Tech Giants & AI Spending Shifts

-25%IBM stock plunge

$17.2BIBM Q2 revenue

$1.5BDeepSeek funding talks

IBM's 25% stock plunge signals a critical re-evaluation of enterprise AI spending, impacting the broader software sector.

IBM shares plummeted over 25% after the tech giant issued a profit warning and reported disappointing preliminary second-quarter results, with revenue up only 1% year-over-year to $17.2 billion, attributing the shortfall to corporate customers rethinking AI spending. The Guardian Forbes

SK Hynix South Korean shares jumped 8% as Asian technology stocks rallied, tracking a rebound in US semiconductor shares after a sharp selloff earlier this week, with the company's stock surging 13% on renewed AI hopes. CNBC Reuters

ASML raised its sales forecast for the second time this year, with shares rising 5% after the company reported strong demand for AI chips, as customers continue to ramp up production capacity. CNBC

Chinese large language model developer DeepSeek is reportedly in talks to raise $1.5 billion at a $71 billion valuation, with plans for an IPO debut in 2027. TechCrunch

AI Regulation & Policy

Governments are moving to regulate AI's impact on copyright and infrastructure, while industry leaders call for global standards.

Australia announced the creation of a new Office of AI within the Prime Minister's department, promising "the strongest possible protection" for creatives against AI misuse and establishing strict new rules for energy-intensive data centers. The Guardian The Guardian

New York became the first US state to enact a one-year moratorium on new hyperscale AI data centers over 50 megawatts, with Governor Kathy Hochul issuing an executive order to address rising energy prices and environmental impact. The Guardian CNBC

A group of major publishers, including Hachette Book Group and Elsevier, filed a lawsuit against Google, accusing the tech giant of illegally using millions of copyrighted books to train its Gemini AI models. The Guardian

Google DeepMind CEO Demis Hassabis called for an independent standards body, modeled after FINRA, to regulate frontier AI models, advocating for the US to spearhead its establishment. TechCrunch CNBC

AI Hardware & Innovation

The race for consumer-facing AI devices heats up, with OpenAI reportedly entering the hardware market and Apple exploring on-device AI.

OpenAI is reportedly developing its first hardware device, a movable, screenless smart speaker designed as an AI companion that can interact with its environment using a camera and sensors. Yahoo Finance TechCrunch

Apple opened its new Siri AI to the public with the iOS 27 beta release, giving iPhone users early access to the revamped AI-powered assistant and other features. TechCrunch

Apple is reportedly in talks with PrismML, a startup specializing in shrinking AI models to run efficiently on iPhones, potentially advancing Apple's on-device AI capabilities. CNBC

CXMT, a key player in China's domestic AI technology push, aims to raise nearly $10 billion in a Shanghai public offering to bolster its chip development efforts. The New York Times

Financial Markets & Economic Outlook

+1%Nasdaq rally

$6BJPMorgan stock trading haul

Cooling inflation data boosted markets, while major banks reported record earnings, but Fed officials remain cautious.

US stock futures rose as softer-than-expected June consumer inflation data, driven by falling gas prices, boosted market sentiment, with the Nasdaq looking to extend its rally. WSJ Fox Business

JPMorgan Chase reported its highest quarterly profit ever for a US bank, driven by a record $6 billion haul from stock trading and a surge in dealmaking, with CEO Jamie Dimon describing the banking environment as "close to as good as it gets." Yahoo Finance Bloomberg.com

Federal Reserve Chairman Kevin M. Warsh testified before Congress for the first time, reiterating the Fed's commitment to reducing inflation but offering no specific details on whether he supports higher interest rates. The New York Times

SpaceX shares fizzled to close just $1 above its IPO price weeks after its debut, with analysts citing concerns including China's influence and broader market sentiment. Yahoo Finance

Politics & Government

Congressional scrutiny on AI chip exports and crypto regulation intensifies, while a new fund targets Central Asian trade.

House lawmakers grilled Jeffrey Kessler, the Trump administration official overseeing export controls, on the White House’s record regarding advanced AI chip sales. The Hill

Actor Ben McKenzie urged Senate Democrats to vote against a cryptocurrency regulation bill, citing a lack of ethics provisions to limit President Trump’s involvement in the industry. The Hill

Konstantin Sokolov, a Russian-born private equity investor, will chair a new State Department enterprise fund overseeing over $200 million for a Central Asia trade corridor, focusing on transportation, energy infrastructure, and critical minerals. The Guardian

Quick Shots

🤖 Meta faces a lawsuit alleging it used AI tools to disproportionately tag employees for mass layoffs after they took protected leave. The Guardian
💊 An OpenAI researcher is in talks to launch an AI drug discovery startup valued at $2 billion, focusing on obesity treatments that don't target GLP-1. TechCrunch STAT+
📚 Anthropic launched "Claude for Teachers," a free version of its chatbot specifically designed for K-12 educators in the US. The Hill
🛰️ The FCC approved Reflect Orbital's plan to launch an experimental space mirror satellite to reflect sunlight to dark parts of Earth. The Hill
📱 Google and Epic Games have ended their legal battle, paving the way for third-party Android app stores to launch next week. The Verge

Wednesday, July 15, 2026