💼 Tech Tax Crisis, Texas Bitcoin Battles, Google's CO2 Deal
Good morning. It’s Wednesday, September 11. Today we are covering:
Software firms across U.S. facing massive tax bills that threaten tech startup world survival
The World's Biggest Bitcoin Mine Is Rattling This Texas Oil Town
Google announces a market-shifting deal to capture CO2
Jack Ma Urges Alibaba to Trust in Market Forces, Innovation
US accuses China of giving 'very substantial' help to Russia's war machine
Let’s dive in
Software firms across U.S. facing massive tax bills that threaten tech startup world survival
By Eric Rosenbaum via CNBC
Congress failed to renew a key tax provision that allowed full expensing of research & development costs annually, impacting mainly small software businesses with significantly higher tax bills.
Software startups are facing existential threats due to unexpected tax hikes, with some experiencing increases as high as 400%, forcing them to freeze hiring, consider layoffs, or take on expensive loans.
There is ongoing legislative effort in Congress, with bills introduced aiming to restore R&D expensing, supported by both parties and a growing grassroots movement from the tech community demanding urgent relief.
𝕏: So it’s official: until something changes in the future, accounting-wise the US is the most hostile place to start a software startup/small business. The only country in the world where developers’ salary cannot be expensed the same year: but needs to be amortised over 5 years. - Gergely Orosz (@GergelyOrosz)
The World's Biggest Bitcoin Mine Is Rattling This Texas Oil Town
By Joel Khalili via WIRED
Riot Platforms is constructing what is set to be the world's largest bitcoin mining facility on a 265-acre site near Corsicana, Texas, raising concerns about its impact on the local environment and community.
Local activist Jackie Sawicky, founder of the Texas Coalition Against Cryptomining, leads opposition against the facility, citing potential strains on the local water resources, energy grid, and noise pollution.
Despite local resistance and fears of devaluation in property and quality of life, some officials and residents view the bitcoin mine as a vital economic opportunity amidst the dwindling oil industry in the region.
𝕏: "We're living in a nightmare": After the arrival of a massive Bitcoin mining facility, residents of Granbury, Texas are experiencing intense migraines, vertigo and heart conditions. One mom says her 8-year-old has lost hearing and has fluid leaking from her ears. - Robert Downen (@RobertDownen_)
The best way to reach new readers is through word of mouth. If you click THIS LINK in your inbox, it’ll create an easy-to-send pre-written email you can just fire off to some friends.
Google announces a market-shifting deal to capture CO2
By Justine Calma via The Verge
Google has partnered with startup Holocene on a pioneering deal to capture carbon dioxide at $100 per ton, aiming to significantly undercut the current market rate and advance carbon removal technologies.
Holocene's innovative method involves a continuous chemical process that efficiently captures CO2, contrasting with the more traditional, intermittent methods used by competitors like Climeworks.
Despite the breakthrough in carbon capture pricing and technology, experts emphasize that carbon removal should complement, not replace, essential reductions in greenhouse gas emissions to meet urgent climate goals.
𝕏: Just to be clear $100/ton from Google $180/ton 45Q $280/ton total This (likely) isn’t covering costs for Holocene let alone generating profit. This is the price they’re selling, to help fund demos. - Jack Andreasen (@AndreasenJack)
Jack Ma Urges Alibaba to Trust in Market Forces, Innovation
By Jiahui Huang via Wall Street Journal
Jack Ma, co-founder of Alibaba, emphasized the importance of embracing competition and trusting in market forces and innovation in an internal memo for the company's 25th anniversary.
Ma acknowledged the challenges faced by Alibaba's businesses and the inevitability that no company can maintain industry dominance indefinitely.
He advocated for continuous adaptation and innovation as key strategies for Alibaba to remain competitive and strong in the market.
𝕏: “Our competitors are not in China, but in America’s Silicon Valley.” Jack Ma introduces Alibaba for the first time to 17 people in his apartment in 1999. 20 years later, Alibaba sold $38.4 billion dollars of products in just one day. - Vala Afshar (@ValaAfshar)
US accuses China of giving 'very substantial' help to Russia's war machine
By Stuart Lau via POLITICO
U.S. officials accuse China of providing substantial assistance directly to Russia's war efforts, not just dual-use technology.
In a reciprocal exchange, Russia is transferring sensitive military technologies to China, including submarine and missile technologies, areas previously off-limits.
Both countries are reportedly working to conceal this collaboration, with many operations being driven underground.
𝕏: Now Washington is unambiguously saying that China is aiding the Russian military. - Velina Tchakarova (@vtchakarova)
Trending in AI
Mistral's first multimodal AI model takes on OpenAI's GPT-4o
Sergey Brin says he’s working on AI at Google ‘pretty much every day’
Reflection 70B model maker breaks silence amid fraud accusations
Thanks for reading to the bottom and soaking in our Newslit Daily fueled with highlights for your morning.
I hope you found it interesting and, needless to say, if you have any questions or feedback let me know by hitting reply.
Take care and see you tomorrow!
P.S. Want to advertise with us? We’d love to hear from you.
How was today’s email?