Alphabet’s market value has reached the 4 trillion mark following reports that Apple selected the Gemini model to power its Siri assistant later this year. This multiyear agreement, highlighted on Bloomberg Technology, reportedly involves Apple paying Google approximately 1 billion dollars annually as an interim measure while the company develops its own foundational models. Live from coast-to-coast, anchors Caroline Hyde in New York and Ed Ludlow in San Francisco noted that this deal underscores a broadening market where the Magnificent Seven are no longer a guaranteed singular bet for every investor.
Beyond digital applications, the focus of the tech industry is shifting toward the physical manifestation of artificial intelligence, a theme emphasized by NVIDIA’s plan to invest 1 billion dollars over five years in a new Silicon Valley laboratory alongside Eli Lilly. This partnership aims to revolutionize drug discovery, specifically targeting hard-to-treat conditions like gene therapy by utilizing AI to accelerate clinical processes and find solutions that were previously out of reach.
Ed Ludlow discussed the move from two-dimensional digital worlds to three-dimensional physical reality, citing 1X Technologies’ new NEO robot, which uses a physics-grounded model to learn tasks such as reading Post-it notes from scratch without prior training data. This transition into the physical world represents a massive opportunity for technology investors, as approximately 90 percent of the U.S. GDP is currently tied to non-digitally native industries like construction and heavy industry. Lux Capital is capitalizing on this trend by raising its largest fund in history to focus on frontier tech and the re-industrialization of the American economy. While San Francisco remains the epicenter for these developments, the technological wave is global, with competitors like 1X being birthed outside of the United States.
Geopolitical tensions and strategic compromises also remain central to the narrative, as the European Union considers minimum prices for Chinese electric vehicles to balance climate goals with trade protections against dominating exports.
Simultaneously, the founder of DeepSeek in China has seen his hedge fund surge by 50 percent, providing a significant checkbook to deploy AI models that challenge Western competitors at a fraction of their operating costs. In the media sector, Caroline Hyde reported on an increasingly hostile environment as Paramount Skydance seeks to thwart a merger between Warner Bros. Discovery and Netflix through lawsuits and proxy fights over the transparency of cable asset valuations.
Domestically, financial markets are reacting to a proposal by the president to cap credit card interest rates at 10 percent for one year, a move that could upend the traditional banking industry and empower fintech alternatives like Klarna, SoFi, or Affirm. Furthermore, Meta has engaged a former top advisor to the Trump administration to guide its AI efforts and secure government funding while simultaneously shutting down over half a million accounts in Australia to comply with new age-based social media bans. As the cost of data center infrastructure is projected by firms like Moody’s and McKinsey to reach between 3 trillion and 7 trillion dollars, the industry faces natural governors such as labor and power constraints that will determine the actual pace of deployment. Despite these massive capital requirements, experts like Denny Fish suggest that for the high-performance infrastructure needed to sustain this growth, NVIDIA remains essentially the only game in town for the foreseeable future.
