Tech
Internet access

With the ACP at risk of ending, lower-income families could lose internet access

Staying connected

A last-ditch bipartisan effort to save the Affordable Connectivity Program (ACP) — a government initiative that subsidizes home broadband for more than 20 million low-income households — could soon hit Congress, according to the WSJ, just as funding for the scheme looks set to run dry.

The proposal to pump a further $7B into the program would extend the stipends, issued as $30-75 vouchers towards monthly home Wi-Fi bills, until the end of the year. The scheme has been praised for keeping seniors, minorities, and veterans (almost 50% of households that benefit are military families) online across the US.

Given how essential the internet now is to modern life, America remains worryingly uneven in its adoption of home broadband. According to a set of surveys that Pew Research Center has been running for the last 23 years, just 1% of American adults had a home broadband subscription in 2000; last year, 80% said the same. However, that growth hasn’t been mirrored across all income groups, with only 57% of adults in households where annual income is below $30K reporting a subscription to broadband at home late last year… and that was with the ACP in place.

Despite a reasonable amount of cross-aisle support, injecting more cash into the ACP has proven difficult. While Congress enacted the ~$14B ACP as part of Biden’s Bipartisan Infrastructure Law in 2021, the president’s request for a supplementary $6B to extend the scheme last October hasn’t gone anywhere. If the same fate befalls this latest bid, millions of Americans could lose access to the internet at home, or be forced to cut spending elsewhere.

More Tech

See all Tech
tech

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

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

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.

tech

OpenAI’s Stargate shrinks further as UK data center “paused”

OpenAI’s ambitious Stargate global data center project just got smaller.

First announced at the White House alongside President Trump at the start of his second term, the OpenAI partnership with Oracle and SoftBank sought to build massive data centers around the world, including sites in the UAE, the UK, and Norway.

Bloomberg reports that the company is “pausing” the Stargate UK project, citing high energy costs and regulatory obstacles.

Last month, the company and its partner Oracle scrapped its planned expansion of the Stargate I data center site in Abilene, Texas.

In a statement to Bloomberg, the company said:

“AI compute is foundational to that goal — we continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment.”

Stargate UK was announced in September, including a partnership with Nvidia and Nscale that would scale up to 31,000 GPUs.

Bloomberg reports that the company is “pausing” the Stargate UK project, citing high energy costs and regulatory obstacles.

Last month, the company and its partner Oracle scrapped its planned expansion of the Stargate I data center site in Abilene, Texas.

In a statement to Bloomberg, the company said:

“AI compute is foundational to that goal — we continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment.”

Stargate UK was announced in September, including a partnership with Nvidia and Nscale that would scale up to 31,000 GPUs.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.