LT Weekly: Jul 03, 2025

Artificial Intelligence/Machine Learning

• OpenAI CEO Sam Altman, in a leaked memo, criticized Meta’s AI hiring spree as “distasteful”. He claimed Meta missed top targets, settling for lower-tier hires, and warned of cultural fallout. Altman reaffirmed OpenAI’s mission-driven ethos, stating “missionaries will beat mercenaries,” while hinting at comp adjustments to retain talent amid escalating AI talent wars. (Wired)

• Musk’s xAI has raised $10bn—$5bn in debt & $5bn in equity—to fund AI infra incl its Memphis-based Colossus supercomputer & Grok platform, per Tech in Asia. Morgan Stanley led the oversubscribed deal. The raise positions xAI to compete w/ OpenAI & Anthropic amid rising AI infra costs & talent wars. xAI’s valuation now exceeds $120bn, w/ some investors pegging it at $200bn. (Tech in Asia)

• Microsoft has scaled back its AI chip roadmap after delays in its Maia chip (Braga), now expected in 2026. Originally aimed at reducing reliance on Nvidia, Braga faced setbacks due to design changes, OpenAI’s late feature requests, and high attrition (~20% in some teams). Microsoft now plans less ambitious chips through 2028, impacting partners like Marvell. The delay may widen the gap w/ Nvidia’s Blackwell chips and force Azure to depend longer on 3rd-party hardware (The Information)

• Tesla has paused Optimus robot production due to a leadership shakeup and unresolved design flaws. Milan Kovac’s exit led to Ashok Elluswamy taking over, aiming to fix overheating joints, weak hand durability, and short battery life. By May, ~1,000 units were built, but the 2025 target of 5,000 is now unlikely. Procurement halted mid-Jun., and redesign may take 2 months. Musk still envisions 50K units in 2026, w/ Grok-powered voice AI. (AInvest)

• China’s Baidu annc’d it will open source its Ernie gen AI LLM, marking the biggest AI move since DeepSeek. Experts say this could disrupt both US & Chinese mkts, pressuring closed models like OpenAI’s. While some doubt it’ll match DeepSeek’s impact, others see it as a major shift in global AI. (CNBC)

Broadcast/Cable Networks

• Paramount Global and Mediacom renewed their multi-yr distribution deal, ensuring continued access to CBS, BET, MTV, Nickelodeon & more across Mediacom mkts. The pact also enables qualifying customers to access Paramount+ Premium. Both cos emphasized flexibility, combining linear TV w/ streaming to meet evolving consumer needs. (Street Account)

Cable/Pay-TV/Wireless

• T-Mobile completed a $2bn multi-yr network expansion across Florida, boosting 5G speeds, coverage & resilience. The upgrade added/retained 1,282 sites, upgraded 1,350+, & hardened 1,375 for disaster readiness. Avg. 5G speeds rose 216% since 2021 to 266.7Mbps, now covering ~100% of Floridians. The move supports smart cities, emergency svs & biz innovation statewide. (T-Mobile Newsroom)

• Bouygues Telecom and Free are in early talks to jointly acquire and split SFR’s assets, including mobile subscribers, fixed-line boxes, antennas, and retail stores. Discussions follow Altice’s plan to divest SFR amid €60bn debt. The split would give Bouygues SFR’s mobile biz and Free the fixed-line segment. The deal could reshape France’s telecom landscape, pending regulatory scrutiny and valuation alignment (BFMTV)

Capital Market Updates

• Ultra-unicorns—private cos valued at $5bn+—now dominate the private mkts, per Crunchbase. Though just 13% of unicorns by count, they hold over 50% of the board’s $6tn value and raised half of its $1tn funding. In H1’25 alone, 17 cos joined the club, incl. Thinking Machines Lab (raised $2bn seed at $10bn val), Glean, Abridge & Groww. U.S. leads w/101 such cos. OpenAI ($40bn) & Scale AI ($14.3bn) drew 73% of 2025’s funding. (Crunchbase News)

Cloud/DataCenters/IT Infrastructure

• Google signed a 200MW PPA w/ Commonwealth Fusion Systems (CFS) to offtake power from its ARC fusion plant in Virginia, expected online in early 2030s. ARC aims to be the 1st grid-scale fusion plant; SPARC, its demo reactor, will test net fusion by 2027. Google, a CFS investor since 2021, is increasing its stake. The deal marks the largest corporate fusion offtake, supporting clean, 24/7 energy for data centers amid rising AI-driven demand (DataCenterDynamics)

Crypto/Blockchain/web3/NFTs

• Visa & Mastercard are adapting to a $253bn stablecoin threat, per Business Times. Stablecoins offer lower fees & faster settlement, bypassing card networks. In response, both cos are integrating stablecoin tech, investing in infra (e.g., Visa’s BVNK stake, Mastercard’s USDG via Paxos), & promoting fraud protection/tokenization. (Business Times)

eCommerce/Social Commerce/Retail

• Tariff-driven price hikes are accelerating across US dept stores like Macy’s, Nordstrom & Dillard’s, w/ May marking a turning point. Dataweave tracked ~15K SKUs from Jan.–Jun., showing footwear prices rose up to 4.2% (Macy’s), apparel ~2% (DSW), & bags ~2.6% (REI). Private-label goods made in China are hit hardest. (CNBC)

• Amazon’s Prime Day (Mon, Jul. 8) will run 96 hours—twice as long as last yr—w/ BoA projecting $21bn+ in GMV, up ~60% YoY. 1P sales may hit $11.5bn (+55%), 3P $10bn (+67%). Analysts cite improved logistics, AI tools (e.g., Rufus), & inventory mgmt. Ad rev & Prime signups expected to rise. Risks include margin pressure, tariff impact, & lower-margin category mix. (Yahoo Finance)

• Alibaba annc’d a $7bn subsidy plan via Taobao’s Shangou to intensify China’s instant e-comm war vs JD. com & Meituan. Over 12 months, consumers get cash vouchers, free coupons & discounts; merchants receive store launch aid, delivery subsidies & lower commissions. The move aims to boost offline traffic, counter “involution,” and defend turf amid rising competition. Deliveries are fulfilled by Ele.me, Alibaba’s food delivery arm (South China Morning Post)

• Temu’s US monthly users plunged 51% to 40. 2mn and Shein’s fell 12% to 41.4mn (Mar–Jun) after Trump closed the “de minimis” tax loophole and imposed tariffs up to 90% on Chinese goods. Both cos slashed US ad spend—Temu by 87%, Shein by 69%—and shifted focus to Europe, where Temu’s app usage surged 64–76% and Shein’s rose 13–20%. EU/UK may soon end similar exemptions, posing new risks. (Financial Times)

EdTech

• Google annc’d over 30 new AI tools for educators under “Gemini in Classroom” at ISTE 2025, incl. lesson planning, quiz generation & personalized content. A new Gemini for Education app, built on Gemini 2.5 Pro, offers AI chatbots (“Gems”) trained on class materials. NotebookLM now creates video overviews; Google Vids is open to all education users. Gemini Canvas enables students to generate quizzes. All tools are free for Google Workspace for Education users. (TechCrunch)

• McGraw Hill, backed by Platinum Equity, filed for a US IPO aiming to capitalize on demand for ed content and tech. The Co, known for textbooks and digital learning tools, seeks to expand its digital footprint. IPO proceeds will support debt reduction and growth. No pricing details disclosed yet (Reuters)

Film/Studio/Content/IP/Talent

• AMC struck a Transaction Support Agreement w/ creditors to resolve litigation, refinance 2026 debt & boost liquidity via $223. 3mn new financing. It’ll convert $143mn of notes into equity (up to $337mn possible) & dismiss lawsuits tied to 7.5% notes. CEO Aron cited a resurgent box office since Apr. & projected 2025 as strongest in 5 yrs, w/ 2026 momentum expected to continue. (The Hollywood Reporter)

• CMX Cinemas filed for Chapter 11 bankruptcy for the 2nd time since 2020, per Bisnow, citing mounting pressure on theater ops. The chain, w/ 28 locations, aims to restructure, reduce obligations & emerge stronger by early Q3. Despite ~$100K–$500K in assets & <$50K liabilities, CMX plans to keep ops running. Industry-wide, U.S. screens have dropped ~14% since 2019 amid shifting consumer habits. (Bisnow)

• AMC is increasing the number of ads shown before movies, per Variety, aiming to boost rev amid $4bn+ debt. The move follows a new deal w/ National CineMedia to run “platinum spot” ads just before films start. Critics argue it cheapens the moviegoing experience, especially as ticket prices rise. Surveys show 67% of viewers want shorter ads, though 81% still enjoy trailers. (Variety)

• Apple & Warner Bros’ “F1” revved to a $144mn global debut ($55. 6mn domestic), marking Apple’s biggest theatrical opening. The Brad Pitt-led film blended high-octane racing w/ emotional storytelling, earning strong reviews and an “A” CinemaScore. Meanwhile, Universal’s “M3GAN 2.0” underperformed at $10mn+, far below its 2023 predecessor. (Deadline)

Live Entertainment/Theme Parks/Concerts/Experiential

• Six Flags United Parks saw a sharp drop in foot traffic due to extreme heat and severe weather across key US regions. CEO Selim Bassoul revealed that ~400K fewer visitors came in recent weeks. Record temps in the South and heavy rainfall in the Northeast disrupted attendance. CFO Gary Mick noted rev losses are hard to recover, prompting plans for more indoor, air-conditioned venues. Despite challenges, pass sales remain strong (Bloomberg)

M&A

• Global M&A hit $2. 14tn in H1’25, up 26% YoY, fueled by a surge in $10bn+ deals—esp. in Asia, which doubled to $583.9bn. Despite early headwinds from tariffs & high rates, optimism is rising as mkts stabilize. Bankers expect more megadeals in H2, citing easing antitrust rules & IPO momentum. (Reuters)

Macro Updates

• Fed’s Bostic reaffirmed his forecast for one rate cut in 2025, citing solid labor mkts & tariff-related inflation uncertainty. Speaking at a Market News Intl. event, he said the Fed can afford to be patient, w/ 3 more cuts penciled in for 2026. Bostic warned that tariff pricing hasn’t fully hit the economy & policy volatility could unsettle mkts. (Reuters)

• US manufacturing contracted in June for the 4th straight month, w/ ISM index at 49, below the 50 threshold. Orders & jobs fell sharply amid tariff-driven uncertainty, weak demand & rising input costs. Backlogs shrank for a record 33rd month, while employment dropped to a 3-mo. low. Despite this, production edged into growth. Import gauge rose 7.5 pts—most in 5 yrs—after prior slump. (Bloomberg)

• US job openings rose by 374K to 7. 77mn in May, highest since Nov, per BLS data on Tues (Jul.1). Gains were led by leisure & hospitality (~75% of increase), while hiring fell, esp. in health care & manufacturing. Layoffs dropped to 188K, quits rate edged up, and vacancies per unemployed rose to 1.1. Despite headline strength, economists flagged mixed sectoral trends & cautious hiring amid tariff uncertainty. (Bloomberg)

Media Conglomerates

• Paramount agreed to pay $16mn to settle Trump’s lawsuit over a 2024 “60 Minutes” interview w/ Kamala Harris, which he claimed was deceptively edited. The funds will go to Trump’s future presidential library, not to him directly. The deal includes no apology but requires CBS to release transcripts of future candidate interviews. The move comes as Paramount seeks approval for its $8.4bn Skydance merger. (CNBC)

• Warner Bros Discovery stock fell 4. 9% on Tue (Jul 1) after Advance/Newhouse sold 100mn shares for $10.97 each (~$1.1bn), reducing its stake below 5%. The sale, finalized Sun (Jun.30), was for estate planning & investment flexibility. The Newhouse family, early Discovery investors, now owns ~3.97% of WBD. The move comes as WBD plans to split into two cos by 2026: Global Networks & Studios/Streaming, w/ the former taking most of its $37bn debt (Yahoo Finance)

Regulatory

• Google has proposed a revised search layout—Option B—to avoid a potential EU antitrust fine. Under scrutiny for favoring its own svs like Shopping & Flights, Google now suggests a VSS box atop search results linking to rivals, plus a second box w/ free supplier links (e.g., hotels, airlines). The proposal, revealed Mon (Jun.30), precedes a key EU workshop (Jul.7–8). Critics argue changes may still fall short of DMA compliance, risking fines up to 10% of global rev (Reuters)

• Canada has suspended its planned digital svs tax after the US walked out of trade talks, citing concerns over unfair targeting of US tech cos. The Canadian govt said it remains committed to fair taxation but paused the levy to avoid escalating trade tensions. The US had warned of retaliatory tariffs. Talks may resume if both sides agree on a global tax framework (Telecompaper)

Social/Digital Media

• Meta has launched DMs on Threads, enabling private 1-on-1 chats for users aged 18+ across Android, iOS & web. Rolled out on Tues (Jul.1), the feature supports text, emoji reactions, muting & spam reporting. However, it lacks end-to-end encryption, raising privacy concerns. Meta plans to add group chats, inbox filters & message controls soon, aiming to evolve Threads into a standalone social platform. (The Verge)

• Reddit shares surged after app downloads spiked 77. 98% in Apr. and 47.92% in May, signaling renewed user growth. The stock rose 44% in 3 months and 127% YoY, aided by short covering (16.3% float short). Analysts like Citigroup ($163 PT) and Guggenheim ($165 PT) cited monetization potential. Reddit plans to expand ad tools, partnerships & personalization. (Benzinga)

• Trump claimed a buyer is ready to acquire TikTok but declined to name the party, raising speculation amid ongoing legal and political scrutiny. He emphasized the deal would keep TikTok operational in the US and suggested it could be a “great American Co.” The statement comes as ByteDance faces a looming divest-or-ban deadline. (Bloomberg)

Software

• Figma filed for IPO on July 1, aiming to list on NYSE under ticker “FIG. ” The move follows Adobe’s failed $20bn acquisition in 2023. Figma, last valued at $12.5bn, has 1,000+ clients paying $100K+ annually. CEO Dylan Field said public listing will enable “big swings,” incl. acquisitions. (NBC New York)

Sports/Sports Betting

• ESPN and MLB have resumed media rights talks after both opted out of their $550mn deal in Feb. , ending a 35-yr partnership after 2025. Discussions, revealed Sun (Jun.30), focus on local rights and parts of ESPN’s former package (e.g., Sunday Night Baseball, Home Run Derby). ESPN seeks lower fees; MLB eyes broader reach via ESPN+ or its upcoming DTC app. NBC, Apple & Fox also expressed interest. A deal is expected before the All-Star Game (SportsPro)

Tech Hardware

• A US judge denied Apple’s motion to dismiss a DOJ-led antitrust suit, allowing the case to proceed. The gov’t alleges Apple monopolizes the U.S. smartphone mkts—holding 65% of the broader segment and 70% of the “performance smartphone” segment—by restricting five key techs: super apps, cloud-streaming, messaging, smartwatches & digital wallets. Internal Apple emails allegedly show intent to block user switching. Remedies could include biz practice changes or divestitures. (Reuters)

Towers/Fiber

• Google Fiber (GFiber) is exploring slice-enabled svs plans using Nokia tech, aiming to offer real-time customization for home internet. The demo showed how network slicing can carve a home network into “lanes” optimized for uses like gaming or secure banking. GFiber envisions “transactional slices” that activate briefly for sensitive tasks. No commercial rollout date yet, but Nokia collab continues. (Telecompaper)

Video Games/Interactive Entertainment

• Nintendo pulled its Switch 2 and other products from Amazon’s US site due to a dispute over unauthorized third-party sales. Sellers were reportedly bulk-buying in Southeast Asia and undercutting Nintendo’s U.S. prices. Amazon offered authenticity labels, but Nintendo opted to halt direct sales. Both cos deny Bloomberg’s claims, though Switch 2 remains unavailable on Amazon US, unlike in other mkts. (Bloomberg)

Video Streaming

• Disney+ has secured exclusive rights to stream UEFA Europa & Conference League matches in Sweden & Denmark from the 2024/25 to 2026/27 seasons. The 3-yr deal covers 342 games across 19 match weeks at no extra cost to subs. It marks Disney’s 1st major live sports push in Europe, aiming to broaden reach & engage new fans via ESPN’s sports heritage. (Cord Cutters News)