ByteDance would rather shut down in the U.S. if legal options fail
Against the recent TikTok ban approved by the U.S., ByteDance may consider shutting down TikTok rather than selling it if legal options fail. Despite pressure, ByteDance values TikTok’s core algorithms integral to its operations, making a sale unlikely. TikTok’s contribution to ByteDance’s revenue is small, prompting the shutdown preference over a potential sale to an American buyer. TikTok CEO expresses confidence in legal challenges against legislation targeting the app.
Elon Musk’s unannounced China visit sparks speculations on Tesla’s future
Elon Musk’s unannounced visit to Beijing fuels speculation on Tesla’s plans, focusing on the rollout of Full Self-Driving (FSD) software and data transfer permissions. Musk met Premier Li Qiang, with discussions likely centered on Tesla’s development in China. While Tesla’s FSD remains unavailable in China, Musk hints at its imminent release, a move praised by analysts. Amidst a broader EV price war, Musk’s trip underscores Tesla’s strategic pivot towards autonomous driving technologies. Despite recent setbacks, Tesla’s long-term trajectory and market position remain subjects of intense speculation.
China acquires AI chips despite U.S. restrictions
Chinese universities and research institutes acquire advanced Nvidia AI chips through resellers, circumventing U.S. bans despite widened restrictions last year. Tender documents reveal 10 Chinese entities purchased Nvidia chips integrated into servers from Super Micro, Dell, and Gigabyte after the U.S. embargo expansion in November. Although the U.S. prohibits direct sales to China, the transactions aren’t illegal in China. Chinese buyers include academic institutions and government-affiliated entities. Companies found in violation of export controls face severe penalties in the U.S. Despite regulatory scrutiny, access to advanced chips in China persists, underscoring challenges in enforcement.
Biden announces $6.14 Billion deal with Micron for chip factories
Joe Biden unveils a preliminary agreement with Micron Technology for up to $6.14 billion in subsidies to establish two chip factories in New York and Idaho. The deal, signed under the 2022 CHIPS and Science Act, aims to bolster domestic chip manufacturing, reduce reliance on foreign suppliers, and address vulnerabilities in the supply chain exposed by the pandemic. The federal grants will support the construction of fabrication plants, creating thousands of jobs and marking the largest private investment in the histories of New York and Idaho.
Google reaches $2 trillion valuation
Alphabet, Google’s parent company, achieved a $2 trillion market capitalization, making it the fourth most valuable public company globally. Unlike Meta, Google is finding early success in monetizing AI through initiatives like AI-powered advertising tools. Over the past year, Google has grappled with significant challenges, including the rise of generative AI and increased regulatory scrutiny. Responding to these pressures, Google has realigned its teams around AI, launched its own Gemini AI model, and implemented organizational changes. Despite these challenges, the company announced robust financial results for Q1 2024, including its first-ever dividend and a $70 billion share buyback.
Mexico’s manufacturing sector gains traction amidst shifting supply chains
As US supply chains steer away from China, Mexico’s manufacturing industry emerges as a beneficiary. Mexico’s industrial hubs like Monterrey are experiencing growth, attracting investments from global players like Tesla and BYD. Mexico, with its low labor costs, proximity to the US, stands out as an attractive option. The country’s manufacturing sector, comprising 40% of its economy, has witnessed a surge in exports to the US, surpassing China as the top exporter in 2023. While the shift in supply chains unfolds gradually, Mexico’s manufacturing industry anticipates long-term opportunities amidst evolving trade dynamics.
Amazon Web Services to invest $11 billion in Indiana
Amazon Web Services (AWS) unveils plans to invest $11 billion in Indiana, marking the state’s largest capital infusion and pledging to create a minimum of 1,000 jobs. This move amplifies Amazon’s substantial footprint in Indiana, where it already employs 26,000 workers. The data centers, to be constructed in St. Joseph County, will host essential computer infrastructure for cloud computing and generative artificial intelligence.
