Connect with us

Published

on

Federal Trade Commission Chair Lina Khan speaks during the New York Times annual DealBook Summit in New York City on Nov. 29, 2023.

Michael M. Santiago | Getty Images

Federal Trade Commission Chair Lina Khan cited the surging stock prices of Nvidia and Arm as an example of how blocking mergers can lead to increased innovation.

Speaking at a Bloomberg and Y Combinator conference on Tuesday, Khan said that when the $40 billion merger was called off due to “significant regulatory challenges” in 2022, it forced both companies to innovate and create new products.

The remarks suggest Khan and the FTC see the blocked Nvidia deal, which Khan said would have been “the largest semiconductor chip merger in history,” as an example of a successful antitrust action that doesn’t hamper companies from pursuing financial success or embracing new technologies such as artificial intelligence.

“The trajectories of both companies in the wake of this action has illustrated how organic growth and competition can spur firms to further innovate in ways that benefit the business and public alike,” Khan said at the conference.

The evidence, Khan said, is in the company stock prices.

“Not only has Nvidia remained the leading AI chipmaker in the AI chip arms race, with a surging stock valuation, but Arm ended up going public and has a forward earnings multiple that is more than double Nvidia’s,” Khan said.

In September 2020, Nvidia announced plans to acquire Arm for $40 billion in cash and stock. Both firms hailed the deal as a way to create the premier computing company for the “age of AI.

But the acquisition quickly met resistance from regulators in the U.S., Europe and Asia. Arm’s core technology, its instruction set architecture, is used by companies such as Apple, Google and Qualcomm to build processors. Arm is often described as a “neutral supplier” that doesn’t compete with its customers.

Those companies and regulators worried that Nvidia could control access to Arm’s architecture, giving it the power to foreclose access to a key input needed to make their chips. Nvidia said it would invest in Arm and allow other companies continued use of Arm’s chip designs, preserving the company’s licensing model.

The FTC sued in late 2021 to block the merger, and in combination with pressure with other regulatory challenges, the deal collapsed less than three months later.

“Our team determined that giving one of the largest chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips would be bad for competition and hamstring innovation of next-generation technology,” Khan said Tuesday.

Nvidia shares have rocketed since the deal was called off as the company has established a leading position in AI chips. Nvidia’s value has nearly tripled mostly on the strength of sales of its AI chips for servers such as the A100 and H100. It’s now worth just under $2 trillion, the third-most valuable U.S. company.

Arm stock has more than doubled since the company went public in August 2023, although SoftBank still owns 90% of the company’s shares. Investors have bid up its share price in the hope that its technology will be essential for developing and deploying AI software.

Arm is now worth more than $143 billion, and, as Khan noted, investors have given the company a high earnings multiple, suggesting that they see strong growth in the company’s future.

Representatives for Nvidia and Arm declined to comment.

Don’t miss these stories from CNBC PRO:

Continue Reading

Technology

Elon Musk’s X temporarily down for tens of thousands of users

Published

on

By

Elon Musk's X temporarily down for tens of thousands of users

Elon Musk looks on as U.S. President Donald Trump meets South African President Cyril Ramaphosa in the Oval Office of the White House in Washington, D.C., U.S., May 21, 2025.

Kevin Lamarque | Reuters

The Elon Musk-owned social media platform X experienced a brief outage on Saturday morning, with tens of thousands of users reportedly unable to use the site.

About 25,000 users reported issues with the platform, according to the analytics platform Downdetector, which gathers data from users to monitor issues with various platforms.

Roughly 21,000 users reported issues just after 8:30 a.m. ET, per the analytics platform.

The issues appeared to be largely resolved by around 9:55 a.m., when about 2,000 users were reporting issues with the platform.

Read more CNBC politics coverage

X did not immediately respond to CNBC’s request for comment. Additional information on the outage was not available.

Musk, the billionaire owner of SpaceX and Tesla, acquired X, formerly known as Twitter in 2022.

The site has had a number of widespread outages since the acquisition.

The site experienced another outage in March, which Musk attributed at the time to a “massive cyberattack.”

“We get attacked every day, but this was done with a lot of resources,” Musk wrote in a post at the time.

This is breaking news. Check back for updates

Continue Reading

Technology

Companies turn to AI to navigate Trump tariff turbulence

Published

on

By

Companies turn to AI to navigate Trump tariff turbulence

Artificial intelligence robot looking at futuristic digital data display.

Yuichiro Chino | Moment | Getty Images

Businesses are turning to artificial intelligence tools to help them navigate real-world turbulence in global trade.

Several tech firms told CNBC say they’re deploying the nascent technology to visualize businesses’ global supply chains — from the materials that are used to form products, to where those goods are being shipped from — and understand how they’re affected by U.S. President Donald Trump’s reciprocal tariffs.

Last week, Salesforce said it had developed a new import specialist AI agent that can “instantly process changes for all 20,000 product categories in the U.S. customs system and then take action on them” as needed, to help navigate changes to tariff systems.

Engineers at the U.S. software giant used the Harmonized Tariff Schedule, a 4,400-page document of tariffs on goods imported to the U.S., to inform answers generated by the agent.

“The sheer pace and complexity of global tariff changes make it nearly impossible for most businesses to keep up manually,” Eric Loeb, executive vice president of government affairs at Salesforce, told CNBC. “In the past, companies might have relied on small teams of in-house experts to keep pace.”

Firms say that AI systems are enabling them to take decisions on adjustments to their global supply chains much faster.

Andrew Bell, chief product officer of supply chain management software firm Kinaxis, said that manufacturers and distributors looking to inform their response to tariffs are using his firm’s machine learning technology to assess their products and the materials that go into them, as well as external signals like news articles and macroeconomic data.

“With that information, we can start doing some of those simulations of, here is a particular part that is in your build material that has a significant tariff. If you switched to using this other part instead, what would the impact be overall?” Bell told CNBC.

‘AI’s moment to shine’

Trump’s tariffs list — which covers dozens of countries — has forced companies to rethink their supply chains and pricing, with the likes of Walmart and Nike already raising prices on some products. The U.S. imported about $3.3 trillion of goods in 2024, according to census data.

Uncertainty from the U.S. tariff measures “actually probably presents AI’s moment to shine,” Zack Kass, a futurist and former head of OpenAI’s go-to-market strategy, told CNBC’s Silvia Amaro at the Ambrosetti Forum in Italy last month.

Read more CNBC tech news

“If you wonder how hard things could get without AI vis-a-vis automation, and what would happen in a world where you can’t just employ a bunch of people overnight, AI presents this alternative proposal,” he added.

Nagendra Bandaru, managing partner and global head of technology services at Indian IT giant Wipro, said clients are using the company’s agentic AI solutions “to pivot supplier strategies, adjust trade lanes, and manage duty exposure dynamically as policy landscapes evolve.”

Wipro says it uses a range of AI systems — both proprietary and supplied by third parties — from large language models to traditional machine learning and computer vision techniques to inspect physical assets in cross-border transit.

‘Not a silver bullet’

While it preferred to keep company names confidential, Wipro said that firms using its AI products to navigate Trump’s tariffs range from a Fortune 500 electronics manufacturer with factories in Asia to an automotive parts supplier exporting to Europe and North America.

“AI is a powerful enabler — but not a silver bullet,” Bandaru told CNBC. “It doesn’t replace trade policy strategy, it enhances it by transforming global trade from a reactive challenge into a proactive, data-driven advantage.”

AI was already a key investment priority for global firms prior to Trump’s sweeping tariff announcements on April. Nearly three-quarters of business leaders ranked AI and generative AI in their top three technologies for investment in 2025, according to a report by Capgemini published in January.

“There are a number of ways AI can assist companies dealing with the tariffs and resulting uncertainty.  But any AI solution’s success will be predicated on the quality of the data it has access to,” Ajay Agarwal, partner at Bain Capital Ventures, told CNBC.

The venture capitalist said that one of his portfolio companies, FourKites, uses supply chain network data with AI to help firms understand the logistics impacts of adjusting suppliers due to tariffs.

“They are working with a number of Fortune 500 companies to leverage their agents for freight and ocean to provide this level of visibility and intelligence,” Agarwal said.

“Switching suppliers may reduce tariffs costs, but might increase lead times and transportation costs,” he added. “In addition, the volatility of the tariffs [has] severely impacted the rates and capacity available in both the ocean and the domestic freight networks.”

WATCH: Former OpenAI exec says tariffs ‘present AI’s moment to shine’

Former OpenAI exec says tariffs 'present AI's moment to shine'

Continue Reading

Technology

Amazon’s Zoox robotaxi unit issues second software recall in a month after San Francisco crash

Published

on

By

Amazon's Zoox robotaxi unit issues second software recall in a month after San Francisco crash

A Zoox autonomous robotaxi in San Francisco, California, US, on Wednesday, Dec. 4, 2024.

David Paul Morris | Bloomberg | Getty Images

Amazon‘s Zoox robotaxi unit issued a voluntary recall of its software for the second time in a month following a recent crash in San Francisco.

On May 8, an unoccupied Zoox robotaxi was turning at low speed when it was struck by an electric scooter rider after braking to yield at an intersection. The person on the scooter declined medical attention after sustaining minor injuries as a result of the collision, Zoox said.

“The Zoox vehicle was stopped at the time of contact,” the company said in a blog post. “The e-scooterist fell to the ground directly next to the vehicle. The robotaxi then began to move and stopped after completing the turn, but did not make further contact with the e-scooterist.”

Zoox said it submitted a voluntary software recall report to the National Highway Traffic Safety Administration on Thursday.

A Zoox spokesperson said the notice should be published on the NHTSA website early next week. The recall affected 270 vehicles, the spokesperson said.

The NHTSA said in a statement it had received the recall notice and that the agency “advises road users to be cautious in the vicinity of vehicles because drivers may incorrectly predict the travel path of a cyclist or scooter rider or come to an unexpected stop.”

If an autonomous vehicle continues to move after contact with any nearby vulnerable road user, it risks causing harm or further harm. In the AV industry, General Motors-backed Cruise exited the robotaxi business after a collision in which one of its vehicles injured a pedestrian who had been struck by a human-driven car and was then rolled over by the Cruise AV.

Zoox’s May incident comes roughly two weeks after the company announced a separate voluntary software recall following a recent Las Vegas crash. In that incident, an unoccupied Zoox robotaxi collided with a passenger vehicle, resulting in minor damage to both vehicles.

The company issued a software recall for 270 of its robotaxis in order to address a defect with its automated driving system that could cause it to inaccurately predict the movement of another car, increasing the “risk of a crash.”

Amazon acquired Zoox in 2020 for more than $1 billion, announcing at the time that the deal would help bring the self-driving technology company’s “vision for autonomous ride-hailing to reality.”

While Zoox is in a testing and development stage with its AVs on public roads in the U.S., Alphabet’s Waymo is already operating commercial, driverless ride-hailing services in Phoenix, San Francisco, Los Angeles and Austin, Texas, and is ramping up in Atlanta.

Tesla is promising it will launch its long-delayed robotaxis in Austin next month, and, if all goes well, plans to expand after that to San Francisco, Los Angeles and San Antonio, Texas.

— CNBC’s Lora Kolodny contributed to this report.

WATCH: Tesla’s decade-long journey to robotaxis

Tesla's decade-long journey to robotaxis

Continue Reading

Trending