Tech
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Tech Giants Collide: SpaceX, Amazon, Apple & AI Dominate Headlines

Tech Giants Eye AI Investments and Strategic Mergers

Several major technology companies are exploring significant investments in artificial intelligence and potential mergers that could reshape the industry landscape. OpenAI, already valued at $500 billion, is seeking an additional $100 billion in investment, with Amazon reportedly in talks to contribute at least $50 billion, according to The Wall Street Journal. Meanwhile, Elon Musk's companies, SpaceX, xAI, and Tesla, are reportedly in early-stage discussions about a potential merger, according to Bloomberg and Reuters.

The potential investment in OpenAI comes as the company seeks to increase its valuation to a staggering $830 billion. The Wall Street Journal reported that Amazon CEO Andy Jassy is leading negotiations with OpenAI CEO Sam Altman. OpenAI has also reportedly been in discussions with sovereign wealth funds in the Middle East and has held additional talks with Nvidia and Microsoft, according to The New York Times.

Separately, discussions are underway regarding the future of Elon Musk's various ventures. Bloomberg reported that one scenario involves a merger between SpaceX and Tesla. Reuters reported that another scenario involves SpaceX and xAI, which already owns Musk's social media platform X, combining. A merger between SpaceX and xAI could occur before a planned SpaceX IPO this year, potentially bringing together products like the Grok chatbot, X platform, Starlink satellites, and SpaceX rockets under one corporation. Company representatives from SpaceX and xAI have not commented on this possibility.

These potential deals come as Apple faces questions about its AI strategy. During Apple's earnings call on Thursday, Morgan Stanley analyst Erik Woodring questioned CEO Tim Cook about the monetization of AI initiatives, noting that competitors have already integrated AI into their devices. Apple reported $143.8 billion in revenue for the quarter, a 16% year-over-year increase. Cook noted that iPhone sales had a record quarter, driven by unprecedented demand, with all-time records across every geographic segment, including the best iPhone quarter in history in Greater China. Apple reported $85 billion in iPhone sales during its first quarter, up from $69 billion in the same period last year.

In other tech news, Ethos Technologies, a San Francisco-based insurtech platform backed by Sequoia, debuted on the Nasdaq on Thursday under the ticker symbol LIFE. The company and its selling shareholders raised approximately $200 million in the offering, selling 10.5 million shares at $19 each. Ethos operates a three-sided platform where consumers can buy policies online in 10 minutes without medical exams. The company says over 10,000 independent agents use its software to sell those policies and that carriers like Legal & General America and John Hancock rely on it for underwriting and administrative services.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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