😲13 States To Sue DOGE

☀️Good morning. It's Friday, Feb. 7, and we're covering, Amazon Shares Slide As Cloud Growth, Sales Forecast Disappoint Investors, OpenAI's Stargate AI Venture Scouts U.S. Locations For AI Data Centers, Israel Plans Exit Strategy For Gaza Residents Amid Trump's Takeover Proposal and much more. First time reading? Sign up to get this newsletter: Sign up here. 

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MARKETS

Cryptocurrency Prices by Market Cap

• The global cryptocurrency market cap today is $3.15 Trillion, a 2.26% decrease in the last 24 hours.

• The total crypto market volume over the last 24 hours is $125.31B, which makes a 4.67% increase.

• The total volume in Defi is currently $9.8B, 7.82% of the total crypto market 24-hours.

• The volume of all stablecoins is now $116.56B, which is 93.01% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 60.95%, an increase of 0.66% over the day.

Brazil's Central Bank Chief Highlights Crypto Surge With 90% Flow Tied To Stablecoins

Brazil's Central Bank President Gabriel Galipolo highlighted a significant rise in cryptocurrency use in the country, with about 90% of crypto transactions linked to stablecoins, largely for cross-border purchases. Speaking at a BIS event in Mexico City, Galipolo emphasized regulatory concerns regarding tax evasion and money laundering due to this trend. He clarified that Drex, Brazil's new digital financial platform, is aimed at improving credit through tokenized assets rather than being a CBDC. (Read Deeper)

BUSINESS & FINANCE

Amazon Shares Slide As Cloud Growth, Sales Forecast Disappoint Investors

Amazon’s shares fell up to 5% in extended trading after its Q4 earnings report, erasing nearly $90 billion in market value. The decline was driven by weaker-than-expected cloud computing growth and a disappointing Q1 2025 sales forecast. Despite cloud growth challenges, Amazon CFO Brian Olsavsky indicated CapEx spending for AI development would remain high, similar to Q4's $26.3 billion.

Takeaway: Amazon Web Services (AWS) revenue rose 19% to $28.79 billion but missed analyst expectations of $28.87 billion. CEO Andy Jassy cited delays in chip supplies as a factor limiting growth. The company projected revenue between $151 billion and $155 billion, below the $158 billion expected by analysts. Operating profit forecasts also came in lower than anticipated. (Read Deeper)

PVH Faces Uncertainty In China Following Blacklist Inclusion

Calvin Klein and Tommy Hilfiger face uncertainty in China after their parent company, PVH, was added to China's Unreliable Entity List (UEL). The Ministry of Commerce accused PVH of violating market principles by severing ties with Chinese firms and imposing discriminatory measures. The blacklisting is part of China's retaliation against U.S. trade sanctions, including tariffs linked to concerns over fentanyl production.

Takeaway: PVH stores in China remain operational, experts warn that manufacturers may voluntarily cut ties with PVH to mitigate regulatory risks. The blacklisting follows PVH's refusal to source cotton from China's Xinjiang region, which has faced allegations of forced labor. China accounted for 6% of PVH's revenue and 16% of its profit in 2023, highlighting the financial stakes. (Read Deeper)

TECHNOLOGY & SCIENCE

OpenAI's Stargate AI Venture Scouts U.S. Locations For AI Data Centers

OpenAI is evaluating U.S. states for AI data center locations as part of its ambitious $500 billion Stargate venture, developed with backing from SoftBank, Oracle, and other investors. The project aims to establish the infrastructure needed for the U.S. to maintain leadership in the global AI race against China's emerging advancements. DeepSeek’s disruptive model, trained on less sophisticated chips at lower costs, has challenged assumptions about AI development.

Takeaway: The flagship Stargate site is already under construction in Abilene, Texas, with additional campuses planned across 16 states. OpenAI expects parts of the Abilene center to become operational later this year. Chris Lehane, OpenAI’s chief global affairs officer, highlighted the competition with China's new low-cost AI model, DeepSeek, which claims to achieve significant AI capabilities without requiring the vast data centers that Stargate envisions. (Read Deeper)

Blackstone Acquires AI Fire for $1.1 Billion

Blackstone Inc. has agreed to acquire AI Fire, a fire protection systems company, for approximately $1.1 billion, including debt. AI Fire, backed by TruArc Partners, provides services such as installing and maintaining fire extinguishers, alarms, and sprinklers. TruArc announced the sale but did not initially disclose the buyer or financial details.

Takeaway: This acquisition is part of a wave of deals in the fire and safety industry as demand for property protection rises due to extreme weather events. Other recent transactions include Permira's $1.8 billion purchase of Encore Fire Protection and Pye-Barker Fire & Safety selling stakes to GIC Pte and Abu Dhabi Investment Authority earlier this year. ( Read Deeper)

AROUND DE WORLD & POLITICS

Israel Plans Exit Strategy For Gaza Residents Amid Trump's Takeover Proposal

Israel’s Defense Minister instructed the military to develop a plan allowing Palestinians in Gaza to leave if they wish, amid ongoing conflict with Hamas. The initiative aligns with a controversial proposal by U.S. President Donald Trump, who suggested that the U.S. could "take over" Gaza and resettle its 2.1 million residents elsewhere, including in neighboring countries like Jordan and Egypt.

Takeaway: Trump described his vision of turning Gaza into a modern, prosperous region, likening it to "the Riviera of the Middle East." However, this would require the displacement of most current residents during reconstruction. The Palestinian leadership strongly rejected the plan, calling it a violation of international law and emphasizing their refusal to cede any land. (Read Deeper)

13 States To Sue Musk’s DOGE Over Federal Payment System Access

Thirteen Democratic attorneys general, led by New York’s Letitia James, plan to sue Elon Musk's Department of Government Efficiency (DOGE) for accessing federal payment systems containing sensitive personal data. The attorneys argue that this move threatens privacy and could disrupt critical payments, including Social Security and Medicare. The attorneys general have accused DOGE of trying to block payments to agencies like USAID without legal authority.

Takeaway: Concerns have grown following DOGE's access to Treasury Department systems after the resignation of Deputy Secretary David Lebryk. A judge recently limited this access to "read-only" for two Musk allies, barring Musk himself. Critics, including government officials and unions, warn the situation may lead to data security risks and disruptions to key federal programs. Musk, however, claims DOGE is saving taxpayers millions. (Read Deeper)

ENTERTAINMENT & SPORTS

Former Interpreter For Shohei Ohtani Sentenced For $17M Gambling Fraud

Ippei Mizuhara, the former interpreter for MLB star Shohei Ohtani, has been sentenced to 57 months in prison for defrauding the athlete of nearly $17 million to cover gambling debts. He was also ordered to repay the stolen funds and over $1 million in unpaid taxes. Mizuhara, who worked with Ohtani since 2018, concealed his actions by falsifying tax records and claimed the player had knowledge of the loans, a statement Ohtani later refuted. (Read Deeper)

Liverpool Crush Tottenham To Secure EFL Cup Final Spot Against Newcastle

Liverpool secured a dominant 4-0 victory over Tottenham at Wembley, earning a spot in the EFL Cup final against Newcastle. Cody Gakpo opened the scoring in the 34th minute after a defensive lapse by Spurs. Mo Salah extended the lead early in the second half with a penalty, followed by goals from Dominik Szoboszlai and Virgil Van Dijk. Tottenham struggled throughout, with Richarlison forced off due to injury and Son Heung-min hitting the crossbar in their only notable chance. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• David and Ejaaz analyzed the significant downturn in AI-focused cryptocurrencies, which have experienced a sharp 70% decline in market value. They explored whether this downturn represents a temporary setback or a more profound market correction. (Listen)

EXTRA BREVITI

• OpenAI cofounder John Schulman has joined former OpenAI CTO Mira Murati’s stealth startup after a brief five-month stint at Anthropic. (Read More)

• DeepSeek, one of China's fastest-growing AI startups, is emerging as a dream destination for job seekers.(Read More)

• US Lawmakers Seek Ban on Chinese AI App DeepSeek Over National Security Concerns. (Read More)

• Amazon has announced a staggering $100 billion capital expenditure plan for 2025, primarily focused on expanding AI capabilities for AWS, its cloud division. (Read More)