesting peak investment. The company is shifting resources from VR to AI and wearables, exemplified by AI-enhanced Ray-Ban smart glasses. While some VR studios are closing, Meta maintains its commitment to VR, focusing on a broader integration of digital experiences into daily life through mixed reality and AI.