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On Friday, advanced nuclear fission company Oklo, for which Sam Altman serves as chairman, started trading on the New York Stock Exchange.

The company, which has yet to generate any revenue, went public through a special purpose acquisition company called AltC Acquisition Corp., founded and led by Altman.

Under the ticker symbol “OKLO,” shares were trading at just above $15 on Friday morning. Oklo was set to receive more than $306 million in gross proceeds upon closing the transaction, according to a release.

Oklo’s business model is based on commercializing nuclear fission, the reaction that fuels all nuclear power plants. Instead of conventional reactors, the company aims to use mini nuclear reactors housed in A-frame structures. Its goal is to sell the energy to end users such as the U.S. Air Force and big tech companies.

Oklo is currently working to build its first small-scale reactor in Idaho, which could eventually power the types of data centers that OpenAI and other artificial intelligence companies need to run their AI models and services.

Altman, co-founder and CEO of OpenAI, has said he sees nuclear energy as one of the best ways to solve the problem of growing demand for AI, and the energy that powers the technology, without relying on fossil fuels. Microsoft co-founder Bill Gates and Amazon founder Jeff Bezos have also invested in nuclear plants in recent years.

“I don’t see a way for us to get there without nuclear,” Altman told CNBC in 2023. “I mean, maybe we could get there just with solar and storage. But from my vantage point, I feel like this is the most likely and the best way to get there.”

In an interview with CNBC Thursday, Oklo CEO Jacob DeWitte confirmed that the company has yet to generate revenue and has no nuclear plants deployed at the moment. He said the company is targeting 2027 for its first plant to come online.

Going the SPAC route is risky. So-called reverse mergers became popular in the low-interest rate days of 2020 and 2021 when tech valuations were soaring and investors were looking for growth over profit. But the SPAC market collapsed in 2022 alongside rising rates and hasn’t recovered.

AI-related companies, on the other hand, are the new darlings of Wall Street.

“SPACs haven’t exactly had the best performances in the past couple of years, so for us to have sort of the outcome that we’ve had here is obviously a function of the work we put in, but also what we’re building and also the fact that the market sees the opportunity sets here,” said DeWitte, who co-founded the company in 2013. “I think it’s very promising on multiple fronts for [the] nuclear, AI, data center push, as well as the energy transition piece.”

The company has seen its fair share of regulatory setbacks. In 2022, the U.S. Nuclear Regulatory Commission denied Oklo’s application for an Idaho reactor. The company has been working on a new application, which it isn’t aiming to submit to the NRC until early next year, DeWitte said, adding that it’s currently in the “pre-application engagement” stage with the commission.

Altman got involved with Oklo while president of the startup incubator Y Combinator. Oklo went into the program in 2014 after an earlier meeting between Altman and DeWitte. In 2015, Altman invested in the company and became chairman.

It’s not Altman’s only foray into nuclear energy or other infrastructure that could power large-scale AI growth.

In 2021, Altman led a $500 million funding round in clean energy firm Helion, which is working to develop and commercialize nuclear fusion. Helion said in a blog post at the time that the capital would go toward its electricity demonstration generator, Polaris, “which we expect to demonstrate net electricity from fusion in 2024.”

Altman didn’t respond to a request for comment.

In recent years, Altman has also poured money into chip endeavors and investments that could help power the AI tools OpenAI builds.

Just before his brief ouster as OpenAI CEO in November, he was reportedly seeking billions of dollars for a chip venture codenamed “Tigris” to eventually compete with Nvidia.

Altman in 2018 invested in AI chip startup Rain Neuromorphics, based near OpenAI’s San Francisco headquarters. The next year, OpenAI signed a letter of intent to spend $51 million on Rain’s chips. In December, the U.S. compelled a Saudi Aramco-backed venture capital firm to sell its shares in Rain.

DeWitte told CNBC that the data center represents “a pretty exciting opportunity.”

“What we’ve seen is there’s a lot of interest with AI, specifically,” he said. “AI compute needs are significant. It opens the door for a lot of different approaches in terms of how people think about designing and developing AI infrastructure.”

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Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

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Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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Amazon to halt some of its DEI programs: Internal memo

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Amazon to halt some of its DEI programs: Internal memo

Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.

In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.

“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.

Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.

In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.

Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”

Other companies, including McDonald’s, Walmart and Ford, have also made changes to their DEI initiatives in recent months. Rising conservative backlash and the Supreme Court’s ruling against affirmative action in 2023 spurred many corporations to alter or discontinue their DEI programs.

Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.

The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.

Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

Read the full memo from Amazon’s Castleberry:

Team,

As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.

As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.

In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.

This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.

We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.

#InThisTogether,

Candi

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.

“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.

The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.

In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.

Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.

Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.

Tesla did not immediately respond to CNBC’s request for comment.

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