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Rani Molla

Apple has 20 billion rea$on$ to defend its search deal with Google

Apple wants its day in court — specifically it wants a chance to defend its lucrative search deal with Google during the latter’s upcoming trial over how to resolve its illegal search monopoly, set for April. Apple SVP of Services Eddy Cue said in a declaration that if the court prohibits the companies’ arrangement that makes Google the default search on Apple’s Safari browser — a deal worth $20 billion in 2022 — it would create “two unacceptable choices.”

Those include letting US users choose Google as their default search and forgoing the payload, or preventing those users from choosing Google search, which, he says, they prefer, which would “harm both Apple and its customers.”

Cue said it’s “unlikely” Apple would build its own search engine, regardless of the outcome.

In lieu of more extreme remedies suggested by the Department of Justice, Google recently offered to loosen its search deals with companies including Apple. Now Apple says “Google cannot represent Apple’s interests at this stage” and would like to call its own witnesses.

Those include letting US users choose Google as their default search and forgoing the payload, or preventing those users from choosing Google search, which, he says, they prefer, which would “harm both Apple and its customers.”

Cue said it’s “unlikely” Apple would build its own search engine, regardless of the outcome.

In lieu of more extreme remedies suggested by the Department of Justice, Google recently offered to loosen its search deals with companies including Apple. Now Apple says “Google cannot represent Apple’s interests at this stage” and would like to call its own witnesses.

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Rani Molla

Tesla is back in the negative this year

After falling more than 6% yesterday in its biggest drop since July, Tesla is once again in negative territory for the year. Elon Musk’s company posted record earnings last month, buoyed by pulled-forward demand tied to the final quarter of US federal EV tax credits, but its margins slipped as steep discounts were used to clear inventory.

Now the stock, which only turned positive for the year in September, is under renewed pressure amid a broader tech and AI sell-off, as investors grow concerned that the Federal Reserve may pause its rate-cutting cycle. Adding to the drag are soft sales in Tesla’s second-largest market, China, and news that longtime bull Cathie Wood’s Ark Invest unloaded roughly $30 million in shares this week.

tech
Rani Molla

Meta overhauls Marketplace with AI insights and collaborative shopping

Meta announced Thursday that it’s giving its buy-and-sell platform, Marketplace — arguably the best part of Facebook and the most appealing to young people — a “glow up.” Each day in the US and Canada, one out of four Facebook daily active young adult users go to Marketplace, according to Meta. The overhaul includes the ability to create collections of listings you can share with friends or the public.

The site will also offer AI suggestions on what to ask sellers about your potential purchase. Unfortunately for all involved, the much-hated, easy-to-accidentally-press default message to sellers — “Hi, is this available” — remains unchanged.

Most promising, to us, for comedic purposes: “You can now react and comment directly on Marketplace listings, helping others learn about item quality and discover unique finds.”

The site will also offer AI suggestions on what to ask sellers about your potential purchase. Unfortunately for all involved, the much-hated, easy-to-accidentally-press default message to sellers — “Hi, is this available” — remains unchanged.

Most promising, to us, for comedic purposes: “You can now react and comment directly on Marketplace listings, helping others learn about item quality and discover unique finds.”

$15B
Rani Molla

Tesla CEO Elon Musk’s other company, xAI, has raised $15 billion in its latest funding round, CNBC reports. That’s $5 billion more than the company had raised in that same round in September. Its valuation remains at a sky-high $200 billion.

Tesla shareholders recently voted to invest in xAI but, due to a large number of abstentions, the board has yet to approve the proposal.

tech
Rani Molla

Microsoft to use OpenAI’s chips to improve its own in-house chips

As part of Microsoft’s investment in OpenAI, the company is using OpenAI’s development of custom AI semiconductors to help improve its own in-house chips, which have lagged behind peers, according to an interview with CEO Satya Nadella by podcaster Dwarkesh Patel.

“As they innovate even at the system level, we get access to all of it,” Nadella said. “We first want to instantiate what they build for them, but then we’ll extend it.” Under their updated agreement, Microsoft has access to OpenAI’s models and products — excluding the Jony Ive-designed AI device — through 2032.

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