A rush by large tech players to build so many data centers for AI may end up being "irrational," and there's particular risk in building small nuclear reactors to run them, a prominent tech investor warned Wednesday.
Why it matters: Big Tech has been investing billions of dollar into data centers and energy sources to power them.
Elon Musk says Republicans need to start over on the Trump budget bill.
Why it matters: A no-new-deficits bill would require far smaller tax cuts, or far deeper spending cuts. Both are non-starters for Republicans, who are watching in dismay as Musk turns his ire on them.
House Republicans' longstanding frustrations with Elon Musk are spilling out in an unprecedented way behind closed doors after he criticized them for supporting President Trump's "One Big, Beautiful Bill."
Why it matters: In some lawmakers' telling, the internal GOP frustration didn't come about overnight. It's been stewing for months — and Musk has now opened the floodgates.
President Trump withdrew his original pick to run NASA – Jared Isaacman – because of Isaacman's relationship with Elon Musk, Isaacman suggested on a podcast Wednesday.
Why it matters: Elon Musk has gone scorched earth on Trump and the GOP this week, with Musk gearing his attacks toward the president's centerpiece budget legislation.
Hollywood giant Jeffrey Katzenberg at Axios' AI+ Summit Wednesday likened the arrival of artificial intelligence to the advent of computer graphics in the 1990s, which revolutionized animation.
The big picture: Whether Hollywood overcomes its unease to eventually embrace AI could be a bellwether for the technology's impact on other industries and on jobs.
Telcos aren't innovative enough and have ceded too much ground to big tech, says Lumen Technologies President and CEO Kate Johnson.
Why it matters: After selling its mass market fiber business to AT&T for $5.75 billion in late May, Lumen has pivoted to supporting and building an infrastructure for AI services.
WndrCo founding partner Jeffrey Katzenberg warned that the impact of kids' unsupervised access to technology is "destroying a generation" during Axios' annual AI+ NY Summit Wednesday.
The big picture: By 11, over half of children have a smartphone — but research has found screen time has played a key role in the youth mental health crisis.
Businesses say they're raising prices on goods unaffected by tariffs, according to surveys and anecdotes released by the Federal Reserve on Wednesday.
Why it matters: This could be a sign that price hikes might be more widespread than expected, with concerns that some companies might use tariffs as cover to unnecessarily raise costs.
Impulse Space, a California-based maker of spacecraft for "tugging" satellites across orbits, has raised $300 million in Series C funding led by Linse Capital.
Why it matters: This is the picks and shovels of defense-tech, akin to what oilfield service companies were to the fracking boom.
The Congressional Budget Office delivered a double shot of projections for the fiscal outlook Wednesday, finding that the Trump administration's signature tax bill would widen deficits, while tariffs would narrow the fiscal gap.
Why it matters: The Trump administration argues its trade policies will reduce the deficit, a notion that the new CBO estimates support.
House Republicans, dismayed by Elon Musk's harsh criticism of President Trump's "One Big, Beautiful Bill," are now trying to talk their erstwhile ally down from the ledge.
Why it matters: With over $400 billion at his disposal, the Tesla and SpaceX owner could drown Republicans in opposition cash. And he's saying GOP lawmakers who voted for the bill should be "fired."
Whipsawing tax policies in Washington threaten to put billions of dollars in manufacturing investments at risk across the U.S. battery belt from Michigan to Georgia.
Why it matters: New battery plants are less viable without lucrative tax credits that a Democrat-controlled Congress approved in 2022, but which the new Republican majority aims to undo.
Battery recycling is one way to secure critical minerals for electric vehicles without getting caught up in geopolitics, but it's not going to break the U.S. of its dependence on China any time soon.
Why it matters: In order to produce new batteries with recycled minerals, you need to collect enough dead batteries to extract those materials.
Catching you up on worthy news you might have missed ...
💥 Incredible footage from a Tesla Model Y moments before a fatal crash in Arizona illustrates the risk that Tesla's Full Self Driving system can be blinded by the sun or dust. It's the subject of a federal safety investigation ahead of Tesla's plan to launch driverless taxis in Austin, Texas, later this month. (Bloomberg)
🤖 Waymo has seen a rapid increase in ridership in California since it began offering public rides in 2022, while collision rates of its robotaxis decreased significantly, state data shows. (Business Insider, via AOL)
🚁 Joby Aviation is working toward an agreement to sell as many as 200 of its electric air taxis through a major Saudi Arabian investor in a deal potentially worth as much as $1 billion. (Bloomberg, via Yahoo Finance)
The hybrid SUV market is getting pretty crowded, but one of my favorites is the Hyundai Tucson hybrid, which was updated for the 2025 model year.
Why it matters: Hyundai has been on a roll lately, growing its U.S. market share with great styling and competitive technology at an affordable price. The five-passenger Tucson is the Korean brand's best-selling model.
What's new: The Tucson gets a bolder grille and a few other styling updates, but the biggest changes are inside, where a new panoramic curved display features a larger, easier-to-use advanced infotainment system.
President Trump demanded on Wednesday that Federal Reserve chair Jerome Powell lower interest rates, minutes after an economic report showed sluggish private sector hiring in May.
Why it matters: Trump, who met with Powell last week, has been pressuring the Fed to lower borrowing costs since taking office.
Inflation Reduction Act tax credits for making low-carbon energy equipment are spurring over $185 billion in planned or operating factory investments, a new analysis finds.
Why it matters: The Atlas Public Policy report arrives amid Capitol Hill debates that could vastly scale back the incentives.
The latest: Demand for second homes is at its lowest in data going back to 2018, Redfin reports, and down about 5% year over year in the national numbers.
Between the lines: Homeownership costs have soared,and cities are cracking down on short-term rentals.
Permits for multifamily housing have dropped below pandemic-era levels across the country, according to Redfin, with Austin seeing among the most dramatic fall-offs.
Why it matters: Apartment construction influences housing affordability in Austin, where a wave of new apartments ultimately helped curb rent hikes.
American manufacturers are having pandemic flashbacks: some say tariff disruptions are starting to stack up to the COVID era, with nearly as much difficulty securing critical inputs.
Why it matters: Tariffs were supposed to spur a manufacturing renaissance, not bring the manufacturing economy to a grinding halt.
President Trump signed an order Tuesday doubling tariffs to 50% on steel and aluminum imports — drawing swift criticism from officials in neighboring Canada and Mexico.
Why it matters: Trump's order said the increased tariffs that took effect early Wednesday "will more effectively counter" countries that "offload low-priced, excess steel and aluminum" in the U.S., but economic officials have said such levies would lead to higher consumer prices and inflation.
President Trump formally asked Congress on Tuesday to rescind $9.4 billion in already approved funding for foreign aid and the Corporation of Public Broadcasting (CPB), which funds NPR and PBS.
Why it matters: The rescissions package is an attempt to codify DOGE-driven cuts amid a wider push from the Trump administration to target news organizations perceived to be biased against Republicans.
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