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Stephen Van Tran
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Today’s venture capital landscape brings major shifts in AI infrastructure and corporate leadership. SoftBank posts strong quarterly profits driven by Vision Fund gains while delaying its ambitious Stargate project, Tesla abandons its much-hyped Dojo supercomputer in favor of third-party chips, and political pressure mounts on tech executives with unprecedented intervention in corporate governance.

SoftBank Posts $2.87B Profit Amid Stargate Delays

SoftBank Group reported a $2.87B Q1 profit, driven by gains in Vision Fund holdings including Coupang and a $7.5B investment in OpenAI. However, the company’s ambitious $500B Stargate U.S. data center project faces delays due to prolonged negotiations and site selection challenges, though SoftBank remains committed to the four-year buildout plan. Despite raising $7.8B from T-Mobile share sales and leading a $40B funding round for OpenAI, the Vision Funds have generated only $5B in cumulative gains from $172.2B invested, highlighting the challenging returns in the current venture landscape.

Tesla Abandons Dojo Supercomputer Project

Tesla is disbanding its Dojo supercomputer team, ending its in-house chip program for driverless technology, with lead Peter Bannon departing and staff reassigned to other projects. The shutdown follows the exit of about 20 former Dojo employees who launched DensityAI, a startup focused on AI chips and robotics hardware. Tesla will now rely more heavily on Nvidia, AMD, and Samsung for AI compute and chip manufacturing, abandoning previous claims that Dojo could add $500B in value through robotaxi and software revenue.

Uber Seeks Alternative Funding for Robotaxi Expansion

Uber is in talks with banks and private equity firms to finance its robotaxi expansion, planning to use only a modest share of its $7B annual cash flow while potentially selling minority stakes. CEO Dara Khosrowshahi outlined three business models: fixed-rate payments to vehicle owners, revenue-sharing with fleet operators, and Uber owning vehicles while licensing self-driving software. The company’s partnerships include Waymo, Volkswagen, Lucid, and Nuro, aiming to deploy over 20,000 autonomous taxis despite regulatory scrutiny and long timelines to profitability.

Federal Agencies Get ChatGPT for $1 Annual Fee

OpenAI reached an agreement with the U.S. General Services Administration to offer ChatGPT Enterprise to federal agencies for just $1 per agency for the first year. The deal includes unlimited use of advanced models for 60 days, plus access to a government user community and tailored training resources. This aggressive pricing strategy follows OpenAI’s approval as a federal vendor alongside Google and Anthropic, intensifying competition for government AI contracts under the Trump administration’s technology push.

Universal Pictures Adds AI Training Prohibition

Universal Pictures now includes warnings in movie credits stating that films “may not be used to train AI,” citing 2019 European Union copyright law that allows creators to opt out of research use. The warning, appearing in films like Jurassic World Rebirth, aims to prevent AI models from reproducing the studio’s unique visual style without permission. This move represents Hollywood’s latest attempt to protect intellectual property as AI companies increasingly seek training data from creative content.

Trump Calls for Intel CEO Resignation Over China Ties

President Trump demanded Intel CEO Lip-Bu Tan resign, citing $200M in past investments in Chinese chip and manufacturing firms, some allegedly linked to the Chinese military. The rare presidential intervention follows congressional concerns, though Intel defended Tan, emphasizing commitment to U.S. national security. Intel shares fell 3% amid ongoing struggles in AI and chip manufacturing, with critics warning the move could set precedent for political interference in corporate leadership.

Robert Keele has resigned as xAI’s head of legal after just over a year, citing desire for family time and “daylight between worldviews” with Elon Musk. Keele joined in May 2024 ahead of xAI’s $6B Series B and its $80B-valued acquisition of X, following roles at Elroy Air and Airbus. Lily Lim, a former NASA rocket scientist turned privacy specialist at xAI, will take over amid broader executive turnover across Musk-led companies.

The convergence of infrastructure pivots, aggressive government pricing strategies, and unprecedented political intervention signals an industry recalibrating its approach to AI development while navigating intensifying regulatory and competitive pressures across both public and private sectors.