Mon. 02/17 – Folks Are Circling Intel

Feb 17, 2025 17m

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Episode Description

The vultures are circling Intel, if that’s not too aggressive an analogy. OpenAI’s board officially rejects Elon’s bid. Zelle is quietly the biggest player in P2P payments. Everybody wants to go after robotics as the next big thing. And why over a thousand tech unicorns are in trouble. Sponsors: QualiaLife.com/ride and code RIDE at checkout Links: TSMC Considers Running Intel’s US Factories After Trump Team Request (Bloomberg) Broadcom, TSMC Weigh Possible Intel Deals That Would Split Storied Chip Maker (WSJ) OpenAI Rejects Elon Musk’s $97.4 Billion Bid for Control of the Company (NYTimes) Zelle payments top $1 trillion in 2024 as network’s growth outpaces rivals including PayPal (CNBC) TikTok Grabs Market Share From Shein Despite Looming Risks (Bloomberg) Meta Plans Major Investment Into AI-Powered Humanoid Robots (Bloomberg) Apple and Meta Are Set to Battle Over Humanoid Robots (Bloomberg) The Unicorn Boom Is Over, and Startups Are Getting Desperate (Bloomberg)

AI-Generated Summary

Intel in Crisis

The podcast discusses Intel's potential troubles as TSMC considers taking a controlling stake in Intel's U.S. factories under the Trump administration's request. The conversation highlights Intel's ongoing struggles, including a significant loss in its Foundry business, which lost over $13 billion on $17.5 billion in revenue in 2024. Intel's attempts to secure partnerships with Broadcom and TSMC could indicate an impending breakup of the once-dominant chipmaker as it tries to adapt to a shifting semiconductor industry.

OpenAI's Rejection of Elon Musk

OpenAI's board has officially rejected Elon Musk's $97.4 billion bid to acquire the non-profit organization, emphasizing their commitment to their mission rather than financial incentives. Musk's attempts are characterized as disruptive, and OpenAI firmly states that it is "not for sale," despite Musk's allegations of self-dealing by the board members. This incident underscores the ongoing competition in the AI space, particularly between Musk and OpenAI.

Zelle's Rise in P2P Payments

The podcast highlights Zelle's remarkable growth as the largest peer-to-peer payment platform in the U.S., surpassing $1 trillion in transactions for 2024. Zelle, backed by major U.S. banks, is seeing a surge in user base and transaction values year-on-year, unlike rivals such as Venmo and PayPal. Despite some criticisms regarding fraud investigations, Zelle continues to gain traction among consumers and small businesses.

TikTok Shop vs. Shein and Temu

TikTok Shop has overtaken Shein and Temu in sales growth during January 2025, showcasing its expanding influence in the online shopping market. In contrast to the slower growth of other platforms, TikTok's unique shopping feature continues to attract users, significantly shifting market shares. This trend reflects the growing impact of social media on consumer purchasing behaviors.

Meta's Investment in Robotics

Meta is preparing to invest in AI-powered humanoid robots aimed at household chores, through a newly formed team within its Reality Labs division. While initially not planning to produce a Meta-branded robot, the company’s ambitions may eventually lead to competition against Tesla’s Optimus. This move indicates a broader trend within tech companies aiming to integrate AI into robotics development.

Apple's Robotics Aspirations

Apple is exploring opportunities in robotics with a focus on creating a humanoid device combining AI and its own technologies. While the company is currently developing a tabletop device with robotic capabilities, its long-term ambitions could rival existing projects like Amazon's Astro. Apple's strategy emphasizes controlling hardware and software integration, alongside ongoing developments in its Vision Pro headset.

The Loneliness of Unicorns in Tech

A record number of 1,200 VC-backed unicorns are struggling with little chance of IPO or acquisition, signaling a downturn in the tech economy. The podcast reflects on the challenges faced by these companies as funding slows and valuations drop, leading many to enter desperate fundraising rounds. This situation highlights the changing landscape for startups that, in the past, chased growth without a focus on profitability.