Musk shows off Cybercab

This is the Techonomy Barista, where we debug the glitches in the matrix of modern markets!

Today’s news:

1. Musk unveils the Tesla Cybercab.

2. OpenAI projects $100B revenue in 2029.

3. US inflation dropped in Sep with further drop ahead.

4. Are investors blinded by Meta’s product launches?

5. Germany’s economic growth takes a hit.

1. Tesla's 'Cybercab' robotaxis: Musk's $30,000 self-driving gamble 🚕

Key takeaways:

• Elon Musk unveiled Tesla's 'Cybercab' robotaxi, promising a price under $30,000.

• Production expected to start before 2027, pending regulatory approval.

• Musk showcased a prototype of a 20-person autonomous 'Robovan'.

• Tesla shares rose 45% since announcing the 'robotaxi day' on April 5.

• Musk has repeatedly missed previous targets for rolling out self-driving taxis.

• Tesla sales have declined with increased competition but still account for 82% of total revenue.

What this could mean for you and the automotive industry:

• Our future commute involves steering wheel-less taxi. Waymo by Google already offers such a service.

• Privacy concerns may arise as these autonomous vehicles collect data during your rides.

• Job market shifts may occur, affecting traditional taxi and ride-share drivers. 🚗 

• The race for affordable EVs is heating up, with Tesla's $25,000 Model 2 still in the shadows.

2. OpenAI projects $100B revenue by 2029, but $14B loss in 2026 💸

Key takeaways:

• OpenAI forecasts $100 billion revenue by 2029, with profitability expected the same year.

• Projects losses to peak at $14 billion in 2026, nearly 3X of 2024.

• It burned through $340 million in the first half of 2023, with $1 billion cash remaining.

• Compute costs for model training could rise to $9.5 billion annually by 2026.

• ChatGPT expected to remain the primary revenue driver for years to come.

What this could mean for you and the AI industry:

• Prepare for a flood of new AI products and services as OpenAI ramps up development to meet ambitious revenue targets.

• Possible price changes for AI services as OpenAI balances growth with profitability goals.

• OpenAI's massive spending likely to trigger similar investments from competitors. Silicon Valley's living up to its motto of "Go big or go home" 🏠💰

• As compute costs skyrocket, we might see a shift towards more efficient AI models. After all, even tech giants can't keep burning cash faster than a SpaceX rocket 🚀💸

3. US inflation expected to slow in September, core CPI at 3.2% 📉

US inflation decreased in September with trend expected to continue

Key takeaways:

• CPI projected to rise 0.1% in September and Core CPI (excl. food and energy) expected to increase 0.2%, both slowing from previous month.

• Annual overall inflation rate lowest since early 2021 at forecast at 2.3%.

• Used car prices likely to increase after several months of decline.

• Higher container shipping costs may impact core goods prices in coming months.

• Strong wage growth poses potential upside risk to inflation.

What this could mean for inflation in the US economy:

• The slowing inflation rate is like watching paint dry—exciting for economists, but the average person might not feel the difference right away. 🎨 

• The Fed's inflation target is still playing hard to get, so don't expect any dramatic policy shifts soon. If shipping costs keep rising, we might see a game of economic whack-a-mole, with inflation popping up in unexpected places.

• If you're in the market for a new ride, brace yourself for higher prices on both new and used vehicles.

• Savers might see a slight improvement in interest rates if the Fed maintains its current stance.

4. Meta's 70% stock surge: Is Zuckerberg's vision overvalued? 🔮

Shares of Meta rose more than 70% in 2024 instilling confidence in Zuck’s vision.

Key takeaways:

• Meta's stock has surged over 70% this year, outpacing most big tech stocks except Nvidia.

• The company trades at a premium valuation compared to peers like Alphabet.

• Meta faces challenges in monetizing AI investments and competing in the smart glasses market.

• Regulatory and legal pressures, including child protection concerns, pose significant risks.

• Meta's Reality Labs unit has lost about $60 billion cumulatively since 2019.

What this could mean for you and the tech industry:

• Your social media experience on Meta platforms might change as the company adapts to new regulations and AI integration.

• Future interactions with technology may shift towards mixed reality devices, potentially altering how you communicate and consume content.

• Privacy considerations may become more complex as Meta pushes into AI and wearable tech.

• The race for mixed reality supremacy is heating up faster than a VR headset after an all-night gaming session. Get ready for a battle of the glasses! 👓

5. Germany braces for 0.2% economic contraction in 2024 📉

Key takeaways:

• German government downgrades 2024 growth forecast, predicting a 0.2% economic decline, marking its first 2-year recession since the early 2000s.

• Short-term factors like inflation, high interest rates, and energy costs are easing, but long-term structural issues persist, including skills shortages and under-investment in infrastructure.

• Economy expected to rebound in 2025 with 1.1% growth and 1.6% in 2026.

• Consumer demand remains low, and companies are hesitant to invest.

• Political instability and coalition disagreements contribute to economic uncertainty.

How it could impact you and the German economy:

• Job market may become more competitive as companies consider relocating production, impacting wage growth and purchasing power.

• Investment opportunities may be limited in the short term but could improve by 2025.

• The industrial sector might need to adapt to changing global markets and reduced reliance on exports.

• Potential for increased focus on sustainable and green technologies to align with government priorities.

• On the bright side, maybe German efficiency will finally meet its match in bureaucratic red tape. Who will win? Stay tuned! 🏭🆚📋

Other stories:

AI

AMD enters AI chip race with new launch to rival Nvidia.

‘Godfather of AI’ proud that Ilya Sutskever ‘fired Sam Altman.’

AI agents are the future, a promise by companies.

Amazon’s Rufus AI allows some customers to check price history.

Tech

Nintendo produces motion-detecting alarm clock to make your mornings more interesting.

Apple launches the first scripted film in Apple Immersive Video for the Vision Pro.

Google DeepMind’s Demis Hassabis wins Nobel Prize for Chemistry.

Startup

Numeric bags $28M in Series A to put AI in accounting.

Aussie startup Build Club raises $1.8M to connect AI workers with SMBs.

Healthcare startup Suki raises $70M to build AI assistants for hospitals.

Business

Super Micro Computer stock rides high on AI hype in spite of DOJ probe.

US Politics

Obama targets male voters in Pennsylvania campaign swing for Kamala Harris.

Reuters/Ipsos polling shows Harris overtakes Trump among suburban voters.

Top Economies (non-US)

Japan’s inflation rises while yen rise eases cost pressure.

China’s growth concerns shows as stocks had its worst fall in 27 years.

India’s growth outlook looking strong after bump to 7% from 6.6% by World Bank.

Fascinating

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