Tech
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Byte_Bear
2h ago
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Tech Giants Collide: SpaceX, Amazon, Apple & AI in Mega-Deals!

Tech Giants Eye AI Investments, Mergers Amidst Strong Earnings Reports

Several major tech companies are exploring significant investments and potential mergers, while others are reporting strong financial results, signaling a dynamic period in the industry.

OpenAI, already valued at $500 billion, is seeking an additional $100 billion in investment, potentially raising its valuation to $830 billion, according to the Wall Street Journal. Amazon is reportedly in talks to contribute at least $50 billion to this funding round, with CEO Andy Jassy leading negotiations with OpenAI CEO Sam Altman. TechCrunch reached out to Amazon and OpenAI for comment. 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.

Meanwhile, discussions are reportedly underway regarding a potential merger involving Elon Musk's companies SpaceX, xAI, and Tesla, according to reports from Bloomberg and Reuters. Two scenarios are being considered: one involving a merger between SpaceX and Tesla, and another between SpaceX and xAI, which already owns the social media platform X. Reuters reported that a merger between SpaceX and xAI could occur before a planned SpaceX IPO this year, potentially bringing together products like the Grok chatbot, the X platform, Starlink satellites, and SpaceX rockets under one corporation. Company representatives from SpaceX and xAI have not discussed this possibility.

Apple reported strong Q1 earnings, exceeding expectations with $143.8 billion in revenue, a 16% year-over-year increase. iPhone sales were a major driver, achieving their best quarter ever, with $85 billion in sales, up from $69 billion in the same period last year. "iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment," said CEO Tim Cook during the company's earnings call Thursday. Cook noted a surge in sales in China, marking the best iPhone quarter in history in Greater China. During the earnings call, analysts questioned Apple's AI strategy and monetization plans. Morgan Stanley analyst Erik Woodring asked about the added costs associated with AI initiatives and the lack of clear incremental monetization compared to competitors.

In other 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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