Nvidia finally has a chance to tell investors why their violent reaction to DeepSeek was a mistake.The chip giant's Wednesday earnings are the first since DeepSeek's AI sparked market panic.Key areas to watch are data center revenue, Blackwell's ramp-up, inference demand, and policy.When Nvidia reports earnings on Wednesday, the chip giant will have the chance to tell investors why it thinks their intense reaction to the rise of DeepSeek was a mistake — or change the subject entirely. Heading into 2025, Nvi ...

Core Insights - Starbucks is simplifying its menu by removing less popular items and those that are time-consuming to prepare, aiming to focus on fewer, more popular offerings [1][2] - The company plans to reduce its menu by approximately 30% by September, which will allow for innovation and improve customer experience [2][3] - The changes are part of a broader strategy to address declining sales, including the layoff of 1,100 corporate employees to streamline operations [4][5] Menu Changes - Starbucks will remove 13 items from its menu on March 4, including nine Frappuccino drinks and other less popular items [5][6] - The specific items being removed include Iced Matcha Lemonade, various Frappuccino flavors, and Honey Almondmilk Flat White [6] Corporate Restructuring - The new CEO, Brian Niccol, is implementing changes to create smaller, more efficient teams and reduce complexity within the organization [4] - The layoffs will not affect store employees, focusing instead on corporate staff to enhance operational efficiency [4]

Core Viewpoint - Microsoft has canceled leases for some US data centers, indicating potential lower demand for AI than previously expected, leading to a slight decline in its stock price [1][7]. Group 1: Data Center Operations - Analysts from TD Cowen reported that Microsoft has canceled leases in the US totaling "a couple of hundred MWs" with at least two private data center operators [2]. - The company has also pulled back on converting Statements of Qualifications (SOQs) to leases and reallocated a significant portion of its international spending to the US [2][3]. - These actions suggest a potential oversupply of data center capacity relative to Microsoft's new forecasts [3]. Group 2: Market Dynamics - The analysts noted a shift in incremental OpenAI workloads to Oracle and SoftBank, with a significant increase in Oracle's requirements over the past three months [4]. - Microsoft is still active in the data center market, but its current demand is lower compared to the rapid leasing pace observed in 2023 and the first half of 2024 [5]. - Microsoft plans to invest $80 billion in AI data centers this fiscal year, despite the recent adjustments in leasing [5][6]. Group 3: Company Statements - A Microsoft spokesperson stated that their spending remains on track to meet customer demand, emphasizing that they are well-positioned due to significant past investments [6]. - CEO Satya Nadella highlighted the importance of aligning supply and demand in the AI sector, cautioning against overhyping supply without understanding customer value [8]. Group 4: Market Observations - Wall Street is closely monitoring Nvidia's upcoming earnings release for indications of softening AI spending, which could impact the broader market [9].

Starbucks is laying off 1,100 corporate employees this week, the company said.The coffee chain will notify affected employees by midday Tuesday.CEO Brian Niccol is trying to turn around results at the Seattle-based chain.Starbucks is laying off 1,100 corporate employees this week and will halt hiring for hundreds of open roles. Employees whose jobs are being eliminated will hear from Starbucks by midday Tuesday, the company said."We are simplifying our structure, removing layers and duplication and creating ...

Core Viewpoint - Apple is preparing to defend its diversity, equity, and inclusion (DEI) policies against shareholder criticism at its annual meeting, where a vote on a motion to cease DEI efforts is expected [1][7] Group 1: Shareholder Meeting and Proposals - The National Center for Public Policy Research has proposed a motion to end Apple's DEI initiatives, citing legal concerns from US Supreme Court cases [2] - Apple plans to oppose this motion, arguing it restricts the company's operational management [2][7] - Shareholder proposals against ESG policies, including DEI, have historically received little support in votes over the past three years [6] Group 2: Industry Context and Comparisons - Other tech companies, such as Meta, Google, and Amazon, have recently rolled back their DEI initiatives, citing changes in the legal and policy landscape [3][4] - Apple's commitment to DEI stands out as it continues to support these initiatives while many peers are stepping back [5] Group 3: Future Plans and Investments - Apple announced plans to hire approximately 20,000 employees over the next four years as part of a broader investment commitment exceeding $500 billion [5]

Group 1 - Apple plans to hire approximately 20,000 people over the next four years as part of a $500 billion investment commitment [1][2] - The investment will focus on initiatives related to AI, skills development, and manufacturing [1] - Tim Cook emphasized the company's commitment to American innovation and manufacturing through this investment [2] Group 2 - The investment includes doubling the Advanced Manufacturing Fund and building advanced technology facilities in Texas [2]

Core Insights - Alibaba is focusing on artificial general intelligence (AGI) as its primary goal, aiming to develop models that extend the boundaries of intelligence [1][8] - The company reported an 8% increase in revenue for the quarter ending in December, amounting to 280.2 billion yuan ($38.6 billion), with profits rising to 48.9 billion yuan, surpassing analysts' expectations [2][8] - Alibaba plans to invest at least 380 billion yuan ($53 billion) in cloud computing and AI infrastructure over the next three years to compete with US tech giants [4][8] Industry Context - Other US-based companies pursuing AGI include OpenAI, Google, Meta, and Microsoft, indicating a competitive landscape [2] - The potential of AGI is highlighted by studies suggesting it could replace or achieve 80% of human capabilities, which could significantly impact global GDP [3] - The recent rise of Chinese tech companies in AI, particularly following the emergence of DeepSeek, has shifted investor focus towards them [5][6] Market Reaction - Alibaba's shares have increased by 70% year-to-date, driven by developments in AI and partnerships, such as working with Apple [5] - The meeting between Chinese leader Xi Jinping and top tech leaders, including Alibaba's co-founder Jack Ma, is perceived as a sign of improved relations between the government and the private sector [6][7] - Despite recent gains, Alibaba's shares experienced a 2.5% decline on a particular day due to broader market pressures [7]

Core Insights - Amazon's investment in Anthropic has significantly increased, with the fair value of its stake rising from $8 billion to $14 billion, representing a 75% gain since the initial investment in 2023 [1][2] - The total investment in Anthropic amounts to $8 billion, with structured investments including convertible notes that can be converted into equity [2][3] - Anthropic is currently valued at $60 billion, a substantial increase from its previous valuation of $18 billion [5] Investment Details - Amazon's initial investment of $1.25 billion in Anthropic occurred in September 2023, followed by an additional $2.75 billion in early 2024 and $1.3 billion later that year [2] - An agreement for an additional $2.7 billion investment by the end of 2025 has also been established [2] - The investments are classified as "available-for-sale" and categorized as "Level 3" assets, indicating reliance on unobservable inputs for valuation [3][4] Partnership Dynamics - Amazon and Anthropic have developed a close partnership, with Anthropic committing to utilize Amazon's cloud computing services and AI chips [6] - Anthropic plans to leverage a new AI supercomputer built from Amazon's chip clusters [6] Broader Investment Landscape - As of the end of December, Amazon's total investment value in public and private companies reached $22.1 billion, with only $4.6 billion allocated to publicly traded companies [7] - Other private companies in which Amazon has invested include Scale AI, Hugging Face, and X-energy [7]

Core Viewpoint - Apple is removing its highest level of security for iCloud data, Advanced Data Protection (ADP), from iPhones in the UK, which allows end-to-end encryption for users [1][7] Group 1: Security Implications - The removal of ADP means that data stored on iCloud could potentially be accessible to both Apple and the UK government [2][3] - Apple stated that this move does not create a backdoor for accessing user data, emphasizing that it has never built a backdoor or master key for its products [3][7] Group 2: Government Influence - The decision to remove ADP follows a "secret order" from the UK government for Apple to create a backdoor to user data, as highlighted by US congressmen [2][4][7] - The letter from US lawmakers urged the Director of National Intelligence to halt the order, citing concerns over privacy rights [4] Group 3: Data Protection Features - ADP is not enabled by default on iPhones, and once activated, Apple cannot assist users in recovering their data [5] - Despite the removal of ADP, 14 data categories will still have automatic encryption, including iCloud Keychain, Health, and FaceTime [5] Group 4: Future Security Plans - Apple expressed its disappointment over the removal of protections and stated that boosting security with end-to-end encryption is more urgent than ever [6] - The company hopes to offer the highest level of security to UK users in the future [6]

Core Points - Meta has approved a bonus plan that allows executives to earn up to 200% of their base salary, increasing from the previous cap of 75% [1][5] - The bonus plan is designed to motivate executives to focus on company priorities and reward them for company results and achievements [1] - The bonus increase does not apply to CEO Mark Zuckerberg, as his compensation structure typically focuses on stock options [2] Workforce Changes - Meta is undergoing layoffs targeting 5% of its workforce, which equates to nearly 4,000 employees [2][5] - CEO Zuckerberg stated that the layoffs are aimed at "low-performers" to streamline operations and invest in artificial intelligence [3][5] - Some employees expressed surprise at being laid off despite receiving positive performance ratings in recent reviews [3][4]