Core Insights - Meta's Reality Labs, its virtual reality unit, has faced significant financial losses, totaling approximately $19.1 billion in 2025, which is an increase from $17.7 billion in 2024 [2] - The company has laid off 10% of its Reality Labs staff, equating to around 1,000 employees, as part of a broader strategy to address ongoing losses [1] Financial Performance - In 2025, Reality Labs generated $2.2 billion in sales, with $955 million in Q4 alone, while incurring a loss of $6.2 billion in the same quarter [2] - Losses for Reality Labs are expected to remain consistent in 2026, with Zuckerberg indicating that this year may represent a peak in losses before a gradual reduction [3][4] Strategic Direction - Meta is shifting its investment focus towards glasses and wearables, aiming to make its Horizon platform successful on mobile and establish a profitable VR ecosystem [4] - The company plans to close several VR studios and retire its standalone Workrooms app, signaling a diminishing interest in virtual reality [5]

Core Insights - Microsoft is significantly benefiting from its investment in OpenAI, reporting a net income increase of $7.6 billion attributed to this investment [1] - OpenAI is experiencing unprecedented revenue growth and is reportedly seeking additional funding at a valuation between $750 billion and $830 billion [2] Investment and Financial Performance - Microsoft has invested over $13 billion in OpenAI and has a 20% revenue share agreement with the AI lab [2] - OpenAI has committed to purchasing an additional $250 billion of Azure services, contributing to Microsoft's "commercial remaining performance obligations," which rose to $625 billion from $392 billion in the previous quarter, with 45% of this increase attributed to OpenAI [3] Revenue Growth and Future Prospects - Microsoft reported $81.3 billion in revenue for the quarter, exceeding Wall Street expectations of $80.27 billion, marking a 17% year-over-year increase [7] - Microsoft Cloud revenue reached $50 billion for the first time this quarter, with all business units showing double-digit growth except for Windows devices and Xbox content and services [7] Strategic Investments - Microsoft is investing heavily in AI infrastructure, spending $37.5 billion on capital expenditures in the quarter, primarily for GPUs and CPUs for Azure [5] - The company also announced a $5 billion investment in Anthropic, which is expected to enhance future revenue through commercial bookings that grew by 230% [4]

Core Insights - Tesla is discontinuing production of the Model S sedan and Model X SUV, with final versions to be produced next quarter [1] - The company will repurpose the factory space in Fremont, California, to manufacture Optimus robots instead [1] - CEO Elon Musk emphasized the shift towards autonomy as a reason for ending the Model S and X programs, encouraging potential buyers to place orders soon [1] Company Overview - The Model S was launched in 2012 and is credited with making electric vehicles widely appealing [1] - The Model X was Tesla's second major electric vehicle program [1] - Sales of both the Model S and Model X have stagnated in recent years, despite updates to their interiors and exteriors [1]

Three weeks ago, Elon Musk’s AI company, xAI, revealed it raised $20 billion in a Series E funding round. Now, we know Tesla is among its investors.Tesla disclosed in a letter to shareholders on Wednesday that it invested $2 billion in xAI, the startup behind the Grok chatbot that also owns Musk’s social media company X. Other previously disclosed investors in xAI include Valor Equity Partners, Fidelity, Qatar Investment Authority as well as Nvidia and Cisco as “strategic investors.” This is a truly circul ...

Loading the player…paceX is reportedly lining up four major Wall Street banks for a 2026 IPO that could provide the reset the market needs. The company just completed a tender offer at an $800 billion valuation, and secondary market demand is through the roof. If SpaceX goes public anywhere near its rumored $1.5 trillion valuation, it could trigger an IPO cascade for other late-stage unicorns like OpenAI, Stripe, and Databricks. Watch as Equity host Rebecca Bellan chats with Greg Martin, Managing Director a ...

Tesla’s profit fell 46% in 2025 compared to the prior year, as CEO Elon Musk assumed a role in the Trump administration and federal electric vehicle subsidies were killed off by Congress, causing sales to plummet.The electric vehicle company reported Wednesday that it recorded just $3.8 billion in profit across the year, its lowest tally in years. Total revenue from car sales fell 11% year-over-year, too. Tesla already revealed that it shipped 1.63 million cars globally across 2025. That marks the second ye ...

ServiceNow announced a deal with a major AI player Anthropic just a week after it announced a partnership with OpenAI.Enterprise workflow software company ServiceNow has entered into a multi-year deal with AI research lab Anthropic on Wednesday. This partnership involves further embedding of Anthropic’s AI models into ServiceNow’s platform for its customers and bringing Anthropic’s AI to its employees. ServiceNow declined to clarify the duration of the partnership or the monetary size of the deal.This deal ...

Core Insights - Luminar's lidar business faced a last-minute bid that exceeded the leading offer of $33 million from MicroVision, but Luminar chose to proceed with MicroVision's bid due to "infirmities" in the new offer [1][2] Group 1: Sale Process and Bids - An unidentified party submitted a bid just before a bankruptcy hearing, which was significantly higher than the $33 million bid from MicroVision [1] - Luminar's legal counsel indicated that the last-minute bid had issues, leading the company to stick with MicroVision's offer [2] - The identity of the last-minute bidder was not disclosed, but it was suggested to be an "insider purchaser," likely Austin Russell, Luminar's founder [2][3] Group 2: MicroVision's Acquisition - The sale of Luminar's lidar technology and remaining staff to MicroVision was approved, with the transaction expected to close in the coming weeks [3][6] - MicroVision aims to leverage Luminar's lidar technology to enhance its automotive capabilities, which it currently lacks [6][8] - MicroVision's CEO expressed optimism about reviving Luminar's existing contracts with automakers, viewing them as potential revenue opportunities [9][10] Group 3: Competitive Landscape - MicroVision is positioned to expand beyond its current markets of industrial use, security, and defense by integrating Luminar's technology [8] - The acquisition is seen as a strategic move to enhance MicroVision's engineering capabilities and competitiveness in the automotive sector [9]

Core Viewpoint - Organic food company Once Upon a Farm is resuming its IPO plans after pausing them last year due to a government shutdown [1][2] Group 1: IPO Details - The company filed an updated S-1 with a proposed price range of $17 to $19 per share, indicating a potential thaw in the overall IPO market [2] - Once Upon a Farm is expected to debut on February 6, according to IPO Scoop [2] Group 2: Company Background - Founded in 2015, Once Upon a Farm has actress Jennifer Garner among its co-founders, alongside Cassandra Curtis and Ari Raz [3] - The company aims to raise at least $208.9 million at a valuation of $764.4 million, with Goldman Sachs and J.P. Morgan as lead bankers [3] - To date, the company has raised nearly $100 million in funding from investors such as S2G Ventures and CAVU Consumer Partners [3]

If the final San Francisco Allbirds store closes its doors and no one is around to hear them shut, did it make a sound?Once symbolic of a mid-2010s San Francisco tech bro, the shoe brand Allbirds is closing almost all of its physical stores by the end of February. Just two outlet stores in the US and two full-price stores in London will remain. “This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy,” Allbirds CEO Joe Vernachio said in a statement. “We h ...