An anonymous reader quotes a report from Ars Technica: A Polish programmer running on fumes recently accomplished what may soon become impossible: beating an advanced AI model from OpenAI in a head-to-head coding competition. The 10-hour marathon left him "completely exhausted." On Wednesday, programmer Przemysaw Debiak (known as "Psyho"), a former OpenAI employee, narrowly defeated the custom AI model in the AtCoder World Tour Finals 2025 Heuristic contest in Tokyo. AtCoder, a Japanese platform that hosts competitive programming contests and maintains global rankings, held what may be the first contest where an AI model competed directly against top human programmers in a major onsite world championship. During the event, the maker of ChatGPT participated as a sponsor and entered an AI model in a special exhibition match titled "Humans vs AI." Despite the tireless nature of silicon, the company walked away with second place.

The competition required contestants to solve a single complex optimization problem over 600 minutes. The contest echoes the American folk tale of John Henry, the steel-driving man who raced against a steam-powered drilling machine in the 1870s. Like Henry's legendary battle against industrial automation, Debiak's victory represents a human expert pushing themselves to their physical limits to prove that human skill still matters in an age of advancing AI. Both stories feature exhausting endurance contests -- Henry drove steel spikes for hours until his heart gave out, while Debiak coded for 10 hours on minimal sleep. The parallel extends to the bittersweet nature of both victories: Henry won his race but died from the effort, symbolizing the inevitable march of automation, while Debiak's acknowledgment that humanity prevailed "for now" suggests he recognizes this may be a temporary triumph against increasingly capable machines. While Debiak won 500,000 yen and survived his ordeal better than the legendary steel driver, the AtCoder World Tour Finals pushes humans and AI models to their limits through complex optimization challenges that have no perfect solution -- only incrementally better ones. "Humanity has prevailed (for now!)," wrote Debiak on X, noting he had little sleep while competing in several competitions across three days. "I'm completely exhausted. ... I'm barely alive."

"The Luxembourg-based satellite company SES has now completed its acquisition of the European-based satellite company Intelsat, giving the combined company 120 active satellites in a variety of low and high Earth orbits," writes longtime Slashdot reader schwit1. "Both companies are long established, with Intelsat initially founded in the mid-1960s as a consortium of 23 nations aimed at launching the first geosynchronous communications satellites over the Atlantic and Pacific serving most of the Old World and linked to the New. The merger is an attempt by both companies to compete with the new low-orbit constellations of SpaceX, Amazon, and from China." From a press release: With a world-class network including approximately 90 geostationary (GEO), nearly 30 medium earth orbit (MEO) satellites, strategic access to low earth orbit (LEO) satellites, and an extensive ground network, SES can now deliver connectivity solutions utilizing complementary spectrum bands including C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency. The expanded capabilities of the combined company will enable it to deliver premium-quality services and tailored solutions to its customers. The company's assets and networks, once fully integrated, will put SES in a strong competitive position to better serve the evolving needs of its customers including governments, aviation, maritime, and media across the globe. "Our focus is clear: to grow, to lead in high-potential markets, and to shape the future of our industry," said SES CEO Adel Al-Saleh in a statement. "This is a long-term play, and we are building with the future in mind -- growing year after year, expanding our capabilities, and creating lasting value for our customers and shareholders alike."

Fierce Network notes that the FCC is preparing to auction upper C-band spectrum (3.98-4.2 GHz), previously cleared in part by SES and Intelsat and now eyed for 5G expansion by Verizon and AT&T. With new legislative backing and industry pressure, including from CTIA and FCC Chairman Brendan Carr, the agency is being urged to act quickly to auction and open this spectrum for full-power wireless use.

The U.S. Department of Defense has awarded contracts worth up to $200 million each to OpenAI, Google, Anthropic, and xAI to scale adoption of advanced AI. "The contracts will enable the DoD to develop agentic AI workflows and use them to address critical national security challenges," reports Reuters, citing the department's Chief Digital and Artificial Intelligence Office. From the report: Separately on Monday, xAI announced a suite of its products called "Grok for Government", making its advanced AI models -- including its latest flagship Grok 4 -- available to federal, local, state and national security customers. The Pentagon announced last month that OpenAI was awarded a $200 million contract, saying the ChatGPT maker would "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains."

The contracts announced on Monday deepen the ties between companies leading the AI race and U.S. government operations, while addressing concerns around the need for competitive contracts for AI use in federal agencies. "The adoption of AI is transforming the (DoD's) ability to support our warfighters and maintain strategic advantage over our adversaries," Chief Digital and AI Officer Doug Matty said.

HGP Storage is a (real) Texas company providing distributed battery-based, utility-scale energy storage systems. Founded in 2013, it has "successfully developed over 20+ sites and closed over 200 MW of distributed energy projects," according to its web site.

And they just teamed up with Enron, reports the Houston Chronicle: The company that took over the defunct Enron brand, led by a "Birds Aren't Real" cofounder [28-year-old Connor Gaydos], held a mostly satirical quarterly earnings call Thursday afternoon but gave updates to an application to become a legitimate Texas energy provider... DJ Withee, chief operating officer and legal counsel at HGP Storage, a company developing utility-scale battery storage farms, was introduced as Enron's vice president of energy service. Withee said he was brought on by Gaydos to set up the customer-facing energy services business.

Enron Energy Texas LLC, a subsidiary of Enron, filed to become a Texas retail electric provider in January. Gaining this designation would allow Enron to sell electricity plans to Texas consumers. "Our business model is actually going to be very simple," Withee said. "We buy wholesale electricity, just like everybody else, but because of our efficiency, because of our use of technology, we are going to have lower costs than our competitors. Lower costs means greater savings that we can pass back to our customers...." According to Withee, Enron's goal is to provide energy at a competitive lower cost that will not only make energy more accessible but also push other Texas retail companies to drop their own prices...

Enron's filing in January included sworn and notarized affidavits from a man named Gregory Forero, who was identified in the documents as vice president of Enron Texas Energy LLC. Forero is the founder and CEO of HGP Storage.
"Forero, who signed his name to three sworn affidavits attesting to the accuracy of the application, could risk perjury charges if the statements of intention to start a legitimate retail electric company are found to be false, according to the Texas Penal Code..."

But does this replace Enron's plan to sell egg-shaped home nuclear reactors?

"The China Film Foundation, a nonprofit fund under the Chinese government, plans to use AI to revitalize 100 kung fu classics including Police Story, Once Upon a Time in China and Fist of Fury, featuring Jackie Chan, Jet Li and Bruce Lee, respectively," reports the Los Angeles Times.

"The foundation said it will partner with businesses including Shanghai Canxing Culture & Media Co., which will license 100 Hong Kong films to AI companies to reintroduce those movies to younger audiences globally." The foundation said there are opportunities to use AI to tell those stories through animation, for example. There are plans to release an animated version of director John Woo's 1986 film A Better Tomorrow that uses AI to "reinterpret" Woo's "signature visual language," according to an English transcript of the announcement....

The project raised eyebrows among U.S. artists, many of whom are deeply wary of the use of AI in creative pursuits. The Directors Guild of America said AI is a creative tool that should only be used to enhance the creative storytelling process and "it should never be used retroactively to distort or destroy a filmmaker's artistic work... The DGA strongly opposes the use of AI or any other technology to mutilate a film or to alter a director's vision," the DGA said in a statement. "The Guild has a longstanding history of opposing such alterations on issues like colorization or sanitization of films to eliminate so-called 'objectionable content', or other changes that fundamentally alter a film's original style, meaning, and substance."

The project highlights widely divergent views on AI's potential to reshape entertainment as the two countries compete for dominance in the highly competitive AI space.... During the project's announcement, supporters touted the opportunity AI will bring to China to further its cultural message globally and generate new work for creatives. At the same time, they touted AI's disruption of the filmmaking process, saying the A Better Tomorrow remake was completed with just 30 people, significantly fewer than a typical animated project. China is a "more brutal society in that sense," said Eric Harwit, professor of Asian studies at the University of Hawaii at Manoa. "If somebody loses their job because artificial intelligence is taking over, well, that's just the cost of China's moving forward.... You don't have those freestanding labor organizations, so they don't have that kind of clout to protest against the Chinese using artificial intelligence in a way that might reduce their job opportunities or lead to layoffs in the sector..."

The kung fu revitalization efforts will extend into other areas, including the creation of a martial arts video game.
The article also includes an interesting statistic. "Many people in China embrace AI, with 83% feeling confident that AI systems are designed to act in the best interest of society, much higher than the U.S. where it's 37%, according to a survey from the United Nations Development Program."

"Apple quietly dropped a new AI model on Hugging Face with an interesting twist," writes 9to5Mac. "Instead of writing code like traditional LLMs generate text (left to right, top to bottom), it can also write out of order, and improve multiple chunks at once."

"The result is faster code generation, at a performance that rivals top open-source coding models." Traditionally, most LLMs have been autoregressive. This means that when you ask them something, they process your entire question, predict the first token of the answer, reprocess the entire question with the first token, predict the second token, and so on. This makes them generate text like most of us read: left to right, top to bottom... An alternative to autoregressive models is diffusion models, which have been more often used by image models like Stable Diffusion. In a nutshell, the model starts with a fuzzy, noisy image, and it iteratively removes the noise while keeping the user request in mind, steering it towards something that looks more and more like what the user requested...

Lately, some large language models have looked to the diffusion architecture to generate text, and the results have been pretty promising... This behavior is especially useful for programming, where global structure matters more than linear token prediction... [Apple] released an open-source model called DiffuCode-7B-cpGRPO, that builds on top of a paper called DiffuCoder: Understanding and Improving Masked Diffusion Models for Code Generation, released just last month... [W]ith an extra training step called coupled-GRPO, it learned to generate higher-quality code with fewer passes. The result? Code that's faster to generate, globally coherent, and competitive with some of the best open-source programming models out there.

Even more interestingly, Apple's model is built on top of Qwen2.5-7B, an open-source foundation model from Alibaba. Alibaba first fine-tuned that model for better code generation (as Qwen2.5-Coder-7B), then Apple took it and made its own adjustments. They turned it into a new model with a diffusion-based decoder, as described in the DiffuCoder paper, and then adjusted it again to better follow instructions. Once that was done, they trained yet another version of it using more than 20,000 carefully picked coding examples.
"Although DiffuCoder did better than many diffusion-based coding models (and that was before the 4.4% bump from DiffuCoder-7B-cpGRPO), it still doesn't quite reach the level of GPT-4 or Gemini Diffusion..." the article points out.

But "the bigger point is this: little by little, Apple has been laying the groundwork for its generative AI efforts with some pretty interesting and novel ideas."

The US dollar is on track for its worst year in modern history and may not be done falling yet. The greenback is down more than 7% this year and Morgan Stanley predicts it could fall another 10%. Semafor: A weaker dollar could make US exports more competitive, boosting Trump's plan to rebalance US trade, but makes imports more expensive, adding to the sting of tariffs.

The question ahead is whether the dollar doesn't just lose its value, but its role at the center of the global financial system. So far, there are few alternatives. And efforts to de-dollarize -- central banks shifting into gold, China shoveling its currency into developing nations through swap lines -- haven't meaningfully shifted the picture.

An anonymous reader quotes a report from Reuters: Intel's new chief executive is exploring a big change to its contract manufacturing business to win major customers, two people familiar with the matter told Reuters, in a potentially expensive shift from his predecessor's plans. The new strategy for Intel's foundry business would mean offering outside customers a newer generation of technology, the people said. That next-generation chipmaking process, analysts believe, will be more competitive against Taiwan Semiconductor Manufacturing Co in trying to land major customers such as Apple or Nvidia.

Since taking the company's helm in March, CEO Lip-Bu Tan has moved fast to cut costs and find a new path to revive the ailing U.S. chipmaker. By June, he started voicing that a manufacturing process known as 18A, in which prior CEO Pat Gelsinger had invested heavily, was losing its appeal to new customers, said the sources, who spoke on condition of anonymity. To put aside external sales of 18A and its variant 18A-P, manufacturing processes that have cost Intel billions of dollars to develop, the company would have to take a write-off, one of the people familiar with the matter said. Industry analysts contacted by Reuters said such a charge could amount to a loss of hundreds of millions, if not billions, of dollars.

Intel declined to comment on such "hypothetical scenarios or market speculation." It said the lead customer for 18A has long been Intel itself, and it aims to ramp production of its "Panther Lake" laptop chips later in 2025, which it called the most advanced processors ever designed and manufactured in the United States. Persuading outside clients to use Intel's factories remains key to its future. As its 18A fabrication process faced delays, rival TSMC's N2 technology has been on track for production. Tan's preliminary answer to this challenge: focus more resources on 14A, a next-generation chipmaking process where Intel expects to have advantages over Taiwan's TSMC, the two sources said. The move is part of a play for big customers like Apple and Nvidia, which currently pay TSMC to manufacture their chips.

U.S. lawmakers have reintroduced the bipartisan Open App Markets Act, aiming to curb Apple and Google's control over mobile app stores by promoting competition, supporting third-party marketplaces and sideloading, and safeguarding developer rights. AppleInsider reports: The Open App Markets Act seeks to do a number of things, including:
- Protect developers' rights to tell consumers about lower prices and offer competitive pricing;
- Protect sideloading of apps;
- Promote competition by opening the market to third-party app stores, startup apps, and alternative payment systems;
- Make it possible for developers to offer new experiences that take advantage of consumer device features;
- Give consumers greater control over their devices;
- Prevent app stores from disadvantaging developers; and
- Establish safeguards to preserve consumer privacy, security, and safety.

This isn't the first time we've seen this bill, either. In 2021, Senators Blumenthal, Klobuchar, and Blackburn had attempted to put forth the original version of the Open App Markets Act.However, the initial bill never made it to the floor for an office vote. Thanks to last-minute efforts by lobbying groups and appearances from chief executives, the bill eventually stalled out.

While the two bills are largely similar, the revised version introduces several key differences. Notably, the new version includes new carve-outs aimed at protecting intellectual property and addressing potential national security concerns.There's also a new clause that would prohibit punitive actions against developers for enabling remote access to other apps. The clause addition harkens back to the debacle between Apple and most game streaming services -- though in 2024, Apple loosened its App Store guidelines to allow cloud gaming and emulation.

There are a few new platform-protective clauses added, too. For instance, it would significantly lower the burden of proof for either Apple or Google to block platform access to a third-party app.Additionally, it reinforces the fact that companies like Apple or Google will not need to provide support or refunds for third-party apps installed outside of first-party app marketplaces. The full bill can be found here.

Ford is moving forward with its $3 billion EV battery plant in Michigan despite political pushback and the potential loss of key U.S. tax credits that make the project financially viable. Axios reports: Ford's argument is that by building batteries using technology licensed from China's leading battery producer, CATL, it is helping to re-shore important manufacturing expertise that was long ago ceded to China. [...] "LFP batteries are produced all around Europe, and the rest of the world," said Lisa Drake, Ford's vice president of technology platform programs and EV systems. "How can we compete if we don't have this technology? Somebody has to take the lead to do this," she said, adding that it will lead to homegrown innovation and the seeding of a domestic supply base. "I'm convinced this is the right thing to do for the United States," she said.

Drake said the tax subsidies are even more important in the face of slower-than-expected EV demand. "When EV adoption slowed, it just became a huge headwind," she said. "The [production tax credit] allows us to keep on this path, and to keep going." "We don't want to back off on scaling, hiring or training in an industry we need to be competitive in the future," she said. "It would be a shame to build these facilities and then have to scale back on the most important part of it, which is the people. These are 1,700 jobs. They don't come along very often."

Consumer tax credits for EV purchases get the most attention, but for manufacturers, the far more lucrative incentives come in the form of production tax credits. Companies could receive a tax credit of $35 per kilowatt-hour for each U.S.-made cell, and another $10 per kilowatt-hour for each battery pack. With an annual production capacity of 20 GWh, Ford's battery plant could potentially receive a $900 million tax credit, offsetting almost one-third of its investment. [...] The Republican-controlled Senate could vote as early as Wednesday on a budget bill that would rewrite language around EV tax credits. A House version of the bill passed last month effectively killed the production tax credits for manufacturers by severely tightening the eligibility requirements. It also specifically prohibited credits for batteries made in the U.S. under a Chinese licensing agreement -- a direct hit on Ford.

IYO filed a trademark infringement lawsuit [PDF] against OpenAI and Jony Ive's company earlier this month, alleging the defendants deliberately adopted a confusingly similar name for competing products. The lawsuit surfaced after the Microsoft-backed startup quietly pulled promotional materials about its $6.5 acquisition billion deal with Ive's firm.

The Northern District of California complaint targets OpenAI's $6.5 billion acquisition of "IO Products, Inc.," announced May 21, 2025. IYO, which spun out from Google X in 2021, produces the "IYO ONE," an ear-worn device that allows users to interact with computers and AI through voice commands without screens or keyboards.

IYO has invested over $62 million developing its audio computing technology, it says in the filing. According to the complaint, OpenAI CEO Sam Altman and Ive's design studio LoveFrom met with IYO representatives multiple times between 2022 and 2025, learning details about IYO's technology and business plans. In March 2025, Altman allegedly told IYO he was "working on something competitive" called "io." IO Products, formed in September 2023, develops hardware for screenless computer interaction similar to IYO's products. The lawsuit seeks injunctive relief and damages for trademark infringement and unfair competition.

French President Emmanuel Macron urged Europe to reassert itself as a global space power, warning that France risks being sidelined in the low Earth orbit satellite market dominated by players like SpaceX and China. Phys.Org reports: Macron spoke at the Paris Air Show in Le Bourget outside the French capital a day after France more than doubled its stake in satellite operator Eutelsat, the EU rival to Elon Musk's Starlink. Macron called for more investment as the European space industry struggles to remain competitive in the face of US and Chinese rivals. "SpaceX has disrupted the market, Amazon is also getting involved. China is not far behind, and I think we all need to be very clear-headed," Macron said. Europe must become "a space power once again, with France at its heart," he said. He warned that Europeans were "on the verge of being completely" squeezed out of the low Earth orbit (LEO) satellite constellation market.

Macron said France and its partners should not be reliant on non-European constellations in low orbit, calling it "madness." He called non-European players to team up with France. "This must be the solution for our major strategic partners in the Gulf, India, Canada and Brazil," he said. "We really need to succeed in increasing our collective investment effort," Macron added, noting the importance of private investors and public-private collaboration. He also said France planned to organize a space summit in early 2026 to "mobilize our public and private partners across the globe."

A new benchmark assembled by a team of International Olympiad medalists suggests the hype about large language models beating elite human coders is premature. LiveCodeBench Pro, unveiled in a 584-problem study [PDF] drawn from Codeforces, ICPC and IOI contests, shows the best frontier model clears just 53% of medium-difficulty tasks on its first attempt and none of the hard ones, while grandmaster-level humans routinely solve at least some of those highest-tier problems.

The researchers measured models and humans on the same Elo scale used by Codeforces and found that OpenAI's o4-mini-high, when stripped of terminal tools and limited to one try per task, lands at an Elo rating of 2,116 -- hundreds of points below the grandmaster cutoff and roughly the 1.5 percentile among human contestants. A granular tag-by-tag autopsy identified implementation-friendly, knowledge-heavy problems -- segment trees, graph templates, classic dynamic programming -- as the models' comfort zone; observation-driven puzzles such as game-theory endgames and trick-greedy constructs remain stubborn roadblocks.

Because the dataset is harvested in real time as contests conclude, the authors argue it minimizes training-data leakage and offers a moving target for future systems. The broader takeaway is that impressive leaderboard jumps often reflect tool use, multiple retries or easier benchmarks rather than genuine algorithmic reasoning, leaving a conspicuous gap between today's models and top human problem-solvers.

Intel will lay off 15% to 20% of its factory workforce starting in July, potentially cutting over 10,000 jobs as part of a broader effort to streamline operations amid declining sales and mounting competitive pressure. "These are difficult actions but essential to meet our affordability challenges and current financial position of the company. It drives pain to every individual," Intel manufacturing Vice President Naga Chandrasekaran wrote to employees Saturday. "Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution. We are making these decisions based on careful consideration of what's needed to position our business for the future." The company reiterated that "we will treat people with care and respect as we complete this important work." Oregon Live reports: Intel announced the pending layoffs in April and notified factory workers last week that the cuts would begin in July. It hadn't previously said just how deep the layoffs will go. The company had 109,000 employees at the end of 2024, but it's not clear how many of those worked in its factory division -- called Intel Foundry. The Foundry business includes a broad array of jobs, from technicians on the factory floor to specialized researchers who work years in advance to develop future generations of microprocessors.

Intel is planning major cuts in other parts of its business, too, but employees say the company hasn't specified how many jobs it will eliminate in each business unit. Workers say they believe the impacts will vary within departments. Overall, though, the layoffs will surely eliminate several thousand jobs -- and quite possibly more than 10,000.

An anonymous reader quotes a report from The Register: Australian SaaS-y graphic design service Canva now requires candidates for developer jobs to use AI coding assistants during the interview process. [...] Canva's hiring process previously included an interview focused on computer science fundamentals, during which it required candidates to write code using only their actual human brains. The company now expects candidates for frontend, backend, and machine learning engineering roles to demonstrate skill with tools like Copilot, Cursor, and Claude during technical interviews, Canva head of platforms Simon Newton wrote in a Tuesday blog post.

His rationale for the change is that nearly half of Canva's frontend and backend engineers use AI coding assistants daily, that it's now expected behavior, and that the tools are "essential for staying productive and competitive in modern software development." Yet Canva's old interview process "asked candidates to solve coding problems without the very tools they'd use on the job," Newton admitted. "This dismissal of AI tools during the interview process meant we weren't truly evaluating how candidates would perform in their actual role," he added. Candidates were already starting to use AI assistants during interview tasks -- and sometimes used subterfuge to hide it. "Rather than fighting this reality and trying to police AI usage, we made the decision to embrace transparency and work with this new reality," Newton wrote. "This approach gives us a clearer signal about how they'll actually perform when they join our team." The initial reaction among engineers "was worry that we were simply replacing rigorous computer science fundamentals with what one engineer called 'vibe-coding sessions,'" Newton said.

The company addressed these concerns with a recruitment process that sees candidates expected to use their preferred AI tools, to solve what Newton described as "the kind of challenges that require genuine engineering judgment even with AI assistance." Newton added: "These problems can't be solved with a single prompt; they require iterative thinking, requirement clarification, and good decision-making."

OpenAI plans to add Alphabet's Google cloud service to meet its growing needs for computing capacity, Reuters reported Tuesday, marking a surprising collaboration between two prominent competitors in the AI race. From the report: The deal, which has been under discussion for a few months, was finalized in May, one of the sources added. It underscores how massive computing demands to train and deploy AI models are reshaping the competitive dynamics in AI, and marks OpenAI's latest move to diversify its compute sources beyond its major supporter Microsoft, including its high-profile Stargate data center project.

It is a win for Google's cloud unit, which will supply additional computing capacity to OpenAI's existing infrastructure for training and running its AI models, sources said, who requested anonymity to discuss private matters. The move also comes as OpenAI's ChatGPT poses the biggest threat to Google's dominant search business in years, with Google executives recently saying that the AI race may not be winner-take-all.

Meta is preparing to unveil a new AI research lab dedicated to pursuing "superintelligence," a hypothetical A.I. system that exceeds the powers of the human brain, as the tech giant jockeys to stay competitive in the technology race, New York Times reported Tuesday, citing four people with the knowledge of the company's plans. From the report: Meta has tapped Alexandr Wang, 28, the founder and chief executive of the A.I. start-up Scale AI, to join the new lab, the people said, and has been in talks to invest billions of dollars in his company as part of a deal that would also bring other Scale employees to the company.

Meta has offered seven- to nine-figure compensation packages to dozens of researchers from leading A.I. companies such as OpenAI and Google, with some agreeing to join, according to the people. The new lab is part of a larger reorganization of Meta's A.I. efforts, the people said. The company, which owns Facebook, Instagram and WhatsApp, has recently grappled with internal management struggles over the technology, as well as employee churn and several product releases that fell flat, two of the people said.

Intel has implemented a strict new policy requiring all new projects to demonstrate at least a 50% gross margin to move forward. CEO Lip-Bu Tan explained Intel's new risk-averse policy as "something that we probably should have had before," later clarifying that the number is a figure the company is aspiring toward internally. Tom's Hardware reports: Tan is reportedly "laser focused on the fact that we need to get our gross margins back up above 50%." To accomplish this, Tan is also said to be investigating and potentially cancelling or changing unprofitable deals with other companies. Intel's margins have slipped to new lows for the company in recent months. MacroTrends reports Intel's trailing 12 months gross margin for Q1 2025 was as low as 31.67%. Intel's gross margins had hovered around the 60% mark for the ten years leading up to the COVID-19 pandemic, falling beneath 50% in Q2 2022 and continuing to steadily fall ever since.

Holthaus predicts a "tug-of-war" to ensue within Intel in the coming months as engineers and executives reckon with being forced between a rock and a hard place. "We need to be building products that... fit the right competitive landscape and requirements of our customers, but also have the right cost structure in place. It really requires us to do both." [...] Tan is also quoted as wanting to turn Intel into an "engineering-focused company" again under his leadership. To reach this, Tan has committed to investing in recruiting and retaining top talent; "I believe Intel has lost some of this talent over the years; I want to create a culture of innovation empowerment." Maintaining a culture of empowering innovation and top talent seems, on its face, at odds with layoffs and a lock on projects not projected to gross 50% margins, but Tan seemingly has Intel investors on his side in these pursuits.

Qualcomm announced plans to re-enter the data center market with custom CPUs designed to integrate with Nvidia GPUs and software. As CNBC reports, the move supports Qualcomm's broader strategy to diversify beyond smartphones and into high-growth areas like data centers, PCs, and automotive chips. From the report: "I think we see a lot of growth happening in this space for decades to come, and we have some technology that can add real value added," Cristiano Amon, CEO of Qualcomm, told CNBC in an interview on Monday. "So I think we have a very disruptive CPU." Amon said the company will make an announcement about the CPU roadmap and the timing of its release "very soon," without offering specifics. The data center CPU market remains highly competitive. Big cloud computing players like Amazon and Microsoft already design and deploy their own custom CPUs. AMD and Intel also have a strong presence.

Addressing the competition, Amon said that there will be a place for Qualcomm in the data center CPU space. "As long as ... we can build a great product, we can bring innovation, and we can add value with some disruptive technology, there's going to be room for Qualcomm, especially in the data center," Amon said. "[It] is a very large addressable market that will that will see a lot of investment for decades to come." Last week, Qualcomm signed a memorandum of understanding with Saudi-based AI frim Humain to develop data centers, joining a slew of U.S. tech companies making deals in the region. Humain will operate under Saudi Arabia's Public Investment Fund.

An anonymous reader quotes a report from Ars Technica: Meta thinks there's no reason to carry on with its defense after the Federal Trade Commission closed its monopoly case, and the company has moved to end the trial early by claiming that the FTC utterly failed to prove its case. "The FTC has no proof that Meta has monopoly power," Meta's motion for judgment (PDF) filed Thursday said, "and therefore the court should rule in favor of Meta." According to Meta, the FTC failed to show evidence that "the overall quality of Meta's apps has declined" or that the company shows too many ads to users. Meta says that's "fatal" to the FTC's case that the company wielded monopoly power to pursue more ad revenue while degrading user experience over time (an Internet trend known as "enshittification"). And on top of allegedly showing no evidence of "ad load, privacy, integrity, and features" degradation on Meta apps, Meta argued there's no precedent for an antitrust claim rooted in this alleged harm.

"Meta knows of no case finding monopoly power based solely on a claimed degradation in product quality, and the FTC has cited none," Meta argued. Meta has maintained throughout the trial that its users actually like seeing ads. In the company's recent motion, Meta argued that the FTC provided no insights into what "the right number of ads" should be, "let alone" provide proof that "Meta showed more ads" than it would in a competitive market where users could easily switch services if ad load became overwhelming. Further, Meta argued that the FTC did not show evidence that users sharing friends-and-family content were shown more ads. Meta noted that it "does not profit by showing more ads to users who do not click on them," so it only shows more ads to users who click ads.

Meta also insisted that there's "nothing but speculation" showing that Instagram or WhatsApp would have been better off or grown into rivals had Meta not acquired them. The company claimed that without Meta's resources, Instagram may have died off. Meta noted that Instagram co-founder Kevin Systrom testified that his app was "pretty broken and duct-taped" together, making it "vulnerable to spam" before Meta bought it. Rather than enshittification, what Meta did to Instagram could be considered "a consumer-welfare bonanza," Meta argued, while dismissing "smoking gun" emails from Mark Zuckerberg discussing buying Instagram to bury it as "legally irrelevant." Dismissing these as "a few dated emails," Meta argued that "efforts to litigate Mr. Zuckerberg's state of mind before the acquisition in 2012 are pointless."

"What matters is what Meta did," Meta argued, which was pump Instagram with resources that allowed it "to 'thrive' -- adding many new features, attracting hundreds of millions and then billions of users, and monetizing with great success." In the case of WhatsApp, Meta argued that nobody thinks WhatsApp had any intention to pivot to social media when the founders testified that their goal was to never add social features, preferring to offer a simple, clean messaging app. And Meta disputed any claim that it feared Google might buy WhatsApp as the basis for creating a Facebook rival, arguing that "the sole Meta witness to (supposedly) learn of Google's acquisition efforts testified that he did not have that worry." In sum: A ruling in Meta's favor could prevent a breakup of its apps, while a denial would push the trial toward a possible order to divest Instagram and WhatsApp.