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Rani Molla4/2/25

Dan Ives: Tesla numbers a “disaster on every metric”

It’s been a bad day for Tesla, which reported incredibly disappointing delivery numbers this morning.

The electric vehicle company only managed to sell 337,000 vehicles in Q1, a decline of 50,000 from a year earlier and the biggest absolute dip on record. Its performance also caught Wall Street off guard. Deliveries were 14% fewer than the Bloomberg consensus estimate — another record. To add insult to injury, Tesla bull Dan Ives quickly released a scathing analyst note.

“We are not going to look at these numbers with rose colored glasses... they were a disaster on every metric. The Street and us knew a bad 1Q was coming but this was even worse than expected. The time has come for Musk... it’s a fork in the road moment. The more political he gets with DOGE the more the brand suffers, there is no debate. This quarter was an example of the damage Musk is causing Tesla... Musk needs to stop this political firestorm and balance being CEO of Tesla with DOGE. The future is so bright but this is a full blown crisis Tesla is navigating now and its primarily self-inflected. We remain firmly bullish on the long-term Tesla story but Musk needs to get his act together or else unfortunately darker times are ahead for Tesla.”

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OpenAI races to release updated ChatGPT in response to Gemini, the WSJ reports

OpenAI could release an updated GPT-5.2 as soon as this week as it races to respond to Google’s Gemini 3 chatbot. Last week, OpenAI CEO Sam Altman declared a “code red” in response to the threat, as Google appeared to leap to the front of the pack with its high-scoring AI model.

Altman has directed OpenAI teams to pause work on its quest for AGI and the Sora 2 video generation app, and double down on its core flagship product, ChatGPT, as it faces new pressure from competitors, The Wall Street Journal reports.

Altman seems to be panicking that if the company’s core product falls out of favor, it may not be able to generate the cash needed to pay for the $1.4 trillion worth of deals it has signed, according to the report.

Sam Altman’s Sprint to Correct OpenAI’s Direction and Fend Off Google

Sam Altman’s Sprint to Correct OpenAI’s Direction and Fend Off Google

Altman has directed OpenAI teams to pause work on its quest for AGI and the Sora 2 video generation app, and double down on its core flagship product, ChatGPT, as it faces new pressure from competitors, The Wall Street Journal reports.

Altman seems to be panicking that if the company’s core product falls out of favor, it may not be able to generate the cash needed to pay for the $1.4 trillion worth of deals it has signed, according to the report.

OpenAI’s ChatGPT is nearing 900 million weekly active users, according to a new report from The Information, up from 800 million in October. The Microsoft-backed chatbot has notably higher usership than Google’s Gemini, which as of its last earnings call had 650 million monthly active users. (ChatGPT’s monthly number is likely much higher than its weekly stats.)

Still, The Information notes that thanks to the success of Google’s latest AI model, app downloads have jumped and visits to its website are growing much more swiftly than those to ChatGPT’s — stats that have contributed to a “code red” situation at OpenAI.

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Falling behind its rivals and facing internal tension, Meta reportedly preps new “Avocado” AI model

2025 turned out to be quite a chaotic year for Meta’s big AI dreams.

This year was supposed to be all about Llama 4, Meta’s open-source AI model that never fully launched.

In a frenzied pivot to get back in the race, Mark Zuckerberg undertook an AI all-star hiring spree for his new Meta Superintelligence Labs, spending oodles of cash on NBA-sized pay packages to lure recruits.

So how’s it all going within the company? Things aren’t exactly humming along, according to CNBC.

It reports that the new team has encountered friction within Meta’s corporate structure. The cloistered team is apparently working on a new frontier AI model code-named “Avocado,” which, despite Mark Zuckerberg’s passionate open-source AI manifesto, might turn out to be a proprietary, closed-source model.

Per the report, the many in the company were expecting Avocado to be released before the end of this year, but it’s now planned for Q1 2026.

A Meta spokesperson said, “Our model training efforts are going according to plan and have had no meaningful timing changes.”

Updated to include comments from Meta

From Llamas to Avocados: Meta's shifting AI strategy is causing internal confusion

From Llamas to Avocados: Meta's shifting AI strategy is causing internal confusion

In a frenzied pivot to get back in the race, Mark Zuckerberg undertook an AI all-star hiring spree for his new Meta Superintelligence Labs, spending oodles of cash on NBA-sized pay packages to lure recruits.

So how’s it all going within the company? Things aren’t exactly humming along, according to CNBC.

It reports that the new team has encountered friction within Meta’s corporate structure. The cloistered team is apparently working on a new frontier AI model code-named “Avocado,” which, despite Mark Zuckerberg’s passionate open-source AI manifesto, might turn out to be a proprietary, closed-source model.

Per the report, the many in the company were expecting Avocado to be released before the end of this year, but it’s now planned for Q1 2026.

A Meta spokesperson said, “Our model training efforts are going according to plan and have had no meaningful timing changes.”

Updated to include comments from Meta

Tesla is making even fewer Cybertrucks now than when it first started

At an annualized production rate of less than 11,000, it’s a “commercial failure.”

Cybertruck dead end 2

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Microsoft invests tens of billions for AI infrastructure in India and Canada

In two separate announcements this morning, Microsoft committed to investing tens of billions on AI infrastructure in India and Canada. In India, the company said it will invest $17.5 billion — its largest-ever investment in Asia — from 2026 to 2029, “to advance the country’s cloud and artificial intelligence (AI) infrastructure, skilling, and ongoing operations.”

Microsoft also said it’s adding to its investments in Canada for a total of CA$19 billion (roughly $13.73 billion) between 2023 and 2027 to “build new digital and AI infrastructure needed for the nation’s growth and prosperity.” This includes more than CA$7.5 billion in outlays over the next two years.

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