Ranjan Roy from Margins is back for our weekly discussion of the latest tech news. We cover: 1) OpenAI's Atlas browser is here 2) Atlas plays 2048 3) The danger of AI browser prompt injection 4) Will Atlas be around in five years? 5) Why Dave's Hot Chicken is the world's top app 6) Amazon has plans to automate hundreds of thousands of jobs 7) OpenAI is paying investment bankers to train its models 8) If we automate all the work, who will be left to buy stuff? 9) Meta cuts 100 AI jobs 10) Reddit fools AI cra ...

Core Viewpoint - The competition between Tesla and Amazon in the automation sector is intensifying, with each company leveraging AI and robotics to achieve total automation, but Amazon is currently seen as the better investment option [1]. Tesla - Tesla is pursuing an ambitious plan for full vehicle automation and the production of its humanoid robot, Optimus, with a target of 1,000,000 units per year by 2030 [2]. - CEO Elon Musk predicts millions of fully autonomous Teslas by the end of 2026, although there are concerns about the feasibility of these timelines [2][3]. - Tesla's forward price-to-earnings (P/E) ratio stands at 175x, significantly higher than the average tech stock, which may limit upside potential if Full Self-Driving (FSD) does not meet expectations [4]. - The company has reported that its autonomous cars have driven over 4.8 billion miles, a substantial increase from 1.5 billion the previous year, which enhances data collection for better automation [6]. Amazon - Amazon has deployed over 1,000,000 robots across more than 300 facilities, significantly scaling its automation efforts since acquiring Kiva Systems in 2012 [5]. - The company’s generative AI model, DeepFleet, is expected to improve robot travel time by 10%, enhancing delivery efficiency [7]. - Amazon's approach to automation is characterized by a data-to-robot flywheel, allowing it to continuously improve its bots without facing significant regulatory hurdles [9]. - Despite recent layoffs totaling 27,000 employees, Amazon is believed to have enough momentum to sustain its automation initiatives over the next five years [10][11]. - Amazon is viewed as the better investment due to its current execution in scaling bot production and delivering results, trading at a more reasonable price compared to Tesla [12].

Supply Chain Challenges & Opportunities - The pandemic highlighted the need to fix supply chains and rethink them using technology to transform markets, workforce, and the economy [1][2] - Supply chain disruptions can halt the economy, as seen during the COVID-19 pandemic when online buying surged, overwhelming logistics [3] - Logistics represents the largest cost for the manufacturing and retail economy, and reducing this cost can unlock new economic activity [4][5] - Reducing friction in manufacturing, distribution, and goods movement unlocks new economic opportunities, manufacturing strength, predictability, and resilience [6] AI & Technology in Supply Chain - AI offers three levels of optimization: addressing fragmentation and manual tasks, holistic supply chain optimization, and driving better decision-making [7][8][9] - AI can minimize empty miles in logistics networks by smartly designing the network [9] - The future involves unleashing AI in the physical world with physical AI and self-driving technology, representing a profound change in supply chain [10] - Digitalization of port information, like at the Port of Los Angeles, allows for better planning and anticipation of cargo arrivals [11][12][13] - AI-driven predictive maintenance can optimize fleet maintenance schedules based on real-time operating data [18][19] Impact on Jobs - Automation and AI raise questions about job displacement, but self-driving technology is expected to augment jobs gradually, fulfilling demand rather than replacing drivers immediately [21][22] - AI is expected to transition knowledge worker roles faster, upleveling them to orchestrators of AI agents [23] - AI will automate mundane tasks, enhancing human capabilities rather than fully replacing human jobs [25][26] Autonomous Infrastructure - The next decade is about building the autonomous infrastructure of the industry, with self-driving technology driving efficiency and safety [27][28] - Self-driving technology can increase asset utilization from 6 hours to 20-24 hours per day and improve road safety [28]

Core Viewpoint - The company will incur a restructuring charge ranging from $160 million to $180 million, primarily for severance and related expenses [1] Group 1 - The restructuring charge is expected to cover severance and other associated costs [1]

Core Insights - Tampnet has been selected to provide digital infrastructure for the Salamanca deep-water development operated by LLOG Exploration in the US Gulf, which has commenced production at the Leon and Castile fields [1] - The project utilizes an updated Independence Hub FPS for sustained operations [1] Network Expansion and Services - Tampnet has expanded its subsea fibre-optic network by 140km and increased its 4G/5G LTE network coverage by approximately 10,000km² to support the Salamanca project and other developments in the area [2] - The network solution includes fibre-based connectivity and Tampnet's own 5G infrastructure, designed for secure network slicing for high-bandwidth industrial applications [3] - The system is integrated with FirstNet and AT&T for vital communications, featuring a backup via low Earth orbit satellite for consistent operations [3] Infrastructure and Clientele - Following the expansion, Tampnet's network in the US Gulf now exceeds 1,700km of subsea fibre, connecting over 20 offshore facilities [4] - Tampnet serves more than 450 energy assets, both fixed and mobile, and continues to invest in infrastructure to support the offshore energy industry's digital transformation [4][5]

Core Insights - Rockwell Automation, Inc. is focused on enhancing operational efficiency through technology, with a market capitalization of $39.39 billion [1] Financial Performance - Rockwell is expected to report a 19% year-over-year profit growth for Q4 fiscal 2025, reaching $2.94 per diluted share [2] - The company has consistently exceeded EPS estimates in the last four quarters, with a projected annual profit increase of 2.6% to $9.96 per diluted share for fiscal 2025, followed by a 15.6% increase to $11.51 per diluted share in fiscal 2026 [3] Stock Performance - Over the past year, Rockwell's stock has increased by 34.1%, outperforming the S&P 500 Index, which gained 16.2% during the same period [4] - Year-to-date, Rockwell's stock is up 25%, while the broader market has seen a 14.6% increase [4] Industry Context - Rockwell is classified within the industrial sector and has outperformed the Industrial Select Sector SPDR Fund, which is up 13.2% over the past year [5] Recent Developments - In Q3 fiscal 2025, Rockwell's sales grew by 4.5% year-over-year to $2.14 billion, exceeding analyst expectations of $2.07 billion [6] - The adjusted EPS for the same quarter was $2.82, a 4.1% increase from the previous year, surpassing the consensus estimate of $2.69 [7]

AI startup VitVio has secured $8m in a seed funding round, taking its total funding raised to $10m. The company's platform is designed to streamline the coordination of operating room personnel, identify potential delays, and alleviate the administrative burdens faced by surgical teams. The funding round was led by Bek Ventures, joined by Thornapple River Capital, Tiny Supercomputer Investment Company, LDV Capital, Balnord, ElevenLabs founder Mati Staniszewski, and others. The funds raised will support ...

Core Viewpoint - Applied Materials is laying off 4% of its workforce, which translates to approximately 1,444 employees, as part of a strategy to adapt to changing workforce needs and improve productivity [2][3]. Group 1: Workforce Reduction - The company has approximately 36,100 full-time employees, and the layoffs will affect employees across all levels and groups globally [2]. - The layoffs are attributed to the need for automation, digitalization, and geographic shifts that are redefining workforce requirements [2]. Group 2: Financial Impact - Applied Materials expects to incur charges of approximately $160 million to $180 million due to the layoffs, primarily for severance and one-time employment termination benefits [3]. - The company has forecasted a $600 million hit to fiscal 2026 revenue following the expansion of the U.S. restricted export list, which has already led to a 3% decline in company shares during extended trading [2]. Group 3: Strategic Positioning - The workforce reduction is part of the company's effort to position itself as a more competitive and productive organization [3]. - The company aims to build high-velocity, high-productivity teams and simplify organizational structures in response to evolving market demands [2].

Core Insights - Meta is eliminating several roles in its risk division due to advancements in internal technology and a shift from manual reviews to automated processes [1][2][3] - The company has made significant investments in global technical controls and has improved its risk management and compliance approach [2][7] - The restructuring includes reducing roles in the Product Risk Program Manager, Shared Services, and Global Security & Privacy teams, and merging teams to enhance efficiency [3][8][9] Company Actions - The risk organization is transitioning to a more standardized and automated process, allowing for more accurate compliance outcomes and enabling teams to focus on complex challenges [3][7][10] - Meta is also automating other business areas, including the hiring process, and plans to implement AI agents for midlevel engineering tasks [5][6] - The company has laid off 600 employees from its Superintelligence Labs division, indicating a broader trend of job cuts in the tech industry due to AI advancements [4][6] Future Outlook - Meta remains committed to delivering innovative products while meeting regulatory obligations, emphasizing that automation will enhance compliance but human judgment will still be essential [10][11] - The company is focused on supporting impacted employees during the transition and is providing resources to help them find new opportunities [11]

Core Thesis - GXO Logistics, Inc. is positioned as a leading pure-play contract logistics provider, leveraging automation and advanced technologies to enhance supply chain solutions for multinational clients [2][3][4] Company Overview - As of October 16th, GXO's share price was $54.61, with trailing and forward P/E ratios of 105.49 and 17.36 respectively [1] - The company operates warehouses and fulfillment centers that utilize robotics, AI, and machine vision, making it a significant player in the robotics sector [2] Competitive Advantage - GXO's ability to integrate automation at scale allows clients to reduce costs, increase throughput, and create resilient supply chains [2][3] - The company has secured multi-year contracts with blue-chip customers across various sectors, including e-commerce, retail, food & beverage, and aerospace [3] Market Position and Valuation - GXO trades at approximately 12x EBITDA, with an expected growth rate of around 9%, comparable to slower-growth logistics peers like UPS [4] - While not exhibiting high growth, GXO's niche positioning, recurring contracts, and cost-saving capabilities make it a stable investment option, particularly during macroeconomic uncertainty [4] Technical Analysis - GXO has traded within a tight $50 range since July, indicating potential stability, with a breakout possibility that could push the stock towards $70 [5] - The stock is currently hovering above its weekly 100 and 200 moving averages, suggesting a favorable technical setup [5] Historical Performance - The stock price has appreciated approximately 39.13% since previous bullish coverage, reflecting the successful execution of the company's growth thesis [6]