Tech

iRobot, maker of Roomba vacuums, has filed for Chapter 11 bankruptcy after Amazon terminated a $1.7 billion acquisition. The company cited financial struggles, intense competition from Chinese manufacturers, and supply chain issues. Co-founder Colin Angle called the outcome a “tragedy for consumers,” lamenting the failed deal as the best path to global competitiveness. iRobot will be acquired by Shenzhen Picea Robotics, a lender and supplier, as it navigates significant debt. The company assures customers that product support will continue.

Tesla is testing fully driverless vehicles in Austin, Texas, a significant step following the limited launch of its Robotaxi service. CEO Elon Musk confirmed the occupantless tests, signaling progress toward Tesla’s long-held autonomous driving goals. This news boosted Tesla’s stock, nearing a record high. While the company is rolling out its Robotaxi app, challenges remain, including previous incidents involving vehicles with safety drivers. Regulatory landscapes are also evolving, with Texas set to implement new authorization requirements for commercial autonomous vehicle use in 2026. Tesla faces established competitors already operating robotaxi services in various markets.

PayPal is applying for a U.S. banking charter to establish “PayPal Bank.” This strategic move, announced by CEO Alex Chriss, aims to enable direct lending to small businesses, offer interest-bearing savings accounts, and expand its financial services. The company seeks greater control over its offerings, improved efficiency, and a deeper customer relationship, positioning itself to compete more aggressively in the financial services sector and capture more of the customer’s financial life.

The Trump administration has launched the “U.S. Tech Force,” a two-year initiative enlisting 1,000 engineers and tech specialists to advance AI infrastructure and critical technology projects. Partnering with major tech firms like Amazon, Google, and Microsoft, the program aims to modernize government operations, foster public-private collaboration, and strengthen the U.S. position in AI, particularly against China. Participants receive competitive compensation and are considered for full-time roles post-program.

Zillow’s stock tumbled over 9% as Google reportedly began testing real estate listings within its search results. This move, which mirrors Zillow’s functionalities, has sparked investor concerns about future competition. While some analysts believe Zillow’s direct traffic and revenue model could mitigate immediate impacts, others see Google’s entry as a potential long-term threat to Zillow’s agent advertising programs and overall consumer traffic. The full implications, however, may take years to unfold.

KeyBanc downgraded ServiceNow to “underweight,” citing the “AI is eating software” narrative, which suggests AI may reduce demand for per-seat SaaS licenses. Analyst Jackson Ader warned of potential disruption to ServiceNow’s IT workflow business by 2026. Despite a significant year-to-date stock drop, Jim Cramer remains optimistic, crediting CEO Bill McDermott’s leadership. The market is watching how ServiceNow adapts its AI strategy and pricing to evolving business models.

AI is revolutionizing China’s toy industry, with companies integrating advanced technology into playthings. From AI plush companions like CocoMate to interactive pets such as Chongker’s AI cat and Keyi Tech’s Loona puppy, these toys offer personalized experiences. While innovation surges, concerns about market sustainability, data privacy, and the impact of AI on children’s development are prominent. Safeguards are being developed, but the long-term effects remain under scrutiny.

Investors are pivoting from AI stocks to traditional sectors as crucial economic data looms. The Federal Reserve’s leadership is under speculation, with potential Trump appointees emphasizing presidential input on rates. Meanwhile, FDA staff travel during a shutdown and the U.S. shipbuilding deficit requiring foreign partnerships are under scrutiny. On the entertainment front, “Stranger Things” concludes its successful run, leaving a significant cultural and commercial legacy. The week ahead features key labor and inflation data, plus earnings from Micron, Darden, FedEx, and Nike.

Thrive Capital has appointed former Palantir CIO Jim Siders as CEO of its new IT services venture, Shield Technology Partners. Aiming to acquire stakes in IT firms and accelerate their growth with AI and advanced engineering, Shield has over $100 million in initial capital. Siders’ extensive experience at Palantir is expected to drive value and operational expertise into the sector. Shield also offers equity in itself to acquired companies, fostering collaborative growth.

U.S. AI stocks slid again as investors weighed AI-driven earnings against margins and deal quality, with Broadcom down over 11% and Nvidia, AMD, and Oracle also lower, dragging major indices. Despite near-term softness, the AI thesis remains intact for many, with potential for sustained earnings if hyperscaler demand holds. The week saw a Dow rise on financials while tech lagged, fueling questions about AI-cycle profitability amid higher costs. Other highlights: China’s decelerating growth, Berkshire’s leadership changes, Jimmy Lai guilty, and copper prices rally on supply and electrification demand.