Arm CEO Sees AI Demand While Smartphone Business Slumps
Arm's AI growth offsets smartphone decline.
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The day in brief
Elon Musk and OpenAI co-founder Sam Altman are currently engaged in a contentious legal battle over control of AI technology, sparked by Musk's 2018 proposal to merge OpenAI with Tesla. Key testimony from Shivon Zilis revealed that Musk offered Altman a board seat at Tesla, while Musk's lawsuit alleges that OpenAI deviated from its original nonprofit mission after his departure.
Google has introduced the Fitbit Air, a screenless fitness tracker priced at $99, designed for all-day health monitoring. The device features 24/7 heart rate monitoring, a 7-day battery life, and is 25% smaller than the previous Fitbit Luxe model. Users can also take advantage of a $10 monthly subscription for additional health insights through the new Google Health app.
Anthropic has rolled out significant updates to its Claude AI, introducing three new features for Claude Managed Agents: 'dreaming,' 'outcomes,' and multiagent orchestration. The 'dreaming' feature allows agents to autonomously improve by analyzing past interactions, while the multiagent orchestration tool enhances workflow efficiency by enabling a lead agent to delegate tasks to specialized subagents.
Google DeepMind has acquired a minority stake in CCP Games, the studio behind the popular game EVE Online, to advance its AI research initiatives. This partnership will leverage an offline version of EVE Online to explore AI capabilities in long-term planning and dynamic systems. Additionally, CCP Games is repurchasing itself from Pearl Abyss for $120 million, significantly lower than its previous valuation of $225 million.
Samsung Electronics has reached a significant milestone, surpassing a market valuation of $1 trillion driven by a surge in demand for its AI chips. This achievement follows a remarkable 15% increase in its stock price, reflecting strong financial performance and investor confidence.
Apple has agreed to a $250 million settlement over a class action lawsuit concerning misleading claims about Siri's AI capabilities. The lawsuit alleged that Apple misrepresented the features of Siri, particularly ahead of the iPhone 16 launch, affecting customer purchasing decisions. Eligible U.S. customers who purchased specific iPhone models between June 10, 2024, and March 29, 2025 may receive payouts ranging from $25 to $95 per device.
Apple is set to enhance its software capabilities by allowing users to select from various external AI models, including those from Google and Anthropic, in its upcoming iOS 27. This move aims to transform Siri and other applications into a more comprehensive AI platform, integrating third-party services for a personalized user experience.
Spotify has launched a new feature that allows users to create personalized podcasts using AI agents like OpenClaw and Claude. This integration enables users to incorporate calendar events and other personalized data into their audio content, which can be saved directly to their Spotify libraries.
Elon Musk's ambitious Terafab chip factory project in Texas is projected to cost up to $119 billion for its full buildout. The initial phase, estimated at $55 billion, aims to produce chips for Tesla, SpaceX, and xAI, with Intel collaborating on the project to enhance semiconductor manufacturing capabilities.
Microsoft is reconsidering its commitment to match 100% of its hourly energy use with clean power by 2030, as the rapid expansion of its AI data centers raises questions about feasibility. The company is also collaborating with Chevron to develop a 5 gigawatt natural gas power plant in Texas, indicating a potential shift in its energy strategy.
Anthropic has entered a partnership with SpaceXAI to leverage its Colossus 1 supercomputer, gaining access to over 300 megawatts of computing power. This collaboration is particularly significant as SpaceXAI prepares for a public offering next month, enhancing its credibility in the competitive AI landscape.
Deepseek is on the verge of a staggering $45 billion valuation, a significant leap from its previous $20 billion mark, as it engages in a funding round primarily led by China's Big Fund, known for its investments in semiconductor firms. The company's AI models are specifically optimized for Huawei Technologies chips, enhancing China's capabilities in artificial intelligence.
Uber has announced the integration of OpenAI technology to enhance its ride-hailing services, processing 40 million trips per day across 15,000 cities. The new Uber Assistant will provide drivers with real-time insights to optimize their earnings, while voice features are being introduced to streamline ride requests and improve accessibility for users.
Netflix has begun testing an AI-powered voice search feature that allows select subscribers to find movies and TV shows using natural language prompts. By pressing the Netflix button on their remote, users can access tailored viewing suggestions, showcasing Netflix's effort to enhance user experience while circumventing traditional voice assistants integrated into smart TVs.
Samsung's Galaxy Book6 Ultra aims to be a premium Windows alternative to the MacBook Pro, boasting an attractive design and a vibrant OLED display. However, it disappoints with a poor keyboard and webcam, and at a price point of $3,800, it struggles to justify its cost against competitors, particularly the MacBook Pro, which offers better performance for less.
Meta is rolling out AI technology to analyze the faces of teenage users on Facebook and Instagram as part of its compliance with age verification regulations in various regions. The AI aims to estimate users' ages based on visual cues rather than facial recognition, but a recent incident revealed its shortcomings when a 12-year-old managed to trick the system with a fake mustache. This development highlights the ongoing challenges social media companies face in effectively managing underage users.
Amazon.com Inc. is discontinuing its grocery service, including Amazon Fresh, in Singapore, impacting a small number of roles. The company aims to shift its focus toward international e-commerce, responding to the growing demand in Singapore for products sourced from abroad.
Uber has reported a stronger-than-expected forecast, projecting total gross bookings between $56.25 billion and $57.75 billion for Q2 2026. The company's CFO, Balaji Krishnamurthy, noted that robust demand from US commuters will help mitigate the effects of ongoing geopolitical tensions.
xAI has entered a significant partnership with Anthropic, which involves the latter purchasing 300MW of compute capacity from xAI's Colossus 1 data center. This move not only monetizes xAI's infrastructure but also marks a strategic shift for the company, as it transitions from a consumer of compute to a provider, potentially worth billions and aiding its IPO ambitions.
SpaceX is beginning to transition away from its Falcon 9 rocket, which has been the backbone of its launch operations, as it prepares for the larger Starship rocket. While Falcon 9 launches are decreasing, with plans for around 140 launches in 2026 compared to 165 last year, the rocket will remain in service at least until the International Space Station's anticipated retirement around 2032.
The archive
Arm's AI growth offsets smartphone decline.
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Arm sees significant growth in CPU demand amid smartphone decline.
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Jet fuel shortage drives up summer airfares significantly.
Read sourceMythos model enhances Firefox's cybersecurity efforts.
Read sourceGoogle launches AI health coach subscription service.
Read sourceNetflix tests AI-powered voice search feature for viewers.
Read sourceGoogle launches new screenless Fitbit Air wearable.
Read sourcePaul Tudor Jones calls for urgent AI regulation.
Read sourceShake Shack shares plunge after disappointing earnings report.
Read sourceAI-generated podcasts can now be saved directly to Spotify.
Read sourceGoogle launches the Fitbit Air and rebrands health apps.
Read sourceDeepL lays off 250 employees to restructure as AI-native.
Read sourceMusk partners with Anthropic after calling it 'evil.'
Read sourceNew Apple TV 4K may feature advanced AI capabilities.
Read sourceAI models improve adherence to values with new training method.
Read sourceGoogle retains Fitbit Sense 2 and Versa 4 despite new model.
Read sourceOpenAI enhances API performance with WebSocket integration
Read sourceAI accelerates software development processes significantly.
Read sourceApple's new CEO shares insights on AI strategy
Read sourceGoogle launches Fitbit Air compatible with Pixel Watch.
Read sourceGoogle launches affordable screen-less Fitbit Air for fitness tracking.
Read sourceApple Arcade adds four new ad-free games this May.
Read sourceMusk sought OpenAI founders for Tesla AI unit.
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