SOCIAL MEDIA
Meta plans move to Texas
Meta Platforms Inc is considering moving its incorporation to Texas, a state seen as amenable to companies run by big shareholders like Mark Zuckerberg, the Wall Street Journal reported on Friday. The social media giant has been incorporated in Delaware since 2004, when the company was known as Facebook. A shift to Texas by Meta would follow in the footsteps of Elon Musk, who switched incorporation of Tesla Inc and some other companies he runs to the state after a Delaware judge voided his huge compensation package. In a ruling, Delaware Chancery Court Judge Kathaleen McCormick sided with a shareholder who claimed the Tesla CEO was overpaid, approving the annulment of Musk’s 2018 compensation agreement worth as much as US$55.8 billion. Suits filed by shareholders are typically heard in courts where companies are incorporated, and Texas portrays itself as a friendly venue for companies run by shareholders with controlling interests. Meta spokesperson Andy Stone said he could not confirm the report and that the company had no plans to move its headquarters from California’s Silicon Valley.
TECHNOLOGY
OpenAI reacts to DeepSeek
OpenAI chief Sam Altman on Friday said his high-profile artificial intelligence (AI) company is “on the wrong side of history” when it comes to being open about how its technology works during an Ask Me Anything session on Reddit where he fielded questions including whether he would consider publishing OpenAI research. Altman said he was in favor of the idea and that it is a topic of discussion inside San Francisco-based OpenAI. “I personally think we have been on the wrong side of history here and need to figure out a different open source strategy,” Altman said. “Not everyone at OpenAI shares this view, and it’s also not our current highest priority.” Chinese AI newcomer DeepSeek has made headlines for its chatbot’s supposed low cost and high performance, but also its claim to be a public-spirited “open-source” project in contrast to closed alternatives from OpenAI and Google. Open source refers to the practice of programmers revealing the source code of their software, rather than just the “compiled” program ready to run on a computer. This has clashed with private companies’ pursuit of revenue and intellectual property protection. Meta, DeepSeek and France-based AI developer Mistral claim to set themselves apart by allowing developers free access to their tools’ inner workings.
UNIONS
Starbucks, union agree
Starbucks Corp and Workers United have agreed to withdraw lawsuits against each other, taking another key step toward a contract deal for unionized locations. After years of conflict, the two sides announced in February last year they had agreed to work to resolve their disagreements, including litigation stemming from social media posts about the Israel-Hamas war. The talks broke down late last year over the issue of pay, with the union also saying the two parties had not reached a resolution on the lawsuits. On its Web site, the company said it continues to work toward reaching an “agreement on a framework for single-store contracts.” Starbucks and the union agreed to bring in an outside mediator for the negotiations. “We’re proud to support Starbucks baristas in their fight for a fair contract and their fast-growing organizing movement,” the union said in a statement on Friday. Starbucks declined to comment beyond the statement on its Web site.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
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