Tech

Autonomous trucking startup Waabi has raised $750 million in Series C funding, with an additional $250 million commitment from Uber. This significant capital will fuel Waabi’s expansion into the robotaxi market and accelerate the development of its “physical AI” driverless systems. The funding, co-led by Khosla Ventures and G2 Venture Partners, and supported by investors like Nvidia and Volvo, highlights confidence in Waabi’s safety-focused, capital-efficient approach to autonomous technology.

Amazon is reducing its corporate workforce by about 16,000 employees, marking its second major layoff round since October. This strategic shift prioritizes artificial intelligence and operational efficiency, aiming to streamline the organization by removing layers and bureaucracy. The cuts, part of a broader multi-year effort, reflect CEO Andy Jassy’s vision to cultivate a more agile, startup-like culture and reallocate resources towards AI development and data centers. While further adjustments are possible, Amazon states this is not intended to be a recurring cycle of broad layoffs.

Semiconductor stocks rallied on strong earnings from ASML and SK Hynix, driven by AI chip demand and a memory chip shortage. ASML exceeded expectations with its EUV lithography technology, crucial for advanced chip production. SK Hynix posted record profits, capitalizing on the AI memory chip boom. Additionally, China’s approval for Nvidia’s H200 chip imports to major tech firms signaled a shift, potentially bolstering Nvidia’s market presence. These positive developments echo recent strong performances from other industry leaders like TSMC, highlighting the sector’s robust growth.

China’s AI chip sector is rapidly advancing, with startups and tech giants like Huawei striving to challenge Nvidia. Fueled by substantial government investment and a robust energy infrastructure, Chinese companies are accelerating domestic chip development. While still trailing U.S. counterparts, the performance gap is narrowing significantly, positioning China to become a major force in AI hardware.

S&P 500 futures indicate a higher open as investors await the Federal Reserve’s interest rate decision and major tech earnings. Starbucks’ revenue and traffic growth signal a successful turnaround. Meanwhile, Amazon is undergoing significant restructuring, cutting corporate jobs and closing some store formats. Southwest Airlines is ditching its open-seating policy. Tesla’s brand value has seen a substantial decline, reportedly due to Elon Musk’s public statements. Political tensions also rise as a government funding deadline looms.

Snap Inc. has launched Specs Inc., a new subsidiary focused on its augmented reality (AR) glasses. This move aims to boost operational autonomy and attract partners, facilitating the upcoming release of their next-gen AR glasses. The company is hiring around 100 people for Specs Inc. This strategic expansion happens as competitors like Meta and Alphabet also invest heavily in AR eyewear, though Meta recently underwent significant layoffs in its AR/VR division, indicating a shift towards AI and wearables.

Cybersecurity startup Outtake has raised $40 million to bolster its AI-powered threat detection and mitigation. The company uses autonomous AI agents to combat evolving cyberthreats like phishing. Notable investors include Microsoft CEO Satya Nadella and Palantir CEO Alex Karp. Outtake has experienced significant revenue and customer growth, demonstrating strong market demand for its innovative approach to digital defense.

AI super PACs are emerging, mirroring crypto’s lobbying success, with groups like Fairshake and “Leading the Future” backed by Silicon Valley heavyweights. Meta also launched its own AI-focused PAC. While AI offers economic optimism, public concerns about job displacement and privacy are significant. These PACs aim to influence elections by promoting pro-AI candidates and policies, often framing AI leadership in geopolitical terms, particularly against China. Their substantial financial power faces potential public backlash and uncertain regulatory outcomes, as seen with New York’s RAISE Act.

Apple CEO Tim Cook expressed sadness over recent fatal shootings by federal agents in Minneapolis, advocating for de-escalation and respect in an internal memo. While his response is more reserved than in 2020 following George Floyd’s death, other tech leaders like Sam Altman and Reid Hoffman have also spoken out, though many executives remain publicly silent. This quietude contrasts with past activism and highlights shifting corporate engagement with social issues, amplified by reports of executives attending a White House event during the same period as the killings.

Microsoft is set to report Q2 earnings, with analysts expecting $3.97 EPS on $80.27 billion revenue, a 15% year-over-year increase. Investors will watch Azure cloud growth, forecast slightly slower at around 39%, and significant AI infrastructure investments. Capital expenditures are projected to rise 52%. Price hikes for Office subscriptions are also anticipated. Recent stock performance shows a 10% dip in three months.