Tag Archives: Investment & Company Information

SpaceX acquires $2.6 billion more in spectrum licenses from EchoStar

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SpaceX is acquiring more spectrum licenses from EchoStar in exchange for about $2.6 billion worth of shares in Elon Musk's aerospace company. The transaction is an expansion of the $17 billion deal struck between the companies in September. SpaceX had previously said it would use these licenses for its Starlink satellites as it works to build out the network's 5G connectivity.

The AWS-3 spectrum licenses changing hands include frequencies used in the US for commercial wireless services such as mobile and satellite communications. The distribution and use of spectrum are overseen by the federal government, which also lays out requirements for the use and development of spectrum for the benefit of consumers.

EchoStar had been facing pressure from the FCC to either use its substantial spectrum stockpile or seek divestment. This deal encompasses all of EchoStars' remaining unpaired AWS-3 spectrum holdings. Earlier this year, the company sold $23 billion worth of licenses to AT&T in addition to its deals with SpaceX. The FCC ended its investigation into EchoStar after these sales. Today’s deal is pending regulatory approval and no precise closing date was shared.

This article originally appeared on Engadget at https://www.engadget.com/mobile/spacex-acquires-26-billion-more-in-spectrum-licenses-from-echostar-170233413.html?src=rss

Snap and Perplexity sign $400 million deal to put AI search directly in Snapchat

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Snap and Perplexity AI have struck a $400 million deal that will bring the AI search engine directly to Snapchat sometime in "early 2026," the two companies announced. With the partnership, Perplexity's AI search engine will be a prominent part of Snapchat's "chat" interface so users can "ask questions and get clear, conversational answers drawn from verifiable sources, all within Snapchat."

The news was announced alongside the company's third-quarter earnings. The company said that revenue from the deal — Perplexity is paying Snap $400 million for the integration — is "expected to begin contributing" to the company's bottom line in 2026. In a letter to shareholders, CEO Evan Spiegel also hinted that Snap could pursue similar partnerships with other AI companies. "This collaboration makes AI-powered discovery native to Snapchat, enhances personalization, and positions Snap as a leading distribution channel for intelligent agents, laying the groundwork for a broader ecosystem of AI partners to reach our global community," he wrote. 

Snap, like its peers, has been leaning into generative AI in recent years. The company has its own LLM-powered chatbot, called MyAI, which uses models from OpenAI, Google and, soon, Perplexity AI. Snap has also introduced AI-powered lenses and creation tools, which have helped boost its Snapchat+ subscription service.  

Spiegel also teased other AI-powered updates coming to Snapchat. He said the company is working on a new AI video generation feature called "AI Clips" that "will allow creators to generate short, shareable videos from simple prompts." He didn’t say when the feature might launch.

Outside of Snapchat, Snap is also planning on launching a new version of its AR glasses, called Specs, sometime next year. Spiegel didn’t offer any new details about the device, which he has previously promised will be lighter-weight than the current version. He did, however, suggest the company was considering working with potential hardware partners. He said Snap would be “putting Specs into their own standalone, 100% owned subsidiary” to give the company more flexibility to pursue such arrangements.

Update, November 5, 2025, 3:08PM PT: Added more details from Snap’s earnings call.


This article originally appeared on Engadget at https://www.engadget.com/social-media/snap-and-perplexity-sign-400-million-deal-to-put-ai-search-directly-in-snapchat-221101734.html?src=rss

Nintendo expects to sell way more Switch 2s than it thought

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Nintendo has boosted its Switch 2 sales forecast for the current fiscal year, meaning it could top first year sales of the original Switch. The gaming giant expects to sell 19 million Switch 2s by March 31, 2026, up 26.7 percent from its original forecast of 15 million units. That follows a previous report that Nintendo had asked suppliers to build 25 million Switch 2s by the end of March next year.

In its second quarter ending September 30th, Nintendo sold 4.54 million Switch 2s and has moved 10.36 million units since launch. However, the company's Q3 sales through the holiday season can often double Q2 sales, as they did multiple times with the Switch. 

The original Switch sold 17.79 million units in its first 13 months, so the Switch 2 could exceed that over a shorter time frame. Nintendo reportedly requested a production boost as it believed the console will continue its torrid sales pace through the holiday season. It also expects to sell 4 million Switches for the fiscal year, down a touch from its previous forecast. 

Nintendo is optimistic about software too, projecting sales of 48 million units for Switch 2 by March 31, up 3 million from its earlier forecast. It also expects to sell 125 million Switch games (which can also be played on the Switch 2) for this fiscal year, rather than 105 million as it previously predicted. 

This quarter, the company moved 11.95 million Switch 2 games, with Mario Kart World and Donkey Kong Bonanza among the best sellers. Pokémon Legends: Z-A started shipping on October 16th, which could help lift game sales for Q3. 

With console and game sales ahead of expectations, Nintendo's earnings looked pretty rosy for its second fiscal quarter ended September 30th. The company saw 527.2 billion yen in revenue ($3.7 billion) and 102.9 billion yen in profit, both considerably higher than expected.

This article originally appeared on Engadget at https://www.engadget.com/gaming/nintendo/nintendo-expects-to-sell-way-more-switch-2s-than-it-thought-130048295.html?src=rss

OpenAI signs $38 billion cloud contract with Amazon

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When OpenAI announced last week the end of its drawn-out corporate restructuring, one of the freedoms the company had managed to negotiate for itself was the ability to more easily sign cloud contracts with Microsoft’s competitors. With the new agreement in place, the company waived its first right of refusal to be OpenAI’s compute provider. OpenAI is wasting no time taking advantage of that freedom.

On Monday, Amazon announced a new multi-year, $38 billion cloud partnership with OpenAI. “Starting immediately,” Amazon Web Services will provide the company with access to “thousands” of NVIDIA GB200 and GB300 GPUs for inference and training its next-generation models. Amazon expects to deploy all the capacity OpenAI has agreed to buy by the end of 2026, with the option to purchase additional capacity in 2027 and beyond. Amazon says the partnership “will help millions of users continue to get value from ChatGPT.”

Of course, the question is how OpenAI will pay for all of its cloud commitments. The Information recently reported the company was generating about $12 billion in annualized revenue. As part of just its restructuring agreement, the company agreed to spend $250 billion on Azure services from Microsoft. It also has a revenue-sharing agreement with the tech giant that will continue when and if OpenAI is able to develop artificial general intelligence.

This article originally appeared on Engadget at https://www.engadget.com/ai/openai-signs-38-billion-cloud-contract-with-amazon-151821384.html?src=rss

Xbox console revenue fell 30 percent year-over-year this summer

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It hasn't been a good year for Xbox so far. Microsoft has released its earnings report for the quarter ending on September 30, and it has revealed that its revenue from the Xbox hardware fell by 30 percent year-over-year. Take note that the revenue decline doesn't reflect any dip in sales caused by the console's $20-to-$70 price hike, since that took effect on October 3. Similarly, Microsoft only raised the price for its Game Pass Ultimate subscription from $20 to $30 in October. 

Meanwhile, revenue from Xbox content and services remained relatively unchanged from the same period last year. Microsoft says it saw growth from Xbox subscriptions and third-party content, but it was "partially offset" by the decline in first-party gaming content. 

The Xbox division was one of the most affected teams when Microsoft started cutting down its global workforce earlier this year, with the company cancelling games that were being developed for the console. Microsoft scrapped the modern reimagining of Perfect Dark, a first-person shooter from the year 2000, and even closed down the Xbox studio working on it. The company also cancelled Everwild, a project that had long been in development by Xbox studio Rare, also in the midst of its mass layoffs. 

Overall, Microsoft's $77.7 billion revenue was 17 percent higher compared to the same period last year, and its operating income was up by 22 percent. Microsoft CEO Satya Nadella posted a few highlights about the company's earnings call on X, mostly focusing on its AI efforts. He said that the company will increase its AI capacity by 80 percent this year and will double its data center footprint over the next two. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/xbox/xbox-console-revenue-fell-30-percent-year-over-year-this-summer-012245146.html?src=rss

The UK approves Google’s $2 billion investment in Anthropic

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The UK’s competition regulator has cleared Google's $2 billion investment in Anthropic, according to reporting by Bloomberg and others. The Competition and Markets Authority (CMA) has officially concluded that the company hasn’t acquired “material influence” over the AI startup Anthropic as a result of the investment.

The continuing investigation into the partnership has also been squashed, with the UK antitrust watchdog saying that the investment doesn’t qualify for a full probe under merger rules. This is after phase one of a formal investigation was announced back in October.

“Anthropic is an independent company and our strategic partnerships and investor relationships do not diminish our corporate governance independence or our freedom to partner with others,” a company spokesperson said after the CMA announced its findings.

Google’s investment into Anthropic gives the company non-voting shares and consultation rights on significant business issues. Anthropic is best known for creating the Claude AI assistant, which is in direct competition with Google Gemini. Earlier this year, the CMA expressed concern regarding the “interconnected web” of partnerships and investments in the rapidly advancing world of AI.

The CMA also allowed a similar investment to go through in which Amazon forked over a whopping $4 billion to Anthropic. It didn’t even investigate that one, on the grounds that Anthropic’s UK turnover didn’t exceed £70 million and the two parties didn’t combine to account for 25 percent or more of the region’s supply of AI LLMs and chatbots.

Microsoft’s investment into OpenAI, however, is still under scrutiny by the CMA. The watchdog group did clear Microsoft’s investments with the AI startups Mistral and Inflection.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-uk-approves-googles-2-billion-investment-in-anthropic-162226536.html?src=rss

Elon Musk adds Microsoft as defendant in his lawsuit against OpenAI

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Elon Musk has amended his lawsuit against OpenAI, adding more anti-trust claims against the company and including Microsoft as a defendant. He also added his company, xAI, as well as Shivon Zilis, a former OpenAI board member and mother to three of his children, as plaintiffs. Musk originally sued OpenAI in March, accusing founders Sam Altman and Greg Brockman of violating the organization's non-profit mission by teaming up with Microsoft. He withdrew the state court lawsuit in June before suing OpenAI and Altman again in federal court. 

Musk was one OpenAI's earliest backers, and one of his arguments was that he was "betrayed by Mr. Altman and his accomplices." In response to his lawsuit, OpenAI published old emails from 2015 to 2018 in a blog post, wherein it claimed that Musk was involved in the planning when the company first explored transitioning into a for-profit structure. xAI's founder allegedly wanted majority equity, control of the initial board of directors and the CEO position and even suggested merging OpenAI with Tesla. Musk left the organization in 2018 before Microsoft invested the first billion in OpenAI. Since then, Microsoft has invested $13 billion in the generative AI firm, and OpenAI has taken steps to complete its transformation into a more traditional for-profit company with a non-profit arm. 

As TechCrunch notes, the amended lawsuit argues that OpenAI is "actively trying to eliminate competitors," including xAI, by making investors promise not to fund them. xAI has been harmed by OpenAI's and Microsoft's exclusive exchange of "competitively sensitive information," the lawsuit also says. Musk's new complaint names LinkedIn co-founder Reid Hoffman and Microsoft VP Dee Templeton as defendants, as well, for being involved with both OpenAI and Microsoft boards. As for why Zilis was named as a plaintiff, the lawsuit says it's because the former OpenAI board member and current director of Neuralink repeatedly raised concerns over OpenAI's deals that were similar to Musks. 

This article originally appeared on Engadget at https://www.engadget.com/ai/elon-musk-adds-microsoft-as-defendant-in-his-lawsuit-against-openai-140023400.html?src=rss

Sony has sold 65 million PS5s

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Just after launching the PlayStation 5 Pro, Sony revealed that it has sold 65.5 million PlayStation 5s as of the end of Q2 2024. While sales of the console dropped 1.1 million units from the same period last year (and are down 2 million units total in 2024), this was more than offset by game sales of 77.7 million units, up 14.9 percent from Q2 2023. Sony's monthly active PlayStation Network users remained at 116 million despite a big price bump late last year.

The net result? Revenue climbed by 9 percent and operating profit rose by a stellar 73 percent to 445.1 billion yen ($2.91 billion). Given those profits and the fact that the company has a new, more expensive (and probably more profitable) console ready for Christmas, Sony was bullish on the rest of its year, boosting its revenue forecast slightly.

A big part of Sony's game sales story is the success of the action RPG Black Myth: Wukong, which reportedly sold 20 million units in Q2 (including the PC version). Another high performer was the first party Astro Bot title, showing the power of hit games to sway sales. 

Sony still has two quarters left in its fiscal year, which ends March 31. Upcoming first party titles expected prior to that include Assassin's Creed Shadow and Monster Hunter Wilds, both set for February 2025. However, Sony's fiscal 2025 starting in April could be a blockbuster with highly anticipated games like Ghost of Yotei, Death Stranding 2, DOOM: The Dark Ages and Grand Theft Auto VI arriving later next year. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/playstation/sony-has-sold-65-million-ps5s-140019860.html?src=rss

Sony has sold 65 million PS5s

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Just after launching the PlayStation 5 Pro, Sony revealed that it has sold 65.5 million PlayStation 5s as of the end of Q2 2024. While sales of the console dropped 1.1 million units from the same period last year (and are down 2 million units total in 2024), this was more than offset by game sales of 77.7 million units, up 14.9 percent from Q2 2023. Sony's monthly active PlayStation Network users remained at 116 million despite a big price bump late last year.

The net result? Revenue climbed by 9 percent and operating profit rose by a stellar 73 percent to 445.1 billion yen ($2.91 billion). Given those profits and the fact that the company has a new, more expensive (and probably more profitable) console ready for Christmas, Sony was bullish on the rest of its year, boosting its revenue forecast slightly.

A big part of Sony's game sales story is the success of the action RPG Black Myth: Wukong, which reportedly sold 20 million units in Q2 (including the PC version). Another high performer was the first party Astro Bot title, showing the power of hit games to sway sales. 

Sony still has two quarters left in its fiscal year, which ends March 31. Upcoming first party titles expected prior to that include Assassin's Creed Shadow and Monster Hunter Wilds, both set for February 2025. However, Sony's fiscal 2025 starting in April could be a blockbuster with highly anticipated games like Ghost of Yotei, Death Stranding 2, DOOM: The Dark Ages and Grand Theft Auto VI arriving later next year. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/playstation/sony-has-sold-65-million-ps5s-140019860.html?src=rss

Nintendo expects to sell fewer Switches than planned as new model looms

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Nintendo was prepared to suck it up financially this year as sales of its aging Switch decline, but things are going a bit worse than it hoped. After selling fewer consoles than it expected over the last two quarters (4.72 million compared to 6.84 million last year), the company has downgraded its sales forecast from 13.5 million consoles to 12.5 million — a cool one million unit drop. The company also lowered its sales forecast by 5.2 percent to 1.28 trillion yen ($8.41 billion), thought it expects the same net profit as last year.

The company saw decent financials last fiscal year (ending in March 2024) despite the fact that the Switch was first released in 2017. It achieved that largely through the release of the much-anticipated The Legend of Zelda: Tears of the Kingdom game and to a lesser extent, the launch of the Super Mario Bros. Movie. 

However, "there were no such special factors in the first half of this fiscal year and with Nintendo Switch now in its eighth years since launch, unit sales of both hardware and software decreased significantly year-on-year," the company said in its IR explanatory materials. There were some bright spots, though, like a slight boost in Switch sales over last quarter due to the launch of the Switch Lite: Hyrule Edition and other bundled hardware/software releases. 

The Switch is Nintendo's second-best selling console of all time after the DS, but it has definitely run its course. That means the company will be banking heavily on its next-gen Switch 2 console, but it won't be announced until early next year — so it's not likely to see improved sales in the near future.  

This article originally appeared on Engadget at https://www.engadget.com/gaming/nintendo/nintendo-expects-to-sell-fewer-switches-than-planned-as-new-model-looms-140031461.html?src=rss