#AI

Meta is reportedly scaling back VR efforts, cutting over 1,000 jobs in Reality Labs and closing several VR studios. Resources are being reallocated to accelerate AI development, a strategic pivot confirmed by the company. This shift prioritizes AI innovation, including AI-powered wearables like smart glasses, which have shown promising market demand. While not abandoning VR entirely, Meta aims to make its Horizon Worlds platform more accessible, potentially mirroring successes of platforms like Roblox. This comes after substantial VR investments and significant losses in Reality Labs.

Jim Cramer is bullish on Alphabet, predicting a 20% stock surge to $400, driven by AI dominance. Despite market caution on tech, Alphabet’s AI leadership, particularly its Apple partnership for Gemini, is fueling growth. The company’s entry into the $4 trillion market cap club signals strong investor confidence. Analysts note Gemini’s tech superiority, TPU cost advantages, and search monetization are key for sustained growth. The Investing Club maintains a buy rating with a $350 price target, advising a strategic approach to increasing exposure.

President Trump announced Microsoft’s commitment to changes that will prevent utility bill increases due to AI data center expansion. This initiative addresses rising consumer costs ahead of midterm elections and reflects the tech industry’s massive energy demands for AI. Microsoft has acknowledged the need to manage electricity impact, though the company has faced local opposition to new data center projects. The situation highlights the challenge of balancing AI growth with energy affordability.

Apple is reportedly partnering with Google to integrate Gemini AI into its core products, including Siri. This multi-year deal is a significant endorsement of Google’s AI technology and could boost Alphabet’s market position. For Apple, it’s a move to accelerate its AI strategy, enhance its offerings, and address investor concerns about lagging innovation. The collaboration is seen as mutually beneficial, validating Gemini and helping Apple stay competitive.

Western Digital is set to report its Q2 FY26 earnings on January 29, 2026. Investors will be focused on the company’s performance in flash memory and HDD technologies, crucial for the booming AI and cloud computing markets. Key discussion points will include advancements in NAND flash, the strategy for its HDD business, and how Western Digital is navigating intense competition and evolving market demands for high-capacity, cost-efficient, and sustainable storage solutions.

Meta has appointed Dina Powell McCormick as President and Vice Chairman, bolstering its strategic leadership. With a background in global finance and international relations, including previous roles in the Trump administration and at Goldman Sachs, she will focus on shaping Meta’s growth. This appointment aligns with Meta’s ambitious AI infrastructure expansion, including the new “Meta Compute” initiative, aimed at scaling AI capabilities through significant data center investments and strategic partnerships.

Apple is partnering with Google to integrate Gemini AI models into its future AI features, including a revamped Siri. This multi-year deal will leverage Google’s advanced AI and cloud technology to power Apple’s foundational models, addressing increasing pressure for compelling AI experiences. While Apple also works with OpenAI, this collaboration signifies a strategic shift in its AI development, potentially reshaping the competitive landscape in personal technology.

Alphabet has joined the elite $4 trillion market cap club, driven by its AI advancements and a new partnership with Apple. The tech giant’s stock surged following the announcement that Apple will integrate Google’s Gemini AI models into its devices. This milestone positions Alphabet alongside other tech leaders and highlights its successful AI resurgence, boosted by innovations like its custom AI chips and Gemini models, signaling strong competitive advantages and significant market adoption of its AI products.

Meta’s acquisition of AI startup Manus is a case study in cross-border compliance. China is scrutinizing the deal, focusing on export controls and technology transfer rules, despite Manus’s relocation from Beijing to Singapore. This highlights that a vendor’s domicile doesn’t determine regulatory exposure; technology origin is key. Businesses must now conduct deeper due diligence on AI vendors, examining technology origin, transfer compliance, and operational continuity to navigate evolving geopolitical and regulatory landscapes.

Google introduced the Universal Commerce Protocol (UCP), an open-source initiative aiming to standardize AI agents across the retail shopping journey. UCP seeks to unify e-commerce functions, simplifying complex online operations for retailers and enabling interoperability. This move positions Google to compete with rivals like OpenAI, Perplexity, and Amazon in the rapidly growing AI-driven retail market, which McKinsey projects could be worth $3-$5 trillion by 2030. UCP is co-developed with industry partners and will power new checkout functionalities and a Business Agent for conversational commerce.