Connect with us

Published

on

An Optimus bot from Tesla on display during the 2024 World AI Conference & High-Level Meeting on Global AI Governance at the Shanghai World Expo Exhibition and Convention Center on July 7, 2024.

Anadolu | Anadolu | Getty Images

Tesla CEO Elon Musk says China’s new trade restrictions on rare earth magnets have affected the production of the company’s Optimus humanoid robots, which rely on the exports. 

Speaking on a Tesla earnings call on Tuesday, Musk said that the company was working through the issue with Beijing and hoped to get approval to access the critical resources.

China, earlier this month, imposed new export controls on seven rare earth elements and magnets used in everything from defense to energy to automotive technologies. The move was in retaliation for U.S. President Donald Trump’s escalating tariffs.

According to Musk, Beijing has asked Tesla to guarantee that the rare earth magnets under expert control will not be used for military purposes.

“China wants some assurances that these aren’t used for military purposes, which obviously they’re not. They’re just going into a humanoid robot,” he said.

The new restrictions, which have raised the risk of global shortages, require exporters of medium and heavy rare earths in question to receive licenses from China’s Ministry of Commerce.

China dominates the market for many of these rare earths, with the U.S. unprepared to fill a potential shortfall, according to the Center for Strategic & International Studies. 

Meanwhile, the Trump administration has into potential new tariffs on all U.S. imports of critical minerals in response to China’s export controls. 

Future growth at risk? 

During the earnings call on Tuesday, Musk emphasized the importance of humanoid robots to the company’s future plans. 

“The future of the company is fundamentally based upon large scale autonomous cars and large scale, large volume and vast numbers of autonomous humanoid robots,” he said. 

Previously, Musk had announced plans for Optimus to produce about 5,000 units this year as the technology grows as part of Tesla’s future business plans. Moreover, he said that Tesla would deploy the robots in its EV factories. 

It’s unclear to what extent export controls might alter these plans. However, Musk reassured investors on Tuesday that the company still plans to produce thousands of robots this year, with thousands also expected to be deployed at Tesla factories.

Assessing Tesla's list of challenges post earnings

The emerging technology could help Tesla drive some investor optimism as its EV business struggles, with its stock down about 37% year-to-date.

Steve Westly, founder and managing partner of The Westly Group and former Tesla Board member, told CNBC’s ‘Closing Bell Overtime‘ on Tuesday that the company needs to find a new growth engine soon. 

The company is expected to face stiff competition from other humanoid robot players in China, such as Unitree Robotics and AgiBot, both of which reportedly plan to enter mass production this year. The export controls could give the Chinese players another advantage over their U.S. competitors, according to some analysts.

While Musk is upbeat about Tesla’s prospects in the space, going so far as to claim that it is ahead of the competition, he is concerned that the leaderboard will be filled with Chinese companies.

Continue Reading

Technology

Amazon shareholders reject proposal to split CEO and chair roles

Published

on

By

Amazon shareholders reject proposal to split CEO and chair roles

Amazon CEO Andy Jassy speaks during an unveiling event in New York on Feb. 26, 2025.

Michael Nagle | Bloomberg | Getty Images

Amazon shareholders rejected a proposal to adopt a policy that would require the company’s CEO and board chair roles to remain separate.

Vote totals disclosed in a filing Thursday show about 82% of shareholders rejected the proposal. The independent proposal was submitted alongside seven others at Amazon’s annual meeting on Wednesday. Each of the independent proposals were rejected.

Amazon split the roles of CEO and board chair when founder Jeff Bezos turned the helm over to Andy Jassy in 2021. As part of the transition, Bezos retained the title of executive chairman.

The proposal sought to codify that structure within Amazon “like the majority of S&P 500 companies,” advocacy group the Accountability Board wrote in its submission. The group argued that the split structure allows the board to focus on corporate governance and oversight, while the CEO focuses on the company’s business.

“With the positions currently separated, now would be an opportune time to do so,” the proxy states.

Shareholder proposals seeking the separation of board chair and CEO roles have been on the rise in recent years. The number of such proposals increased 113% among Russell 3000 companies in the first half of 2023, the highest level in the past decade, according to the Harvard Law School Forum on Corporate Governance.

Amazon urged shareholders to vote against the proposal, saying the current policy enables the board to determine the right leadership for the company “in light of our specific circumstances at any given time.”

The separation in 2021 came “after careful consideration” of Amazon’s leadership structure and functions, the company wrote in its recommendation.

“In light of our success through these various leadership structures, the board believes that shareholders are better served by the board retaining the ability to adapt to our evolving needs and implement the optimal leadership structure at any given time,” Amazon wrote in the filing.

WATCH: Amazon has ‘levers’ to pull in tariff war, says strategist

Amazon has 'levers' to pull in tariff war, says strategist

Continue Reading

Technology

Microsoft employees say emails with ‘Gaza,’ ‘Palestine,’ or ‘genocide’ won’t send

Published

on

By

Microsoft employees say emails with 'Gaza,' 'Palestine,' or 'genocide' won't send

Security officers block entrance doors after pro-Palestinian protesters attempted to enter the Microsoft Build conference at the Seattle Convention Center Arch building in Seattle, Washington on May 19, 2025.

Jason Redmond | Afp | Getty Images

Microsoft employees are concerned that the company has been blocking Outlook emails containing the words “Palestine,” “Gaza,” “genocide,” “apartheid” and “IOF off Azure,” even if they’re including those terms in an HR complaint, according to screenshots, recordings and documents viewed by CNBC.

Employees said they started noticing the change Wednesday just before noon PST, batch-testing emails with the terms in question and emails without them. Only the ones without such terms appeared in their outboxes, suggesting those containing the terms weren’t received, according to materials viewed by CNBC and three sources familiar with the matter.

The people asked not to be named in order to speak freely.

One employee with the word “apartheid” in their email signature, who spoke on condition of anonymity for fear of retaliation, said they sent a typical work-related email around 11:30 a.m. PST on Wednesday successfully. The person said that just before noon on the same day, their emails wouldn’t go through — ostensibly due to their email signature.

On internal message boards, messages seen by CNBC showed employees asking why their emails with the word “Israel” may go through but not the word “Palestine,” as well as “Gaza” and other terms. Modifications like “P4lestine” did go through, according to their tests.

One employee asked on an internal message board, “Is the company abandoning the inclusivity initiative or is this only targeting Palestinians and their allies?”

The Verge was first to report on the potential email block.

In a message seen by CNBC, Frank Shaw, Microsoft’s chief communications officer, responded to an employee post, writing: “To clarify, emails are not being blocked or censored, unless they are being sent to large numbers of random distribution groups. There can be a small delay and the team is working to make that as short as possible.”

“Over the past couple of days, a number of emails have been sent to tens of thousands of employees across the company and we have taken measures to try and reduce those emails to those that have not opted in,” a Microsoft spokesperson said in a statement.

But employees told CNBC that even when they attempted to send relatively mundane, solely work-related emails to small groups of colleagues, the emails still didn’t go through if they contained those terms.

Another employee who spoke on condition of anonymity said that when they attempted to send a report to HR containing one of the terms in question, they did not receive the auto-response typically confirming receipt until more than 24 hours later. The message also didn’t show up in the online HR portal until more than 24 hours later.

Some emails were delivered after being delayed by seven hours or more, according to the group No Azure for Apartheid. The group suggested manual reviews of such emails were taking place before they were delivered.

Microsoft protests

Microsoft has seen a growing number of protests at recent events over the Israeli military’s use of the company’s AI products. Protesters have also sent emails to the company’s executives outlining their concerns.

At Microsoft’s Build developer conference in Seattle this week, protesters interrupted executives during keynote speeches and sessions.

On Tuesday, protesters interrupted the Microsoft Build session on best AI security practices, singling out Sarah Bird, Microsoft’s head of responsible AI, who was co-hosting the session with Microsoft AI security chief Neta Haiby.

Haiby was formerly a member of the Israel Defense Forces, according to a Tumblr page viewed by CNBC.

“Sarah Bird, you are whitewashing the crimes of Microsoft in Palestine,” Hossam Nasr, an organizer with the group No Azure for Apartheid, said.

Nasr was one of the Microsoft employees terminated last year after planning a vigil for Palestinians killed in Gaza.

Earlier on Tuesday during another Microsoft Build session, an unnamed Palestinian tech worker disrupted a speech by Jay Parikh, Microsoft’s head of CoreAI.

“Jay, you are complicit in the genocide in Gaza,” the tech worker, who did not wish to share their name for fear of retaliation, said. “My people are suffering because of you. How dare you. How dare you talk about AI when my people are suffering. Cut ties with Israel.”

The worker then called to “free Palestine” and said, “No Azure for apartheid,” a nod to the group and its petition.

A demonstrator is removed from the audience as they interrupt a presentation by Microsoft Chairman and CEO Satya Nadella at the Microsoft Build 2025 conference in Seattle, Washington on May 19, 2025.

Jason Redmond | AFP | Getty Images

On Monday, Microsoft software engineer Joe Lopez interrupted CEO Satya Nadella’s keynote speech onstage, saying, “Satya, how about you show them how Microsoft is killing Palestinians? How about you show them how Israeli war crimes are powered by Azure?”

Lopez was later fired, according to a document viewed by CNBC that stated the reason as, “misconduct resulting in the violation of both company policy and our expectations of a respectful workplace.”

The document said Lopez would be ineligible to return to Microsoft as an employee, contractor, or in any other capacity, including an employee of a Microsoft partner, customer or other third party.

At Microsoft’s 50th anniversary event last month, two Microsoft software engineers publicly protested the use of the company’s AI by the Israeli military during executive presentations. The roles of both employees, Ibtihal Aboussad and Vaniya Agrawal, were terminated soon after, according to documents viewed by CNBC.

Continue Reading

Technology

OpenAI CFO says AI hardware will boost ChatGPT subscriptions in ‘new era of computing’

Published

on

By

OpenAI CFO says AI hardware will boost ChatGPT subscriptions in 'new era of computing'

OpenAI CFO on acquisition of Jony Ive's startup: Hardware is a part of next value-add for OpenAI

OpenAI is betting a new “era” of computing will justify the company’s decision to spend billions of dollars on bespoke hardware to go with it, Chief Financial Officer Sarah Friar said.

The artificial intelligence startup, best known for the ChatGPT chatbot, announced plans on Wednesday to buy iPhone designer Jony Ive’s devices startup io for about $6.4 billion. Ive’s company was founded roughly a year ago and doesn’t have a product on the market.

Friar told CNBC on Thursday that any startup as young as io was “hard to value.” But she sees an eventual return on that investment.

“You’re really betting on great people and beyond,” Friar said. “It’s not just about imagining what a new platform could look like — you’ve got to be able to craft it. You’ve got to be able to build it. You’ve got to be able to understand supply chains.”

Friar, who took the CFO job at OpenAI last summer and was formerly CEO of Nextdoor, said new devices will eventually get OpenAI’s technology in the hands of more users, and drive subscription growth and attach rates. ChatGPT last reported 500 million weekly active users, but monthly actives are higher, Friar said.

“When you start thinking about it beyond just a phone, it starts to grab the imagination,” she said. “If we can get people around the world excited to use AI, we have many ways to begin to think of a business model around that. So it could be an ongoing, bigger subscription for ChatGPT.”

Friar’s comments echo others in the tech industry who have said AI hardware could change the face of computing, and threaten the iPhone. Eddy Cue, Apple’s chief of services, said earlier this month that he believes AI devices could replace the iPhone within ten years.

While OpenAI works with Apple on an iPhone and Siri integration, Friar said the company still saw a need to have its own proprietary devices.

“We want to work with many partners. When we single-thread ourselves, we don’t think that drives max innovation,” Friar said. “We continue to work closely with Apple on their device, and we’d love to see more being done with AI — but we also want to keep sparking innovation broadly in the ecosystem.”

Friar hinted at new devices without touchscreens. She declined to give details around what exactly they might look like, pointing to the former Apple team’s secretive culture and “mystique” around products.

“As you birth this new era of AI, there’s going to be new platforms and new substrate,” she said. “We think of tech today as a little bit more around touch. We as humans, we see things, we hear things, we talk. And our models are great at that.”

WATCH: CNBC’s full interview with OpenAI CFO Sarah Friar

Watch CNBC's full interview with OpenAI CFO Sarah Friar

Continue Reading

Trending