Importance Score: 65 / 100 🔴
Welcome to this week’s review, your briefing on the latest tech developments. Today’s highlights include potential capacity constraints at OpenAI, the much-anticipated Nintendo Switch 2, a real-life corporate espionage narrative ripe for Hollywood, and much more in the world of technology. Let’s dive in.
Nintendo Switch 2 on the Horizon: After nearly a decade, Nintendo has unveiled its successor to the popular Switch console, reportedly named the Switch 2. According to a TechCrunch report, the new system, priced at $450, aims to enhance the beloved aspects of its predecessor. Enthusiasm is high, however, potential preorder delays in the United States might occur due to tariff implications.
OpenAI Faces Potential Delays: Sam Altman of OpenAI has indicated possible delays in product releases, attributed to the company’s novel image generation technology. In posts on X, Altman assured users of the team’s dedication to “really get stuff humming.” The company still intends to launch o3, following the prior postponement of its consumer version in February.
College Rejection Despite Success: Zach Yadegari, developer of the widely used Cal AI application, shared on Twitter his experience of being rejected by 15 leading universities—despite holding a perfect 4.0 GPA and leading a company with a $30 million Annual Recurring Revenue (ARR).
This is TechCrunch’s Week in Review, summarizing the week’s prominent news. Subscribe here to receive this briefing as a weekly newsletter every Saturday in your inbox.
News
NSA Leadership Ousted: The Trump administration has dismissed the director of the National Security Agency (NSA) and Cyber Command, alongside the NSA’s deputy director, who functioned as the agency’s highest-ranking civilian official. The current leadership structure at the NSA and Cyber Command remains unclear following these dismissals.
Amazon’s AI Shopping Assistant: Amazon introduced Nova Act this week, an artificial intelligence agent engineered to navigate web browsers and autonomously execute basic tasks. Amazon is currently testing a “Buy for Me” feature, powered by Nova AI, designed to present users with products across various third-party websites. This feature allows users to purchase items from these external sites directly through Amazon’s platform.
ChatGPT’s Image Tool Misused for Fake Receipts: A concerning application of ChatGPT’s new image generation capability has emerged: the creation of fabricated receipts. Individuals are reportedly utilizing the tool to generate counterfeit restaurant bills, potentially adding to the growing arsenal of AI-driven deepfakes employed by fraudsters. These generated receipts can realistically include simulated stains to enhance their authenticity.
Corporate Espionage Allegations: The legal conflict between Rippling and competitor Deel escalated this week with the release of an affidavit from a Rippling employee. This employee alleges he was recruited to spy on Deel. The affidavit contains striking claims, including accusations that Deel representatives instructed him to destroy his “old phone with an axe.” This narrative presents compelling material for a potential Hollywood adaptation.
Epic Games Criticizes App Store Practices: Tim Sweeney, CEO of Epic Games, publicly denounced Apple and Google for what he described as “gangster-style” business conduct. This criticism follows Epic Games’ lawsuits against both tech giants concerning alleged monopolistic practices within their respective app stores. Epic Games secured a victory against Google but not against Apple in these legal battles.
Zelle App to be Discontinued: Zelle, the peer-to-peer payment platform, announced on Tuesday the discontinuation of its standalone application. However, Zelle reassured users that the impact would be minimal, noting that only 2% of the 150 million Zelle users conducted transactions via the separate app, with the majority using integrated bank applications.
Plaid’s Valuation Update: Plaid, a company specializing in connecting bank accounts to financial applications, completed a sale of approximately $575 million in common stock, achieving a post-money valuation of $6.1 billion. This valuation marks a significant decrease from the $13.4 billion valuation Plaid held during a $425 million Series D funding round in April 2021.
Surge in Data Center Power Demand Fueled by AI: The expansion of existing and development of new data centers is projected to double the power consumption of the artificial intelligence sector by 2029. Consequently, technology developers and companies are urgently securing power capacity, emphasizing the critical role of sustainable energy solutions.
Analysis
Tesla’s Political Entanglement and Brand Impact: Elon Musk’s increasing engagement in political matters, particularly his alignment with former President Trump and involvement in federal government affairs, has introduced uncertainty for Tesla. The company’s recent disappointing first-quarter delivery figures serve as evidence. The central question now is whether the Tesla brand can effectively recover amidst these political headwinds.