LT Weekly: Oct 17, 2025

It seems that every week there is a new wave of important updates regarding all the efforts being made to meet the continually escalating demand for AI infrastructure, as Cos race the clock to not only deploy and mobilize capital investments, but also form strategic partnerships to build the compute backbone needed for both current and future AI workloads.

This week’s data center updates underscore the scale of the race. Meta is finalizing nearly $30bn in financing for its Hyperion AI campus in Louisiana, expected to be the largest private capital deal on record, while simultaneously investing $1.5bn in a 1‑gigawatt Texas facility. Google is committing $15bn to launch its first AI hub in India, which is its largest outside the U.S., and starting with an initial 1‑gigawatt of capacity. And this additional capacity can’t come online soon enough. Microsoft in particular expects its data center supply crunch to persist into 2026, beyond prior expectations for the end of 2025.

In parallel, strategic partnerships around AI infrastructure continue to be formed. This week, Arm and Meta announced a collaboration to enhance compute efficiency across Meta’s platforms. OpenAI and Broadcom plan to deploy 10 gigawatts of custom accelerators, and Oracle is integrating AMD’s next-generation AI chips into its cloud stack. On the agentic commerce side, Walmart announced that it will soon begin embedding shopping into ChatGPT.

As has been the case recently, the pace of announcements are fast and furious…see below for more on these most impactful updates.

Big Tech Continues To Try To Get Ahead Of Ever-Increasing AI Compute Demand  

• Meta is expected to finalize a deal for $30bn in funding for data center development in the largest private capital deal on record
  • The deal is to fund its upcoming Hyperion AI data center in Louisiana, which is expected to be completed in 2029
  • Financing structure: To finance the build-out, Morgan Stanley has reportedly arranged $27bn+ of debt and about $2.5bn of equity into a special purpose vehicle
  • Ownership split: Ownership of the data center will be split between Meta and alternative asset manager Blue Owl Capital
    • Meta is expected to retain 20% ownership but continue to serve as the developer, operator, and main tenant

-> Separately, but related, Meta said it will invest $1.5bn in a Texas data center, Meta’s 3rd facility in Texas and its 29th facility globally; The data center is expected to come online in 2028, and can scale to a 1-gigawatt site (enough energy to power a city the size of San Francisco for a day), making it one of the largest planned data center campuses in the US

• Google to invest $15bn to build its first AI hub in India – the investment will roll out over the next 5 yrs (2026-2030) and is Google’s largest investment in the region to date
  • The investment is expected to generate at least $15bn over the next 5 yrs in American GDP b/c of new economic activity from incr’d cloud and AI adoption, as well as the American talent and resources involved in developing and operating the AI hub
  • The data center campus will have an initial capacity of 1 gigawatt, but will be scaled to “multiple gigawatts”

• Microsoft expects its data center crunch to persist into 2026, per internal forecasts
  • This is a longer timeframe than MSFT has previously outlined: In July, CFO Amy Hood said current constraints could continue through the end of 2025
    • During its last six earnings calls, Microsoft has said it was unable to meet all of its customers’ cloud demand
  • Many of Microsoft’s US data center regions are experiencing shortages of physical space or servers, according to people familiar with the company’s internal forecasts
    • New subscriptions for Azure cloud services are reportedly restricted through H1:26 in some crucial server-farm hubs, including Northern Virginia and Texas
  • The majority of Azure svs and regions in the US “have available capacity so that existing customers with deployed workloads can continue to grow”
    • BUT in some cases of unplanned demand spikes, MSFT will introduce “capacity preservation methods” to balance customer demand across its data center fleet, per a Co spokesperson

Strategic Partnerships Continue to Drive AI Infrastructure Momentum

• Arm & Meta annc’d a multi-yr strategic partnership to “scale AI efficiency across every layer of compute”
  • This “will enable AI across multiple types of compute, workload, and experiences”: “From milliwatt-scale devices powering on-device intelligence to megawatt-scale systems training the world’s most advanced AI models”
  • Meta’s ranking and recommendation systems will move to Arm’s Neoverse platform, which was recently optimized for AI systems in the cloud, among other implementations
    • Builds on the ongoing hardware and software co-design efforts between the two Cos
  • Arm and Meta will NOT exchange ownership stakes or significant physical infrastructure, setting this partnership apart from a # of recent AI infrastructure deals

• OpenAI & Broadcom annc’d a collaboration to deploy 10 gigawatts of OpenAI-designed AI accelerators
  • OpenAI will design the accelerators and systems, which will be developed and deployed in partnership with Broadcom starting in H2:26 to complete by end of 2029
    • “By designing its own chips and systems, OpenAI can embed what it’s learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence”
  • Meant to add 10 gigawatts’ worth of AI data center capacity, which is a level equivalent to the peak energy demand of NYC or 5x the electricity produced by the Hoover Dam
  • Financial details of the agreement were not disclosed and it is not immediately clear how OpenAI would fund the deal
    • As a reminder, OpenAI doesn’t expect to be cash-flow positive until around the end of this decade
  • OpenAI’s agreement with Broadcom follows deals it has with NVIDIA and AMD

• Oracle will offer cloud services using AMD’s upcoming AI chips
  • Oracle Cloud Infrastructure (OCI) will be a launch partner for the first publicly available AI supercluster powered by AMD Instinct™ MI450 Series GPUs
    • They are AMD’s first AI chips that can be assembled into a larger rack-sized system that enables 72 of the chips to work as one, which is needed to create and deploy the most advanced AI algorithms.
  • The Cos will first deploy 50,000 MI450 processors in Q3:26 and further expand in 2027 and beyond

-> Broadcom’s stock jumped +9.9% on the news, its best performance since April

Also On The Partnerships Front, But On The Retail Side…Walmart Is Partnering W/ OpenAI To Offering Shopping On ChatGPT

• Walmart and OpenAI team up for AI-powered shopping in ChatGPT
  • What does the partnership entail? Enables Walmart customers and Sam’s Club members to shop directly within ChatGPT, using the AI chatbot’s Instant Checkout feature
    • Example use case: Shoppers can prompt ChatGPT (like, “plan a weeknight taco dinner” or “reorder my staples”), get curated picks and checkout in one step
  • Will turn shopping from a reactive experience to a proactive one: “AI will learn and predict customers’ needs…this partnership moves beyond traditional eCommerce search bars toward personalized, contextual, and multi-media interactions”
  • Timing is still TBA: Walmart says a ChatGPT + Instant Checkout experience is “coming soon”
  • Follows other recent retail partnerships: W/ Etsy and Shopify

-> How much share of Walmart traffic comes from ChatGPT? Per data from SimilarWeb this week, ~15% of total referral traffic for Walmart in Sept was from ChatGPT (up from 9.5% in Aug); However, referrals are only a minor source of traffic and ChatGPT referrals accounted for <1% of total web traffic for Walmart, the research firm said

Sources (2025):  Bloomberg 10/16; Meta Press Release 10/15; Google Press Release 10/14;  CNBC 10/14; Bloomberg 10/9; Arm Press Release 10/15; TechCrunch 10/15; OpenAI Press Release 10/13; Bloomberg 10/13; Oracle Press Release 10/14; CNBC 10/14; Yahoo Finance 10/14; Axios 10/14; Reuters 10/14

Investors continue to worry about advertising agencies being displaced by AI, and this has weighed on sector trading multiples, but, at least up until now, it has not played out in this fashion. Publicis, once again, delivered better than expected organic and financial results in Q3 with organic growth of +5.7% y/y, not only beating consensus but also topping the +5.4% y/y rate achieved in H1, with key regions like North America seeing accelerated growth. The Co also further raised its full year 2025 organic growth guidance and the tone regarding 2026 momentum was very bullish as well.

Key drivers to the performance and improved outlook include “no slowdown in client demand” and “sustained demand for AI capabilities.” New business client spend did not slowdown in Q3 (which Publicis was bracing for) and the Co benefitted from an acceleration in demand for their AI-led products and services. AI is 1) making them “more indispensable” as a “key transformation partner” to their clients given that the marketing landscape is more fragmented & complex than ever; 2) helping them increase their addressable mkt; 3) helping them deliver cheaper, better, faster content that they can uniquely make “intelligent” to drive results for clients; and 4) driving further operating leverage.

While concerns around AI disruption is likely to persist, Publicis’ current results underscore how incumbents can also harness these technologies to deepen client relationships, expand capabilities, and evolve their role in a rapidly transforming marketing ecosystem. We’ll have more color on the evolution from OMC/IPG’s and WPP’s results later this earnings season.

See below for what we view as the need to knows regarding Publicis’ Q3 results.

-> Despite the beat, Publicis shares actually traded down -1.7% on the day BUT closed the week up +3.2%; It has still been a tough road for ad agencies YTD with Publicis down -16%, Omnicom down -10% and WPP down -57%

Publicis Delivers Strong Q3 Organic Rev Outperformance…

• Q3 organic revenue growth of +5.7% y/y nicely topped consensus +5.3% y/y, with N. Amer (accelerating to +7.1%) and AsiaPac (+6.5%) showing much better performance: Q3’s rate was ahead of the +5.2% 5-year Q3 CAGR
  • Europe was weaker than expected

• Vertical performance –
  • Connected Media (~60% of rev): Up high SD (like Q2), driven by Publicis Media’s scale, powered by Epsilon’s proprietary data
  • Intelligent Creativity (~25% of rev): Up mid SD (vs Q2 high SD) vs market trends that are “negative”, supported by “significant” new business wins and scope expansions in production and creative
  • Technology (~15% of rev): Stayed in “positive territory” (vs “returned to growth in Q2) despite the IT consulting market “remaining soft”

• Regional organic growth performance –
  • US (~59% of net revs): Rose +7.1% vs 5.3% in Q2…Connected Media accelerated to high SD and Intelligent Creativity was up mid SD; Pub Sapient posted low SD organic growth with a cont;d “wait and see” from clients
  • Europe:Rose +2.8% growth vs +4.6% in Q2…the UK (9% of grp net rev was up +10.7% and Germany rose +5.3%, but France was impacted by tough Paris Olympic comps and was down -8.6% y/y
  • Asia Pac: Rose +6.5% growth vs +5.7% in Q2 and China remained strong at +6.1% growth

…And FY 2025 Organic Growth Guidance Was Raised, Again… PLUS The Co Is Bullish On 2026

• Expect this positive trend to “carry though into Q4”…and raised the FY:25 organic growth guidance range from “close to +5%” to +5-5.5% (raised last qtr as well)
  • The lower end is “rock solid”
  • The upper end implies underlying accel vs H1, including a strong Q4 despite tough comps

• Mgmt is “confident in outperforming again in 2026 for the 7th consecutive yr, thanks to record new business”: The “material” wins in Q3 are ”one of the reasons, if not the main reason. why we’re now feeling confident and with more clarity when it comes to 2026”

Remain Committed To Margin Improvement Despite Investments

• Q3 operating margin reached slightly above 18%, including investments in M&A and talent, vs +17.4% in Q2
• The Co reit’d a full yr 2025 improvement in its industry leading margins to “slightly above 18%”
  • “We are confident that this agentic solution will help us generate margin improvement beyond 2025, while allowing us to invest, including in training and upskilling of our talent to be AI fluent”

A Slowdown In New Business Wins Did Not Materialize in Q3

• The Co did not see the client slowdown which they had been bracing for: In Q2, the Co included some potential contingencies into their raised outlook, but “none of them materialized” in Q3….”in fact, we did not see any slowdown. Marketing budgets remained firm with no material cuts taking place”
  • “Looking ahead, as we don’t anticipate a slowdown in our client marketing investments”

• AI is helping them win new business w/out a pitch process –
  • “What is really remarkable about the wins we’re having at the moment is that we are starting to win new business without a pitch process”
  • “We have been able to convince very big brands with material accounts to move to Publicis without a pitch for a very single reason, which is AI allows us to differentiate even more and leverage our capabilities in a unique way”

• The tailwind from new business has been 200bp+ this year and mgmt expects it to be “roughly the same” for 2026

PUB Is Taking Share Competitively & Still Has Strong Customer Retention

• Publicis’ +5.7% organic growth is “materially increasing the gap with our peers by ~700bps”

• Retention rates remain strong: Clients are growing and “staying with us longer”; Retention among their top 100 clients has remained above 98% for the past 5 years, while avg revenue w/ the top 200 clients has grown by nearly +50% over the same period
  • “At the same time, we are gaining significant market share”

AI Is An Accelerator Of Publicis’ Business

• “We are demonstrating that artificial intelligence at Publicis is not a future promise, it is a reality today that is driving our growth”

• The Co saw further acceleration in client demand of AI-powered product and services, esp in 3 areas –
  • 80% of Connected Media is powered by AI … the strong growth was “thanks to our ability to connect paid media with commerce and influencer through AI”
  • Their AI production platform grew DD percent on the strength of the increasing need for personalized content
  • Their ability to build agentic networks for clients as they look to de-silo their own organizations led to Publicis Sapient remaining in positive territory for the 2nd quarter in a row

• AI is make the Co “more indispensable” as a “key transformation partner to our clients given that the marketing landscape is more fragmented & complex than ever
  • “Tech giants are spending billions on new AI technologies and infrastructure, multiplying the number of platform and channels, and making it harder to reach and engage with audiences”

• AI is also helping them increase their addressable mkt: The Co is using AI to integrate new capabilities into their data and tech backbone which is resulting in new sources of growth
  • As example, in their Influential business, by using AI to connect Epsilon data w/ Captiv8 technology and influential creator network, they built the world’s largest and most powerful influencer media platform so PUB’s clients can get the same reach that they can get to the Super Bowl for only a fraction of the cost

• AI is enabling the Co to produce content almost 100% in-house vs traditionally being produced by third parties: The Co (and others) can deliver cheaper, better and faster content BUT mgmt stresses that what is very difficult is to make this content “intelligent”, meaning connected to the data and knowing if it is working or not

• AI is also helping PUB to generate further operating leverage: Looking at every opportunity to automate labor-intensive task, “thanks to AI”, including implementing agentic solution at the core of the operations

-> Also pertaining to the ad agencies this week and how they’re integrating AI, WPP and Google annc’d that they struck a 5-yr deal to expand AI svs and embed AI tools (i.e., Gemini, Veo, etc.) into WPP’s offering to clients; The partnership includes a $400mn spending commitment from WPP for Google technologies to bring AI across its svs

M&A Pipeline Remains Strong

• On M&A, reached the €900mn target for the year, including earn-outs and now don’t expect anything material until the end of the year

• Its “too early” to give M&A guidance for 2026 but the pipeline “remains very active” and will “continue to double down on our bolt-on strategy”: Focus is on specific capabilities, be in “identity resolution, data management, new media channels, production, and specifically the technology associated with it and business transformation”
  • But will be disciplined

Sources (2025): Publicis Transcript 10/14; Google Press Release 10/14; Financial Times 10/14

Big IP franchises are getting even bigger in the video game industry as users remain loyal and stick with key titles. The first Battlefield game, Battlefield 1942, was released by EA on September 10, 2002 and now EA’s Battlefield 6 (released this past Friday) just delivered a record-breaking launch, helping the franchise regain footing and also reinforcing the idea that in a crowded market, familiar IP still commands attention.

Tencent, meanwhile, is reportedly looking to replicate that stickiness globally after its domestic success with Delta Force, hence this is something to keep track of competitively going forward. And in the background, the next generation of consoles is starting to take shape, with early specs reportedly hinting at a more premium, PC-like future for Xbox and a steady evolution for PlayStation.

All in all, it was a week of some interesting key updates in the videogame sector, which in our mind will continue to become even more important given the increased engagement demographically.

See details below.

EA’s Battlefield 6 Blows It Out Of The Water

• Battlefield 6 sold over 7mn copies in its first 3 days of launch, which is an all-time high for the franchise, per EA
  • The game had over 172mn matches played online and accumulated over 15mn hrs watched on streaming svs during that 3-day weekend as well
  • It also had the most concurrent players for Battlefieldever

• This followed Alinea Analytics estimating earlier in the week that Battlefield 6 sold over 6.5mn units in its first few days across PC and console: They calculated that that translates to more than $350mn in gross revenue
  • PC is seen as a key distribution for BF6 –
    • Steam accounts for 56.7%of the copies sold through to consumers (3.5mn+ copies)
    • PS5 accounts for 23.7%(1.5mn+ copies)
    • Xbox Series consoles take 19.6%(1.2mn+ copies)
  • The US is the top Steam market for BF6, with a third of player share
    • Germany and the UK hold familiar 3-6% Steam shares, while Japan’s is at 3% and China is at 15%
    • On PlayStation, the US again leads (with a 38% player share), followed by 6-9% for the UK, France, and Germany (6.7%)

-> Also related, Black Ops 7 Beta ended Oct. 9^th with the release date set Nov. 14^th, 2025

More Global Competition In Shooter Games Globally? Tencent May Be Shifting Focus

• After Tencent scored one of the biggest Chinese hits in 2024 w/ Delta Force, attracting ~30mn daily players, it appears to be shifting to focus more on this genre and the overseas market
  • Delta Force developer Leo Yao is reportedly getting more resources from the Co

• Tencent is already dominant among Chinese gamers, with 7 of the top 10 highest-grossing mobile games in the country, it now wants to get the rest of the world hooked
  • “Right now, our team is essentially 99% Chinese, what we understand best is Chinese culture, Chinese context and the Chinese environment,” Yao said
  • “It’s genuinely difficult for us to know what overseas players are thinking or how they would perceive this game”
  • But “building a team capable of distilling a distinct Tencent aesthetic and crafting compelling single-player narratives will be a long process”

• Newzoo has est’d that shooter titles, traditionally dominated by Western players, account for ~9% of the $189bn global games arena

A Sneak Peak At Next Gen Videogame Consoles That Are Set To Reportedly Come To Market In 2027

• Reportedly, both Sony’s PlayStation 6 & Microsoft’s (codename AMD “Magnus”) are expected to launch in 2027
  • This latest update comes from Moore’s Law Is Dead, a tech enthusiast with a long track record of accurately leaking console specs
  • Unlike previous generations, Microsoft appears to be moving toward a premium, PC-style hybrid console, potentially priced between $800-1,200
    • The new Xbox is rumored to feature a larger, more powerful processor than the PS6, offering higher performance but at a greater cost

• Sony, meanwhile, is expected to adopt a more traditional approach w/ the PS6, while also exploring new hardware options like a high-end PlayStation handheld

• Both Cos have reportedly begun early manufacturing plans, signaling that the next-gen race is officially underwa

Sources (2025): EA 10/16, Alinea Analytics 10/14, SCMP 10/13, Bloomberg 10/12,  Kotaku 10/14, Vice 10/14

Apple has long been perceived as trailing its Big Tech peers in the AI arms race, particularly as companies like Microsoft, Google, and Meta have aggressively rolled out generative AI tools and foundational models. But this week, Apple made a decisive move to try to shift that narrative with the official debut of its new M5 chip, which is a cornerstone of its next-generation silicon strategy and a clear signal of its ambitions in on-device AI. The M5, which will power the new 14-inch MacBook Pro, iPad Pro, and Apple Vision Pro, represents a major leap forward in performance, efficiency, and AI capabilities. Alongside the chip launch, Apple also unveiled its most significant Vision Pro update yet, introducing sharper visuals, longer battery life, improved comfort, and new spatial computing features with visionOS 26, including interactive widgets, enhanced Personas, and expanded Apple Intelligence support. Overall, it is a step in the right direction for Apple as it relates to AI but investors are going to want to see more.

See below for additional details on the Co’s key updates.

-> Apple shares were flat in reaction to the new product releases and are up only +1.1% YTD

Apple Unveils Its New M5 Chip, Which Reflects A Big Leap In AI Performance

• Apple released its new M5 chip: A next-generation 10-core GPU architecture w/ a Neural Accelerator on each core

• How does it compare?
  • Enables GPU-based AI workloads to run faster, with over ~4x the peak GPU computing performance compared to M4
  • The GPU also offers enhanced graphics capabilities and third-generation ray tracing that combined deliver a graphics performance that is up to 45% higher than M4
  • M5 features the world’s fastest performance core, with up to a 10-core CPU made up of 6 efficiency cores and up to 4 performance cores…together, they deliver up to 15% faster performance over M4

• It also features a 16-core Neural Engine, a powerful media engine, and a nearly 30% increase in unified memory bandwidth to 153GB/s

-> M5 is coming to the new 14-inch MacBook Pro, iPad Pro, and Apple Vision Pro, which are all now available for pre-order (more on Vision Pro below)

Apple Also Released Their New Vision Pro, Claiming A “Next Level” Gaming Experience As Well As Other Feature Updates 

• “The latest [Vision Pro] version improves performance, display rendering, battery life, & comfort”
  • Vision Pro w/ M5 works alongside the purpose-built R1 chip, which processes input from 12 cameras, 5 sensors, and 6 microphones, and streams new images to the displays within 12 milliseconds to create a real-time view of the world
  • Faster refresh rate: The refresh rate up to 120Hz reduces motion blur when users look at their physical surroundings
  • Better visuals: Renders 10% more pixels on the custom micro-OLED displays compared to the previous generation, resulting in a sharper image with crisper text and more detailed visuals
  • visionOS 26: Unlocks innovative spatial experiences, including widgets, new Personas, an interactive Jupiter Environment, new Apple Intelligence features with support for additional languages
  • Longer battery life: Now supports up to 2.5 hrs of general use, and up to 3 hrs of video playback, all on a single charge
  • Comfort: It comes with the soft, cushioned Dual Knit Band

• With support for the PlayStation VR2 Sense controller, players get a new class of games: Elu Legend, Pickle Pro, Ping Pong Club, and Spatial Rifts are some of the first games available with support for the PlayStation VR2 controller

• Content on the device is also growing: There are over 1mn apps and thousands of games on the App Store, hundreds of 3D movies on the Apple TV app, and all-new series and films in Apple Immersive with a selection of live NBA games coming soon
• Availability/pricing: Vision Pro w/ M5 and the Dual Knit Band is now available to pre-order

Sources (2025): Apple Press Release 10/15, Bloomberg 10/12, Apple Press Release 10/15

Back in 2024, then US Surgeon General Dr. Vivek Murthy called for warning labels to be added to social media platforms, similar to those on cigarettes and alcohol, citing research showing teens who spend 3+ hrs on social media a day face double the risk of mental health problems. This call followed a major public advisory issued the previous yr, in which Murthy raised concerns about the connection between social media use and youth mental health.

Since then, social media and AI innovations have both surged, but regulatory and tech platform protections for younger users have lagged. This week, a wave of updates emerged on this front which we wanted to highlight. California signed new laws requiring devices and apps to verify users’ ages, adding mental health warnings on social media, and implementing safety protocols for AI chatbots, including age-appropriate content restrictions. Meta also announced expanded parental controls, limited AI interactions for teens, and adjustments to teen-facing content on Instagram to align with PG-13 movie standards. Additionally, Florida is suing Roku over alleged misuse of children’s data without parental consent.

These initiatives signal a growing focus on safer digital environments for youth, though implementation has a long way to go to keep pace with evolving technology platforms.

See below for more.

California Cracks Down on Youth Social Media Use With New Safety and Age-Verification Laws

• Signed AB 1043, requiring device makers to check users’ ages online
  • What does AB 1043 entail?
  • It asks parents to input their kids’ ages when setting up a smartphone, tablet or laptop
  • Device-makers must then make the information available to apps; App developers must also request ages for their users
  • The law still shields the Cos from liability for “erroneous” age signals as long as they make a good faith effort to comply
  • The new rules are slated to take effect on January 1st, 2027, and for devices set up prior to that date, the OS provider must come up with a way for users to enter their ages by July 1st that yr
• This new CA law is considered to be more balanced vs age-checking laws in other states/countries: CA’s law doesn’t require parental consent for app downloads, nor does it require photo ID uploads (which caused uproar in the UK over the implementation of the Online Safety Act)
  • Utah became the first state to pass an app store age verification law, followed by Texas and Louisiana
• But AB 1043 has still garnered mixed reactions –
  • The Motion Picture Association had urged lawmakers to reject the bill, claiming device-based age checks create confusion when parents and kids use separate streaming profiles under one acct
  • Meta notably broke from tech peers to support these age-gating bills, which put the onus on app stores run by Apple and Google, rather than developers like itself
  • Google called it “one of the most thoughtful approaches we’ve seen thus far to the challenges of keeping kids safe, recognizing that it’s a shared responsibility across the ecosystem”
• In addition to AB 1043, California also signed AB 56, a law mandating health warning labels for social media
• AB 56 requires platforms like Instagram, Snapchat and TikTok to show users under 18 warning labels
  • Such labels must declare that social media “can have a profound risk of harm to the mental health and well-being of children and adolescents,” using language pulled from a 2023 report by former US Surgeon General Vivek Murthy
  • Platforms will also need to display a skippable warning for 10 secs when a child first logs on each day, plus an unskippable, 30-sec warning if a child spends more than 3 hrs on the site; The 30-sec warning must repeat after each addtl hour of social media use

• CA is not the first state to pass such a law: Minnesota became the first state to pass a warning labels law in July

-> For some context, research from JAMA this week also found that preteens who use more social media perform worse on reading, vocabulary, and memory tests in early adolescence; Even light users scored 1–2pts lower than non-users, while heavy users scored 4–5pts lower; Researchers note a “dosage effect”, meaning cognitive performance declines as social media use increases, and that ~2/3 of kids start using social media before age 13, with many showing addiction-like behaviors with smartphones

California Also Introduced AI Chatbot Oversight, Which Also Requires Extra Safety Measures for Minors

• California has also become the first state to regulate AI companion chatbots by passing SB 243, which requires AI chatbot operators to implement safety protocols for AI companions

• SB 243 holds Cos legally accountable if their chatbots fail to meet the law’s standards
  • Requires Cos to implement certain preventative features, such as age verification and warnings regarding social media and companion chatbots
  • Also implements stronger penalties for those who profit from illegal deepfakes, including up to $250k per offense
  • Cos must also establish protocols to address suicide and self-harm, and provide statistics on how the svs provided users with crisis center prevention notifications
  • Platforms must also make it clear that any interactions are artificially generated, and chatbots must not represent themselves as healthcare professionals.
  • Cos are required to have features specific to minors, including break reminders and prevention from viewing inappropriate explicit images generated by the chatbot
• Prior to the signing of the bill, a few Cos have already begun to implement some safeguards
  • OpenAI recently began rolling out parental controls, content protections, and a self-harm detection system for children using ChatGPT
  • Character AI has said that its chatbot includes a disclaimer that all chats are AI-generated and fictionalized
• Other states have passed laws to restrict or fully ban the use of AI chatbots as a substitute for licensed mental health care, including Illinois, Nevada, and Utah
• Signing of SB 243 comes just a couple weeks after Gov Newsom signed SB 53 into law, which was a “first-in-the-nation” bills that establishes new transparency requirements on large AI Cos
• What does SB 53 entail?
  • Mandates that large AI labs be transparent about safety protocols
  • Ensures whistleblower protections for employees at those Cos
  • Creates a mechanism for AI Cos and the public to report potential critical safety incidents to California’s Office of Emergency Services
  • Requires Cos to report incidents related to crimes committed w/o human oversight, such as cyberattacks, and deceptive behavior by a model

• The bill received mixed reactions from the AI industry, as some tech firms have broadly argued that state-level AI policy risks creating a “patchwork of regulation” that would hinder innovation
  • Meta and OpenAI lobbied against it, though Anthropic endorsed the bill

Outside Of California, Florida Has Sued Roku Over Alleged Misuse Of Children’s Data

• Florida has filed a lawsuit against Roku for exploring kid’s data w/o parental consent
• Florida’s Office of Parental Rights is accusing Roku of unlawfully exploiting sensitive data about minors’ online activities
  • The lawsuit accused Roku of accessing and exploiting data related to children’s online preferences, behaviors, and locations in order to grow its advertising business and fulfill other biz-related goals
  • This is in violation of the Florida Digital Bill of Rights, which prohibits tech Cos from using or selling children’s data w/o first notifying parents and obtaining their consent
  • “Parents – not tech companies – get to direct the upbringing and control the personal data of their kids”, Florida Attorney General James Uthmeier said in a post on X

• What are the potential consequences? The AG’s office is asking for –
  • A court injunction to halt Roku’s alleged data practices, along with civil penalties for violating state privacy statutes
  • If awarded, civil penalties could be as high as $150,000 per violation under Florida’s Digital Bill of Rights, and as much as $10,000 per violation under the state’s Deceptive and Unfair Trade Practices Act
• Roku denies the allegations and says the Co plans to challenge them in court
• This is not the first time Roku has been accused: Earlier this yr, Michigan’s AG filed a similar lawsuit that accused Roku of improperly collecting data on underage users and sharing customer data with third parties in violation of consumer protection laws
  • Roku has challenged that lawsuit in federal court

Amidst All These Regulatory Developments, Meta Has Been Adding More Guardrails For Teens Across Its Platforms  

• Meta is Introducing new supervision tools for “supporting parents as they help their teens navigate AI”
  • Parents can choose to turn off their teen’s access to one-on-one chats with AI characters entirely BUT Meta’s AI assistant will remain available “to offer helpful information and educational opportunities, with default, age-appropriate protections in place to help keep teens safe”
  • Parents will get insights what their teens are chatting about w/ AI characters and Meta’s AI assistant, “so they can have thoughtful conversations with their teens about AI interactions”
  • Parents can see if their teens are chatting with AI characters and set time limits on app use, to as little as 15 minutes per day overall; This includes time spent talking to AIs
  • Parents will be able to block specific AI characters if they don’t want to turn off access to AI characters altogether
  • Teens can only interact with a limited group of AI characters, focused on age-appropriate topics like education, sports, and hobbies, and not romance or other inappropriate content

• Also…Instagram is revamping Teen Accounts to be guided by PG-13 moving ratings, meaning teens will see content that’s similar to what they’d see in a PG-13 movie, by default
  • Teens under 18 will be automatically placed into an updated 13+ setting, and they won’t be able to opt out without a parent’s permission
  • Will use age prediction technology to place teens into certain content protections, even if they claim to be adults
  • Introducing a new, stricter setting (“Limited Content”) for parents who prefer a more restrictive experience for their teens
    • Removes teens’ ability to see, leave, or receive comments under posts
    • Starting next yr, the setting will also further restrict the AI conversations teens can have
  • Expanding protections across Instagram, including –
    • Accounts: Teens will no longer be able to interact w/ accts that have been found to regularly share age-inappropriate content, or if their name or bio suggests the account is inappropriate for teens
    • Search: Will block teens’ ability to see content results for a wider range of mature search terms
    • Content Experience: If someone sends a teen a link to content in their DMs that goes against Meta’s updated guidelines, they won’t be able to open it
    • AI: Updated AI experiences for teens to be guided by PG-13 ratings by default

Sources (2025): HHS 2023, Gov Gavin Newsom Press Release 10/13,  Politico 10/13, The Verge 10/13, Politico 10/13, NPR 10/13, TechCrunch 10/13, TechCrunch 9/29, TechCrunch 9/29, CBS12 10/14, Tallahassee Democrat 10/15, Facebook Blog Post 10/17

While markets like China and the U.S. have been pushing forward with autonomous vehicle (AV) testing and commercialization, Europe has remained a few steps behind. Regulatory caution, fragmented infrastructure, and a strong public transport network have slowed AV momentum across the region. But there were a couple of developments this week that pointed to a continued push in that region. Waymo and Pony.ai, which are two of the most prominent players in the global AV space, announced plans to expand into key European cities, suggesting growing confidence in the region’s readiness. It is still early days but encouraging to see a few steps forward.

Meanwhile, Waymo continues to scale its U.S. operations, including a new partnership with DoorDash that blends autonomous tech with last-mile food delivery. Overall, there has been a tremendous amount of activity and momentum with AVs over the last year, and we expect this pace to continue globally as this burgeoning technology inevitably takes hold.

We included more details on these updates below.

Waymo & Pany.ai Are Both Focused On European Expansion

• Waymo plans its robotaxi launch in London, marking its European debut
  • Timeline? Planning to start test drives on London’s roads in “coming months”, w/ human safety specialists at the wheel
    • Then it intends to open its robotaxi service next yr, assuming it can get permissions from regulators as well as local and national leaders
    • London will mark the Cos second international city after Tokyo, where testing began in early 2025
  • The fleet will be comprised of Jaguar iPACE EVs: Equipped with the Cos Waymo Driver autonomous systems; They are already employing engineering teams in Oxford and London

• Chinese robotaxi company Pony.ai to work w/ Stellantis on a Europe expansion
  • Timeline? The companies will start testing in Luxembourg in the “coming months”
    • Then expand to other parts of Europe next year
  • How will it work? ai will provide the autonomous driving software, while Stellantis, owner of brands including Chrysler, Citroën and Jeep, will provide the EVs, starting with the Peugeot e-Traveller

Waymo Also Annc’d Partnership With DoorDash For Autonomous Delivery Svs

• DoorDash annc’d a new partnership with Waymo to launch an autonomous delivery service in Phoenix on Oct. 16^th
  • Testing of this new service is now underway, with plans to launch broader commercial operations later this yr; It will begin with deliveries from DashMart, DoorDash’s owned and operated convenience, grocery, and retail store that also powers DashMart Fulfillment Services, with plans to expand over time
  • DoorDash also intro’d a limited-time $10 Waymo promotion for DashPass members in Los Angeles, San Francisco, and Phoenix: From now through the end of the year, DashPass members in these three cities can receive $10 off one Waymo ride per month
    • A new promotion code will be issued at the start of each month through December 31, 2025

Sources (2025): CNBC 10/15, Fortune 10/15, CNBC 10/17, Pony.ai 10/17, DoorDash 10/16

• Altice France swiftly rejected an unsolicited €17bn joint offer from a consortium comprising of Bouygues Telecom, Iliad’s Free, and Orange, which was received by the Co on Oct 14^th, given it was “not in the best interest for shareholders”
  • This current offer was to acquire a large part of Altice’s activities in France: It covers most of SFR’s assets, but excludes stakes in Intelcia, UltraEdge and XP Fibre and Altice Technical Services, as well as the Altice group’s activities in French overseas departments/regions
  • The price also implied an EV for the whole of Altice France of more than €21bn
  • The deal would make possible: 1) Higher investments in superfast network resilience, in cyber security and in new technologies such as AI; 2) consolidate control over strategic infrastructure in France; and 3) maintain a competitive ecosystem for the benefit of consumers
  • The consortium would share the targeted activities as follows –
    • The B2B biz to be taken over mainly by Bouygues Telecom, and by Free-iliad Group
    • The B2C biz to be shared btw Bouygues Telecom, Free-iliad Group & Orange
    • The other assets and resources (in particular infrastructure and frequencies) to be shared between Bouygues Telecom, Free-iliad Group and Orange, with the exception of SFR’s mobile network in less densely populated areas, to be taken over by Bouygues Telecom
  • The split of price and value would be roughly –
    • 43% for Bouygues Telecom
    • 30% for Free-iliad Group
    • 27% for Orange
  • Next steps? The consortium has “taken note” of Altice’s rejection of the offer but “maintain their offer and wish to engage in constructive dialogue with Altrice Group and its shareholders”

-> Shares of Bouygues jumped +7.4% to €41.58 in Paris trading in reaction to the news, while Orange rose +3.3%; Altice France’s bonds rose with euro-denominated notes due Nov. 2029 rising 1.6 cents to about 99.5 cents, per Bloomberg pricing; In sympathy, Swisscom rose +1.4%, Telenor was up +1.5%, Telefonica SA was up +2.4% and United Internet was up +2.9%

• Apple TV becomes Formula One’s exclusive S. broadcast partner: The 5-yr partnership will begin next yr
  • Apple TV Coverage includes all practice, qualifying, Sprint sessions, and Grands Prix available to Apple TV subs
  • In addition to broadcasting Formula 1 on Apple TV…
    • Apple will amplify the sport across Apple News, Apple Maps, Apple Music, and Apple Fitness+
    • Apple Sports will feature live updates for every qualifying, Sprint, and race for each Grand Prix across the season, with real-time leaderboards, season driver and constructor standings, Live Activities to follow on the Lock Screen, and a designated widget for the iPhone Home Screen
  • What happens to F1 TV Premium? Will continue to be available in the U.S. via an Apple TV subscription only and will be free for those who subscribe to
  • Follows global success of Apple Original Films’ F1 The Movie, which is the highest-grossing sports movie of all time
  • Financial details of the deal were not disclosed
    • Prior to the announcement, CNBC reported it was for $140mn/yr, much higher than the $90mn ESPN was paying per season for F1, which it has broadcast since 2018
• Amazon is hiring 250k workers for the upcoming US holiday season for the third consecutive year: S. regular full- and part-time employees earn an avg of $23/hr with benefits, and seasonal employees can earn an avg wage of over $19/hr (up $1 from last yr)
  • The new positions being filled by the Co are across its fulfillment and transportation network
  • The jobs include rural areas where Amazon is investing over $4bn to expand its operationsand serve more than 4,000 small towns and communities
  • How does this compare?
    • Bath & Body Works plans to hire 32k workers this season, which includes 2k roles in its distribution centers
    • Spirit Halloween plans to add 50k workers
    • Kohl’s annc’d that it was hiring seasonal workers, though it didn’t give a number
    • Target posted about its plans but did not make any major announcement. Instead, the co said it would offer hrs to existing workers and tap into a network of 43k “OnDemand” team members

Sources (2025): GlobeNewswire 10/14, Bouygues Press Release 10/15, Apple Press Release 10/17, Reuters 10/17, Bloomberg 10/13, Amazon 10/13