Core Viewpoint - Apple shareholders rejected an anti-Diversity, Equity, and Inclusion (DEI) proposal at its investor meeting, despite growing scrutiny of DEI programs in the tech industry [1][2]. Group 1: Shareholder Proposal - The proposal was introduced by the National Center for Public Policy Research (NPPR), advocating for Apple to cease its DEI activities [1]. - This was one of four shareholder proposals presented at the meeting, which typically sees boards recommending rejection of such proposals [1]. Group 2: Industry Context - The proposal gained national attention as other tech companies, such as Meta, Amazon, and Google, have either eliminated or reduced their DEI initiatives [2]. - Meta has completely removed its DEI programs, while Amazon plans to scale back its efforts, and Google is reviewing its internal DEI programs and has abandoned diversity hiring goals [2]. Group 3: Company Response - CEO Tim Cook indicated that as the legal landscape regarding DEI evolves, Apple may need to adjust its approach to ensure compliance [3].

Amazon is hosting an Alexa-focused press event in NYC on Wednesday. Considering the company hasn’t held a major device presser in nearly two years — the last one was September 2023 — we’re expecting some splashy announcements. The event will not be live streamed. However, TechCrunch will be reporting on the ground. The festivities, emceed by Amazon’s new devices and services chief Panos Panay, formerly of Microsoft Surface fame, are scheduled to start at 10 a.m. Eastern. The stakes are high for Amazon, whi ...

Core Viewpoint - The U.K. Competition and Markets Authority (CMA) has approved IBM's $6.4 billion acquisition of HashiCorp, indicating a shift towards a more pro-tech regulatory environment in the U.K. [1][5] Group 1: Acquisition Details - IBM plans to acquire HashiCorp for $6.4 billion as part of its strategy to enhance its presence in the hybrid cloud market, following previous acquisitions including Red Hat for $34 billion in 2019 and Apptio for $4.6 billion in 2018 [2][3]. - The CMA's approval comes after a "phase 1" investigation initiated in December, which involved gathering comments from key stakeholders [3]. Group 2: Regulatory Environment - The U.K. government has recently appointed Doug Gurr, a former Amazon executive, as the new CMA chairperson, reflecting a shift towards a more favorable stance on technology acquisitions [4]. - The U.K. aims to position itself as a pro-growth nation, signaling that it does not intend to obstruct significant deals involving foreign companies [5]. Group 3: Ongoing Regulatory Scrutiny - Although the CMA has cleared the acquisition, the deal is still subject to review by the U.S. Federal Trade Commission (FTC), which has not yet made a formal announcement regarding its stance [5].

Group 1 - Microsoft is reportedly reducing its data center footprint by canceling leases with multiple providers, totaling a capacity of a couple hundred megawatts, equivalent to about two data centers [1] - The rationale behind Microsoft's decision remains unclear, but it raises questions about the company's future expectations for AI demand [1] Group 2 - In contrast to Microsoft's actions, the broader industry is expanding, with a $20 billion data center funding initiative announced by incoming president Donald Trump [2] - Additionally, a project named Stargate, involving OpenAI, Oracle, and SoftBank, aims to invest up to $500 billion into data centers for OpenAI [2]

Core Viewpoint - Apple is facing scrutiny over its commission structure for app developers, particularly regarding a 27% fee on purchases made outside the App Store, which has raised concerns about compliance and developer relationships [1][5][6]. Group 1: Commission Structure - Apple typically charges a 30% commission on in-app purchases, but a court ruling reduced this fee to 27% for external purchases [2][3]. - The company decided to apply the same 3% fee reduction to developers in its Small Business Program, lowering their commission from 15% to 12% for transactions outside the App Store [6]. Group 2: Internal Concerns and Decision-Making - Phil Schiller, an Apple executive, initially raised concerns about the implications of charging commissions on external purchases, fearing it would change the App Store's role to that of a collection agency [5][6]. - Despite these concerns, a pricing committee, including CEO Tim Cook, ultimately decided to implement the commission on external purchases [6]. Group 3: Financial Impact Analysis - Apple conducted analyses to understand the financial impact on developers who link to their own websites, considering factors like customer abandonment due to a less seamless experience [7]. - The company also explored how restrictive rules on link placement could affect the number of apps opting to implement external links [8]. Group 4: Commission Timing and Customer Warnings - Apple considered various options for when to charge commissions, initially planning to charge the 27% fee on external purchases within 72 hours of a link click, later extending this to seven days [9]. - There were discussions about how warnings to App Store customers would be presented, with updates suggesting potential privacy or security risks when transacting outside of Apple [10][11].

Group 1 - Meta is phasing out its third-party fact-checking programs in the U.S. while reintroducing a bonus program for creators that pays for viral content [1] - The changes at Meta could lead to an increase in misinformation, as the company is deprioritizing content moderation [1][2] - The new approach will allow certain users to add notes to posts to flag misleading content, similar to X's Community Notes [2] Group 2 - The transition of Meta's fact-checking setup is scheduled for March, but false content is already spreading [3] - A Facebook page manager expressed that the end of the fact-checking program is beneficial for spreading false claims [3]

Core Points - The U.S. government is encouraging tech companies to invest more domestically, with Apple committing to spend $500 billion over the next four years on high-end manufacturing, engineering, and education in technologies like AI and chip making [1][4][8] Group 1: Investment Plans - Apple plans to build a new factory in Houston, TX, for AI server production, double its U.S. Advanced Manufacturing Fund to $10 billion, and establish a new academy in Michigan for training in next-generation factories [2][8] - Apple has a history of working with U.S. suppliers, currently operating 24 factories across 12 states, and aims to hire an additional 20,000 employees over the next four years [3][8] Group 2: Economic Context - The investment aligns with the U.S. government's broader strategy to reduce reliance on foreign manufacturing, particularly from China, and to promote national production through potential tariffs [4][5] - Apple's commitment is seen as a significant gesture to support American industry, despite the ongoing reliance on international production [5][7] Group 3: Focus on AI - The new server factory will focus on AI computing capabilities, with investments in training and manufacturing hardware for AI systems [6][9] - Apple emphasizes energy efficiency in its server designs, which are already powered by renewable energy [9] Group 4: Manufacturing Fund and Partnerships - The Advanced Manufacturing Fund will finance expansions for partners, including a multibillion-dollar commitment to TSMC for advanced silicon production in Arizona [10] - The Apple Manufacturing Academy in Detroit will collaborate with local businesses and universities to implement AI and smart manufacturing techniques [12]

Acquisition and Company Changes - HP acquired Humane's AI Pin assets for $116 million, significantly less than the $240 million raised in venture capital funding [2] - Humane will discontinue sales of its AI Pins, and after February 28, the devices will lose connectivity to Humane's servers, rendering them non-functional for calls, messaging, and AI queries [2] - Following the acquisition, HP offered job positions to several Humane employees with pay increases between 30% and 70%, while others, particularly those involved with the AI Pin, were laid off [3] Product Developments - Apple announced the iPhone 16e, featuring an A18 processor, Face ID, and USB-C, starting at $599 and shipping on February 28 [4] Industry News - Duolingo's marketing campaign led to the "death" of its owl mascot, aiming to encourage users to engage more with the platform [6] - OpenAI has decided to adopt a neutral stance in ChatGPT, providing multiple perspectives on controversial topics [6] - Uber is suing DoorDash for allegedly stifling competition through intimidation tactics against restaurant owners [6] - Mira Murati, former OpenAI CTO, launched a new AI startup, Thinking Machines Lab, focusing on collaborative multimodal systems [6] - Elon Musk's xAI released Grok 3, claiming it to be a "maximally truth-seeking AI" [6] - Amazon will shut down its Android app store in August to focus on its own devices [6] - A Pew Research Center study revealed negative perceptions of both Elon Musk and Mark Zuckerberg among U.S. adults [6]

Core Viewpoint - Meta has been internally discussing the use of copyrighted works obtained through questionable means for training its AI models, raising significant legal and ethical concerns in ongoing copyright disputes [1][2]. Group 1: Internal Discussions and Strategies - Internal communications reveal that Meta employees, including senior management, acknowledged the potential legal issues of using copyrighted materials for AI training [3][4]. - A Meta research engineer suggested acquiring ebooks at retail prices instead of negotiating licensing deals, indicating a willingness to take risks in the face of legal challenges [5][6]. - Discussions included the possibility of using Libgen, a site known for providing access to copyrighted works, despite its legal controversies, highlighting concerns about competitiveness in the AI sector [7][8][9]. Group 2: Legal Mitigations and Data Sources - Meta's strategy to mitigate legal risks involved removing clearly marked pirated data from training sets and not publicly disclosing the use of such datasets [10][11]. - The company has also been tuning its models to avoid generating responses that could reveal the use of copyrighted materials, indicating a proactive approach to legal compliance [11]. - There are indications that Meta may have scraped data from platforms like Reddit for model training, which could lead to further legal scrutiny as Reddit plans to charge for data access [11][12]. Group 3: Legal Proceedings and Implications - The ongoing case Kadrey v. Meta has seen multiple amendments, with allegations that Meta cross-referenced pirated books with licensed works to evaluate potential licensing agreements [14]. - To bolster its defense, Meta has engaged two Supreme Court litigators, underscoring the high stakes involved in the legal proceedings [15].

Nvidia founder and CEO Jensen Huang said the market got it wrong when it comes to DeepSeek’s technological advancements and its potential to negatively impact the chipmaker’s business. Instead, Huang called DeepSeek’s R1 open source reasoning model “incredibly exciting” while speaking with Alex Bouzari, CEO of DataDirect Networks, in a pre-recorded interview that was released on Thursday. “I think the market responded to R1, as in, ‘Oh my gosh. AI is finished,’” Huang told Bouzari. “You know, it dropped ou ...