The Wall Street Journal reports that Rivian "just won a yearslong battle with car dealers in Washington state that threatens the model of how cars are sold." After fighting to sell its vehicles directly to buyers, Rivian threatened to take its case to voters with a ballot measure to permit direct sales. The dealers blinked. The state's dealer lobby not only dropped its opposition to a sales loophole for Rivian and rival EV-maker Lucid, but also encouraged lawmakers to approve one. The measure became law this month...

New auto entrants like Rivian, and Tesla before it, have spent years contending with long-established U.S. state laws that require new cars to be sold through independent franchised dealers. The auto startups — typically makers of EVs — argue that they can offer a better experience by selling directly to consumers, much as Apple sells iPhones through its own stores and online. Rivian CEO RJ Scaringe has said the company is committed to direct-only sales because it's more profitable and gives the company control over how its vehicles are sold, marketed and maintained. The Washington compromise riled traditional automakers, including General Motors, Ford and Toyota, which lobbied against it, arguing it unfairly advantages startups. A trade group representing the automakers called it discriminatory and argued the exception could one day open the door to Chinese EV makers...

German automaker Volkswagen is currently facing several lawsuits from dealers over its plan to sell new Scout vehicles directly to consumers. Dealers say independent franchises are vital to the car-buying process, creating competition between dealerships that keeps prices affordable for consumers, while providing valuable services such as repairs, warranty work and financing... Yet for Washington's dealers, the prospect of putting franchise laws up for a popular vote laid bare a tough reality: given the choice, many car buyers want the freedom to avoid dealerships. Rivian's polling, which the company shared with lawmakers, showed nearly 70% of respondents favored allowing direct sales when asked whether they would support manufacturers selling cars directly to consumers...

The fight comes at a critical time for Rivian, which is launching a new, more affordable SUV in a bid to make consistent profits amid a downturn in U.S. EV sales... Rivian is able to directly sell cars in roughly half of U.S. states, but a number of them limit how many locations the company can operate. They can't disclose the price, though. For that, customers must go online.
The article notes that "Following the win, Rivian executives are eyeing other states that, like Washington, ban direct sales but also allow ballot initiatives: Arkansas, Ohio, Oklahoma, Montana, Nebraska and South Dakota..." It adds that lawmakers (from both parties) in the state of Washington had said "they have long felt pulled between giving consumers more car-buying freedom and protecting dealers, essentially small-business owners who are vital to local economies — and politically powerful."

But an executive at the Washington State Auto Dealers Association said dealers supported this new law partly because it protects them by barring future automakers from selling directly in the state, and by requiring Rivian and Lucid to adhere to the same regulations that govern how dealers operate.

Bell Labs "created many of the foundational innovations of the modern age," writes Jon Gertner, author of The Idea Factory: Bell Labs and the Great Age of American Innovation — from transistors and telecommunications satellites to Unix and the C programming language.

But what was the secret to its success? he asks in a new article for the Wall Street Journal. Start with its lucky arrival in a "problem-rich" environment, suggests Arno Penzias, winner of one of Bell Labs' 11 Nobel Prizes: It was Bell Labs' responsibility, in other words, to create technologies for designing, expanding and improving an unruly communications network of cables and microwave links and glass fibers. The Labs also had to figure out ways to create underwater conduits, as well as switching centers that could manage the growing number of customers and escalating amounts of data.... Money mattered, too. Being connected to AT&T, the largest company in the world, was an advantage. The Labs' budget was enormous, and accounting conventions allowed its parent company to make huge and continuing investments in R & D. The generous funding, moreover, allowed scientists and engineers to buy and build expensive equipment — for instance, anechoic chambers to create the world's quietest rooms...

The most fortunate part of Bell Labs' situation, however, was that in being attached to a monopoly it could partake in long-term thinking... Without competition nipping at its heels, Bell Labs engineers had the luxury of working out difficult ideas over decades. The first conceptualization of a cellular phone network, for instance, came out of the Labs in the late 1940s; it wasn't until the late 1970s that technicians began testing one in Chicago to gauge its potential. The challenge of deploying these technologies was immense. (The regulatory hurdles were formidable, too....)
The article also credits the visionary management of Mervin Kelly — who fortunately also "had access to funding in a decade when most executives and universities didn't" to hire the brightest people. (By the early 1980s Bell Labs employed about 25,000 researchers, technicians and support staff, with an annual budget of $2 billion — roughly $7 billion in today's dollars.) "The Labs' involvement in World War II suggested to Kelly that an exciting postwar era of electronics was approaching, but that the technical problems would be so complex that they required a mix of expertise — not just physicists, but material scientists, chemists, electrical engineers, circuitry experts and the like." At Bell Labs, Kelly would sometimes handpick teams and create such a mix, as was the case for the transistor invention in the late 1940s. He came to see innovation arising not from like-minded or similarly trained people conversing with each other, but from a friction of ideas and approaches. It meant hiring researchers who had different personalities and favored a range of experimental angles. It also meant personally designing a campus in Murray Hill where departments were spread apart, so that scientists and engineers would be forced to walk, mingle and engage in serendipitous conversations and debate ideas. Meanwhile, under Kelly, the Labs focused on hiring people who were deeply curious, not just smart. Kelly saw it as his professional duty to do far more than what was expected, with his laboratory and vast resources, to create new technologies...

The breakup of AT&T's monopoly, which led to a steady shrinking of Bell Labs' staff, budget and remit, shows us that no matter how forward looking your employees and managers may be, they will not necessarily see the future coming. It likewise suggests that technological progress is too unpredictable for one organization, no matter how powerful or smart, to control. Famously, Bell Labs managers didn't see value in the Arpanet, which eventually led to today's internet.

And yet, for at least five decades, Bell Labs created a blueprint for the global development of communications and electronics. In understanding why it did so, I tend to think its ultimate secret may be hiding in plain sight. The secret has to do with Bell Labs' structure — not only being connected to a fabulously profitable monopoly, but being connected to a company that could move theoretical and applied research into a huge manufacturing division that made telecom equipment (at Western Electric) and ultimately into a dynamic operating system (the AT&T network)... Scientists and engineers at the Labs understood their ideas would be implemented, if they passed muster, into the huge system its parent company was running.
Bell Labs racked up about 30,000 patents, according to the article, and celebrated its 100th anniversary last April.

It is now part of Finland-based Nokia.

"Juicier steaks could soon be served up after barley was given the go-ahead to become Britain's first gene-edited crop," reports the Telegraph: In an effort to fatten up cows and get them to market faster, scientists have altered the DNA of Golden Promise barley to increase its fat content... [Regulators have approved the feeding of that barley to cows for further studies.] [T]he small increase reduces the time it takes for farmers to raise animals for slaughter and increases the amount of milk and meat they produce to make the industry more profitable.

The gene-edited barley is also able to cut the amount of methane a cow produces, [Rothamsted Research professor/biochemist Peter] Eastmond said... Reducing methane from cattle is a major goal of the industry, and Professor Eastmond estimated his barley could cut the methane output from a single cow by up to 15%.

The two genetic tweaks to the barley are believed to alter the gut bacteria in cows' stomachs and reduce the amount of methane-generating microbes, cutting the cows' emissions.... [Eastmond] is also working on applying the same two gene edits to rye grass to create pastures and meadows which are lipid-rich and calorie-dense. This, he said, could lead to entire fields of gene-edited grass which could be grazed by cows, sheep, horses and goats to fatten them up and cut emissions... "It would be better to have this technology in a pasture grass that's grown to supply the livestock and graze it directly."
The barley "has been modified to have a single letter of DNA removed from two different genes to switch them off," the article points out. "No genes have been added to its DNA and it is not considered to be genetically modified."

The article points out that Britain "has launched a push towards more gene-edited crops as a key post-Brexit freedom since splitting from the European Union," noting that U.K. scientists and private companies "have created products such as bread with fewer cancer-causing chemicals, longer-lasting strawberries and bananas, sweeter-tasting lettuce and disease-resistant potatoes, although these are yet to be granted permission to land on supermarket shelves..."

But the EU has so far resisted the sale of any gene-edited crops in the EU.

Thanks to long-time Slashdot reader fjo3 for sharing the article.

An anonymous reader shares a column: I'm going to take the diplomatic hat off here and say with brutal honesty: basically everybody in the music business hates Spotify except for the people who work there. It's a platform that sucks artists for everything they have, it actively prevents community building, and, despite all of that, the platform still struggles to maintain a healthy profit margin.

The streaming business model is fundamentally broken. And eventually, its demise will become more and more obvious to recognize. I'll break down exactly why the DSP era is coming to a grinding halt, why the major labels are quietly terrified, and why the artists who don't pivot now are going to go down with the ship.

[...] Jimmy Iovine put it bluntly: "The streaming services have a bad situation, there's no margins, they're not making any money." This model only works for Apple, Amazon, and Google, because they don't need their music platforms to be wildly profitable. Amazon uses music as a loss-leader to keep you paying for Prime. Apple uses it to sell $1,000 iPhones. As for Spotify, or any standalone music streaming company, they're kind of screwed. And guess what -- when the platform's margins are structurally squeezed, guess who gets squeezed first? The artists.

[...] What if Jimmy is right? If the DSPs are "minutes away from obsolete," what replaces them? Well, I'm not sure the DSPs are going to disappear overnight, but if you're an artist or a manager trying to sustain yourself in this evolving music economy, the answer is direct ownership. The artists who will survive the next five years are the ones who are quietly shifting their focus away from the "ATM Machine."

They are building their own cultural hangars. They are capturing phone numbers on Laylo. They are driving fans to private Discord servers. They are focusing on ARPF (Average Revenue Per Fan) through high-margin merch, vinyl, and hard tickets, rather than begging for fractions of a penny from a playlist placement. We are witnessing the death of the "Mass Audience" and the birth of the "Micro-Community."

The housing shortages plaguing Western cities today stem partly from the abandonment of a 19th century urban governance model that enabled cities like Berlin, New York and Chicago to expand rapidly while keeping real house prices flat and homes increasingly affordable.

A new analysis by Works in Progress argues that Victorian-era urban management wasn't laissez-faire but rather a system carefully designed to align private profit with public benefit. Infrastructure monopolies -- whether privately franchised, operated as concessions or municipally owned -- funded themselves entirely through user fees rather than public subsidies, and were structured so that building more capacity was the path to greater returns.

Landowners enjoyed a fundamental right to build when profitable, and height limits applied uniformly across entire cities rather than varying by neighborhood, meaning dense development remained legal everywhere. The system began collapsing after 1914, however. Inflation proved fatal to self-funding transport because governments found it politically impossible to raise controlled prices year after year. By the 1960s, trams had vanished from Britain, France and the U.S.

Meanwhile, differential zoning gradually banned densification in established neighborhoods, and rent controls decimated private homebuilding in many countries. In Britain, average house prices fell from twelve times earnings in 1850 to four times by 1914. They have since climbed back to nine times earnings. The article argues roughly 80% of postwar price increases trace directly to restrictions on building.

The independent coffee shops and quirky boutiques that make neighborhoods like Hayes Valley in San Francisco or Williamsburg in Brooklyn desirable are caught in a frustrating economic trap: they create value that ends up in the pockets of nearby homeowners rather than their own cash registers.

An essay in Works in Progress magazine argues that when an interesting new store or restaurant opens, commercial and residential property values rise in the surrounding area, but the retailer itself captures only a fraction of that value through its actual sales. Almost half of stores in one San Francisco shopping district shuttered within four years even as the neighborhood thrived and rents climbed.

The authors propose several fixes drawn from historical and international practice. Shopping malls and mixed-use developments solve this through unified ownership, allowing a single entity to cross-subsidize interesting tenants. Hong Kong's Mass Transit Railway buys land around new stations before building begins, making it one of the few profitable transit systems in the world. Business Improvement Districts let businesses tax themselves for shared amenities, though they currently don't capture value that spills over to nearby residents.

The essay suggests creating hybrid institutions -- something between homeowners' associations and business improvement districts -- that could levy hyperlocal taxes to keep valued retail alive.

Intel says it struggled to satisfy demand for its AI data-center CPUs while new PC chips squeeze margins. CEO Lip-Bu Tan framed the turnaround as supply-constrained, not demand-constrained, with manufacturing yields (18A) improving but still below targets. Reuters reports: The forecast underscores the difficulties faced by Intel in predicting global chip markets, where the company's current products are the result of decisions made years ago. The company, whose shares have risen 40% in the past month, recently launched a long-awaited laptop chip designed to reclaim its lead in personal computers just as a memory chip crunch is expected to depress sales across that industry.

Meanwhile, Intel executives said the company was caught off guard by surging demand for server central processors that accompany AI chips. Despite running its factories at capacity, Intel cannot keep up with demand for the chips, leaving profitable data center sales on the table while the new PC chip squeezes its margins.

"In the short term, I'm disappointed that we are not able "to fully meet the demand in our markets," Chief Executive Officer Lip-Bu Tan told analysts on a conference call. The company forecast current-quarter revenue between $11.7 billion and $12.7 billion, compared with analysts' average estimate of $12.51 billion, according to data compiled by LSEG. It expects adjusted earnings per share to break even in the first quarter, compared with expectations of adjusted earnings of 5 cents per share.

Scifi author/tech activist Cory Doctorow has decried the "enshittification" of our technologies to extract more profit. But Saturday he also described what could be "the beginning of the end for enshittification" in a new article for the Guardian — "our chance to make tech good again". There is only one reason the world isn't bursting with wildly profitable products and projects that disenshittify the US's defective products: its (former) trading partners were bullied into passing an "anti-circumvention" law that bans the kind of reverse-engineering that is the necessary prelude to modifying an existing product to make it work better for its users (at the expense of its manufacturer)...

Post-Brexit, the UK is uniquely able to seize this moment. Unlike our European cousins, we needn't wait for the copyright directive to be repealed before we can strike article 6 off our own law books and thereby salvage something good out of Brexit... Until we repeal the anti-circumvention law, we can't reverse-engineer the US's cloud software, whether it's a database, a word processor or a tractor, in order to swap out proprietary, American code for robust, open, auditable alternatives that will safeguard our digital sovereignty. The same goes for any technology tethered to servers operated by any government that might have interests adverse to ours — say, the solar inverters and batteries we buy from China.

This is the state of play at the dawn of 2026. The digital rights movement has two powerful potential coalition partners in the fight to reclaim the right of people to change how their devices work, to claw back privacy and a fair deal from tech: investors and national security hawks. Admittedly, the door is only open a crack, but it's been locked tight since the turn of the century. When it comes to a better technology future, "open a crack" is the most exciting proposition I've heard in decades.
Thanks to Slashdot reader Bruce66423 for sharing the article.

Craigslist, the 30-year-old classifieds site that looks virtually unchanged since the dial-up era, continues to draw more than 105 million monthly users and remains enormously profitable despite never spending a cent on advertising or marketing. The site ranks as the 40th most popular website in the United States, according to Internet data company Similarweb.

University of Pennsylvania associate professor Jessa Lingel called it the "ungentrified" Internet. Unlike Facebook Marketplace, Etsy, or DePop, Craigslist doesn't use algorithms to track users or predict what they want to see. There are no public profiles, no rating systems, no likes or shares. The site effectively disincentivizes the clout-chasing and virality-seeking that dominates platforms like TikTok and Instagram.

Craigslist began in 1995 as an email list for a few hundred San Francisco Bay Area locals sharing events and job openings. Engineer Craig Newmark even recruited CEO Jim Buckmaster through a site ad. The two spent roughly a decade battling eBay in court after the tech giant purchased a minority stake in 2004, ultimately buying back shares and regaining full control in 2015.

Waymo's fleet of autonomous robotaxis can navigate city streets and compete with human taxi drivers, but they become stranded when a passenger leaves a door ajar -- prompting the company to pay tow truck operators around $20 to $24 through an app called Honk just to push a door shut. The owner of a towing company in Inglewood, California, completes up to three such jobs a week for Waymo, sometimes freeing vehicles by removing seat belts caught in doors. Another Los Angeles tow operator said locating stuck robotaxis can take 10 minutes to an hour because the precise location isn't always provided, forcing workers to search on foot through narrow streets too narrow for flatbed rigs.

Tow operators also retrieve Waymos that run out of battery before reaching charging stations, earning $60 to $80 per tow -- rates that aren't always profitable after factoring in fuel and labor. During a San Francisco power outage last weekend, multiple operators received a flurry of retrieval requests as robotaxis blocked intersections across the city. One San Francisco tow company manager declined because Waymo's offered rate fell below his standard $250 flatbed fee.

Waymo said in a blog post that the outage caused a "backlog" in requests to remote human workers who help vehicles navigate defunct traffic signals. San Francisco Supervisor Bilal Mahmood called for a hearing into Waymo's operations, saying the traffic disruptions were "dangerous and unacceptable." A retired Carnegie Mellon engineering professor who studied autonomous vehicles for nearly 30 years said paying humans to close doors and retrieve stalled cars is expensive and will need to be minimized as Waymo scales up. The company is testing next-generation Zeekr vehicles in San Francisco that feature automatic sliding doors.

An anonymous reader quotes a report from the Wall Street Journal: It's harder than ever to mine bitcoin. And less profitable, too. But mining-company stocks are still flying, even with cryptocurrency prices in retreat. That's because these firms have something in common with the hottest investment theme on the planet: the massive, electricity-hungry data centers expected to power the artificial-intelligence boom. Some companies are figuring out how to remake themselves as vital suppliers to Alphabet, Amazon, Meta, Microsoft and other "hyperscalers" bent on AI dominance.

Bitcoin-mining -- using vast computer power to solve equations to unlock the digital currency -- has been a lucrative and cutting-edge pursuit in its own right. Lately, however, increased competition and other challenges have eroded profit margins. But just as the bitcoin-mining business began to cool, the AI build-out turned white hot. The AI arms race has created an insatiable demand for some assets the miners already have: data centers, cooling systems, land and hard-to-obtain contracts for electrical power -- all of which can be repurposed to train and power AI models.

It's not a seamless process. Miners often have to build new, specialized facilities, because running AI requires more-advanced cooling and network systems, as well as replacing bitcoin-mining computers with AI-focused graphics processing units. But signing deals with miners allows AI giants to expand faster and cheaper than starting new facilities from scratch. These companies still mine some bitcoin, but the transition gives miners a new source of deep-pocketed customers willing to commit to longer-term leases for their data centers.

"The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine," said Adam Sullivan, chief executive of Core Scientific, which has pivoted to AI data centers. The shift has boosted miners' stocks. The CoinShares Bitcoin Mining ETF has surged about 90% this year, a rally that has accelerated even as bitcoin erased its gains for 2025. The ETF holds shares of miners including Cipher Mining and IREN, both of which have surged following long-term deals with companies such as Amazon and Microsoft. Shares of Core Scientific quadrupled in 2024 after the company signed its first AI contract that February. The stock has gained 10% this year. The company now expects to exit bitcoin mining entirely by 2028.

An anonymous reader shared this report from the Los Angeles Times: Popular podcast host Steven Bartlett has used an AI clone to launch a new kind of content aimed at the 13 million followers of his podcast "Diary of a CEO." On YouTube, his clone narrates "100 CEOs With Steven Bartlett," which adds AI-generated animation to Bartlett's cloned voice to tell the life stories of entrepreneurs such as Steve Jobs and Richard Branson. Erica Mandy, the Redondo Beach-based host of the daily news podcast called "The Newsworthy," let an AI voice fill in for her earlier this year after she lost her voice from laryngitis and her backup host bailed out...

In podcasting, many listeners feel strong bonds to hosts they listen to regularly. The slow encroachment of AI voices for one-off episodes, canned ad reads, sentence replacement in postproduction or translation into multiple languages has sparked anger as well as curiosity from both creators and consumers of the content. Augmenting or replacing host reads with AI is perceived by many as a breach of trust and as trivializing the human connection listeners have with hosts, said Megan Lazovick, vice president of Edison Research, a podcast research company... Still, platforms such as YouTube and Spotify have introduced features for creators to clone their voice and translate their content into multiple languages to increase reach and revenue. A new generation of voice cloning companies, many with operations in California, offers better emotion, tone, pacing and overall voice quality...

Some are using the tech to carpet-bomb the market with content. Los Angeles podcasting studio Inception Point AI has produced its 200,000 podcast episodes, in some weeks accounting for 1% of all podcasts published that week on the internet, according to CEO Jeanine Wright. The podcasts are so cheap to make that they can focus on tiny topics, like local weather, small sports teams, gardening and other niche subjects. Instead of a studio searching for a specific "hit" podcast idea, it takes just $1 to produce an episode so that they can be profitable with just 25 people listening... One of its popular synthetic hosts is Vivian Steele, an AI celebrity gossip columnist with a sassy voice and a sharp tongue... Inception Point has built a roster of more than 100 AI personalities whose characteristics, voices and likenesses are crafted for podcast audiences. Its AI hosts include Clare Delish, a cooking guidance expert, and garden enthusiastNigel Thistledown...

Across Apple and Spotify, Inception Point podcasts have now garnered 400,000 subscribers.

CNN's prediction for 2026? "Any device that uses memory, from phones to tablets and smartwatches, could get pricier." But will it be a little or a lot?

The article cites an analysis from multinational strategy/management consulting firm McKinsey & Company which found America's data center demand could continue growing by 20 to 25 percent per year" through 2030. "That's prompted memory manufacturers like Micron and Samsung to shift their focus to data centers, which use a different type of memory, meaning fewer resources for consumer products. (Jaejune Kim, executive VP for memory at Samsung, said in October that their third quarter saw strong demand for memory for AI and data centers, and that they expected the supply shortage for mobile and PC memory to "intensify further.") Memory prices are rising for consumer products because major manufacturers are instead ramping up production for AI data centers as artificial intelligence companies boom. "It's pretty much brutal and crunched across the board," said Yang Wang, a senior analyst at Counterpoint Research.

The International Data Corporation, a global market research firm, reported earlier this week that the smartphone market is expected to decline by 0.9% in 2026 in part because of memory shortages. Memory prices are expected to surge by 30% in the fourth quarter of 2025 and may climb an additional 20% early next year, Counterpoint Research said last month... TrendForce, a research firm that follows the semiconductor industry, estimates memory price hikes have made smartphones 8% to 10% more expensive to produce in 2025 (higher production costs don't always translate into higher consumer prices for a variety of reasons).

Some smartphones could cost more as soon as early next year, said Nabila Popal, a senior research director for the International Data Corporation. Cheap Android phones may see the biggest impact, since less expensive products usually have thinner margins. "It's going to be almost impossible for them to not raise prices" of cheaper Android phones, said Popal. Companies may also postpone phone launches to focus on expensive models that may be more profitable. The average selling price for smartphones is expected to climb to $465 in 2026, compared to $457 in 2025, according to Popal, putting the smartphone market at a record high value of $578.9 billion.

But the pendulum is expected to swing back in the other direction late next year as the supply chain adjusts, according to Popal and Wang, potentially bringing prices back down or at least capping increases.

fjo3 shares a report from TheWrap: There are already at least 175,000 AI-generated podcast episodes on platforms like Spotify and Apple. That's thanks to Inception Point AI, a startup with just eight employees cranking out 3,000 episodes a week covering everything from localized weather reports and pollen trackers to a detailed account of Charlie Kirk's assassination and its cultural impact, to a biography series on Anna Wintour. Its podcasting network Quiet Please has generated 12 million lifetime episode downloads and amassed 400,000 subscribers -- so, yes, people are really listening to AI podcasts.

Inception Point CEO Jeanine Wright believes the tool is proof that automation can make podcasting scalable, profitable and accessible without human writers, editors or hosts. "The price is now so inexpensive that you can take a lot of risks,â Wright told TheWrap. "You can make a lot of content and a lot of different genres that were never commercially viable before and serve huge audiences that have really never had content made for them." At a cost of $1 an episode, Wright takes a quantity-over-quality approach. "I think very quickly we get to a place where AI is a default way that content is made, not just across audio, but across television and film and commercials and imagery, and everything. And then we will disclose when things are not made with AI instead of that they were made with AI," Wright said. "But for now, we are perfectly happy leading the way."

Nearly three out of every four restaurant orders are no longer eaten in a restaurant, according to the National Restaurant Association. The share of customers using delivery more than doubled from 2019 to 2024, and 41% of respondents in a recent poll said delivery was an essential part of their lifestyle. The transformation has fundamentally altered restaurant economics. Delivery companies charge restaurants commissions between 5 and 30%, along with fees for payment processing, advertising, and search placement.

Shannon Orr runs an eight-restaurant group on the West Coast. One of her restaurants generated $1.7 million in delivery sales last year. Of that, $400,000 went to delivery companies. The restaurant, previously among her most profitable, made no money in 2024, she told the Atlantic.

About a third of full-service restaurants have modified their physical spaces to accommodate the delivery boom, installing dedicated entrances, bike parking, and banks of lockers.

An anonymous reader quotes a report from TechCrunch: WordPress co-founder and Automattic CEO Matt Mullenweg called the company's Tumblr acquisition his biggest failure -- but one he hasn't given up on yet. The comments were made at the recent WordCamp Canada 2025 conference, where Mullenweg went live for a Town Hall session to connect with the open source-focused WordPress community.

The exec noted that Tumblr was still on a different technical stack than WordPress -- something he had intended to correct by migrating the back end to WordPress infrastructure. However, that massive undertaking was put on hold earlier this year, as the cost to move Tumblr's half-billion blogs would be difficult given that the blogging platform wasn't profitable and continues to be sustained by the profits of other Automattic products.

The company has tried to trim costs with layoffs and the reallocation of Tumblr resources to more profitable parts of the business, but those efforts have yet to pay off. Mullenweg acknowledged these concerns at his Town Hall session, saying, "I need to switch [Tumblr] over to WordPress, but it's a big lift. It's over 500 million blogs, actually, and, as a business, it's costing so much more to run than it generates in revenue." As a result, Automattic had to prioritize other projects to make Tumblr sustainable, he said. "It's probably my biggest failure or missed opportunity right now, but we're still working on it," he added.

Apple lashed out at the European Union's attempts to tame the power of Silicon Valley in the most far-reaching legal challenge of the bloc's Big Tech antitrust rules. From a report: The iPhone maker's lawyer Daniel Beard told the General Court in Luxembourg on Tuesday that the Digital Markets Act "imposes hugely onerous and intrusive burdens" at odds with Apple's rights in the EU marketplace.

The DMA came onto the EU's books in 2023 and is designed to clip the wings of the world's largest technology platforms with a slew of dos and don'ts. But over recent months, the law has also drawn the ire of US President Donald Trump and plagued EU-US trade talks. Apple -- seen as the biggest renegade against the EU's crackdown -- challenged the law on three fronts: EU obligations to make rival hardware work with its iPhone, the regulator's decision to drag the hugely profitable App Store under the rules, and a decision to probe whether iMessage should have faced the rules, which it later escaped.

OpenAI has signed about $1 trillion in deals this year for computing power to run its AI models, commitments that dwarf its revenue and raise questions about how it can fund them. From a report: Monday's deal with chipmaker AMD follows similar agreements with Nvidia, Oracle and CoreWeave, as OpenAI races to find the computing power it thinks it will need to run services such as ChatGPT.

The deals would give OpenAI access to more than 20 gigawatts of computing capacity, roughly equivalent to the power from 20 nuclear reactors, over the next decade. Each 1GW of AI computing capacity costs about $50bn to deploy in today's prices, according to estimates by OpenAI executives, making the total cost about $1tn. The deals have bound some of the world's biggest tech groups to OpenAI's ability to become a profitable business that can meet its increasingly steep financial obligations.

The Washington Post notes AI's "increasingly outsize role" in propping up America's economic fortunes.

"Last week, the United States reported that the economy expanded at a rate of 1.6 percent in the first half of the year, with most of that growth driven by AI spending. Without AI investment, growth would have been at about a third of that rate, according to data from the Bureau of Economic Analysis." The huge economic influence of AI spending illustrates how Silicon Valley is placing a bet of unprecedented scale that the technology will revolutionize every aspect of life and work. Its sway suggests there will be economic damage far beyond Silicon Valley if that bet doesn't work out or companies pull back. Google, Meta, Microsoft and Amazon are on track to spend nearly $400 billion this year on data centers...

Concern about a potential bubble in AI investment has recently grown in technology and financial circles. ChatGPT and other AI tools are hugely popular with companies and consumers, and hundreds of billions of dollars has been sunk into AI ventures over the past three years. But few of the new initiatives are profitable, and huge profits will be needed for the immense investments to pay off... "I'm getting more and more skeptical and more and more concerned with what's happening" with artificial intelligence, said Andrew Odlyzko, an economic historian and University of Minnesota emeritus professor who has studied financial bubbles closely, including the telecom bubble that collapsed in 2001 as part of the dot-com crash. Some industry insiders have expressed concern that the latest AI releases have fallen short of expectations, suggesting the technology may not advance enough to pay back the huge investments being made, he said. "AI is a craze," Odlyzko said...

[The Federal Reserve's August "beige book" summarizes interviews with business owners across the country, according to the article — and it found surging investments in AI data centers, which could tie their fortunes to other sectors.] That's boosting demand for electricity and trucking in the Atlanta region, a hot spot for the facilities, and creating new projects for commercial real estate developers in the Philadelphia region. Because tech companies now dominate public markets, any change in their fortunes and share prices can also have a powerful influence on stock indexes, 401(k)s and the wider economy... Stock market slumps can have knock-on effects by undercutting the confidence of American businesses and consumers, leading them to spend less, said Gregory Daco [chief economist at strategy consulting firm EY-Parthenon]... "That directly affects economic activity," he said, potentially widening the economic fallout...

Goldman Sachs analysts wrote in a Sept. 4 note to clients that even if AI investment works out for companies like Google, there will be an "inevitable slowdown" in data center construction. That will cut revenue to companies providing the projects with chips and electricity, the note said. In a more extreme scenario where Big Tech pulls back spending to 2022 levels, the entire S&P 500 would lose 30 percent of the revenue growth Wall Street currently expects next year, the analysts wrote.
The AI bubble is 17 times the size of the dot-com frenzy — and four times the subprime bubble, according to estimates in a recent note from independent research firm the MacroStrategy Partnership (as reported by MarketWatch).

And "never before has so much money been spent so rapidly on a technology that, for all its potential, remains somewhat unproven as a profit-making business model," writes Bloomberg, adding that OpenAI and other large tech companies are "relying increasingly on debt to support their unprecedented spending." (Although Bloomberg also notes that ChatGPT alone has roughly 700 million weekly users, and that last month Anthropic reported roughly three quarters of companies are using Claude to automate work.)

Spotify founder Daniel Ek will step down as CEO by year's end, transitioning to executive chairman after nearly two decades at the helm. In his place will be Gustav Soderstrom and Alex Norstrom as co-CEOs. TechCrunch reports: "Over the last few years, I've turned over a large part of the day-to-day management and strategic direction of Spotify to Alex and Gustav -- who have shaped the company from our earliest days and are now more than ready to guide our next phase," Ek said in a statement. "This change simply matches titles to how we already operate. In my role as Executive Chairman, I will focus on the long arc of the company and keep the Board and our co-CEOs deeply connected through my engagement."

In a post on X, Ek also mentioned that Spotify has been profitable for over a year. Ek has served as Spotify's CEO since he founded it in 2006, so this is a big change in leadership for the streaming giant.