Amazon, OpenAI, Nvidia Deal, Government Shutdown, and eVTOLs: Bloomberg Businessweek Daily

Amazon, OpenAI, and Nvidia Chip Deal

• 🤝 Amazon Web Services has signed a $38 billion deal with OpenAI to supply computing power, including hundreds of thousands of Nvidia GPUs.
• ☁️ This partnership addresses OpenAI's significant demand for computing capacity, which is crucial for fine-tuning AI models on enterprise data.
• 🚀 Nvidia shares saw a 3.3% increase following the news, while Amazon's stock rose by 4.4%.
• 💡 The deal highlights the complex ecosystem of AI, with Microsoft also signing a $9.7 billion deal with Iren for AI computing capacity.

Government Shutdown and SNAP Benefits

• 🏛️ The US government shutdown continues, impacting essential services like SNAP (food stamps).
• ⚖️ Federal judges have compelled the Trump administration to partially fund SNAP benefits, though at a reduced amount.
• 😟 Governors of Wisconsin and New Mexico are actively addressing the SNAP funding gap, emphasizing the power of states to act in the absence of federal leadership.
• 📉 The situation highlights the pressure on state leaders to manage domestic issues amidst federal inaction.

Trump's Tariffs and Supreme Court Challenge

• ⚖️ An educational toy business owner is challenging President Trump's tariffs at the Supreme Court, arguing they harm businesses.
• 📈 The case could significantly impact the administration's ability to impose tariffs, potentially invalidating up to 60% of existing tariffs and opening the door for billions in refunds.
• 🏛️ The core of the case revolves around the interpretation of a statute granting the president emergency powers to regulate importation.

eVTOLs and Urban Air Mobility

• ✈️ Archer Aviation is developing electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility networks.
• 🗓️ The company aims to have aircraft flying in five cities by June, initially without passengers, with commercial operations expected soon after FAA certification.
• 🇦🇪 Archer has already secured a partnership with Abu Dhabi Aviation, with revenue recognition expected in the first quarter of next year.
• 🏙️ Los Angeles is identified as a prime city for eVTOL deployment due to traffic congestion, with Archer serving as the exclusive air taxi provider for the 2028 Olympics.
• 🤖 While current operations will be piloted, Archer is also working on autonomous flight capabilities for future deployment.

Other Business and Tech News

• 💻 Cisco Systems launched Unified Edge, an all-in-one product for businesses to incorporate AI locally, with Verizon already a customer.
• 📺 Disney and YouTube TV are in a dispute over distribution fees, leading to a loss of access to Disney channels for YouTube TV subscribers.
• 💊 Pfizer has accused Novo Nordisk of attempting to stifle competition in the weight loss drug market by acquiring an obesity startup.