Elon Musk walks on Capitol Hill on the day of a meeting with Senate Republican Leader-elect John Thune (R-SD), in Washington, U.S. December 5, 2024.
Benoit Tessier | Reuters
House Democrats Jim McGovern of Massachusetts and Rosa DeLauro of Connecticut say their Republican colleagues in Congress caved to the demands of Elon Musk, sinking a bipartisan government funding bill that would have regulated U.S. investments in China.
In a series of posts on X, McGovern said more could have been accomplished. The scrapped provision “would have made it easier to keep cutting-edge AI and quantum computing tech — as well as jobs — in America,” he wrote. “But Elon had a problem.”
Tesla, run by Musk, is the only foreign automaker to operate a factory in China without a local joint venture. Tesla also built a battery plant down the street from its Shanghai car factory this year, and aims to develop and sell self-driving vehicle technology in China.
“His bottom line depends on staying in China’s good graces,” McGovern wrote about Musk. “He wants to build an AI data center there too — which could endanger U.S. security. He’s been bending over backwards to ingratiate himself with Chinese leaders.”
SpaceX, Musk’s aerospace and defense contractor, has reportedly withheld its Starlink satellite internet service over Taiwan at the request of Chinese and Russian leaders. Taiwan is a self-ruling democracy that Beijing claims as its territory. Taiwan’s status is one of the biggest flashpoints in U.S.-China relations.
DeLauro, the top Democrat on the House Appropriations Committee, wrote in a letter to Congress on Friday that Musk needs “Chinese government approvals for his company’s projects in the country.” It’s concerning, that Musk “has ingratiated himself with Chinese Communist Party leadership,” she wrote.
In the letter, DeLauro referred to the Tesla and SpaceX CEO as “President” Musk, alluding to the fact that the world’s richest person began railing against the prior funding bill on Wednesday, before President-elect Donald Trump came out with a statement of his own.
Trump had wanted the GOP to sink the bill, and issue a new one that would raise the debt ceiling so he could avoid that fight during the start of his second term in office. The stopgap funding bill, which President Joe Biden signed on Saturday, did not include the two-year suspension of the U.S. debt limit that Trump was seeking.
Musk responded to DeLauro’s concerns by calling her an “awful creature” in a post on X.
After acquiring Twitter in 2022, Musk rebranded it X and used it to help propel Trump back into the White House, becoming a close adviser and major backer to the incoming president along the way.
Musk contributed $277 million to the Trump campaign and other Republican causes during the 2024 cycle, according to Federal Election Commission filings. Since the election in November, Musk has become a nearly constant presence at Trump’s side, including in meetings with foreign leaders.
Trump appointed Musk to co-lead a group that’s not yet formed, but will be tasked with finding ways to cut regulations, personnel and budgets.
Britt Lower and Adam Scott in “Severance,” now streaming on Apple TV+.
Source: Apple TV+
Apple TV+ is now available on Android devices as the iPhone maker on Wednesday released its video streaming service for Google’s mobile computing platform.
It’s unusual for Apple to release Android apps. The company typically focuses on software for its own iOS and MacOS platforms, but Wednesday’s release is the latest sign that Apple won’t be limiting the growth potential of its Services division by keeping popular services like Apple TV+ exclusive to its own devices.
More people have iPhones than Android phones in the U.S., but globally, Android claims a 72% market share, according to Statcounter. Releasing Android apps significantly expands Apple’s market.
Apple’s Services business is its second largest behind iPhone sales, and Services hit a $100 billion per year revenue rate last year. In addition to subscriptions like iCloud, the unit also includes sales from advertising, search deals with Google, AppleCare warranties and payment fees from Apple Pay.
Apple TV+ is among Apple’s most popular services, and it’s best known for shows like “Ted Lasso” and “Severance.” It also broadcasts Major League Soccer and Major League Baseball games.
The company has never released viewership numbers for Apple TV+, but Nielsen estimates say it accounts for a small fraction of total American TV watching. It costs $10 per month in the U.S. and is included in several bundles alongside iCloud storage, Apple Music and other subscriptions.
Besides a few niche apps, Apple doesn’t have a long track record of making Android apps. Its last significant services app for the Google platform was a decade ago when the company released its Apple Music streaming service for Android.
The Apple TV+ app is available to download through the Google Play app store, and users will be able to pay with their Google accounts. Apple did not disclose a revenue-sharing arrangement with Google, but both companies typically take about 15% of billings from streaming services through their app stores.
Lyft shares shed about 6% after the ride-sharing app reported lackluster fourth-quarter results and offered weak bookings guidance as it lowers prices to keep up with competition.
The company reported revenues of $1.55 billion, versus the $1.56 billion expected by analysts polled by LSEG. Revenues grew 27% from $1.22 billion a year ago. Bookings, which measures the charges posed to customers for rides and services, came in at $4.28 billion, behind a $4.32 billion FactSet estimate.
“I think what the future holds is great, because it’s a huge market, and we’re doing a great job,” CEO David Risher told CNBC’s “Squawk Box” on Wednesday. “We got to figure out how to get the traders on the bus.”
The company did beat expectations on fourth-quarter earnings, reporting an adjusted 29 cents per share compared to the LSEG expectation of 22 cents per share. The figure excluded certain amortization and compensation charges, and a gain from terminating a lease.
Lyft also said it anticipates a slowdown in gross bookings as it grapples with a lower pricing environment. The company expects bookings to range between $4.05 billion and $4.20 billion, versus a $4.24 billion FactSet forecast.
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During the earnings call, Chief Financial Officer Erin Brewer said the company lowered prices and used discounts in the end of the year to keep up with the market. Ongoing pricing headwinds could lead to a low single-digit percentage point impact on gross bookings, she added.
Brewer also said that the end of its partnership with Delta Air Lines will weigh on rides and gross bookings in the 1% to 2% range during the second quarter.
Last week, Uber shares also declined on mixed fourth-quarter results and soft guidance. The ridesharing competitor also signaled that it may take years to build out and commercialize autonomous vehicles.
Lyft reported net income of $62.8 million for the period, or 15 cents per share. That’s compared to a loss of $26.3 million a year ago, a loss of 7 cents per share.
During the fourth quarter, Lyft also recorded 24.7 million active riders, ahead of the 24.6 million StreetAccount estimate.
Alongside the results, the company announced a $500-million share repurchase plan and said it aims to roll out its Mobileye-powered taxis as soon as 2026 in Dallas.
Texas-based neurotech startup Paradromics on Wednesday announced a strategic partnership with Saudi Arabia’s Neom and said it will establish a Brain-Computer Interface Center of Excellence in the region.
Neom is a developing area within northwest Saudi Arabia that’s touted as “a hub for innovation,” according to its website. The area’s strategic investment arm, the Neom Investment Fund, led the partnership. Paradromics declined to disclose the investment amount.
Paradromics is building a brain-computer interface, or a BCI, which is a system that deciphers brain signals and translates them into commands for external technologies. The company will work with Neom to “advance the development of BCI-based therapies” and set up the “premier center for BCI-based healthcare” in the Middle East and North Africa, it said in a release.
“Working together, we can accelerate the rate of innovation in BCI and expand access to impactful BCI-based therapies.” Paradromics CEO Matt Angle said in a statement.
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Paradromics is one of several companies racing to commercialize BCIs, including Elon Musk’s startup Neuralink. Earlier this month, Neuralink announced it has implanted three human patients with its technology, according to a blog post. Precision Neuroscience and Jeff Bezos and Bill Gates-backed Synchron have also implanted their systems in humans.
None of these companies have secured the FDA’s final stamp of approval.
Paradromics’ BCI, the Connexus Direct Data Interface, is an array of tiny electrodes designed to be implanted directly into the brain tissue. The system could eventually help patients with severe paralysis regain their ability to communicate by deciphering their neural signals.
The company is gearing up to launch its first human trial this year, and announced its official patient registry in July. Paradromics’ technology has not yet been approved by the U.S. Food and Drug Administration, and it still has a long way to go before commercialization. In 2023, the company received the FDA’s Breakthrough Device designation, which aims to help accelerate the go-to-market process.
Watch: Inside Paradromics, the Neuralink competitor hoping to commercialize brain implants before the end of the decade