AI’s power surge short-circuits longer-term plans 1 Apr 2024 Data centers account for 2.5% of the US grid, and machine learning is supercharging growth. Where and how to build megaplexes consuming as much electricity as a small nuclear plant are the immediate problems, but they’re solvable. Calculating future demand is the real conundrum.
BYD is unscathed in China’s electric-car wars 27 Mar 2024 The world’s largest EV maker founded and led by Wang Chuanfu is winning market share and accelerating its profit margins. That suggests the $86 bln company can keep cutting prices and investing overseas despite reporting its slowest quarterly profit growth in two years.
Alibaba sends out SOS on Hong Kong’s market 27 Mar 2024 The Chinese e-commerce giant ditched plans to list its logistics unit in the city and offered to buy out minority shareholders including Singapore's Temasek at a $10 bln valuation, half the mooted worth six months ago. It points to more pain for owners of unlisted Chinese assets.
Middle East AI dream depends on luring brainpower 22 Mar 2024 An abundance of cheap energy to power data centres gives artificial intelligence startups reason to consider the Gulf. But to become a force in AI, Saudi Arabia and the UAE will have to design their own advanced chips. Attracting talent to the region will require more than money.
Tencent is running out of excuses for gaming woes 21 Mar 2024 Revenue at the $350 bln giant is shrinking in its core business in China and abroad. That implies Beijing's crackdowns are not to blame this time. It pledged to double share buybacks but Tencent admits it needs to get its "own house in order". That looks increasingly urgent.
China’s automakers try turning Japanese 20 Mar 2024 Efforts to block Chinese auto exports are inspiring BYD and rivals to set up factories overseas. Their journey is reminiscent of Toyota and Nissan’s drive into the US and Europe. But Washington and Beijing’s fraught ties and new tech portend a different ending to this road trip.
Crypto’s roaring comeback may be harder to undo 19 Mar 2024 Bitcoin’s price broke its record, nearly two years after crypto exchange FTX went bust. In this Exchange podcast, Andreessen Horowitz’s Arianna Simpson explains why digital assets and the ledgers underpinning them are inextricable, and what’s driving new excitement around both.
Alphabet and Apple have cause to circle AI wagons 18 Mar 2024 The $2.7 trln iPhone-maker is in talks to license Alphabet’s artificial intelligence models, according to Bloomberg. Apple has underinvested, but Google search’s pride of place on its devices is also at risk. A deal would help both defend their turf, if regulators don’t kill it.
Singtel can dial up long distance call 18 Mar 2024 The Temasek-controlled firm denies it is selling Australia's Optus to Brookfield for up to $12 billion, twice what some analysts reckon the business is worth. If done right, a deal Down Under could help CEO Yuen Kuan Moon narrow the extreme discount Singtel suffers.
ByteDance’s TikTok woes are never-ending sideshow 14 Mar 2024 US lawmakers edged closer to banning the short-video app. Co-founder and CEO Liang Rubo has grappled with the epic four-year-long fight while rejigging the business at home to focus on e-commerce. ByteDance remains in IPO limbo but its fortunes have not fallen too far.
AI makes venture capital Big Tech’s country cousin 13 Mar 2024 Early-stage investors have long competed to back the hottest startups. Now artificial intelligence startups seeking capital and computing power are going directly to deep-pocketed giants like Microsoft and Amazon, leaving venture capital firms scrabbling for crumbs in the boom.
Apple’s Epic fail powers up EU tech oversight cred 11 Mar 2024 The $2.6 trln firm quickly reversed its decision to close ‘Fortnite’ maker Epic Games’ developer account. Frowns from the EU, which is going after Big Tech via fresh laws, look to have played a role. The episode is as much a victory for the bloc’s credibility as it is for Epic.
Microsoft is case study in weathering EU techlash 7 Mar 2024 The $3 trln group has taken a stake in French startup Mistral AI and kept its browser, search engine and ad sales platform clear of the European Union’s new Digital Markets Act. Things could change. But so far Microsoft shows how US firms can work around the Brussels backlash.
China’s new tastes will spit out more than Apple 6 Mar 2024 The iPhone maker is losing share in the People’s Republic to domestic champion Huawei. American companies in the giant market face both weakening demand and a move to homegrown brands. Chinese consumers’ shifting attitudes suggest the woes will worsen.
Say hello again to the chief operating officer 4 Mar 2024 The role lost its mojo as growth, revenue and marketing execs muscled into C-suites. Roughly one in three big companies has a COO, down from nearly half in 2000. With money no longer cheap and profitability back in vogue, there’s a fresh case for hiring a solid second-in-command.
EU’s $2 bln Apple bite is still more of a bark 4 Mar 2024 Brussels is fining the US giant more than expected for hurting streaming competition. That leaves $2.7 trln Apple open to similar cases. But as with other EU bids to rein in Big Tech, it hikes the cost of doing business more than it shakes up the sector.
European telcos’ new deal hopes face reality check 1 Mar 2024 Executives gathered in Barcelona this week to plead for lighter regulation, cheaper spectrum and some financial help. Policymakers are unlikely to agree. Deutsche Telekom, Telefónica and others will have to convince investors that future growth requires more investment today.
Baidu may be the world’s most unloved AI stock 29 Feb 2024 China's $36 bln search-engine operator lags leaders like Microsoft but is making progress on its answer to ChatGPT. Yet the stock plunged 8% despite decent results and it now trades below 10 times forward earnings. Blame a rout in Chinese equities and overly high expectations.
Klarna IPO now makes less sense than one later 28 Feb 2024 Decent growth and lower losses mean the Swedish buy now, pay later group can justify a $20 bln valuation. Given that’s three times the level of its last cash injection, there’s an argument for a speedy listing. Still, Klarna’s messy governance suggests a 2025 IPO is more logical.
Geely’s $7 bln Lotus deal breaks speed limit 28 Feb 2024 The Chinese automaker has listed the storied brand in the US via a SPAC at a racy valuation. That's hard to justify with electric-car sales growth slowing. A plan to take advantage of lower-cost manufacturing in Wuhan has also aged poorly as concerns mount over Chinese exports.