ByteDance Contemplates TikTok Shutdown 😲

Good morning. It's Friday, Apr. 26, and we're covering, Alphabet Delivers Stellar Performance, Unveils First-Ever Dividend and Stock Buyback, ByteDance Contemplates TikTok Shutdown, Rwanda Bill Encourage Migrant Influx into Ireland, Deputy PM Claims, 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 $2.37 Trillion, a 0.12% decrease in the last 24 hours.

• The total crypto market volume over the last 24 hours is $79.35B, which makes a 4.34% decrease.

• The total volume in Defi is currently $5.89B, 7.42% of the total crypto market 24-hours.

• The volume of all stablecoins is now $74.77B, which is 94.23% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 53.51%, a decrease of 0.11% over the day.

BUSINESS & FINANCE

Alphabet Delivers Stellar Performance, Unveils First-Ever Dividend and Stock Buyback

Alphabet, the parent company of Google, made waves in the financial world on Thursday, with the announcement of its first-ever dividend and a substantial $70 billion stock buyback program. The news sent investors into a frenzy, propelling the stock to soar nearly 16% after the bell. Google reported a 13% increase in advertising sales to $61.7 billion, surpassing the average estimate of $60.2 billion. Meanwhile, Google Cloud revenue surged 28% in the first quarter, driven by the growing demand for generative AI tools leveraging cloud services.

Why it matters: Alphabet aims to return capital to shareholders while simultaneously investing billions in data centers to bolster its position in the competitive field of generative artificial intelligence. The dividend, set at 20 cents per share, is a historic milestone for the company, positioning it as one of the few Big Tech firms to offer such payouts. ( Read Deeper )

Elon Musk's xAI Ventures Is Closing $6 Billion Funding Round

xAI, is securing a $6 billion funding round, as per insider reports familiar with the negotiations. The deal, which would value xAI at an impressive $18 billion pre-money, is anticipated to conclude within the coming weeks, barring any alterations to the terms.

Takeaway: xAI initially targeted at raising $3 billion at a $15 billion pre-money valuation, the overwhelming interest from prospective investors prompted a swift revision of the fundraising goals. With heavyweights like Sequoia Capital and Future Ventures, the funding is spearheaded by Steve Jurvetson, already onboard. ( Read Deeper )

TECHNOLOGY & SCIENCE

ByteDance Contemplates TikTok Shutdown

ByteDance, the parent company of popular social media platform TikTok, is considering the possibility of shutting down the app in the United States should legal efforts to challenge legislation banning it from app stores prove unsuccessful. ByteDance views its algorithms, integral to TikTok's operations, as crucial assets that it would be unwilling to part with in a potential sale, making a shutdown of the platform a preferable option.

Why it matters: While TikTok represents a fraction of ByteDance's overall revenue and user base, the company is steadfast in its stance to protect its core algorithmic technology. The prospect of shutting down TikTok in the U.S. would have minimal impact on ByteDance's business operations, allowing the company to retain control over its proprietary algorithms without compromising its intellectual property. ( Read Deeper )

Microsoft Faces Supply Shortage Amid Surging Demand for Cloud AI Services

Microsoft is experiencing a surge in demand for its cloud-based artificial intelligence services, surpassing its supply capacity, according to statements made by CFO Amy Hood during the company's recent earnings call. Despite an increase in capital expenditures, which rose by 79% to $14 billion compared to the previous year, Microsoft continues to grapple with a shortage of data center infrastructure, particularly for deploying AI models.

Takeaway: Hood highlighted the growing need for compute resources to accommodate heavy workloads, including the integration of human-like generative AI features into various products. Microsoft's supply challenge is not unique, as other AI hardware vendors, including Nvidia, have also faced constraints due to surging demand for AI processors. ( Read Deeper )

AROUND DE WORLD & POLITICS

Rwanda Bill Encourage Migrant Influx into Ireland, Deputy PM Claims

Ireland's Deputy Prime Minister, Micheál Martin, has voiced concerns over an increasing influx of migrants from the UK into Ireland, attributing the trend to the threat of deportation to Rwanda imposed by the Rwanda Bill. Martin emphasized the impact of the policy on Ireland, noting that 80% of recent asylum seekers had entered the country from Northern Ireland.

why it matters: The Rwanda Bill, which enables the deportation of asylum seekers to Rwanda, was recently passed in Westminster amid contentious debates regarding its compliance with human rights standards.( Read Deeper )

Iranian Rapper Toomaj Salehi Sentenced to Death

Toomaj Salehi, a dissident rapper in Iran, has been sentenced to death for his involvement in the widespread protests that swept the country in 2022, according to his lawyer. Salehi's case has sparked international condemnation and calls for his immediate release. Salehi, known for his critical stance against the Iranian regime expressed through rap lyrics and social media, was detained, held in solitary confinement, and allegedly tortured following his arrest.

Takeaway: The sentencing of Salehi has drawn outrage from various quarters, including the United States' Office of the Special Envoy for Iran, which condemned the death sentence and called for his immediate release. The United Nations experts also demanded Salehi's release and expressed alarm over the imposition of the death sentence and alleged ill-treatment. ( Read Deeper )

ENTERTAINMENT & SPORTS

Nadal Dominates Madrid Open Opener as Farewell Tour Begins

Rafael Nadal kicked off his farewell tour at the Madrid Open with an impressive straight-set victory over American teenager Darwin Blanch. The five-time Madrid champion, who has announced his intention to retire after the 2024 season, showed no signs of slowing down as he secured a commanding 6-1, 6-0 win in just 63 minutes against his 16-year-old opponent. ( Read Deeper )

Drake Removes Controversial "Taylor Made Freestyle" Amid Threats of Legal Action

In response to a cease-and-desist letter from the estate of Tupac Shakur, Drake has removed his controversial track "Taylor Made Freestyle" from social media platforms. The song, which featured AI-generated vocals from Tupac and Snoop Dogg, as well as lyrics aimed at Kendrick Lamar and Taylor Swift, drew significant attention and criticism. ( Read Deeper )

PODCAST(WHAT WE ARE LISTENING TO)

• Maintaining a start-up spirit as a company scales can be challenging but incredibly valuable. ( Listen )

EXTRA BREVITI

• Snap shares soar 23% as company beats on earnings, shows strong revenue growth ( Read More )

• Health insurance giant Kaiser will notify millions of a data breach after sharing patients’ data with advertisers ( Read More )