Robotaxis are here and the public is divided

Published

1 year ago

October 7, 2024

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Driverless cars are speeding onto America’s streets, but whether the public will trust robotaxis remains an open question.

Nearly two-thirds of Americans said they would not want to ride in a driverless passenger vehicle if they had the opportunity, according to a Pew Research Center Survey. That’s because residents in cities that have yet to experience robotaxis remain unfamiliar with the technology while those in cities with driverless cabs have not yet forgotten about high-profile accidents involving other companies, like GM-owned Cruise.

Now Tesla, the loudest and most bullish self-driving proponent of them all, is due to unveil its long-awaited robotaxi after years of unfulfilled promises.

The company’s existing autonomous driving technology, where a human is still at the wheel, has drawn the scrutiny of regulators and multiple lawsuits after hundreds of crashes. Experts say a great presentation from CEO Elon Musk won’t guarantee a safe robotaxi network.

Tesla’s upcoming robotaxi launch threatens to throw the whole autonomous vehicle space off course.

Alphabet-owned Waymo is the leader in the space, with the company claiming it has notched more than 22 million driverless miles. It has proven that there is strong consumer demand, with weekly paid rides in San Francisco, Los Angeles, Phoenix and Austin doubling in just a couple months. And Waymo has worked on building its reputation, launching an online safety hub with data arguing that its cars are safer than human drivers.

Besides Tesla, other competitors are also looking to jump into the race.

Amazon says it is getting ready to roll out its fleet of Zoox cars, and Cruise is resuming operations after a 2023 accident led regulators to ground the fleet. Wall Street is already looking ahead to a driverless future, with one analyst arguing that if it hadn’t been for generative AI, 2024 would have been the year of the robotaxi.

As driverless networks scale, one of the fiercest debates is whether ride-sharing will survive. Robotaxis may cause consumers to question if they really want to book an Uber or Lyft and talk to a stranger, sit in someone else’s car and tip a human if there is a driverless alternative. Uber has hedged its bets by inking high-profile deals with autonomous vehicle companies, but it’s unclear how long those partnerships will last.

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Technology

Okta shares fall as company declines to give guidance for next fiscal year

Published

2 hours ago

December 2, 2025

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Okta shares fall as company declines to give guidance for next fiscal year

Cheng Xin | Getty Images

Okta on Tuesday topped Wall Street’s third-quarter estimates and issued an upbeat outlook, but shares fell as the company did not provide guidance for fiscal 2027.

Shares of the identity management provider fell more than 3% in after-hours trading on Tuesday.

Here’s how the company did versus LSEG estimates:

Earnings per share: 82 cents adjusted vs. 76 cents expected
Revenue: $742 million vs. $730 million expected

Compared to previous third-quarter reports, Okta refrained from offering preliminary guidance for the upcoming fiscal year. Finance chief Brett Tighe cited seasonality in the fourth quarter, and said providing guidance would require “some conservatism.”

Okta released a capability that allows businesses to build AI agents and automate tasks during the third quarter.

CEO Todd McKinnon told CNBC that upside from AI agents haven’t been fully baked into results and could exceed Okta’s core total addressable market over the next five years.

“It’s not in the results yet, but we’re investing, and we’re capitalizing on the opportunity like it will be a big part of the future,” he said in a Tuesday interview.

Revenues increased almost 12% from $665 million in the year-ago period. Net income increased 169% to $43 million, or 24 cents per share, from $16 million, or breakeven, a year ago. Subscription revenues grew 11% to $724 million, ahead of a $715 million estimate.

For the current quarter, the cybersecurity company expects revenues between $748 million and $750 million and adjusted earnings of 84 cents to 85 cents per share. Analysts forecast $738 million in revenues and EPS of 84 cents for the fourth quarter.

Returning performance obligations, or the company’s subscription backlog, rose 17% from a year ago to $4.29 billion and surpassed a $4.17 billion estimate from StreetAccount.

This year has been a blockbuster period for cybersecurity companies, with major acquisition deals from the likes of Palo Alto Networks and Google and a raft of new initial public offerings from the sector.

Okta shares have gained about 4% this year.

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Technology

Marvell to acquire Celestial AI for as much as $5.5 billion

Published

3 hours ago

December 2, 2025

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Marvell to acquire Celestial AI for as much as .5 billion

Marvell Technology Group Ltd. headquarters in Santa Clara, California, on Sept. 6, 2024.

David Paul Morris | Bloomberg | Getty Images

Semiconductor company Marvell on Tuesday announced that it will acquire Celestial AI for at least $3.25 billion in cash and stock.

The purchase price could increase to $5.5 billion if Celestial hits revenue milestones, Marvell said.

Marvell shares rose 13% in extended trading Tuesday as the company reported third-quarter earnings that beat expectations and said on the earnings call that it expected data center revenue to rise 25% next year.

The deal is an aggressive move for Marvell to acquire complimentary technology to its semiconductor networking business. The addition of Celestial could enable Marvell to sell more chips and parts to companies that are currently committing to spend hundreds of billions of dollars on infrastructure for AI.

Marvell stock is down 18% so far in 2025 even as semiconductor rivals like Broadcom have seen big valuation increases driven by excitement around artificial intelligence.

Celestial is a startup focused on developing optical interconnect hardware, which it calls a “photonic fabric,” to connect high-performance computers. Celestial was reportedly valued at $2.5 billion in March in a funding round, and Intel CEO Lip-Bu Tan joined the startup’s board in January.

Optical connections are becoming increasingly important because the most advanced AI systems need those parts tie together dozens or hundreds of chips so they can work as one to train and run the biggest large-language models.

Currently, many AI chip connections are done using copper wires, but newer systems are increasingly using optical connections because they can transfer more data faster and enable physically longer cables. Optical connections also cost more.

“This builds on our technology leadership, broadens our addressable market in scale-up connectivity, and accelerates our roadmap to deliver the industry’s most complete connectivity platform for AI and cloud customers,” Marvell CEO Matt Murphy said in a statement.

Marvell said that the first application of Celestial technology would be to connect a system based on “large XPUs,” which are custom AI chips usually made by the companies investing billions in AI infrastructure.

On Tuesday, the company said that it could even integrate Celestial’s optical technology into custom chips, and based on customer traction, the startup’s technology would soon be integrated into custom AI chips and related parts called switches.

Amazon Web Services Vice President Dave Brown said in a statement that Marvell’s acquisition of Celestial will “help further accelerate optical scale-up innovation for next-generation AI deployments.”

The maximum payout for the deal will be triggered if Celestial can record $2 billion in cumulative revenue by the end of fiscal 2029. The deal is expected to close early next year.

In its third-quarter earnings on Tuesday, Marvell earnings of 76 cents per share on $2.08 billion in sales, versus LSEG expectations of 73 cents on $2.07 billion in sales. Marvell said that it expects fourth-quarter revenue to be $2.2 billion, slightly higher than LSEG’s forecast of $2.18 billion.

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