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Time Is Money

Jan 28, 2024 • 8 min read

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Tesla‘s AI Compute
Saudi Arabian Alcohol Legalization

Week Recap:

Microsoft disclosed in a recent regulatory filing that Nobelium, a Russian intelligence group known for the 2020 SolarWinds breach, accessed email accounts of some of its top executives. Following new U.S. regulations mandating cybersecurity incident disclosures, Microsoft reported the breach. Although the company doesn't believe the attack had a major material effect, it aimed to comply with these new rules.
Southern California water officials are piloting a cloud seeding project to enhance the region's water supply. Josh Mosher, General Manager of the Santa Ana Watershed Project Authority, explains that the technique involves dispersing silver iodide particles into the atmosphere to stimulate increased precipitation in clouds. This precipitation, primarily snow, eventually contributes to the water supply. Launched in November, this four-year pilot program aims to boost precipitation by 5% to 15%.
In a recent cyberattack, VF Corp, behind apparel brands like Vans, Supreme, and The North Face, reported the theft of personal data from 35.5 million customers. The incident, disclosed in a regulatory filing on Thursday by the company, did not specify the exact nature of the stolen data. The company reassured that sensitive consumer data such as Social Security numbers, bank details, and payment card information are not stored for its consumer businesses, and there's no indication that customer passwords were compromised.
Macy's board of directors recently declined a takeover bid of $5.8 billion from Arkhouse Management Co. LP and Brigade Capital Management LP, citing the offer's lack of compelling value. In December, Arkhouse, along with Brigade and using Arkhouse-managed funds that already have a significant stake in Macy's, made an unsolicited offer to purchase all outstanding shares of the 165-year-old retail chain at $21 per share in cash.
In recent military responses to militia activities in the Middle East, U.S. Central Command (CENTCOM) forces have conducted targeted airstrikes against militia groups in both Iraq and Yemen. On January 24th at 12:15 AM Iraq time, U.S. forces launched unilateral airstrikes on three facilities in Iraq. These facilities, utilized by KH and other Iran-affiliated groups, included their headquarters, storage areas, and training locations for rocket, missile, and UAV capabilities. Additionally, on January 22nd, at approximately 11:59 PM Sanaa time, U.S. CENTCOM forces, in collaboration with the UK Armed Forces and with support from Australia, Bahrain, Canada, and the Netherlands, carried out strikes in Yemen.
Netflix recently announced its fourth-quarter results, revealing a significant increase in subscriber growth that exceeded its own forecasts. The streaming giant added 13.12 million subscribers during the quarter, surpassing its estimate of around 9 million, and ending the full year 2023 with about 30 million net additions. This marks a considerable improvement from the 7.67 million new paying users it acquired in Q4 2022. The company's revenue for the quarter also exceeded expectations, reaching $8.83 billion against analysts' predictions of $8.71 billion, representing a 12.5% increase compared to the same period last year.
Texas Governor Greg Abbott released a statement addressing the issue of immigration and border security. Citing the U.S. Constitution, Governor Abbott refers to provisions that he interprets as ensuring federal protection of states against invasion. He argues that due to the lack of federal action to address large-scale illegal immigration, Texas has invoked its right to self-defense as permitted by the Constitution. As part of this self-declared right, Texas has deployed state resources, including the National Guard and public safety personnel, to manage border security.
In an action to ensure maritime safety, U.S. Central Command forces neutralized two anti-ship missiles prepared for launch by Houthi terrorists. The U.S. military assessed that the missiles posed a direct threat to both merchant ships and U.S. Navy vessels operating in the region and took decisive action to eliminate the missiles. Later the same day, at approximately 2 PM Sanaa time, the situation escalated when Houthi forces launched three anti-ship ballistic missiles toward the U.S.-flagged container ship M/V Maersk Detroit, which was navigating the Gulf of Aden. The USS Gravely (DDG 107) intercepted and destroyed two of the missiles, while one missile fell into the sea.
Tesla's revenue and profit for the fourth quarter did not meet analysts expectations, with the company reporting a 1% increase in auto sales from the same period the previous year. Additionally, the revenue for the quarter was reported at $25.17 billion, falling short of the expected $25.6 billion. The company's total revenue saw a 3% increase from the previous year, rising from $24.3 billion to $25.17 billion. Tesla's operating margin decreased significantly to 8.2%, down from 16% in the same quarter last year and only a marginal improvement from 7.6% in the prior quarter. In contrast to other U.S. automakers who struggled with the production and sale of fully electric vehicles, Tesla reported a record number of deliveries.
Microsoft is set to reduce its workforce by 1,900 positions, impacting its video-game sectors, including the recently acquired Activision Blizzard, which Microsoft purchased for $69 billion. This move is part of the company's restructuring efforts following the acquisition that was completed late last year. Phil Spencer, Microsoft's gaming chief, communicated to employees that the layoffs constitute approximately eight percent of the 22,000 staff within Microsoft's gaming division.
On January 26th, at approximately 1:30 PM Sanaa time, CENTCOM reported that the USS Carney (DDG 64), an Arleigh-Burke class destroyer, was targeted by an anti-ship ballistic missile fired by Iranian-backed Houthi militants from Yemen. The missile was successfully neutralized by the USS Carney, avoiding any casualties or damage. That evening, at around 7:45 PM Sanaa time, the situation escalated when the Houthis launched another missile at the Marshall Islands-flagged oil tanker M/V Marlin Luanda. The vessel was hit and sustained damage, leading to a distress call. The USS Carney and other coalition ships responded to assist, with no injuries reported.
In response to these aggressive actions, CENTCOM conducted a strike on January 27th, at 3:45 AM Sanaa time, targeting a Houthi anti-ship missile in Yemen that posed an imminent threat to naval and commercial ships in the Red Sea. This preemptive strike by U.S. Forces successfully destroyed the missile, reinforcing the safety of the region's international waters and ensuring the continued freedom of navigation for U.S. Navy and merchant vessels.

Tesla’s AI Compute:

Tesla Inc.'s CEO, Elon Musk, has revealed plans to incorporate chips from Advanced Micro Devices Inc. (AMD) into Tesla's spending on AI computing hardware, complementing the over $500 million allocation for Nvidia Corp. hardware this year. Responding to an inquiry on the X social media platform, Musk confirmed Tesla's intent to also engage with AMD. Known for their AI accelerators, Nvidia leads in processors that cater to the high demands of AI technologies, but AMD is steadily gaining ground, recently unveiling its MI300 series, touted to outperform competitors in AI software processing.
This strategic move by Tesla aligns with a wider trend in the tech industry, where companies like Meta are aggressively accumulating AI-focused chips and semiconductors, primarily from Nvidia and AMD, among others. This growing demand for AI-specific hardware underscores the ongoing AI boom and compute power race, marking a significant shift in the tech landscape.
The race for advanced AI capabilities has led to a surge in demand for these specialized chips, highlighting their crucial role in the development and implementation of cutting-edge AI applications. Musk's announcement indicates Tesla's commitment to staying at the forefront of AI technology, echoing the broader industry's push towards enhanced computational power for AI and machine learning innovations.

Saudi Arabian Alcohol Legalization:

Saudi Arabia, a nation known for its conservative laws, is set to legalize the sale of alcohol for the first time since 1952. This significant policy shift is primarily aimed at regulating and countering the illicit alcohol trade. The change, however, will be limited in scope, affecting mainly non-Muslim diplomatic missions within the country. The first alcohol store under this new regulation is reportedly slated to open in Riyadh, the country's capital, catering exclusively to non-Muslim diplomats.
The Saudi government's Center of International Communication has outlined that the new process will involve specific regulations on alcohol importation to the Kingdom. This move is intended to bring order to previously unregulated practices that led to uncontrolled exchanges of alcohol. To ensure regulation, the government plans to implement purchasing quotas, limiting the amount that registered shoppers can buy. This initiative aims to offer a controlled and legal alternative to the black market, which has been an issue due to some foreign diplomats engaging in the illegal sale of imported liquor.
Historically, Saudi Arabia has prohibited the sale and consumption of alcohol, reflecting its adherence to Islamic law. While foreign diplomats have been allowed to bring alcohol into the country for consumption within embassy premises, there have been ongoing concerns regarding the illegal sale of this liquor on the Saudi black market. The opening of the liquor store in Riyadh's diplomatic quarter marks a strategic move by the Saudi government to close this loophole and regulate the alcohol trade within the confines of diplomatic channels.

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