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United Airlines seeks stellar connectivity, teams up with Starlink

United is the latest airline to try SpaceX’s Starlink service

William Coulman

Last week, United Airlines announced it would start testing a partnership with SpaceX’s Starlink to provide passengers with Wi-Fi, following similar deals between Starlink and other carriers, such as Hawaiian Airlines, which rolled out complementary Wi-Fi earlier this year.

Connecting flights

Checking your emails at 35,000 feet is a remarkable feat of engineering. However, it’s a technology that’s older than many of us might expect, having been around since the early 2000s. The problem is that — even after 20+ years — checking your emails is often the only thing you can do, as the commercial offerings have typically struggled with poor latency. Starlink’s constellation of low-Earth orbit (LEO) satellites provide a dramatic improvement, at least according to testing from the Wall Street Journal which found it could handle multiple streaming devices and offer download speeds of up to 150 Mbps.

To achieve its goal of global internet coverage, SpaceX has been launching thousands of satellites into LEO.

Starlink launches
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In fact, per data from Jonathan’s Space Report, first cited by The Economist, Starlink's active satellite count has skyrocketed, and now accounts for nearly two-thirds of all satellites in space. Its services have been used by Ukrainian soldiers, by people in areas devastated by natural disasters, by remote communities in countries with less-developed internet infrastructure, and by terrorists.

Starlink’s rapid growth has made it a dominant force, but its success has also raised concerns. The FCC is exploring ways to increase competition in (the) space, but some fear that more satellite internet companies could worsen the growing problem of space junk (there’s a lot of stuff whizzing around our planet now).

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OpenAI is shipping everything. Anthropic is perfecting one thing.

The two AI titans are in a race to grow revenues, but they have very different strategies for releasing products. And one approach appears to be winning out.

73%

Here’s another sign Anthropic’s enterprise tools are killing it: The AI firm now captures 73% of all spending among companies buying AI tools for the first time, Axios reports, citing data from Ramp, a fintech company that provides corporate cards and expense management software. That’s up from 50% in January, when it was tied with OpenAI.

As we’ve noted, Big Tech is pivoting from experimentation to revenue — and enterprise is where that shift is playing out.

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Microsoft considers suing Amazon and OpenAI over $50 billion deal

Microsoft may be about to take its biggest AI partner to court, the Financial Times reports.

Microsoft, a longtime backer of OpenAI, is weighing legal action over the latter’s $50 billion deal with Amazon tied to its new Frontier AI product, arguing it could violate a key clause in their exclusive cloud deal requiring OpenAI’s models to run through Azure. Amazon and OpenAI say they’ve found a workaround. Microsoft executives disagree.

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

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Morgan Stanley says robotaxis could help Tesla sell more cars

Morgan Stanley analysts think Tesla’s robotaxi push could boost more than just a new business line — it could help sell more cars and software, too.

After visiting Giga Texas, analysts said they’re more optimistic about Tesla’s progress toward an unsupervised robotaxi rollout, with improvements in tricky pickup and drop-off scenarios where Tesla doesn’t have as much data from consumer usage. For now, the vast majority of its vehicles still have human supervisors in the front seat, but the analysts say the service is helping Tesla.

“Incremental unsupervised robotaxi miles driven improve the underlying autonomy model, which accelerates the path to personal unsupervised FSD [Full Self-Driving]. This, in turn supports higher FSD attach rates, improves auto demand, and cash flow generation.”

In other words, the more robotaxis drive, the better Tesla’s self-driving gets — and that could make its Full Self-Driving software more appealing and its cars easier to sell, in addition to improving its robotaxi service. Note that Tesla’s vehicle deliveries, which accounts for the lion’s share of the company’s revenue, have dropped two years in a row.

Morgan Stanley also sees a cost advantage. It estimates Tesla’s robotaxis could cost about $0.81 per mile to run today — cheaper than traditional ride-hailing and rival autonomous services — with costs falling further as purpose-built vehicles like the Cybercab scale.

Morgan Stanley maintained its equal-weight rating and $415 price target, about 4% above where the stock is currently trading.

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