Tag Archives: Investment & Company Information

The UK approves Google’s $2 billion investment in Anthropic

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The UK’s competition regulator has cleared Google's $2 billion investment in Anthropic, according to reporting by Bloomberg and others. The Competition and Markets Authority (CMA) has officially concluded that the company hasn’t acquired “material influence” over the AI startup Anthropic as a result of the investment.

The continuing investigation into the partnership has also been squashed, with the UK antitrust watchdog saying that the investment doesn’t qualify for a full probe under merger rules. This is after phase one of a formal investigation was announced back in October.

“Anthropic is an independent company and our strategic partnerships and investor relationships do not diminish our corporate governance independence or our freedom to partner with others,” a company spokesperson said after the CMA announced its findings.

Google’s investment into Anthropic gives the company non-voting shares and consultation rights on significant business issues. Anthropic is best known for creating the Claude AI assistant, which is in direct competition with Google Gemini. Earlier this year, the CMA expressed concern regarding the “interconnected web” of partnerships and investments in the rapidly advancing world of AI.

The CMA also allowed a similar investment to go through in which Amazon forked over a whopping $4 billion to Anthropic. It didn’t even investigate that one, on the grounds that Anthropic’s UK turnover didn’t exceed £70 million and the two parties didn’t combine to account for 25 percent or more of the region’s supply of AI LLMs and chatbots.

Microsoft’s investment into OpenAI, however, is still under scrutiny by the CMA. The watchdog group did clear Microsoft’s investments with the AI startups Mistral and Inflection.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-uk-approves-googles-2-billion-investment-in-anthropic-162226536.html?src=rss

Elon Musk adds Microsoft as defendant in his lawsuit against OpenAI

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Elon Musk has amended his lawsuit against OpenAI, adding more anti-trust claims against the company and including Microsoft as a defendant. He also added his company, xAI, as well as Shivon Zilis, a former OpenAI board member and mother to three of his children, as plaintiffs. Musk originally sued OpenAI in March, accusing founders Sam Altman and Greg Brockman of violating the organization's non-profit mission by teaming up with Microsoft. He withdrew the state court lawsuit in June before suing OpenAI and Altman again in federal court. 

Musk was one OpenAI's earliest backers, and one of his arguments was that he was "betrayed by Mr. Altman and his accomplices." In response to his lawsuit, OpenAI published old emails from 2015 to 2018 in a blog post, wherein it claimed that Musk was involved in the planning when the company first explored transitioning into a for-profit structure. xAI's founder allegedly wanted majority equity, control of the initial board of directors and the CEO position and even suggested merging OpenAI with Tesla. Musk left the organization in 2018 before Microsoft invested the first billion in OpenAI. Since then, Microsoft has invested $13 billion in the generative AI firm, and OpenAI has taken steps to complete its transformation into a more traditional for-profit company with a non-profit arm. 

As TechCrunch notes, the amended lawsuit argues that OpenAI is "actively trying to eliminate competitors," including xAI, by making investors promise not to fund them. xAI has been harmed by OpenAI's and Microsoft's exclusive exchange of "competitively sensitive information," the lawsuit also says. Musk's new complaint names LinkedIn co-founder Reid Hoffman and Microsoft VP Dee Templeton as defendants, as well, for being involved with both OpenAI and Microsoft boards. As for why Zilis was named as a plaintiff, the lawsuit says it's because the former OpenAI board member and current director of Neuralink repeatedly raised concerns over OpenAI's deals that were similar to Musks. 

This article originally appeared on Engadget at https://www.engadget.com/ai/elon-musk-adds-microsoft-as-defendant-in-his-lawsuit-against-openai-140023400.html?src=rss

Sony has sold 65 million PS5s

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Just after launching the PlayStation 5 Pro, Sony revealed that it has sold 65.5 million PlayStation 5s as of the end of Q2 2024. While sales of the console dropped 1.1 million units from the same period last year (and are down 2 million units total in 2024), this was more than offset by game sales of 77.7 million units, up 14.9 percent from Q2 2023. Sony's monthly active PlayStation Network users remained at 116 million despite a big price bump late last year.

The net result? Revenue climbed by 9 percent and operating profit rose by a stellar 73 percent to 445.1 billion yen ($2.91 billion). Given those profits and the fact that the company has a new, more expensive (and probably more profitable) console ready for Christmas, Sony was bullish on the rest of its year, boosting its revenue forecast slightly.

A big part of Sony's game sales story is the success of the action RPG Black Myth: Wukong, which reportedly sold 20 million units in Q2 (including the PC version). Another high performer was the first party Astro Bot title, showing the power of hit games to sway sales. 

Sony still has two quarters left in its fiscal year, which ends March 31. Upcoming first party titles expected prior to that include Assassin's Creed Shadow and Monster Hunter Wilds, both set for February 2025. However, Sony's fiscal 2025 starting in April could be a blockbuster with highly anticipated games like Ghost of Yotei, Death Stranding 2, DOOM: The Dark Ages and Grand Theft Auto VI arriving later next year. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/playstation/sony-has-sold-65-million-ps5s-140019860.html?src=rss

Sony has sold 65 million PS5s

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Just after launching the PlayStation 5 Pro, Sony revealed that it has sold 65.5 million PlayStation 5s as of the end of Q2 2024. While sales of the console dropped 1.1 million units from the same period last year (and are down 2 million units total in 2024), this was more than offset by game sales of 77.7 million units, up 14.9 percent from Q2 2023. Sony's monthly active PlayStation Network users remained at 116 million despite a big price bump late last year.

The net result? Revenue climbed by 9 percent and operating profit rose by a stellar 73 percent to 445.1 billion yen ($2.91 billion). Given those profits and the fact that the company has a new, more expensive (and probably more profitable) console ready for Christmas, Sony was bullish on the rest of its year, boosting its revenue forecast slightly.

A big part of Sony's game sales story is the success of the action RPG Black Myth: Wukong, which reportedly sold 20 million units in Q2 (including the PC version). Another high performer was the first party Astro Bot title, showing the power of hit games to sway sales. 

Sony still has two quarters left in its fiscal year, which ends March 31. Upcoming first party titles expected prior to that include Assassin's Creed Shadow and Monster Hunter Wilds, both set for February 2025. However, Sony's fiscal 2025 starting in April could be a blockbuster with highly anticipated games like Ghost of Yotei, Death Stranding 2, DOOM: The Dark Ages and Grand Theft Auto VI arriving later next year. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/playstation/sony-has-sold-65-million-ps5s-140019860.html?src=rss

Nintendo expects to sell fewer Switches than planned as new model looms

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Nintendo was prepared to suck it up financially this year as sales of its aging Switch decline, but things are going a bit worse than it hoped. After selling fewer consoles than it expected over the last two quarters (4.72 million compared to 6.84 million last year), the company has downgraded its sales forecast from 13.5 million consoles to 12.5 million — a cool one million unit drop. The company also lowered its sales forecast by 5.2 percent to 1.28 trillion yen ($8.41 billion), thought it expects the same net profit as last year.

The company saw decent financials last fiscal year (ending in March 2024) despite the fact that the Switch was first released in 2017. It achieved that largely through the release of the much-anticipated The Legend of Zelda: Tears of the Kingdom game and to a lesser extent, the launch of the Super Mario Bros. Movie. 

However, "there were no such special factors in the first half of this fiscal year and with Nintendo Switch now in its eighth years since launch, unit sales of both hardware and software decreased significantly year-on-year," the company said in its IR explanatory materials. There were some bright spots, though, like a slight boost in Switch sales over last quarter due to the launch of the Switch Lite: Hyrule Edition and other bundled hardware/software releases. 

The Switch is Nintendo's second-best selling console of all time after the DS, but it has definitely run its course. That means the company will be banking heavily on its next-gen Switch 2 console, but it won't be announced until early next year — so it's not likely to see improved sales in the near future.  

This article originally appeared on Engadget at https://www.engadget.com/gaming/nintendo/nintendo-expects-to-sell-fewer-switches-than-planned-as-new-model-looms-140031461.html?src=rss

AMD’s next-gen GPUs are set to arrive in early 2025, suggesting a CES reveal

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AMD and NVIDIA could be on a collision course for CES. AMD CEO Lisa Su has confirmed for the first time that the company is set to release its next-gen PC GPUs early next year.

"In gaming graphics, revenue declined year-over-year as we prepare for a transition to our next-gen Radeon GPUs based on our RDNA 4 architecture," Su told investors on AMD's third-quarter earnings call. "In addition to a strong increase in gaming performance, RDNA 4 delivers significantly higher ray-tracing performance and adds new AI capabilities. We are on track to launch the first RDNA 4 GPUs in early 2025."

The timing very much suggests that AMD will reveal those RDNA 4-based graphics cards at CES in early January. It's rare for the company to unveil desktop GPUs at the trade show (laptop cards are generally the order of the day for AMD at that event). However, it's widely expected that NVIDIA will use its CES keynote to debut its next-gen 50-series GeForce RTX GPUs. We might get a little more clarity on that front when NVIDIA announces its own Q3 earnings results on November 19.

As PCWorld notes, AMD's first RDNA 4 GPUs are expected to deliver mid-range performance at an equivalent price point in a bid to increase its market share. AMD's gaming business (which includes the company's GPU division) saw a 69 percent year-over-year drop in revenue to $462 million in Q3. 

This article originally appeared on Engadget at https://www.engadget.com/computing/amds-next-gen-gpus-are-set-to-arrive-in-early-2025-suggesting-a-ces-reveal-192630199.html?src=rss

Dropbox is laying off 20 percent of its workforce

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For the second time in less than two years, Dropbox is laying off a substantial portion of its workforce. In a blog post penned by CEO Drew Houston, the company said it would cut its global headcount by 20 percent or 528 employees. 

Dropbox will provide impacted workers with up to 16 weeks of pay, with tenured employees eligible for one additional week of pay for each complete year they worked at the company. All impacted employees will also receive their year end equity vest, and the company will provide dedicated support to immigrant workers with one-on-one consultation and extra transition time.

Per a filing with the SEC, Dropbox anticipates this latest round of layoffs will cost it up to $68 million in cash expenditures. At the same time, the company expects it will recognize between $47 million and $52 million in incremental expenses related to all the severance and benefit payouts it now needs to make before the end of year and into the first half of 2025.

“As CEO, I take full responsibility for this decision and the circumstances that led to it, and I’m truly sorry to those impacted by this change,” Houston wrote. “We continue to see softening demand and macro headwinds in our core business. But external factors are only part of the story. We’ve heard from many of you that our organizational structure has become overly complex, with excess layers of management slowing us down.”

Partway through last year, Dropbox laid off 500 employees, or about 16 percent of its workforce at the time. Comparing the memo Houston shared then with the one he posted today, there’s a common theme: slowing growth.

“First, while our business is profitable, our growth has been slowing. Part of this is due to the natural maturation of our existing businesses, but more recently, headwinds from the economic downturn have put pressure on our customers and, in turn, on our business,” Houston wrote in 2023. “As a result, some investments that used to deliver positive returns are no longer sustainable.”

Unfortunately for Dropbox, things haven’t improved on that front. As TechCrunch notes, the company only added 63,000 users during its most recent fiscal quarter (PDF link). Year-over-year revenue growth also stalled at 1.8 percent, the lowest in the company’s history. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/dropbox-is-laying-off-20-percent-of-its-workforce-151023877.html?src=rss

Waymo raises $5.6 billion to fund Austin and Atlanta expansion

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Waymo has raised another huge chunk of change from investors. The company announced on its blog that it secured an “oversubscribed investment round” of $5.6 billion in funding, the largest of which came from Google's parent company Alphabet.

The company is working with Uber to expand to Austin and Atlanta by the early part of next year. Waymo says it plans to use this latest infusion of capital for the expansions. This latest round brings Waymo’s total capital fundraising to $11.1 billion, with the $5.5 billion it picked up in two earlier rounds in 2020 and 2021.

Waymo currently operates in San Francisco, Los Angeles and Phoenix with a curbside transport service for Sky Harbor International Airport through its Waymo One driving system for businesses. The company announced it’s also started offering “fully autonomous freeway operations in Phoenix and San Francisco.”

The new funding will also help Waymo advance its Waymo One system, an adaptable autonomous driving system for different businesses. Waymo wrote on its blog it plans to “support a variety of business applications over time” through Waymo One.

Alphabet ponied up $5 billion for Waymo back in July as part of what Alphabet’s chief financial officer Ruth Porat called a “multi-year investment.” The driverless vehicle fleet logged a total of 25 million miles in July outpacing companies like Uber, which sold its self-driving unit four years ago before joining forces with Waymo.

This article originally appeared on Engadget at https://www.engadget.com/transportation/waymo-raises-56-billion-to-fund-austin-and-atlanta-expansion-172031686.html?src=rss

Waymo raises $5.6 billion to fund Austin and Atlanta expansion

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Waymo has raised another huge chunk of change from investors. The company announced on its blog that it secured an “oversubscribed investment round” of $5.6 billion in funding, the largest of which came from Google's parent company Alphabet.

The company is working with Uber to expand to Austin and Atlanta by the early part of next year. Waymo says it plans to use this latest infusion of capital for the expansions. This latest round brings Waymo’s total capital fundraising to $11.1 billion, with the $5.5 billion it picked up in two earlier rounds in 2020 and 2021.

Waymo currently operates in San Francisco, Los Angeles and Phoenix with a curbside transport service for Sky Harbor International Airport through its Waymo One driving system for businesses. The company announced it’s also started offering “fully autonomous freeway operations in Phoenix and San Francisco.”

The new funding will also help Waymo advance its Waymo One system, an adaptable autonomous driving system for different businesses. Waymo wrote on its blog it plans to “support a variety of business applications over time” through Waymo One.

Alphabet ponied up $5 billion for Waymo back in July as part of what Alphabet’s chief financial officer Ruth Porat called a “multi-year investment.” The driverless vehicle fleet logged a total of 25 million miles in July outpacing companies like Uber, which sold its self-driving unit four years ago before joining forces with Waymo.

This article originally appeared on Engadget at https://www.engadget.com/transportation/waymo-raises-56-billion-to-fund-austin-and-atlanta-expansion-172031686.html?src=rss

Uber is reportedly exploring an Expedia takeover

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Uber is reportedly exploring the idea of purchasing Expedia, one of the largest travel booking companies in the world, according to the Financial Times. Expedia, which is valued at $20 billion and which reported its highest-ever annual revenue in 2023, will be the company's biggest acquisition, if the deal does indeed push through. The Times says it's very early days, however, and Uber hasn't even made a formal offer for the travel company yet. It's still in the process of studying the implications of acquiring Expedia and has, over the past months, worked with advisers to figure out whether the deal is feasible and how it would be structured. 

The company's CEO, Dara Khosrowshahi, may have to sit out deal discussions, seeing as he used to be CEO of Expedia before he was hired by the ride-hailing service in 2017. He's still in its Board of Directors, as well. It doesn't sound like Khosrowshahi was the one who suggested the potential purchase, though — in its report, the Times said the idea was "broached by a third party."

Uber has had plans to become a wider travel booking platform for a while now. Khosrowshahi said he wanted Uber to be the "Amazon of transportation" from the time he joined the company. Since then, the ride-hailing service has added train, bus and flight bookings in some markets, and it has also made several large acquisitions. It purchased online food delivery service Postmates for $2.65 billion and alcohol delivery service Drizly for $1.1 billion before shutting it down three years later. The company also teamed up with Waymo and Cruise to offer autonomous rides in certain markets. As the Times notes, Uber became profitable for the first time in 2023 due to a renewed demand for rides and food delivery and could be a in a good position to acquire a company as big as Expedia. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/uber-is-reportedly-exploring-an-expedia-takeover-120038754.html?src=rss