Chip stocks were hammered again Tuesday, despite some reassuring news from a major player, extending their recent slide into a second week.
The big picture: Investors continue to question the sustainability of the AI spending cycle that has fueled record profits for chipmakers and sent stock valuations soaring.
Facebook's parent company on Tuesday announced Muse Image, its first picture-generating model developed within the Alexandr Wang-led Meta Superintelligence Lab.
Why it matters: The model is the latest test of Meta's effort to close the gap with cutting-edge AI rivals, even as those companies continue to push forward.
F1 executives see Apple's exclusive five-year U.S. streaming deal as another step forward for the sport, despite the potential risk of a more limited audience on streaming than cable in the short term.
Why it matters: Apple has yet to release viewership data for any of the nine race weekends it's aired this year, so there's no way to independently verify how the distribution deal is going.
While Netflix has not released viewership figures for the Canadian Grand Prix, president of advertising Amy Reinhard told Axios that she anticipates more opportunities to broadcast F1 content.
Why it matters: Netflix's simulcast partnership with Apple for the May race served as an important proof point that sublicensing streaming rights for select races could be a win-win as both companies look to expand their audiences.
F1 drivers credit Netflix's global hit "Formula 1: Drive to Survive" not just for boosting F1's global popularity, but also for helping to humanize what is otherwise a very inaccessible sport.
Why it matters: The docuseries showed the world for the first time how high the emotional stakes are for drivers whose faces are hardly visible from the track.
Microsoft for years has been an active acquirer of gaming companies, including small independent ones. But that may be changing.
Driving the news: The tech giant on Monday announced a giant restructuring of its Xbox unit, including thousands of job cuts and the divestiture of five gaming studios.
Why it matters: AI models are outgrowing the existing methods of testing and benchmarking their hacking abilities — and without new tests, policymakers and corporate security teams won't have a clear way to predict what these models can actually do or whether they can be deployed safely.
A recently patched flaw in a popular Google Cloud service that powers AI chatbots could've allowed attackers to hijack customer conversations and trick users into handing over sensitive information, according to a Varonis report shared first with Axios.
Why it matters: Companies are increasingly relying on AI chatbots to handle customer service, health care and financial interactions — making flaws in these systems rich targets for attackers.
The world's largest AI companies have weakened key safety commitments even as their models grow more powerful, according to a new report from the Future of Life Institute.
Why it matters: The report suggests that the voluntary safety system created by AI labs has begun eroding before governments have put a durable alternative in place.
Wall Street expects second-quarter earnings will be massive, although some wonder if the hurdle has been set too high.
Why it matters: Earnings season is a psychological process, and the reaction of the markets to seemingly objective things like profits, sales and earnings-per-share data can hinge on how high the expectations for them have been set.
