In Brief Apple, Meta, and Google are locked in a fierce battle to lead the next wave of AI, and they’ve recently increased their focus on hardware. With its latest acquisition of the AI startup Q.AI, Apple aims to gain an edge, particularly in the audio sector.​As first reported by Reuters, Apple has acquired Q.AI, an Israeli startup specializing in imaging and machine learning, particularly technologies that enable devices to interpret whispered speech and enhance audio in noisy environments. Apple has bee ...

Core Insights - Waymo has received approval to operate a robotaxi service to and from San Francisco International Airport (SFO), marking a significant milestone after years of negotiations [1][5] - The service will initially be available to a select number of riders, with plans to expand access to all customers in the coming months [1] - Waymo's operations at SFO are crucial for its business model, which relies on geographic scale and high rider volume [3] Group 1: Operational Developments - Pickups and drop-offs for the robotaxi service will occur at the SFO Rental Car Center, accessible via AirTrain [1] - Waymo has accelerated its expansion efforts, launching services in new cities, increasing its fleet size, and adding more operational areas, including most of the San Francisco Bay Area and parts of Silicon Valley [4] - The company also operates in cities like Atlanta, Austin, Los Angeles, Miami, and Phoenix, including curbside service to Phoenix Sky Harbor International Airport [4] Group 2: Safety Concerns - Waymo faces criticism regarding safety, particularly after an incident where one of its robotaxis struck a child near an elementary school in Santa Monica, leading to an investigation by the National Highway Traffic Safety Administration (NHTSA) [2] - The NHTSA is also investigating Waymo for illegal behavior of its robotaxis around school buses [2] Group 3: Regulatory Milestones - Waymo's journey to operate at SFO included a failed attempt to secure a permit in 2023, followed by a successful negotiation that granted a permit in March 2025 for mapping SFO with data-sharing conditions [5] - In September, Waymo and SFO signed a testing and operations pilot permit, bringing the company closer to commercial operations at the airport [7]

Core Insights - Tesla's energy storage business significantly mitigated the impact of a poor earnings report, with a 45% decline in profit compared to 2024, primarily due to reduced electric vehicle sales [1] - The company achieved a record deployment of 46.7 gigawatt-hours of energy storage products in 2025, marking a 48% increase from the previous year [2] - Energy storage now accounts for nearly 25% of Tesla's gross profit, with the Megapack alone contributing $1.1 billion to the storage business's total gross profit of $3.8 billion for the year [2] - The gross margin for energy storage products stands at 29.8%, nearly double that of Tesla's automotive sales [3] Financial Performance - Tesla's storage and energy generation revenues increased by 26.5% to $12.8 billion [2] - The company anticipates recognizing $4.96 billion in deferred revenue from ongoing projects in 2026, more than double the amount recognized in 2025 [4] Market Dynamics - The One Big Beautiful Bill Act (OBBBA) has phased out tax credits for residential energy storage systems, although commercial tax credits for larger products will continue [7] - Despite a decrease in the average selling price of the Megapack, sales volumes increased, indicating heightened competition in the energy storage market [7] - Tesla remains optimistic about the future of its storage business, citing opportunities for energy storage products to stabilize the grid and provide additional power capacity as AI infrastructure drives load growth [9]

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]

Core Insights - Tesla has invested $2 billion in Elon Musk's AI company, xAI, which recently raised $20 billion in a Series E funding round [1][2] - The investment aligns with Tesla's Master Plan Part IV, focusing on integrating AI into physical products and services [3][6] - Tesla's shareholders previously voted against the investment, with 1.06 billion votes in favor and 916.3 million opposed, but the abstentions led to the measure's rejection [1][3] Investment Details - Tesla's investment in xAI is part of a broader strategy to enhance its capabilities in AI and robotics, including developments like the Optimus humanoid robot and autonomous vehicles [3][6] - The investment is expected to close in the first quarter and includes a framework agreement for potential AI collaborations between Tesla and xAI [4][6] Financial Performance - Tesla reported earnings that exceeded Wall Street estimates, although profits fell by 46% last year [3]

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 ...