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“AIMLess”
Rani Molla

The Information published an interesting piece today about the internal struggles that have delayed Apple’s AI efforts, including making Siri into an actually useful assistant. The article goes into conflicting management styles, differing priorities, and executive power struggles, and you should read it all.

But here are a couple interesting tidbits:

Apparently, when Apple gave its AI demo last June, the Siri that helped an Apple executive track her mom’s flight using her email and real-time flight data wasn’t a Siri familiar to people who worked at Apple. “Among members of the Siri team at Apple, though, the demonstration was a surprise,” wrote Wayne Ma at The Information. “They had never seen working versions of the capabilities, according to a former Apple employee.”

The piece also introduced us to a sick burn. Other Apple engineers reportedly had a nickname for the AI and machine learning team responsible for Siri that poked fun at their relaxed work ethic and failures to execute: “AIMLess.”

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Rani Molla

Rather than fully cracking down on scam ads, Meta worked to make them harder to find

In its latest piece on Meta’s scam ads, Reuters found that the social media giant didn’t just remove fraudulent ads from its platforms — it also worked to make them harder for governments and journalists to find.

Fearing that Japanese regulators would require universal advertiser verification — a measure Meta estimated would cost roughly $2 billion to implement and potentially reduce its revenue by nearly 5% — the company took steps to make scam ads less “discoverable” to “regulators, investigators and journalists,” according to internal documents reviewed by Reuters.

“So successful was the search-result cleanup that Meta, the documents show, added the tactic to a ‘general global playbook’ it has deployed against regulatory scrutiny in other markets, including the United States, Europe, India, Australia, Brazil and Thailand,” Reuters wrote.

Previous Reuters reporting found Meta internally projected that about 10% of its 2024 revenue would come from ads tied to scams and banned goods, though the company later said that estimate was overly broad. Reuters also reported the rate was double in China.

“So successful was the search-result cleanup that Meta, the documents show, added the tactic to a ‘general global playbook’ it has deployed against regulatory scrutiny in other markets, including the United States, Europe, India, Australia, Brazil and Thailand,” Reuters wrote.

Previous Reuters reporting found Meta internally projected that about 10% of its 2024 revenue would come from ads tied to scams and banned goods, though the company later said that estimate was overly broad. Reuters also reported the rate was double in China.

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Rani Molla

Michael Burry, the “Big Short” investor who called Tesla “ridiculously overvalued,” is not currently shorting Tesla

Earlier this month, “The Big Short” investor Michael Burry said Tesla has been “ridiculously overvalued” for “a good long time” — and reiterated that message in a post on X on Tuesday. But the once prominent Tesla short seller isn’t currently betting against the stock.

Asked directly whether he would short Tesla now, Burry replied simply: “I am not short.”

Tesla is expected to report a double-digit decline in fourth-quarter deliveries this week.

tech
Rani Molla

SoftBank becomes OpenAI’s biggest backer after fully funding $40 billion investment

SoftBank has fully funded its $40 billion investment in OpenAI, overtaking Microsoft as the company’s largest financial backer, CNBC reports. The deal was contingent on OpenAI transitioning to a for-profit public benefit corporation, which it did in September.

However, longtime partner Microsoft retains substantial influence over OpenAI with its roughly $13 billion investment, which translates to a stake worth about 27% of the startup’s valuation — which has been cited as high as $830 billion — as well as exclusive cloud and commercial licensing rights tied to Azure.

tech
Rani Molla

Tesla-compiled estimates show Q4 deliveries expected to fall 15% from last year

A Tesla-compiled average of analyst estimates pegs fourth-quarter deliveries at 422,850, which would mark a 15% slump from the 495,570 the company delivered in the same quarter last year, if realized. The full-year estimate of 1.6 million vehicles would represent an 8% decline from 2024 and the second annual decline for the EV company. The estimates are notably lower than the consensus estimates compiled by Bloomberg and FactSet, which have been declining over the past month.

The market-implied odds derived from event contracts show that most traders think Tesla deliveries will be more than 410,000 but less than 420,000 in the quarter ending December.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

While Tesla typically shares its compilation of analyst estimates with institutional investors, this is the first time the company has shared those numbers on its own website. Tesla’s numbers include estimates from Daiwa, DB, Wedbush, OpCo, Canaccord, Baird, Wolfe, Exane, GS, RBC, Evercore ISI, Barclays, Wells Fargo, Morgan Stanley, UBS, Jefferies, Needham & Co., HSBC, Cantor Fitzgerald, and William Blair.

Actual numbers are expected Friday.

tech
Rani Molla

Cybertruck battery material supplier writes down Tesla deal by 99%

South Korea’s L&F Co., a supplier of battery material for Tesla’s “apocalypse-proof” Cybertruck, has written down the value of its Tesla contract by more than 99%, Bloomberg reports — another sign that Cybertruck sales are faltering.

The company cited changes in supply quantities, slashing a contract valued at nearly $3 billion in 2023 to about $7,000 now.

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