Importance Score: 45 / 100 🔵
This week’s tech news review covers significant industry developments. Elon Musk announced xAI’s acquisition of X Corp, while questions arise about inflated metrics at VC-backed 11x. Block implemented workforce reductions, and a Lumon Terminal Pro device, reminiscent of the “Severance” series, appeared on Apple’s website. Continue reading for these top technology stories and more.
Top Tech News of the Week
xAI Acquires X Corp in All-Stock Deal
Elon Musk, proprietor of X (formerly Twitter), revealed on the platform Friday that his artificial intelligence company, xAI, has acquired X Corp in a complete stock transaction. This consolidation values xAI at $80 billion and X at $33 billion. “Today, we are officially taking the step to unite data, models, computing power, distribution channels, and talent under one umbrella,” Musk stated.
Venture-Backed Startup 11x Accused of Inflating Metrics
According to over 20 sources, including investors as well as current and former employees who spoke with TechCrunch, 11x, a startup supported by Andreessen Horowitz (a16z) and Benchmark, has faced financial difficulties, allegedly due to internal practices. “They undeniably manipulated growth and customer attrition figures internally,” a former employee disclosed.
Block Announces Workforce Reduction
An internal communication from Block CEO Jack Dorsey, reviewed by TechCrunch, disclosed that the financial services company, parent of Cash App and Square, is implementing layoffs affecting 931 employees, representing 8% of its workforce, as part of a “corporate restructuring.” Dorsey’s message indicated that these job eliminations are not driven by financial pressures or intended to substitute human roles with artificial intelligence.
More Weekly Technology Developments
Trump Pardons Nikola Founder Trevor Milton
The White House confirmed to TechCrunch on Friday that former President Trump issued a pardon to Trevor Milton, founder of the now-bankrupt hydrogen-electric truck startup Nikola. Milton had been convicted of fraud. This pardon occurred shortly after Nikola declared Chapter 11 bankruptcy.
China’s AI-Powered Censorship System
A leaked database examined by TechCrunch reveals that China has developed an artificial intelligence system designed to enhance its already robust censorship apparatus. This system extends its reach beyond conventional restrictions, such as the Tiananmen Square incident, to broadly monitor and control information.
Rivian’s Skunkworks Project Becomes Standalone Startup ‘Also’
Rivian’s clandestine “skunkworks” division has been spun off into an independent entity named ‘Also,’ securing $105 million in initial funding from Eclipse Ventures. Also will operate as a separate company, distinct from Rivian’s core business.
Apple WWDC 2025 Date Announced
Apple has announced that its annual Worldwide Developers Conference (WWDC) will commence on June 9, 2025. Reports suggest Apple is preparing extensive software updates across its product line, including significant overhauls for the iPhone, iPad, and Mac operating systems. Industry observers anticipate iOS 19, which, according to Bloomberg, is expected to be “the most substantial update since iOS 7.”
23andMe Files for Bankruptcy Amid Data Security Concerns
DNA testing firm 23andMe filed for Chapter 11 bankruptcy this week. Concurrently, co-founder and CEO Anne Wojcicki announced her resignation to pursue an independent bid to acquire the company. Concerns persist regarding user data security following recent breaches. Resources for deleting personal information are available for users seeking to manage their data.
Media Matters Layoff Recipient Runs for Congress
Kat Abughazaleh, a 26-year-old who was among those laid off from Media Matters following Elon Musk’s lawsuit against the organization, declared her candidacy for Congress this week. “I am committed to transparency in my campaign, aiming to demystify the process of running for office, which often appears more daunting than it needs to be,” she explained to TechCrunch.
“Severance” Inspired Device Spotted on Apple Website
Fans of the television series “Severance” may recognize a device resembling the Lumon Terminal Pro, featured prominently in the show, which was recently observed on Apple’s official website. This discovery, noted by TechCrunch staff, highlights the show’s cultural impact and potential real-world inspiration.
SpaceX Reportedly Allowed Chinese Investment Via Offshore Routes
SpaceX, a defense contractor for the U.S. Department of Defense, reportedly permitted Chinese entities to invest in the company. These investments were allegedly facilitated through offshore financial hubs such as the Cayman Islands, potentially circumventing direct investment restrictions.
Nintendo Announces Switch 2 and Virtual Game Cards
Nintendo Direct announced developments regarding the highly anticipated Switch 2 console. Additionally, Nintendo revealed “Virtual Game Cards,” a system designed to allow players to transfer their downloaded games and play them across multiple compatible devices, enhancing game portability.
Analysis: AI Art Copyright and ChatGPT’s Image Generator
Copyright Concerns Rise with AI Image Generation
The recent launch of ChatGPT’s new image generator has sparked widespread online sharing of images inspired by Studio Ghibli’s distinctive art style. This trend has reignited the debate about copyright issues within AI-generated content. While stylistic imitation might not be inherently illegal, the practice of companies like OpenAI training AI models using copyrighted art, such as Studio Ghibli’s works, exists within a complex legal landscape and continues to raise intellectual property questions.
“This situation echoes ongoing inquiries concerning copyright infringement in the age of AI,” intellectual property attorney Evan Brown stated to TechCrunch. “The fundamental question remains: what are the copyright ramifications of web crawling and data ingestion for training these expansive AI databases?”