A TD Cowen analyst said that Microsoft had canceled plans for new data center developments.The news suggested that the staggering forecasts for data center growth could be overblown.Experts say the industry's growth will still be enormous but is now undergoing a reality check.Microsoft recently appeared to scale back its data center development pipeline, which would be an extraordinary step back after a period of furious growth by the tech giant. But did it really? The concerns about whether air was coming ...

Core Insights - Amazon is testing a new payment model for publishers, called Native Commerce Advertising (NCA), which compensates them for driving traffic to its platform, regardless of whether purchases are made [1][12] - The NCA program aims to provide an additional revenue stream for publishers, complementing the existing Amazon Associates program, which pays commissions based on sales generated from product recommendations [4][11] - The program is currently in a pilot phase with participation from notable publishers like CNN and Vox Media, and Amazon plans to expand it further this year [3][5] Publisher Participation and Revenue - Publishers involved in the NCA pilot have reported a decent increase in revenue, although the implementation has been described as complicated [6][7] - The cost per click for the NCA program varies significantly, ranging from 20 to 60 cents, making it difficult for publishers to predict long-term profitability [7][10] - The New York Times reported $95 million in "other revenue" in Q4, highlighting the importance of affiliate revenue for publishers amid tough competition for advertising dollars [6] Editorial Integrity Concerns - The NCA program's structure may challenge publishers' editorial integrity, as there is an incentive to recommend products with higher cost per click, regardless of their quality [8][12] - Reputable publishers typically maintain a separation between revenue generation and editorial content to safeguard their credibility [9] - The variability in cost per click within the same product category could tempt some publishers to prioritize profit over quality recommendations [10] Industry Context - The digital media sector is facing significant challenges, with many publishers struggling as tech giants dominate digital advertising [11][13] - Google's crackdown on affiliate businesses has further complicated the landscape, leading to declines in traffic for some publishers' product recommendation pages [13][14]

Core Viewpoint - The ongoing feud between Meta and Apple revolves around issues of control, privacy, and responsibility regarding user access to social media, particularly for minors [1][2][3]. Group 1: Meta's Position - Meta criticizes Apple's control over its devices, claiming it hinders the development of features for its smart glasses [2]. - Meta argues that app stores, specifically Apple and Google, should be responsible for restricting app downloads for younger users [3][5]. - Meta has been actively lobbying for legislation that would require parental consent for teens to download apps, marking a small victory with the introduction of new bills in several states [4][8]. Group 2: Apple's Position - Apple has expressed concerns that enforcing age verification could invade user privacy and has previously lobbied against similar legislation [5][7]. - Tim Cook has publicly criticized Meta for its privacy issues, indicating a broader concern about Meta's practices [2]. Group 3: Legislative Context - Recent bills introduced in nine states aim to hold app stores accountable for age verification, reflecting a growing legislative focus on child safety online [4][6]. - A 2024 Pew Report highlights that a significant percentage of parents struggle with managing their children's screen time, indicating a societal concern that lawmakers are trying to address [6].

Tesla is rolling out self-driving features to some cars in China, per a software update log.It's not being called Full Self-Driving and Tesla is not offering all the FSD features as in the US.BYD is equipping nearly all its models with advanced self-driving tech at no extra cost.Tesla has started rolling out driving-assistance features to some cars in China that are similar to the Full Self-Driving (FSD) system in the US, according to a software update log. Tesla said the new features allow Tesla owners in ...

Home Depot beat Wall Street revenue forecasts for the fourth quarter of 2024.The retailer said, however, that customers are still putting off major renovation projects.That's due to higher interest rates in recent years, its CEO and CFO said.Home Depot beat Wall Street estimates in the fourth quarter of 2024, but said that customers were still putting off bigger home improvement projects amid higher interest rates. Revenue climbed 14% compared to the same period in 2023. On a comparable sales basis, a metri ...

Tesla's European sales plunged in January, falling 45% compared with the same month in 2024.The decline came despite a rise in EV sales in Europe, with Tesla falling behind China's SAIC Motor.Elon Musk has waded into European politics in recent months, backing far right-wing German party AfD.Tesla sales in Europe plunged in January, falling 45% compared with the same month last year, while overall sales of electric vehicles increased. Elon Musk's automaker sold 9,945 vehicles last month in the European Unio ...

Core Insights - Shopify is actively engaging in acquihiring to enhance its AI talent pool amid a competitive market for engineers with AI expertise [1][9] - The company completed six small acquisitions in the past year, focusing on acquiring teams rather than just technology [1][9] - Shopify's strategy includes hiring founders of acquired startups into leadership roles within its product organization [2][5] Acquihiring Strategy - Shopify's CFO highlighted that the recent acquisitions were tactical and aimed at securing AI talent, with a focus on being judicious with cash [2] - Notable hires include Nicolas Grasset from Peel Insights and Ray Reddy from Ritual, both of whom now hold significant positions within Shopify [2][3][4] - The company has also brought in teams from startups like Stellate and Threads, further strengthening its engineering capabilities [5][6] Market Context - The current market for AI talent is described as "white-hot," making traditional hiring methods less viable compared to acquihiring [5] - Shopify's growth has primarily been organic, with previous significant investments in its fulfillment network rather than large-scale acquisitions [8] Future Plans - Shopify plans to continue making strategic investments in startups that develop technology beneficial to its merchants, including participation in early-stage funding rounds [11] - The company has recently appointed Mikhail Parakhin as its new CTO, who has a strong background in AI advancements [10]

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].