Longtime Slashdot reader AmiMoJo shares a report from CNN: The co-founder of Super Micro Computer and two others were charged with diverting $2.5 billion worth of servers with Nvidia's artificial intelligence chips to China, in violation of U.S. laws barring exports to that country without a license. Yih-Shyan Liaw, known as Wally; Ruei-Tsang Chang, known as Steven; and Ting-Wei Sun, known as Willy, were charged with conspiring to violate export control laws, smuggling goods from the U.S. and conspiring to defraud the U.S.

Liaw, who co-founded Super Micro Computer and served on its board of directors, was arrested Thursday in California and released on bail. Sun, a contractor, is held awaiting a detention hearing. Chang, who worked in the Taiwan office of Super Micro, remains at large. [...] According to the indictment, the men used a pass-through company based in Southeast Asia to place orders to obscure that the servers would end up in China. The men worked with executives at the pass-through company to provide false documents to the server manufacturer to further the deception, the indictment said. They used a shipping and logistic company to repackage the servers into unmarked boxes to conceal their contents before they were shipped to China.

To deceive the manufacturer's auditors, who checked the pass-through company for compliance with export laws, the men allegedly used "dummy" nonworking copies of the servers when the actual servers were on their way to China. Two of the defendants allegedly worked to stage the dummy servers at a warehouse rented by the pass-through company, according to the indictment. Sun took photos and videos of the staged servers to one of the compliance auditors who instead of conducting the audit was "off-site enjoying entertainment paid for" by the pass-through company, according to the indictment. In another instance, prosecutors said surveillance cameras documented individuals using hair dryers to remove labels and add labels and serial number stickers to the boxes and dummy servers. Super Micro said it's fully cooperating with the investigation, but that hasn't prevented its stock from plunging. It's down nearly 30% following the news.

The company issued the following statement: "The conduct by these individuals alleged in the indictment is a contravention of the Company's policies and compliance controls, including efforts to circumvent applicable export control laws and regulations. Supermicro maintains a robust compliance program and is committed to full adherence to all applicable U.S. export and re-export control laws and regulations."

"A few developers found a way, for now, to turn a few of these increasingly mediocre Amazon Show devices into friendly, useful, open computers," writes the co-founder of the gaming/tech news site Aftermath. For under $50 each, he bought some used versions of the devices and tested their instructions, partly to escape the full-screen ads Amazon began showing late last year, and also to overwrite Amazon's locked down Android fork "Fire OS" (and "a similarly neutered version of Linux called Vega OS") Customers who bought these devices and used them for several years were not used to them showing full screen ads, and now they do. People were justifiably pissed. So what do you do when an already evil device gets shittier...? I wiped Fire OS from the device and used ADB sideload to directly load two packages on the device: LineageOS and MindTheGapps. MindTheGapps lets you turn the device into something resembling a traditional Android device, for both good and bad.... It took a few times of wiping the device, but after a few tries it finally worked as intended... I immediately installed the Home Assistant app...

Not only can the hacked Echo Show 8 control my entire smart home, it now plays back my entire local music library as well as any internet radio channels like The Lot Radio and NTS. It can also synchronize with any additional Echo Show running LineageOS in my house using the SendSpin protocol... I would gladly take it any day of the week over most of the devices these companies offer, especially Amazon. It may not be as intuitive as out-of-the-box smart home products, but I don't need my devices to be intuitive, I need them to behave. I had finally found a smart display that wasn't a cop...

The hardware is old and creaky, and after the hack it can only use 1GB of the 2GB of ram. And yet it still manages to feel snappier than the stock hardware. "The amount of telemetry, ads, and general bloat Amazon shoves down our throats definitely doesn't help performance," [XDA Devs Forum user] Rortiz2 told me. "That's actually another reason why we did LineageOS, it kind of gives the device a second life. Even though it's still a bit buggy, it feels way better to use than the stock firmware...." If you want a smart speaker with a display that just runs a stripped-down version of Android that you have full control over, you're going to have a hard time finding it outside of these three specific models unless you cobble something together yourself. It is a deceptively simple thing to desire — the kiosk computer from science fiction that isn't a narc — yet few companies really offer it.
"It should be against the law to not give an end user the ability to consensually load whatever OS or program they want on their device..." the article concludes, arguing that "If we budge on the inalienable right to modify our hardware then we forsake a key part about what makes computers special."

And in the mean time, "There are so many devices that could be put to use rotting in e-waste facilities and thrift stores..."

An anonymous reader quotes a report from Heise: Pay securely with an Android smartphone, completely without Google services: This is the plan being developed by the newly founded industry consortium led by the German Volla Systeme GmbH. It is an open-source alternative to Google Play Integrity. This proprietary interface decides on Android smartphones with Google Play services whether banking, government, or wallet apps are allowed to run on a smartphone.

Obstacles and tips for paying with an Android smartphone without official Google services have been highlighted by c't in a comprehensive article. The European industry consortium now wants to address some problems mentioned. To this end, the group, which includes Murena, which develops the hardened custom ROM /e/OS, Iode from France, and Apostrophy (Dot) from Switzerland, in addition to Volla, is developing a so-called "UnifiedAttestation" for Google-free mobile operating systems, primarily based on the Android Open-Source Project (AOSP).

According to Volla, a European manufacturer and a leading manufacturer from Asia, as well as European foundations such as the German UBports Foundation, have also expressed interest in supporting it. Furthermore, developers and publishers of government apps from Scandinavia are examining the use of the new procedure as "first movers." In its announcement, Volla explains that Google provides app developers with an interface called Play Integrity, which checks whether an app is running on a device with specific security requirements. This primarily affects applications from "sensitive areas such as identity verification, banking, or digital wallets -- including apps from governments and public administrations".

The company criticizes that the certification is exclusively offered for Google's own proprietary "Stock Android" but not for Android versions without Google services, such as /e/OS or similar custom ROMs. "Since this is closely intertwined with Google services and Google data centers, a structural dependency arises -- and for alternative operating systems, a de facto exclusion criterion," the company states. From the consortium's perspective, this also leads to a "security paradox," because "the check of trustworthiness is carried out by precisely that entity whose ecosystem is to be avoided at the same time". The UnifiedAttestation system is built around three main components: an "operating system service" that apps can call to check whether the device's OS meets required security standards, a decentralized validation service that verifies the OS certificate on a device without relying on a single central authority, and an open test suite used to evaluate and certify that a particular operating system works securely on a specific device model.

"We don't want to centralize trust, but organize it transparently and publicly verifiable. When companies check competitors' products, we can strengthen that trust," says Dr. Jorg Wurzer, CEO of Volla Systeme GmbH and initiator of the consortium. The goal is to increase digital sovereignty and break free from the control of any one, single U.S. company, he says.

South Korean tax authorities lost millions in seized cryptocurrency after publishing high-res photos of Ledger hardware wallets that clearly displayed the wallets' seed phrases, allowing an unknown party to drain the funds. Gizmodo reports: South Korea's National Tax Service seized crypto assets during recent enforcement actions against 124 high-value tax evaders, but now, a large chunk of that crypto cash has been lost. The operation originally resulted in the confiscation of crypto holdings worth about 8.1 billion won, or roughly $5.6 million. However, officials later issued a press release to showcase these efforts in recovering delinquent taxes, and the release included photographs of Ledger hardware wallets taken into custody along with handwritten notes that displayed the wallet seed phrases.

Those images attached to the press release turned out to be the critical error. High-resolution photos clearly showed the mnemonic recovery phrases, which serve as the master key for accessing the wallets. This exposure eliminated any protection provided by the offline cold storage on the Ledger devices. Possession of the seed phrase allows complete control, and anyone who knows the phrase can import it into software or another hardware wallet and initiate transfers without the original device.

In this case, an unknown individual who saw the photos published by law enforcement first added a small amount of ether to one of the addresses to cover Ethereum network gas fees necessary for outbound transactions. From there, they executed three transfers to move approximately 4 million Pre-Retogeum, or PRTG, tokens. At the time, those tokens carried a value of $4.8 million, but reporting from The Block indicates liquidating that much value from the holdings would have proven difficult due to market dynamics.

Britain has lost more than 14,000 pubs since 2009, a decline from roughly 54,000 registered public houses and bars to under 40,000 by 2022, according to a new analysis of UK business register data by data analyst Lauren Leek. The North East, North West, Yorkshire and the Midlands lost 25 to 30% of their stock; London saw the smallest decline.

Leek trained a random forest model on 49,840 pubs and found spatial isolation -- how far a pub stood from its nearest neighbour -- was the single strongest predictor of closure. Median nearest-neighbour distance for surviving pubs is roughly 280 metres; for closed pubs, 640 metres. Each closure pushes remaining pubs further into isolation, a dynamic Leek calls a "spatial death spiral."

Much of that isolation traces to ownership. Stonegate, Britain's largest pub company and a holding of PE firm TDR Capital, carries over $4 billion in debt from its 2019 leveraged acquisition of Ei Group. PE-backed and overseas-owned companies now control roughly a quarter to a third of all British pubs.

An anonymous reader shares a report: Shares of Japanese toilet maker Toto gained the most in five years after booming memory demand excited expectations of growth in its little-known chipmaking materials operations. The stock surged as much as 11%, its steepest rise since February 2021, after Goldman Sachs analysts said Toto's electrostatic chucks used in NAND chipmaking will likely benefit from an AI infrastructure buildout that's tightening supplies of both high-end and commodity memory.

[...] Known for its heated toilet seats, the maker of washlets has for decades been part of the semiconductor and display supply chain via its advanced ceramic parts and films. Its electrostatic chucks -- which it began mass producing in 1988 -- are used to hold silicon wafers in place during chipmaking while helping to control temperature and contamination, according to the company. The company's new domain business accounted for 42% of its total operating income in the fiscal year ended March 2025, Bloomberg-compiled data show.

Oracle co-founder Larry Ellison has personally guaranteed $40.4 billion to shore up Paramount's bid for Warner Bros. Discovery, trying to ease financing doubts as Warner Bros weighs a rival offer from Netflix. Reuters reports: Paramount said the amended terms do not change the $30-per-share all-cash offer even as the fight for Hollywood's sought-after assets heats up, with control of Warner Bros' vast library offering a decisive edge in the streaming wars. "I doubt many Warner Bros shareholders that are on the fence or planning to vote no "were holding out due to issues the "revised bid addresses such as a guarantee from Larry Ellison on the funding front," said Seth Shafer, principal analyst at S&P Global.

As part of the revised terms, Ellison also agreed not to revoke the family trust or transfer its assets during the pendency of the transaction, the filing showed. Paramount said it has raised its regulatory reverse termination fee to $5.8 billion from $5 billion to match the competing transaction and extended the expiration date of its tender offer to January 21, 2026.

The "bid follows Warner Bros asking its shareholders to reject the $108.4 billion offer from Paramount for the whole company, including cable TV assets, on doubts over its financing and the lack of a full guarantee from the Ellison family. But Warner Bros investors, including the fifth largest shareholder Harris Associates, have said they would be open to revised offers from Paramount if it presents a superior bid and addresses issues with deal terms. Under the Netflix agreement, Warner Bros would owe Netflix $2.8 billion as breakup fee if it walks away from that deal.

Netflix's $72 billion bid to buy Warner Bros Discovery has triggered a consumer class action claiming the merger would crush competition, erase HBO Max as a rival, and hand Netflix control over major franchises. Reuters reports: The proposed class action (PDF) was filed on Monday by a subscriber to Warner Bros-owned HBO Max who said the proposed deal threatened to reduce competition in the U.S. subscription video-on-demand market. "Netflix has demonstrated repeated willingness to raise subscription prices even while facing competition from full-scale rivals such as WBD," the lawsuit said. [...] The lawsuit said the Warner Bros deal would eliminate one of Netflix's closest rivals, HBO Max, and give Netflix control over Warner Bros marquee franchises including Harry Potter, DC Comics and Game of Thrones. On Monday, Paramount Skydance launched a $108 billion hostile bid to buy Warner Bros. Discovery with an all-cash, $30-per-share offer.

An anonymous reader quotes a report from Bloomberg: Shares of Apple were battered earlier this year as the iPhone maker faced repeated complaints about its lack of an artificial intelligence strategy. But as the AI trade faces increasing scrutiny, that hesitance has gone from a weakness to a strength -- and it's showing up in the stock market. Through the first six months of 2025, Apple was the second-worst performer among the Magnificent Seven tech giants, as its shares tumbled 18% through the end of June. That has reversed since then, with the stock soaring 35%, while AI darlings like Meta Platforms and Microsoft slid into the red and even Nvidia underperformed. The S&P 500 Index rose 10% in that time, and the tech-heavy Nasdaq 100 Index gained 13%. [...] As a result, Apple now has a $4.1 trillion market capitalization and the second biggest weight in the S&P 500, leaping over Microsoft and closing in on Nvidia. The shift reflects the market's questioning of the hundreds of billions of dollars Big Tech firms are throwing at AI development, as well as Apple's positioning to eventually benefit when the technology is ready for mass use. "It is remarkable how they have kept their heads and are in control of spending, when all of their peers have gone the other direction," said John Barr, portfolio manager of the Needham Aggressive Growth Fund.

Bill Stone, chief investment officer at Glenview Trust Company, added: "While they most certainly will incorporate more AI into the phones over time, Apple has avoided the AI arms race and the massive capex that accompanies it." His company views Apple's stock as "a bit of an anti-AI holding."

Netflix is buying Warner Bros. Discovery in an $82.7 billion deal that gives it HBO, iconic franchises, and major studio infrastructure. "Warner Bros. shareholders will receive $27.75 a share in cash and stock in Netflix," notes Bloomberg. "The total equity value of the deal is $72 billion, while the enterprise value of the deal is about $82.7 billion." From the report: Prior to the closing of the sale, Warner Bros. will complete the planned spinoff of its networks division, which includes cable channels such as CNN, TBS and TNT. That transaction is now expected to be completed in the third quarter of 2026, Netflix said in a statement. With the purchase, Netflix becomes owner of the HBO network, along with its library of hit shows like The Sopranos and The White Lotus. Warner Bros. assets also include its sprawling studios in Burbank, California, along with a vast film and TV archive that includes Harry Potter and Friends.

Netflix said it expects to maintain Warner Bros.' current operations and build on its strengths, including theatrical releases for films, a point that had been a cause of concern in Hollywood. Netflix said the deal will allow it to "significantly expand" US production capacity and invest in original content, which will create jobs and strengthen the entertainment industry. Still, the combination is also expected to create "at least $2 billion to $3 billion" in cost savings per year by the third year, according to the statement. U.S. Senator Mike Lee, a Republican from Utah who leads the Senate antitrust committee, said the acquisition "should send alarm to antitrust enforcers around the world."

"Netflix built a great service, but increasing Netflix's dominance this way would mean the end of the Golden Age of streaming for content creators and consumers," Lee wrote in a post on X.

U.S. Senator Elizabeth Warren called it an antitrust "nightmare" that would harm workers and consumers. "A Netflix-Warner Bros would create one massive media giant with control of close to half of the streaming market -- threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk," Warren said on Friday. "It would mean more price hikes, ads, & cookie cutter content, less creative control for artists, and lower pay for workers," she said in a post on X. "The media industry is already controlled by a few corporations with too much power to censor free speech. The gov't must step in."

An anonymous reader shares a report: Kodak quietly acknowledged this week that it will begin selling two famous types of film stock -- Kodak Gold 200 and Kodak Ultramax 400 -- directly to retailers and distributors in the U.S., another indication that the historic company is taking back control over how people buy its film.

The release comes on the heels of Kodak announcing that it would make and sell two new stocks of film called Kodacolor 100 and Kodacolor 200 in October. On Monday, both Kodak Gold and Kodak Ultramax showed back up on Kodak's website as film stocks that it makes and sells. When asked by 404 Media, a company spokesperson said that it has "launched" these film stocks and will begin to "sell the films directly to distributors in the U.S. and Canada, giving Kodak greater control over our participation in the consumer film market."

"Dutch authorities have temporarily nationalized Nexperia, owned by Chinese company Wingtech, over fears of critical product unavailability," writes longtime Slashdot reader evil_aaronm. Reuters reports: The Hague invoked never-before-used powers under a Dutch law known as the "Availability of Goods Act." The decision led to a 10% fall in Wingtech's shares in Shanghai on Monday. The Dutch government will not take ownership of Nexperia, but it will now have the power to reverse or block management decisions it considers harmful. The company's regular production is continuing. [...] Wingtech called the Dutch government's intervention in Nexperia, once part of Dutch electronics group Philips, "excessive interference driven by geopolitical bias." Wingtech also alleged that non-Chinese Nexperia executives had tried to forcibly alter the company's equity structure through legal proceedings in a "cloaked power grab" on the company.

A copy of an Amsterdam commercial court ruling dated October 7 and seen by Reuters showed that the court decided on October 1 to suspend Wingtech CEO Zhang Xuezheng from his position as executive director at Nexperia after finding "well founded reasons to doubt" the company was pursuing correct management policy or actions under Dutch civil law. It appointed Dutch businessman Guido Dierick to take Zhang's position with a "deciding vote", and transferred control of almost all of Nexperia's shares to a Dutch lawyer for management. The Dutch state and the company's labour council had supported the moves, the document showed. [...]

In its statement, the Dutch government said that administrative problems at Nexperia posed a threat to the company's "crucial technological knowledge" without elaborating. "The loss of these capabilities could pose a risk to Dutch and European economic security," it said. Nexperia is one of the world's largest makers of simple computer chips such as diodes and transistors, though it also develops more advanced technologies such as "wide gap" semiconductors used in electrical settings and useful for electric cars, chargers and AI data centres. Wingtech said in a filing to the Shanghai stock exchange on Monday that its control over Nexperia would be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency.

Intel amended its deal with the U.S. Department of Commerce "to remove earlier project milestones," reports Reuters, "and received about $5.7 billion in cash sooner than planned."

"The move will give Intel more flexibility over the funds." The amended agreement, which revises a November 2024 funding deal, retains some guardrails that prevent the chipmaker from using the funds for dividends and buybacks, doing certain control-changing deals and from expanding in certain countries.
The move makes the Wall Street Journal wonder what, beyond equity, the U.S. now gets in return, calling government's position "a stake without a strategy." The U.S. has historically shied away from putting money into private business. It can't really outguess the market on where the most promising returns lie. Yet there are exceptions. Sometimes a company or industry risks failing without public support, and that failure would hurt the whole country, not just its shareholders and employees. Intel meets both conditions. It isn't failing, but it is losing money, its core business is in decline, and it lacks the capital and customers needed to make the most advanced semiconductors. If Intel were to fail, it would take a sizable chunk of the semiconductor industrial base with it. At a time of existential competition with China, that is a national emergency...

[U.S. Commerce Secretary Howard Lutnick] said as a shareholder, the U.S. would help Intel "to create the most advanced chips in the world." And yet the deal doesn't provide Intel with new resources to accomplish that. Rather, to get the remaining $9 billion, Intel had to give the U.S. equity. This is more like a tax than an investment: Shareholders gave up a 10th of their ownership in return for money the company was supposed to get anyway... Some of the administration's forays into private business do reflect strategic thinking, such as the Pentagon's 15% stake in MP Materials in exchange for investment and contracts that help make the company a viable alternative to China as a supplier of rare-earth magnets for products such as automobiles, wind turbines, jet fighters and missile systems. But more often, companies recoil from government ownership...

Though the U.S. stake dilutes Intel's existing shareholders, its stock has held up. There could be several reasons. It eliminates uncertainty over whether the remaining $9 billion in federal funds will be forthcoming... [B]ecause Washington has a vested interest in Intel's share price, investors believe it may prod companies such as Nvidia and Apple to buy more of its chips.
But that only goes so far, the article seems to conclude, offering this quote from an analyst Bernstein investment research. "If Intel can prove they can make these leading-edge products in high volume that meets specifications at a good cost structure, they'll have customers lined up around the block. If they can't prove they can do it, what customer will put meaningful volume to them regardless of what pressure the U.S. government brings to bear?"

CBS News also notes the U.S. government stake "is being criticized by conservatives and some economic policy experts alike, who worry such extensive government intervention undermines free enterprise."

Thanks to Slashdot reader joshuark for sharing the news.

An anonymous reader quotes a report from Ars Technica: On Tuesday, Anthropic CEO Dario Amodei predicted that AI models may surpass human capabilities "in almost everything" within two to three years, according to a Wall Street Journal interview at the World Economic Forum in Davos, Switzerland. Speaking at Journal House in Davos, Amodei said, "I don't know exactly when it'll come, I don't know if it'll be 2027. I think it's plausible it could be longer than that. I don't think it will be a whole bunch longer than that when AI systems are better than humans at almost everything. Better than almost all humans at almost everything. And then eventually better than all humans at everything, even robotics."

Amodei co-founded Anthropic in 2021 with his sister Daniela Amodei and five other former OpenAI employees. Not long after, Anthropic emerged as a strong technological competitor to OpenAI's AI products (such as GPT-4 and ChatGPT). Most recently, its Claude 3.5 Sonnet model has remained highly regarded among some AI users and highly ranked among AI benchmarks. During the WSJ interview, Amodei also spoke some about the potential implications of highly intelligent AI systems when these AI models can control advanced robotics. "[If] we make good enough AI systems, they'll enable us to make better robots. And so when that happens, we will need to have a conversation... at places like this event, about how do we organize our economy, right? How do humans find meaning?"

He then shared his concerns about how human-level AI models and robotics that are capable of replacing all human labor may require a complete re-think of how humans value both labor and themselves. "We've recognized that we've reached the point as a technological civilization where the idea, there's huge abundance and huge economic value, but the idea that the way to distribute that value is for humans to produce economic labor, and this is where they feel their sense of self worth," he added. "Once that idea gets invalidated, we're all going to have to sit down and figure it out." The eye-catching comments, similar to comments about AGI made recently by OpenAI CEO Sam Altman, come as Anthropic negotiates a $2 billion funding round that would value the company at $60 billion. Amodei disclosed that Anthropic's revenue multiplied tenfold in 2024. Further reading: Salesforce Chief Predicts Today's CEOs Will Be the Last With All-Human Workforces

Xerox has agreed to acquire printer maker Lexmark for $1.5 billion, bringing the Kentucky-based company back under U.S. ownership after seven years of Chinese control.

The deal, announced Monday, will be financed through cash and debt, creating a vertically integrated printing equipment manufacturer and service provider. Lexmark, formed from IBM in 1991, was previously acquired by Chinese investors including Ninestar for $2.54 billion in 2016. The merger comes as Xerox faces declining equipment sales and a 50% year-to-date stock drop, with its market value at just over $1 billion.

Bruce Perens, original co-founder of the Open Source Initiative, has responded to questions from Slashdot readers about a new alternative he's developing that hopefully helps "Post Open" developers get paid.

But first, "One of the things that's clear from the Slashdot patter is that people are not aware of what I've been doing, in general," Perens says. "So, let's start by filling that in..."

Read on for the rest of his wide-ranging answers....

From an opinion piece on GamesIndustry.biz about the recently launched PS5 Pro that went on sale this week: What I'd argue is actually more interesting about PS5 Pro in a wider perspective isn't what Sony has done to the chips in the system -- it's what they've chosen not to include, and what it tells us about the decision-making process that's likely occurring for the company's future hardware. PS5 Pro doesn't have a disc drive. Anyone who wants to play disc-based games on the system will need to buy one of the add-on drives Sony started selling when the PS5 Slim model was released, adding further to the cost of the already very expensive device.

To add insult to injury, Sony doesn't seem to have made any effort whatsoever to ensure that those drives are actually well-stocked for the launch of the Pro. I can only speak directly to the situation in Japan, where they've been out of stock at most major retailers for months and even second-hand units are being sold at three to four times SRP by scalpers. But asking around suggests that the situation isn't much better in other regions. That's a very rough welcome to PS5 Pro ownership for anyone upgrading who has a collection of games on disc.

It's possible, of course, that Sony excluded the drive simply because its cost would push the Pro's price tag even higher. However, the incongruity of Sony's "Pro" console lacking the basic ability to play the games Sony sells at retailers all around the world is striking, and it's difficult to see the decision to accept that incongruity -- and the inconvenience it would inevitably cause for customers -- as anything other than strategic.

Digital sales make up a bigger and bigger portion of the industry's revenues every year, but physical game sales are still a very big deal -- and physical games are products that fall outside the control of publishers and platform holders in a way that they have found increasingly irritating in recent years. People who buy physical games can sell them second-hand or lend them to their friends, retailers with physical games in stock can discount them or include them in bundles as they see fit.

Friday the Wall Street Journal reported Qualcomm recently "made a takeover approach" to Intel, which has a market value of roughly $90 billion ("according to people familiar with the matter...") A deal is far from certain, the people cautioned. Even if Intel is receptive, a deal of that size is all but certain to attract antitrust scrutiny, though it is also possible it could be seen as an opportunity to strengthen the U.S.'s competitive edge in chips... Both Intel and Qualcomm have become U.S. national champions of sorts as chip-making gets increasingly politicized. Intel is in line to get up to $8.5 billion of potential grants for factories in the U.S. as Chief Executive Pat Gelsinger tries to build up a business making chips on contract for outsiders...
Both Intel and Qualcomm have been "overshadowed" by Nvidia's success in powering the AI boom, the article points out.

But "To get the deal done, Qualcomm could intend to sell assets or parts of Intel to other buyers... A deal would significantly broaden Qualcomm's horizons, complementing its mobile-phone chip business with chips from Intel that are ubiquitous in personal computers and servers..." Qualcomm's approach follows a more than three-year turnaround effort at Intel under Gelsinger that has yet to bear significant fruit. For years, Intel was the biggest semiconductor company in the world by market value, but it now lags behind rivals including Qualcomm, Broadcom, Texas Instruments and AMD. In August, following a dismal quarterly report, Intel said it planned to lay off thousands of employees and pause dividend payments as part of a broad cost-saving drive. Gelsinger last month laid out a roadmap to slash costs by more than $10 billion in 2025, as the company reported a loss of $1.6 billion for the second quarter, compared with a $1.5 billion profit a year earlier...

Intel earlier this year began to report separate financial results of its manufacturing operations, which many on Wall Street saw as a prelude to a possible split of the company. Some analysts have argued Intel should be split into two, mirroring a shift in the industry toward specializing in either chip design or chip manufacturing. Splitting up immediately might not be possible, however, Bernstein Research analyst Stacy Rasgon said in a recent note. Intel's manufacturing arm is money-losing and hasn't gained strong traction with customers other than Intel itself since Gelsinger opened the factories to outside chip designers three years ago. Gelsinger has been doubling down on the company's factory ambitions, outlining spending of hundreds of billions of dollars building new plants in the U.S., Europe and Israel in recent years.

Given Intel's market value, a successful takeover of the entire company would rank as the all-time largest technology M&A deal, topping Microsoft's $69 billion acquisition of Activision Blizzard.
Intel's stock "had its biggest one-day drop in over 50 years in August after the company reported disappointing earnings," reports CNBC. Partly because of that one-day, 26% drop, Intel's shares "are down 53% this year as investors express doubts about the company's costly plans to manufacture and design chips."

But the Register remains skeptical about Qualcomm taking over Intel: Chipzilla may not be worth much to Qualcomm unless it can renegotiate the x86/x86-64 cross-licensing patent agreement between Intel and AMD, which dates back to 2009. That agreement is terminated if a change in control happens at either Intel or AMD.

While a number of the patents expired in 2021, it's our understanding that agreement is still in force and Qualcomm would be subject to change of control rules. In other words, Qualcomm wouldn't be able to produce Intel-designed x86-64 chips unless AMD gave the green light. It's also likely one of the reasons why no one bought AMD when it was dire straits; whoever took over it would have to deal with Intel.

All seven independent directors of DNA-testing company 23andMe resigned Tuesday, following a protracted negotiation with founder and Chief Executive Anne Wojcicki over her plan to take the company private. WSJ: It is the latest challenge for 23andMe, which has struggled to find a profitable business model. The stock price fell to $0.30 per share after hours on Tuesday. At that price the company is worth less than the cash on its balance sheet. In a letter addressed to Wojcicki, the directors wrote that "after months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders."

It is very rare for a publicly traded company to see so many directors resign simultaneously. The board members wrote that they differ with Wojcicki on the "strategic direction for the company" and because of her voting power, it was best that they resign. Wojcicki controls 49% of 23andMe votes, giving her a level of control that blocked board members from shopping the company to other potential bidders. She is the only remaining board member after the resignations. Further reading: 23andMe's Fall From $6 Billion To Nearly $0 (January 2024)

Intel shares surged 8% after announcing plans to make its foundry business an independent unit with its own board and potential for outside capital, part of CEO Pat Gelsinger's strategy to restructure the company amid financial challenges. The company is also exploring the possibility of spinning off the foundry business, pausing some European manufacturing projects, and expanding its AI chip production partnership with Amazon Web Services to regain market share in the growing AI server chip industry. CNBC reports: As part of CEO Pat Gelsinger's effort to turn around the struggling chipmaker, Intel said in a memo to employees that it will also sell off part of its stake in Altera. Gelsinger said the restructuring would allow the foundry business to "evaluate independent sources of funding,â and comes days after Intel's board met to assess the direction and future of the company. The foundry business, which Intel plans to use to manufacture chips for other customers, has been a big drag on its bottom line, with the company spending roughly $25 billion on it in each of the last two years. Beyond just considering outside funding, Intel is weighing whether to spin off the foundry business, possibly into a separate publicly traded company, according to a person with knowledge of the matter who declined to be named in order to discuss confidential information. With a standalone "operating board" and a cleaner corporate structure, the mechanics of a separation become far easier than trying to turn a fully integrated unit into a separate company. [...] Intel will also pause its fabrication efforts in Poland and Germany "by approximately two years based on anticipated market demand," Gelsinger said, and pull back on its plans for its Malaysian factory. U.S. manufacturing projects will remain unaffected, the company said.

In addition to the foundry announcement, Intel said it entered into a deal with Amazon Web Services to produce custom chips for AI, extending a long-running partnership between the two companies. Amazon is a big customer of Intel chips to power its AWS servers, and will buy a custom Xeon processor from Intel as well, Intel said. The move will potentially give Intel a new foothold in the growing industry for AI server chips. While Intel has several products that can be used for AI, including Gaudi 3, Nvidia has largely taken control of the market. Amazon has been developing its own AI chips, including one called Trainium, for over five years. Microsoft and Google have also invested heavily in custom chips to run AI, aiming to offer less expensive processors than Nvidia's general-purpose graphics processing units. Intel said that it would carry out its most advanced manufacturing, including the AI chip for AWS, at its plant in Ohio that's currently under construction. "All eyes will remain on us," Gelsinger said. "We need to fight for every inch and execute better than ever before. Because that's the only way to quiet our critics and deliver the results we know we're capable of achieving."