It was a busy week in tech, with news ranging from massive infrastructure investments to executive succession planning. Here's what you need to know about the biggest developments.
Major Tech Moves This Week: Apple Succession Plans, Alibaba's AI Chip Push, and TSMC's Blockbuster Quarter
MarketDash
This week brought a wave of significant tech developments, from SoftBank and OpenAI pouring a billion dollars into AI infrastructure to speculation about who might eventually replace Tim Cook at Apple. Meanwhile, Alibaba is making moves in the AI chip market, Taiwan Semiconductor posted record results, and major U.S. tech companies are catching a break from new European regulations.
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SoftBank and OpenAI Go All-In on AI Infrastructure
OpenAI and SoftBank Group just committed $1 billion to SB Energy, a SoftBank subsidiary, to build the infrastructure for massive AI data centers across the United States. Each company is putting up $500 million as part of the Stargate project, which aims to meet the exploding demand for AI computing power. OpenAI has already tapped SB Energy to construct and operate a 1.2 gigawatt data center site in Milam County. That's a lot of electricity, and it signals just how serious the AI arms race has become.
Who's Next at Apple?
Speculation continues about when Apple CEO Tim Cook might step down, and reports suggest the leading candidate to replace him is the company's head of hardware engineering. This executive has been with Apple for more than 25 years, which makes sense given the company's preference for continuity. After Cook's successful tenure, the board is likely looking at insiders who know the business inside and out, especially someone familiar with flagship products like the iPhone and potential growth drivers like the long-anticipated foldable iPhone.
Alibaba Gains Ground in the AI Chip Game
Alibaba Group Holding Ltd. (BABA) saw its stock rise after reports emerged that the company could gain expanded access to Nvidia Corp.'s (NVDA) advanced AI chips in China. Word is that China may approve limited imports of Nvidia's H200 chips as soon as this quarter. Nvidia is walking a tightrope here, trying to reopen a critical market while navigating the geopolitical tensions between Washington and Beijing. For Alibaba, getting access to these powerful chips could be a major boost in the competitive AI landscape.
Taiwan Semiconductor's Monster Quarter
Taiwan Semiconductor Manufacturing Co. (TSM) delivered results that exceeded expectations on both monthly and quarterly bases. The contract chipmaker posted December-quarter revenue of approximately 1.05 trillion New Taiwanese dollars, or about $33.1 billion, representing roughly 20.5% growth compared to the same period last year. The AI boom continues to be a goldmine for TSMC, which manufactures chips for many of the world's leading tech companies.
Big Tech Gets a European Pass
Major U.S. tech companies including Alphabet Inc.'s Google (GOOGL), Meta Platforms, Inc. (META), Amazon.com, Inc. (AMZN), Netflix Inc. (NFLX), and Microsoft Corp (MSFT) are reportedly set to avoid binding new obligations under the EU's upcoming Digital Networks Act. The European Commission plans to unveil the Act on January 20, which represents a major overhaul of EU digital and telecom regulations designed to boost competitiveness and accelerate investment in broadband and fiber infrastructure. While the regulations aim to modernize Europe's digital landscape, these tech giants appear to have sidestepped the most stringent requirements.
