Kyle Vogt, chief executive office and chief technology officer of Cruise Automation Inc., during the South by Southwest (SXSW) festival in Austin, Texas, US, on Tuesday, March 14, 2023.
Jordan Vonderhaar | Bloomberg | Getty Images
Cruise, General Motors‘ embattled driverless car unit, said Tuesday it will pause all public road operations — both supervised and manual — in an expansion of last month’s pause of driverless operations.
“This orderly pause is a further step to rebuild public trust while we undergo a full safety review,” Cruise wrote in a blog post. “We will continue to operate our vehicles in closed course training environments and maintain an active simulation program in order to stay focused on advancing AV technology.”
The self-driving car unit has faced a barrage of safety concerns and incidents since it received approval in August for round-the-clock robotaxi service in San Francisco. Last week, Cruise announced it would recall 950 robotaxis after a pedestrian collision. In October, the California Department of Motor Vehicles suspended Cruise’s deployment and testing permits for its autonomous vehicles, effective immediately.
“When there is an unreasonable risk to public safety, the DMV can immediately suspend or revoke permits,” the California DMV said in a statement at the time.
Federal auto safety regulators are also investigating Cruise following multiple reports about pedestrian injuries.
The decision to suspend all trips on public roads comes after a board meeting Monday at Cruise’s headquarters in San Francisco. The company also announced a reorganization and more oversight from GM: Craig Glidden, GM’s EVP of legal and policy, will become Cruise’s chief administrative officer, with Cruise’s legal and policy, communications and finance teams as direct reports. Glidden will also work closely with CEO Kyle Vogt and senior leadership to “oversee the workstreams around Transparency and Community Engagement,” according to Cruise.
The company also announced that it will hire an independent “safety expert” in coming weeks to assess Cruise’s safety operations and culture, building upon its decision to hire a chief safety officer, announced last week. In addition, Exponent — the engineering consulting firm Cruise hired to analyze an Oct. 2 crash that led to a pedestrian’s critical injuries — will now be expanding its probe into a full review of Cruise’s tech and safety systems, according to the blog post.
Cruise did not immediately respond to a request for comment.
The suspension is rippling through the company. Last Thursday, Cruise announced a round of contractor layoffs.
“Cruise has made the difficult decision to reduce a portion of the contingent workforce that supported driverless ridehail operations,” a company spokesperson told CNBC Thursday in a statement. “These contingent workers were responsible for work such as cleaning, charging and maintaining the fleet, and we’re grateful for their contributions.”
One Cruise contractor, who worked for the company through Unifi and requested anonymity, told CNBC that on paper, that may have been the job description, but in actuality, they were also often in charge of reprogramming cars, physically updating cars after a software update, offloading data and more. The contractor also said that some of their coworkers found out via a sign posted about shifts being canceled, along with an email.
Cruise told CNBC on Thursday that the layoffs reflected its temporary suspension of driverless activities, and that the company planned to “continue supervised operations without passengers.” However, as of now it has suspended those operations as well.
In GM’s third-quarter earnings update, the company said it had lost roughly $1.9 billion on Cruise through September of this year.
TikTok’s grip on the short-form video market is tightening, and the world’s biggest tech platforms are racing to catch up.
Since launching globally in 2016, ByteDance-owned TikTok has amassed over 1.12 billion monthly active users worldwide, according to Backlinko. American users spend an average of 108 minutes per day on the app, according to Apptoptia.
TikTok’s success has reshaped the social media landscape, forcing competitors like Meta and Google to pivot their strategies around short-form video. But so far, experts say that none have matched TikTok’s algorithmic precision.
“It is the center of the internet for young people,” said Jasmine Enberg, vice president and principal analyst at Emarketer. “It’s where they go for entertainment, news, trends, even shopping. TikTok sets the tone for everyone else.”
Platforms like Meta‘s Instagram Reels and Google’s YouTube Shorts have expanded aggressively, launching new features, creator tools and even considering separate apps just to compete. Microsoft-owned LinkedIn, traditionally a professional networking site, is the latest to experiment with TikTok-style feeds. But with TikTok continuing to evolve, adding features like e-commerce integrations and longer videos, the question remains whether rivals can keep up.
“I’m scrolling every single day. I doom scroll all the time,” said TikTok content creator Alyssa McKay.
But there may a dark side to this growth.
As short-form content consumption soars, experts warn about shrinking attention spans and rising mental-health concerns, particularly among younger users. Researchers like Dr. Yann Poncin, associate professor at the Child Study Center at Yale University, point to disrupted sleep patterns and increased anxiety levels tied to endless scrolling habits.
“Infinite scrolling and short-form video are designed to capture your attention in short bursts,” Dr. Poncin said. “In the past, entertainment was about taking you on a journey through a show or story. Now, it’s about locking you in for just a few seconds, just enough to feed you the next thing the algorithm knows you’ll like.”
Despite sky-high engagement, monetizing short videos remains an uphill battle. Unlike long-form YouTube content, where ads can be inserted throughout, short clips offer limited space for advertisers. Creators, too, are feeling the squeeze.
“It’s never been easier to go viral,” said Enberg. “But it’s never been harder to turn that virality into a sustainable business.”
Last year, TikTok generated an estimated $23.6 billion in ad revenues, according to Oberlo, but even with this growth, many creators still make just a few dollars per million views. YouTube Shorts pays roughly four cents per 1,000 views, which is less than its long-form counterpart. Meanwhile, Instagram has leaned into brand partnerships and emerging tools like “Trial Reels,” which allow creators to experiment with content by initially sharing videos only with non-followers, giving them a low-risk way to test new formats or ideas before deciding whether to share with their full audience. But Meta told CNBC that monetizing Reels remains a work in progress.
While lawmakers scrutinize TikTok’s Chinese ownership and explore potential bans, competitors see a window of opportunity. Meta and YouTube are poised to capture up to 50% of reallocated ad dollars if TikTok faces restrictions in the U.S., according to eMarketer.
Watch the video to understand how TikTok’s rise sparked a short form video race.
The X logo appears on a phone, and the xAI logo is displayed on a laptop in Krakow, Poland, on April 1, 2025. (Photo by Klaudia Radecka/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
Elon Musk‘s xAI Holdings is in discussions with investors to raise about $20 billion, Bloomberg News reported Friday, citing people familiar with the matter.
The funding would value the company at over $120 billion, according to the report.
Musk was looking to assign “proper value” to xAI, sources told CNBC’s David Faber earlier this month. The remarks were made during a call with xAI investors, sources familiar with the matter told Faber. The Tesla CEO at that time didn’t explicitly mention any upcoming funding round, but the sources suggested xAI was preparing for a substantial capital raise in the near future.
The funding amount could be more than $20 billion as the exact figure had not been decided, the Bloomberg report added.
Artificial intelligence startup xAI didn’t immediately respond to a CNBC request for comment outside of U.S. business hours.
The AI firm last month acquired X in an all-stock deal that valued xAI at $80 billion and the social media platform at $33 billion.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk said on X, announcing the deal. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Alphabet‘s stock gained 3% Friday after signaling strong growth in its search and advertising businesses amid a competitive artificial intelligence environment and uncertain macro backdrop.
“GOOGL‘s pace of GenAI product roll-out is accelerating with multiple encouraging signals,” wrote Morgan Stanley‘s Brian Nowak. “Macro uncertainty still exists but we remain [overweight] given GOOGL’s still strong relative position and improving pace of GenAI enabled product roll-out.”
The search giant posted earnings of $2.81 per share on $90.23 billion in revenues. That topped the $89.12 billion in sales and $2.01 in EPS expected by LSEG analysts. Revenues grew 12% year-over-year and ahead of the 10% anticipated by Wall Street.
Net income rose 46% to $34.54 billion, or $2.81 per share. That’s up from $23.66 billion, or $1.89 per share, in the year-ago period. Alphabet said the figure included $8 billion in unrealized gains on its nonmarketable equity securities connected to its investment in a private company.
Adjusted earnings, excluding that gain, were $2.27 per share, according to LSEG, and topped analyst expectations.
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Alphabet shares have pulled back about 16% this year as it battles volatility spurred by mounting trade war fears and worries that President Donald Trump‘s tariffs could crush the global economy. That would make it more difficult for Alphabet to potentially acquire infrastructure for data centers powering AI models as it faces off against competitors such as OpenAI and Anthropic to develop largely language models.
During Thursday’s call with investors, Alphabet suggested that it’s too soon to tally the total impact of tariffs. However, Google’s business chief Philipp Schindler said that ending the de minimis trade exemption in May, which created a loophole benefitting many Chinese e-commerce retailers, could create a “slight headwind” for the company’s ads business, specifically in the Asia-Pacific region. The loophole allows shipments under $800 to come into the U.S. duty-free.
Despite this backdrop, Alphabet showed steady growth in its advertising and search business, reporting $66.89 billion in revenues for its advertising unit. That reflected 8.5% growth from the year-ago period. The company reported $8.93 billion in advertising revenue for its YouTube business, shy of an $8.97 billion estimate from StreetAccount.
Alphabet’s “Search and other” unit rose 9.8% to $50.7 billion, up from $46.16 billion last year. The company said that its AI Overviews tool used in its Google search results page has accumulated 1.5 billion monthly users from a billion in October.
Bank of America analyst Justin Post said that Wall Street is underestimating the upside potential and “monetization ramp” from this tool and cloud demand fueled by AI.
“The strong 1Q search performance, along with constructive comments on Gemini [large language model] performance and [AI Overviews] adoption could help alleviate some investor concerns on AI competition,” Post wrote in a note.