Cathie Wood's TSMC Sale and Social Media Content Moderation | Bloomberg Technology

Cathie Wood and Ark Invest

• Cathie Wood sold NVIDIA shares while reducing her stake in TSMC for the first time since 2021.
• Ark Invest remains committed to NVIDIA due to its strong earnings momentum and potential to monetize from AI.
• Ark Invest focuses on companies that can monetize from AI, such as NVIDIA, Microsoft, and ASML, rather than solely relying on TSMC.
• Ark Invest is underweight on the "Magnificent Seven" tech companies, including Google's parent company Alphabet, due to growth, risk, and valuation assessments.

Supreme Court Cases

• The Supreme Court will hear challenges on two laws that aim to prevent social media platforms from censoring posts.
• The laws were written in response to social media companies removing Trump from their platforms, and the Supreme Court appears skeptical of the laws' broad scope.

Jeff Bezos and OpenAI

• Jeff Bezos and OpenAI are collaborating to develop human-like robots.
• Microsoft announced a partnership with OpenAI, a competitor to Mistral, amid political scrutiny of Microsoft's ties to OpenAI.

KKR Acquisition

• KKR is acquiring a software unit for $4 billion, which provides software for remote desktop connection.

NVIDIA and TSMC

• NVIDIA and TSMC's U.S. ADRs are both moving upwards, with NVIDIA up 1.2% and TSMC up 0.4%.
• The Commerce Department is expected to announce grants from the CHIPS Act, with TSMC and Samsung expected to be major recipients.

Geopolitical Risks

• Geopolitical risks are a key factor that Ark Invest considers when making investment decisions.
• NVIDIA may face challenges operating in China but is expected to benefit from regulations.
• Sovereign AI is a growing demand, and NVIDIA is well-positioned to benefit from this trend.

Artificial Intelligence in Politics

• The role of artificial intelligence (AI) in the upcoming U.S. election cycle and legislative efforts targeting tech companies will be discussed.
• New York State is proposing legislation to empower voters to file lawsuits against AI-made political deepfakes, making it the first state to do so.
• Former Republican Congressman Denver Riggleman expresses concerns about the effectiveness of AI deepfakes and the challenge of enforcing regulations against satire and misinformation.
• The biggest fear regarding AI is its potential to radicalize people in unprecedented ways, making the information war a perpetual challenge.
• Tech companies may need to take responsibility for moderating AI-generated content, given the vast amount of platforms and the difficulty for governments to keep up with new technologies.

CHIPS Act

• Leading-edge firms are seeking over $70 billion from the CHIPS Act, with the U.S. aiming to prioritize chips projects operational by 2030.
• Intel could receive up to $10 billion in incentives, which would be the largest among any CHIPS Act funds granted.

AI in Entertainment

• The SAG Awards highlighted concerns about AI potentially entrapping people in a state of uncertainty regarding what is real.
• Flawless, a company using generative AI to correct out of sync dubbing, aims to reduce production costs and enable a global audience by making content more digestible and enjoyable.
• The release of OpenAI's SORA generated positive reactions, with its potential to revolutionize the entertainment industry and change the economics of content production.

Funding and Investments

• Figure, a robotics company developing humanoid robots, is expected to announce significant funding this week, with investments from Jeff Bezos, Intel, Amazon's VC arm, Samsung's VC arm, Microsoft, and OpenAI.
• Blue Origin, Jeff Bezos's space company, is raising $675 million in funding at a pre-money valuation of $2 billion.
• Interview Kickstart has raised $10 million from Bloom to expand its library of courses in machine learning and data science.
• DeepX, a South Korean firm, has secured $45 million from Skylake Equity Partners and $22.5 million from Timefolio Asset Management, bringing its total funding close to $90 million.

AI in Warfare

• The U.S. military has used artificial intelligence to identify targets for airstrikes in the Middle East, with the AI being used to narrow down targets that were subsequently struck by fighter aircraft and bombers.
• The AI is not yet ready to make recommendations on the order of attack or which weapon to use, and human verification is still required before targets are struck.
• The National Intelligence Agency is working to improve the ability of AI to make targeting recommendations.

Stock Market News

• Intuit's stock price dropped 32% after the company's lunar lander tipped over on the moon.
• Amazon replaced Alliance on the Dow Jones Industrial Average, effective from Monday's session, following a three-for-one