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1.	Altman Says Data Centers in Space Idea is ‘Ridiculous' By Martin Peers Source: The Information

OpenAI CEO Sam Altman called the concept of putting data centers in space right now “ridiculous,” taking aim at rival Elon Musk’s argument for why he is taking the merged SpaceX-xAI public.

“It will make sense some day,” Altman said, speaking at an event in India. He added that “the very rough math of launch costs relative to the cost of power we can do on Earth, to say nothing of how you’re going to fix a broken GPU in space and they do break a lot still unfortunately…we are not there yet.”

Other executives have made similar points in recent months, as Musk has fuelled talk of data centers in space replacing earth-based facilities. Amazon Web Services CEO Matt Garman said a few weeks ago that existing technology was “pretty far” from making data centers in space.

2.	Trump Calls on Netflix to Fire Director Susan Rice By Martin Peers Source: The Information

President Donald Trump called on Netflix to kick former Biden administration official Susan Rice off its board, “or pay the consequences.” His comments came after Rice said on a podcast that if Democrats win control of the House of Representatives this fall “there will be an accountability agenda” where companies that broke the law will be “held accountable.”

Trump’s threat could complicate Netflix’s hopes of winning regulatory approval for its purchase of Warner Bros. Discovery’s streaming operations and film studio. Netflix is competing against Paramount Discovery, whose controlling shareholder, the Ellison family, is already seen as having stronger ties to Trump.

In the podcast, Rice called out media outlets like CBS which settled legal action from the Trump administration with big payments “even though they had very strong and meritorious defenses to a defamation claim.” Rice noted that the Democrats wouldn’t “violate the law the way they do, but we’re not going to be suckers.” Trump’s comments, in a Truth Social post, were in response to an earlier one from Laura Loomer, who called on Trump to “kill the Netflix-Warner Bros. merger now.”

3.	OpenAI Raises Revenue, Cash Burn Outlook, Falls Short on Margins By Laura Mandaro Source: The Information

OpenAI recently raised its outlook for revenue for the next five years, predicting it would generate about 27% more than previously forecast from sales of its ChatGPT subscriptions and other business lines, The Information reported Friday. But it warned it will burn more than twice as much cash through 2030 than previously predicted, as it spends $665 billion on the costs of running and training its AI.

The company expects revenue to rise to about $30 billion this year and $62 billion next, eventually hitting $284 billion in 2030. Costs are rising swiftly, adding to its cash burn, which will rise to $25 billion this year and $57 billion next year. Higher costs for running its models caused the ChatGPT maker to fall short on its targets for gross margins last year, which fell to 33% from 40% in 2024 and short of its 46% target.

4.	Nvidia, MediaTek to Launch Chip for Consumer PCs This Year By Wayne Ma Source: The Wall Street Journal

Nvidia is planning to release a new chip in the first half of this year for consumer laptops and desktops in collaboration with Taiwanese chip designer MediaTek, The Wall Street Journal reported.

PC makers such as Dell Technologies and Lenovo Group are working on products using the chip, which has both a central processing unit and a graphics processing unit on a single piece of silicon, the newspaper said.

Nvidia hopes the chip will appeal to videogamers who are more willing to pay a premium for hardware, the Journal added.

Although Nvidia CEO Jensen Huang publicly confirmed the existence of the MediaTek chips last month, the PC brands that plan to use them and their release schedules haven’t been previously reported.

Last year, Nvidia announced a collaboration with MediaTek to build a similar chip for a high-powered AI computer meant for researchers and developers, which went on sale in October.

5.	Anthropic’s New Security Tool Sends Cyber Stocks Reeling By Laura Bratton Source: The Information

Anthropic’s unveiling of Claude Code Security, a new cybersecurity tool, sent cybersecurity stocks plunging—the latest part of the software sector to be hit by anxieties about AI disruption.

Anthropic’s new tool detects vulnerabilities in software to help security teams defend against hackers using AI. Claude Code Security reads code the way a human security researcher would to “find and fix issues that traditional tools often miss,” Anthropic said. Once vulnerabilities are detected, it suggests software “patches” to fix them.

Security software stocks CrowdStrike and Okta tumbled roughly 8% and 9%, respectively. Cloudflare shares lost over 7%, Zscaler shed 5%, and SailPoint sank almost 9%.

Up until Friday, cybersecurity stocks had been less affected by the software stock selloff: An exchange traded fund tracking cybersecurity stocks, the First Trust NASDAQ Cybersecurity ETF, has lost about 11% over the past six months, while overall, software stocks in the broader S&P 500 have dropped 24%.

A tech lead for Cloudflare in a post on X dismissed the idea that Claude Code Security is a threat to existing firms, however, snubbing “investors who apparently think all forms of ‘security’ are fungible.”