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New Tesla Model 3 With Full Self-Driving Activated
(Matteo Della Torre/Getty Images)

US government investigates Tesla over reports of Full Self-Driving traffic violations

The probe covers 2.9 million vehicles.

Rani Molla

The National Highway Traffic Safety Administration has opened another investigation into Tesla, this time over whether the company’s Full Self-Driving (FSD) software is violating traffic laws.

Citing 58 reports of traffic safety violations, including proceeding through red traffic signals and driving against the proper direction of travel on public roadways,” the NHTSA has started a so-called Preliminary Evaluation “to assess the scope, frequency, and potential safety consequences of FSD executing driving maneuvers that constitute traffic safety violations.” The probe covers the 2,882,566 vehicles in the US that are equipped with FSD.

Though sometimes advertised as autonomous — and indeed called “Full Self-Driving” — the software is meant to be supervised by a driver. Tesla operates ride-hailing services in both Austin and the Bay Area that employ versions of FSD with a safety attendant.

Last month, the NHTSA opened a separate probe into Tesla over reports that its door handles were trapping people inside the vehicles.

The stock is down more than 1% in premarket trading.

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Jon Keegan

Report: SpaceX posted $18.5 billion in revenue and a $5 billion loss last year

All eyes on are SpaceX as it prepares for a blockbuster IPO as soon as this summer, and everyone is eager to get a look at the company’s official numbers for the first time.

The Information is reporting that last year, SpaceX posted $18.5 billion in revenue with a $5 billion loss.

According to the report, the numbers reflect the combined finances of SpaceX and xAI, which it acquired in February.

After acquiring xAI, SpaceX’s successful space launch and satellite business may have been dragged down by xAI’s massive data center spending. Earlier this year, Bloomberg reported that xAI had burned through $8 billion in the first nine months of 2025.

According to the report, the numbers reflect the combined finances of SpaceX and xAI, which it acquired in February.

After acquiring xAI, SpaceX’s successful space launch and satellite business may have been dragged down by xAI’s massive data center spending. Earlier this year, Bloomberg reported that xAI had burned through $8 billion in the first nine months of 2025.

tech
Jon Keegan

Report: Amazon hopes its Project Houdini modular data center plan is the trick to speed up construction

Amazon is looking for a magic trick that can help it get past data center construction bottlenecks so it can work through the $244 billion worth of cloud computing backlogs it wants to deliver.

It may have just pulled a rabbit out of its hat. (I know, groan.)

Business Insider is reporting that Amazon’s Project Houdini seeks to slash labor costs and installation time by building modular “data halls” — the rows of racks of servers that make up the heart of data centers — in factories, and then shipping them fully assembled on trailers to data center sites.

According to the report, the modular plan would save weeks of construction time and tens of thousands of hours of labor costs.

This week in Amazon’s letter to shareholders, CEO Andy Jassy wrote that the company is planning $200 billion in capital expenditure this year, and that it is embracing its tradition of taking big bets on experiments like Project Houdini:

“You need to invent and experiment like crazy. Many of these experiments will fail, and it might feel like you’re getting nowhere. But, your culture must possess the tenacity to keep at it.”

Business Insider is reporting that Amazon’s Project Houdini seeks to slash labor costs and installation time by building modular “data halls” — the rows of racks of servers that make up the heart of data centers — in factories, and then shipping them fully assembled on trailers to data center sites.

According to the report, the modular plan would save weeks of construction time and tens of thousands of hours of labor costs.

This week in Amazon’s letter to shareholders, CEO Andy Jassy wrote that the company is planning $200 billion in capital expenditure this year, and that it is embracing its tradition of taking big bets on experiments like Project Houdini:

“You need to invent and experiment like crazy. Many of these experiments will fail, and it might feel like you’re getting nowhere. But, your culture must possess the tenacity to keep at it.”

tech
Jon Keegan

Creator of popular, mysterious “HappyHorse” text-to-video model is Alibaba

AI benchmark leaderboards are often where mysterious new models make their debut, stoking speculation about the unnamed companies behind them.

That was the case with an impressive new text-to-video model named HappyHorse-1.0 that shot to the top of public leaderboards. CNBC reports that Chinese tech giant Alibaba has confirmed that it is the owner of the new model.

HappyHorse beat out the popular Seedance model from rival ByteDance in blind human evaluations to claim the top spot on the Artificial Analysis text-to-video leaderboard.

While OpenAI has announced it is shuttering its text-to-video Sora app, the category continues to see intense competition as a flurry of video models improve with more realistic physics and cinematic effects.

HappyHorse beat out the popular Seedance model from rival ByteDance in blind human evaluations to claim the top spot on the Artificial Analysis text-to-video leaderboard.

While OpenAI has announced it is shuttering its text-to-video Sora app, the category continues to see intense competition as a flurry of video models improve with more realistic physics and cinematic effects.

tech

OpenAI: Our new AI tool is too dangerous to release, too!

This week, Anthropic warned that it had developed a new model that was too dangerous to cybersecurity to be released to the public.

According to a new report, OpenAI is saying similar things about a new cybersecurity tool it is working on (separate from its rumored forthcoming Spud model).

Axios wrote that OpenAI is allowing a small group of partners to test its new AI tool, which has “advanced cybersecurity capabilities.”

The realization that we have arrived at an era of powerful new AI models that could overwhelm current cybersecurity defenses is spooking investors, with cybersecurity stocks like Cloudflare, Zscaler, CrowdStrike, and Palo Alto Networks all down sharply this morning.

Axios wrote that OpenAI is allowing a small group of partners to test its new AI tool, which has “advanced cybersecurity capabilities.”

The realization that we have arrived at an era of powerful new AI models that could overwhelm current cybersecurity defenses is spooking investors, with cybersecurity stocks like Cloudflare, Zscaler, CrowdStrike, and Palo Alto Networks all down sharply this morning.

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