AI Headlines: Meta's Bubble Comments and the Google-PayPal Partnership
Portfolio News #5
Hi All
Welcome to our brief overview of portfolio news from the past few days.
Meta Platforms
CEO Mark Zuckerberg recently acknowledged a possible AI-driven market bubble but stressed that failing to invest aggressively would be a far bigger mistake. This reflects our view: while the ROI is uncertain, choosing not to compete in this environment is a non-option as we're also seeing the tangible results of this spending.
Meta is also in talks with Oracle for a cloud computing deal worth around $20 billion to train its AI models.
Additionally, in its Connect 2025, the company unveiled two new AI-powered smart glasses, the Oakley Vanguard for athletes and the Ray-Ban Display with AR features, which boast significantly improved battery life and show steady market adoption .
PayPal and Alphabet
PayPal and Google announced a multiyear partnership to build AI-powered shopping experiences and "agentic commerce". This is a powerful combination, embedding PayPal's payment infrastructure across Google's platforms while leveraging Google's AI to enhance PayPal's services. PayPal continues to innovate rapidly across its business.
Regarding Alphabet, Waymo unit partnered with Via Transportation to launch autonomous public transit services in Arizona, another sign that self-driving technology is moving from theory to reality.
Additionally, in Europe, Alphabet will propose changes to its ad-tech business by a November deadline following a $3.5 billion fine, but will reject the full breakup regulators previously demanded. The company's plan will not include the sale of key assets like Ad Manager, a move the EU had flagged as the only way to ensure fair competition. Google will appeal the penalty, which was increased by 60% for repeat violations, signaling a protracted regulatory fight.
Amazon
Amazon is expanding its dominance.
First, it will now allow merchants on competitor sites like Shopify, Walmart, and Shein to use its Multi-Channel Fulfillment (MCF) network for shipping. This is a brilliant strategy to entrench its network across the entire e-commerce landscape.
Second, Amazon is partnering with Winn-Dixie for grocery delivery in Florida, a direct challenge to Instacart as it tests new strategies to win the grocery war.
Other Updates
Adobe: In a strong sign of its AI leadership, Adobe's GenStudio marketing tool was selected by Qualcomm to enhance its content creation.
Intel: Four of its former directors publicly called for the company to go private and break up its business units to regain competitiveness.
Headwinds from new policies: The tech sector faces policy challenges, including a proposal from the Trump administration to dramatically increase H-1B visa fees.
That's a wrap. See you soon.