The Verge’s latest insights into the ideas shaping the future of work, finance, and innovation. Here you’ll find scoops, analysis, and reporting across some of the most influential companies in the world. Our coverage also includes interviews with innovators and policy makers at the frontiers of business and technology on Editor-in-Chief Nilay Patel’s Decoder; a behind-the-curtain look at Silicon Valley with Alex Heath’s Command Line; and exclusive reporting on Microsoft’s strategy in Tom Warren’s Notepad.
The Roku Netflix Player was originally a streaming box that then-Netflix CEO Reed Hastings decided not to build.
Now Semafor reports Netflix was interested in acquiring the company before Fox closed its $22 billion deal, losing out once again after Paramount swooped in with a deal to buy Warner Bros. while enjoying a cozier relationship with this administration’s regulators.
Like buying Roku, for example.
Dkfkhfkwkdnc:
The masculine urge to fold companies into progressively dumber conglomerates
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A month after a jury dismissed Elon’s claims in the Musk v. Altman case, US District Judge Rita Lin dismissed an xAI lawsuit accusing OpenAI of stealing trade secrets and poaching employees. This time, it was dismissed with prejudice, meaning it can’t be refiled, unlike when she dismissed the case in February.
The judge wrote in her ruling that continuing the case “would be futile.”
While SpaceX plans satellite-based AI servers, Bloomberg reports it ran into trouble trying to develop and run Grok AI in Memphis, citing unnamed sources. They claim that deals renting capacity to Anthropic ($15 billion annually) and Google ($920 million per month) happened following hardware variation and lag issues:
Elon Musk’s company had planned to train its most cutting-edge AI models on a massive amount of computing power by using a cluster of three data center campuses. However, the firm encountered latency issues when connecting Colossus 1 with two other sites located more than 10 miles away, the people said, compounded by aging network infrastructure.
With the debut of SPCX, Elon Musk’s 4.8 billion shares are enough to push his wealth beyond $1.1 trillion, as noted on Forbes’ “definitive, minute-by-minute guide to every billionaire around the globe.”
As reported by CNBC, the New York Times, and others, trading commenced at a price 11 percent above the $135 IPO price, but lower than the $175 shown in some earlier indications. It’s already spiked as high as $167, before falling back to $155. As long as the share price remains above $138, that is enough to make Elon Musk the world’s first trillionaire.
It also gives SpaceX a market cap of over $2 trillion, making it currently the 6th most valuable public company in the US.
That price puts SpaceX at a market valuation of around $1.77 trillion ahead of its record-breaking stock market debut on Friday. CNBC reports that SpaceX may allocate 20 percent of shares to retail investors, down from the previous expectation of 30 percent.
WMG has agreed to buy Sureel AI — an attribution company that uses “AI DNA” to track how artists’ content is used to train generative AI models — for an undisclosed sum. The startup will continue to operate as a standalone platform.
[PR Newswire]
The Wall Street Journal reports that it’s Kalshi’s latest effort to address insider trading:
Users seeking to make bets in some markets linked to material nonpublic information will be required to submit an online form disclosing where they work, Kalshi said. The changes are set to be rolled out in the coming weeks. Sensitive betting markets related to issues such as company performance and national security, including the war in Iran, are expected to require employment disclosure, according to a Kalshi official.
“What we’re showing here is kind of a draft version of the version one of the SpaceX AI satellite,” said Elon Musk at the reveal on Monday. “It’s actually much simpler than a Starlink satellite.” The release of renders and specs for the space-based AI1 data center is very much timed to lend credence to the SpaceX IPO, which is set to begin trading on Friday.
If you’ve ever wondered what the hell is going on with Bending Spoons’ “buy, do layoffs, ????” strategy, perhaps the statement it filed Monday with the SEC for a public listing will explain.
Named for the scene in The Matrix, it’s pulled this move with brands including AOL, Vimeo, Meetup, Evernote, Eventbrite, Brightcove, WeTransfer, Filmic, and many others, hoovering up and leveraging their accumulated 500 million users, data, and 9 million monthly paying subscribers to raise more money for more acquisitions.
Mustafa Suleyman on automation, OpenAI, and why it’s ‘dangerous’ to call AI ‘alive.’
Hoffman, who joined Microsoft’s board in 2017, won’t stand for reelection at the company’s next shareholder meeting, as reported earlier by Bloomberg.
In an episode of his Possible podcast with Microsoft CEO Satya Nadella, Hoffman says he wants to focus on Manas, the AI drug development startup he co-founded last year.
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Peloton has acquired Skōp, a Pilates-focused startup that builds real-time form-tracking technology. That suggests there might be new Peloton hardware on the horizon, as the company tries to recover from its post-covid slump. In a statement, Peloton CEO Peter Stern said:
“Form is everything in Pilates, so we are taking a purposeful approach to ensure we develop the most effective, safest, and fun experiences possible—ones people will keep doing for life.”
Elon destroyed Twitter, but somehow still won as he prepares to take SpaceX public in what could be the biggest IPO ever.
You all know how much we here at The Verge love market consolidation. SwitchBot’s acquisition of Nanoleaf offers all that, plus a sprinkling of something extra.
ScootyScoot:
Excellent - more market consolidation and more AI. That’s definitely two things consumers need more of these days!
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Grimes County, Texas, awarded the company a property tax exemption for its planned $55 billion Terafab semiconductor plant. Local residents seem to feel the same way about the project as many do about data centers, and this tax break won’t help. As local landowner Rhonda Nesloney put it in court:
“Elon was on the news bragging he’s about to be a trillionaire . . . and you want to consider giving him a tax abatement.”
CNBC reports details from a new filing ahead of SpaceX’s IPO on June 12th and notes a mention that xAI, which merged with SpaceX earlier this year, bought $269 million worth of Tesla megapack batteries in April.
At the $135 per share price tag, SpaceX would be valued at $1.77 trillion, which assumes the EchoStar spectrum and Cursor transactions close. The valuation would make SpaceX the seventh-biggest company in the U.S. by market cap, and put it above Tesla, which is valued at about $1.6 trillion.
The ESA / YouGov data unsurprisingly shows that an estimated 212 million Americans play games, with gaming at least one hour a week most prevalent among young people, including over 80 percent of Gen Alpha and Gen Z.
Older Americans are playing games, too, though, including 50 percent of Boomers, the only generation where more women play games than men.
As Microsoft shows off its AI tools at Build, close frienemy OpenAI is once again promoting Codex as something for all kinds of information and knowledge-based work that goes beyond ChatGPT’s features. It’s launching new plugins, and says that business and enterprise customers have access to a new preview capable of building “interactive, hosted websites and apps” that it can keep updated with new data.
The biggest public offering ever is financial nihilism’s final form.
Ackman, through his Pershing Square hedge fund, had offered in April to take over UMG in a deal valuing the music giant at around €55 billion. But UMG says that the offer “fundamentally and materially undervalues UMG and will not deliver superior value creation.”
That’s what Amazon exec Dave Treadwell told employees after the company shuttered an internal leaderboard tracking which staff members use AI the most, the Financial Times reports:
The decision came after the tool led some workers to assign AI agents — autonomous bots that can take actions on behalf of users — to carry out needless tasks in an apparent attempt to climb the rankings.
As computing becomes more expensive, employee “toxenmaxxing” reportedly increased costs at Amazon.
As the Wall Street Journal reports, SK Hynix and Micron both passed the milestone this week. The spike in value for the world’s three largest DRAM manufacturers follows a months-long global memory shortage, driven by demand from AI data centers, that’s causing prices to skyrocket on everything from phones to game consoles.
[Wall Street Journal]
Steve Jobs famously told Houston his startup was “a feature, not a product” when trying to acquire it back in 2009. Houston turned down the nine-figure buyout offer and Apple went on to launch iCloud. Houston, now 43 and worth about $2 billion, leaves behind a service used by millions worldwide. He now wants to do something entrepreneurial with — you guessed it — AI.
The deal will pay some workers in Samsung’s highly profitable memory chip unit around $416,000 this year, while employees in other chip units will receive less, and those in its consumer electronics divisions are set to receive very little by comparison. Payouts are pegged to Samsung hitting profit milestones through 2028.
The new deal, still being voted on, ensures enormous bonuses for memory chip workers but much smaller payouts for everyone else. Two Samsung unions take issue with that: one says its members will vote against the deal, the other says it’s taking legal action after being denied the chance to vote.
The smart ring maker has confidentially filed its Form S-1 ahead of an IPO, and it plans to potentially go public this year, Bloomberg reports. Oura also said Wednesday that it’s “on pace” to pass five million paid subscribers this quarter.
