⚖️ Big Tech Battle, China’s Auto Ambitions, Google’s AI Shift
Good morning. It’s Monday, December 09. Today we are covering:
Europe on Collision Course with Trump on Big Tech Crackdown
Will China Take Over the Global Auto Industry?
Sundar Pichai says Google Search will 'change profoundly' in 2025
As Big Tech Profit Growth Slows, Investors Hunt for a New Thing
FBI Urges Americans to Use Encryption After Complaining About It for Years
Let’s dive in
Europe on Collision Course with Trump on Big Tech Crackdown
By Gian Volpicelli via Bloomberg
European Union intensifies its crackdown on major US tech companies, including Apple, Google, Meta, and Elon Musk’s X platform, with potential fines and divestment orders.
Tech leaders court President-elect Donald Trump as the EU advances multiple investigations targeting Silicon Valley giants.
Trump faces a strategic decision on whether to confront Big Tech or push back against the EU's regulatory offensive.
𝕏: The EU's multiyear clampdown on some of the largest American companies is set to force Donald Trump to decide which bothers him more: Europe or Big Tech - Kevin Whitelaw (@KevinWhitelaw1)
Will China Take Over the Global Auto Industry?
By Brad W. Setser via Council on Foreign Relations
China's auto industry has developed unparalleled production capacity, with the ability to manufacture over 40 million internal combustion engine (ICE) cars and 25 million electric vehicles (EVs) annually by 2025, far exceeding domestic demand.
State-backed support has driven China's EV sector through subsidies, financing, and local supply chain development, enabling firms like BYD and CATL to dominate global markets while reshaping automotive supply chains.
Global implications include rising Chinese auto exports, pressure on traditional automotive hubs in Europe and North America, and the potential for a concentrated global car production model akin to the electronics
𝕏: China, cars, capacity and the possibility that China could come to dominate a new sector of the global economy - Brad Setser (@Brad_Setser)
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Sundar Pichai says Google Search will 'change profoundly' in 2025
By Emma Roth via The Verge
Google CEO Sundar Pichai announced that Google Search will undergo a profound transformation in 2025, enabling it to handle more complex queries through advancements in AI technology.
Pichai emphasized Google's AI leadership, pointing out that Microsoft relies on OpenAI's models, while Google continues developing its own cutting-edge AI systems like the Gemini model.
Google’s AI-driven innovations, including AI search summaries, video-based search with Lens, and upcoming Gemini model updates, aim to surpass competitors like Microsoft, OpenAI, and Perplexity AI.
As Big Tech Profit Growth Slows, Investors Hunt for a New Thing
Financial Post
Big Tech's profit growth is slowing, with the Magnificent Seven expected to post an 18% earnings increase in 2025, down from 34% in 2024, while excluding Nvidia drops the figure to just 3%.
Investors shift focus, pulling $1.4 billion from tech stocks while pouring $4.6 billion into small-cap equities, driven by concerns over high valuations and narrowing growth prospects.
Nvidia remains a standout, projected to post $71 billion in profits in 2025 due to surging demand for AI-related hardware, benefiting from megacap tech companies' aggressive capital spending.
FBI Urges Americans to Use Encryption After Complaining About It for Years
By Michael Kan via PCMag
FBI and CISA now urge Americans to adopt end-to-end encryption to protect against Chinese cyberattacks, despite the FBI’s historical opposition due to investigative challenges.
The "Salt Typhoon" hacking group, linked to China, has compromised major US telecom networks, including AT&T, Verizon, and T-Mobile, prompting calls for stricter cybersecurity measures.
US Senators are demanding an investigation into why the Pentagon awarded a $2.7 billion contract to vulnerable carriers despite known surveillance risks, citing failures in securing communications with encryption.
Trending in AI
Ai Pin maker Humane demos AI software for cars, phones, and smart speakers
AI-powered tutor, teaching assistant tested as a way to help educators and students
OpenAI's '12 days of shipmas' tell us a lot about the AI arms race
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