Week 48, 2024
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Overview
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- DOJ wants Google to sell Chrome
- Amazon invests $4B in Anthropic
- xAI raises $5B more
- Bluesky user count surging
- Nvidia breaks Q3 record
- Microsoft reveals AI agent plans
- Apple building LLM Siri
- Perplexity adds shopping AI
- Tesla eyes easier AV rules
- TikTok CEO consults Musk
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Key Developments
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- DOJ wants Google to sell Chrome. Following the search monopoly verdict, regulators have asked courts to force Google to divest its browser business. Chrome, commanding 65% of the global market, is central to Google's data-to-advertising revenue model. This marks the first time regulators have targeted Big Tech's control over access points rather than services, potentially setting new precedent for antitrust enforcement.
- Amazon has invested $4 billion in Anthropic to strengthen their strategic partnership. Despite being the second-largest AI investment after Microsoft-OpenAI, Amazon opted for a minority stake while landing AWS and its custom chips as Anthropic's primary infrastructure. The deal includes joint development of next-gen processors. This gives Amazon a strong position against Microsoft-OpenAI and Google-Gemini in the cloud race, while securing a marquee reference customer against Nvidia in the AI chip market.
- xAI has secured $5 billion in new funding, pushing its valuation to $50 billion. The figure has doubled in just six months, reaching one-third of OpenAI's valuation. The funding, led by Qatar's sovereign wealth fund, will again be directed toward securing Nvidia GPUs. Notable absentees from this round include UAE's MGX and Nvidia, both of whom are OpenAI investors.
- Bluesky has added 5 million users in a week, crossing 20 million total users. The platform is attracting 1 million users daily, largely driven by discontent with X's content policies, and has gained particular momentum after the US election. The daily active user gap with Threads has narrowed from 5x to 1.5x, with Bluesky already surpassing Threads in web traffic across the US and UK. One year after Musk's X acquisition, Bluesky's rapid growth suggests trust can be a key differentiator in social media.
- Nvidia has posted another record-breaking quarter with exceptional growth. Revenue and net profit doubled year-over-year, with data center chips - primarily AI processors - accounting for nearly 90% of total sales. Despite projecting above-market estimates for next quarter, shares dipped slightly as investors showed signs of "growth fatigue."
- Microsoft has revealed its vision for AI agents across the enterprise stack. The company is expanding beyond 365 Copilot with four specialized agents handling document search, translation, HR, and project management, while its new Copilot Studio lets non-developers create custom agents. What sets these agents apart is their ability to make autonomous decisions beyond following basic commands. This signals AI's evolution from simple tools to active business partners.
- Apple is developing a new Siri powered by large language models to rival ChatGPT. The upgraded assistant, targeted for spring 2026, reflects Apple's strategic patience amid the AI race. Rather than rushing to market, the company is focusing on its core strengths: hardware optimization, practical utility, and privacy protection. However, some worry this methodical approach to building "Apple-worthy AI" could cost them market opportunity in the rapidly evolving AI landscape.
- Perplexity has introduced AI-powered shopping for its US premium members. The service combines conversational product discovery with one-click purchasing, while differentiating itself through ad-free recommendations and free shipping. A new seller program helps build the product database, though commission-based revenue isn't yet in play. The move marks an ambitious attempt to wedge between Google's search and Amazon's commerce dominance.
- Tesla shares surged on news that Trump's transition team may ease autonomous vehicle regulations. Tesla has backed ending EV incentives in exchange for faster self-driving approvals. The potential lifting of current 2,500-unit deployment caps could accelerate Tesla's 2026 robotaxi rollout and FSD testing plans.
- TikTok's CEO has sought counsel from Musk, who's emerging as a key influence in Trump's circle. Facing a January deadline for forced divestiture, the CEO has engaged Musk in weeks of messages about the incoming Trump administration and its tech policies. Trump himself has reversed his anti-TikTok stance, citing young voter backlash, but the congressional mandate for divestiture remains beyond executive power to easily undo.
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Other notable updates
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AI
Google has launched a program to help companies build and deploy AI agents.
Amazon's new AWS App Studio lets users create business apps through natural language commands.
Meta has hired Salesforce's AI chief to spearhead its new enterprise AI division.
Microsoft's Copilot has reached 70% adoption among Fortune 500 companies.
Microsoft is opening its first research hub in Japan amid rising US-China tensions.
Alibaba has released Marco-o1, an open inference model inspired by OpenAI.
OpenAI has launched a ChatGPT training program for K-12 teachers.
OpenAI is demanding usage fees from NYT to inspect its models in their copyright lawsuit.
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Robotics
Tesla has launched a 7-inch toy version of its humanoid robot, selling out immediately at $40.
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Chips / Infrastructure
Intel faces a $500M cut in subsidies as investment targets fall short.
Microsoft has unveiled two AI chips for data centers to reduce reliance on Nvidia and Intel.
Huawei plans to mass-produce its Ascend 910C chip in Q1, claiming performance comparable to Nvidia's H100.
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Devices / Hardware
Apple CEO Tim Cook makes his third China visit this year.
Microsoft launches $349 cloud PC to rival Mac Mini.
Meta Quest to run Windows 11 starting December.
Huawei's Mate 70 phone draws over 1 million pre-orders in first hour.
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Content / Entertainment
Minecraft announces theme park plans for UK and US, targeting 2026 opening.
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Social Media
Meta removes 2 million fake accounts, mostly from Southeast Asian networks.
Meta upgrades Messenger calls with new features including AI backgrounds.
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EV / Autonomous
Xiaomi hits 100,000 EV production milestone in 230 days.
Xiaomi faces setback as auto-parking glitch damages 70 vehicles in one day.
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Space
SpaceX conducts sixth Starship test with Trump in attendance.
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Etc
Musk and Bezos trade jabs on social media over election results.
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