Top stories today:

1. Disney makes $1.5B investment in Fortnite maker Epic Games
2. Foldable iPhone, iPad prototypes being built by Apple
3. OpenAI developing 2 AI agents: local and web-based
4. China’s consumer inflation hits -0.8% YoY, lowest since 2009

0. Data and calendar

1. Disney makes $1.5B investment in Fortnite maker Epic Games

• Timeline for new products TBD.

• Fall of 2025: ESPN’s stand-alone streaming service launches.

• 111.3M Disney+ subscribers, -1.3M vs. prior quarter.

• Password sharing crackdown kicks off in U.S.

Disney’s revenue was little changed at $23.5B in Q1 FY24, while non-GAAP operating income rose to $3.9B

80% of Disney’s operating profits came from its Parks and Experiences division

2. Foldable iPhone, iPad prototypes being built by Apple

• Timeline: 2026 or later.

• “Could be canceled if they don’t meet Apple’s standards.”

• There have been fluctuations in interest by Apple’s leadership team.

• Foldable phones have not been top sellers by other brands, in part because of their high cost.

4. OpenAI developing 2 AI agents: local and web-based

The Information confirmed that the “industry-defining zero to one product” this OpenAI hinted at in January were agents:

2 types of agents are being developed:

1. One that takes over the customer's device: it could “transfer data from a document to a spreadsheet for analysis, for instance, or to automatically fill out expense reports and enter them in accounting software.”

2. Web-based, doing “tasks such as gathering public data about a set of companies, creating itineraries under a certain budget or booking flight tickets.”

Timeline: launch TBD, but the product has been in development for 1+ year.

5. China’s consumer inflation hits -0.8% YoY, lowest since 2009

• CPI: 0.3% MoM / -0.8% YoY in Jan., lower than 0.4% / -0.5% expected, from 0.1% / -0.3% in Dec.

• PPI: -2.5% YoY, vs. -2.6%, from -2.7%.

• Potential causes: real-estate crunch, lower exports, lower foreign investment.

6. Ransomware hit a record $1.1B in 2023

7. Interesting videos, posts, and memes

8. Other headlines

AI

• Big Tech companies will participate in U.S.-led effort to regulate AI.

• Microsoft Copilot updated with new model Deucalion.

• OpenAI reveals existence of Child Safety team.

• Google Deepmind proposes “self-discover” framework for LLMs.

• MindStudio: start building AI apps in a single afternoon.*

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Tech earnings

• SoftBank has 1st profit in 5 quarters, with $6.6B net income.

• Alibaba's revenue +5% YoY to $36.7B in Q4, announces $25B buyback.

• Uber’s revenue +15% to $9.9B in Q4, operating income at $0.65B.

• PayPal’s revenue +9% to $8.0B in Q4.

• Roblox's bookings +25% to $1.1B in Q4.

• Adyen’s net revenue +23% to $956M in H2.

• Arm’s revenue +14% to $0.82B, stock +22% in pre-market.

Tech

• Vision Pro teardown confirms close to 4K resolution.

• Twitter, Elon new book: Battle for the Bird, an excerpt.

• Google Pixel Fold 2: design leaks.

• HubSpot: free CRM that the Bay Area Times team uses.*

• Masterworks: invest in shares of paintings by Banksy and Picasso.*

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Tech & law

• Elizabeth Kelly appointed director of AI Safety Institute.

• Meta challenges EU's 0.05% worldwide revenue fee.

• Chinese hackers had access to U.S. vital infrastructure for 5+ years: U.S.

Biotech

• Novo CEO: food companies call me for advice given weight loss drugs.

Business

• Fox’s revenue -8% to $4.2B in Q2 FY24.

• Publicis’s revenue +2% YoY to $3.8B in Q4.

• News Corp.’s revenue +3% to $2.59B.

• NYT’s revenue +1% to $0.68B, +0.3M subscribers to 10.3M.

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Crypto

• SEC votes 3-2 to expand “dealer” rules to firs trading $50M+.

• Token “safe harbor” plan still in works by SEC’s Hester Peirce.

• Bakkt running low on cash, runway <12 months.

U.S. politics

• Ukraine, Israel aid bill rejected in Senate, 49-50, needing 60 votes.

• Biden considers executive action on border.

• Tucker Carlson’s interview with Putin out today at 6 PM.

  • EU sanctions could come for Carlson.

• Supreme Court hears oral arguments on Trump’s eligibility at 10 AM ET.

• Marianne Williamson suspends presidential campaign.

• Trump denied motion for mistrial over Carroll defamation.

• Biden again confuses European leaders, swapping Kohl, Merkel.

World

• Netanyahu rejects Hamas’s demand to release 1000s of convicted prisoners.

• Iraq militia leader behind deadly attack killed by U.S. drone: U.S.

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