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Tag: Arms race

  • Amazon joins AI arms race, shares plunge despite record-breaking plans – Tech Digest

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    Amazon has joined the global AI arms race. The tech giant announced it will invest a staggering $200 billion in artificial intelligence and infrastructure this year.

    This figure dwarfs the $125 billion Amazon spent in 2025. Despite this ambition though, investors were left rattled, sending shares down nearly 9% as the market weighed the cost of these massive bets.

    This move follows Google’s own record-breaking announcement, which we reported earlier today on Tech Digest. Google revealed a $185 billion spending plan as it fights to protect its search empire from ChatGPT.

    While Google is primarily focused on countering direct chatbot threats, Amazon’s $200 billion war chest is more diversified. It covers AI chips, robotics, and the Kuiper satellite network.

    The combined spending of Amazon, Google, Meta, and Microsoft is now set to reach $650 billion this year. This “nuclear” investment level has prompted warnings from finance leaders.

    JPMorgan boss Jamie Dimon and the Governor of the Bank of England have both cautioned that the industry might be in a bubble.

    Nevertheless, Amazon CEO Andy Jassy remains undeterred. He told analysts that every customer experience will eventually be reinvented by AI. Like Google, Amazon is funding this transition through aggressive cost-cutting. The company recently laid off another 16,000 workers to help fuel its digital transformation.

    Both Amazon and Google are operating on the belief that under-investing is a bigger risk than over-spending. However, Wall Street is increasingly demanding a clear path to profitability. While Google’s revenue broke $400 billion to help soften the blow, Amazon’s stock hit suggests the market’s patience for unproven AI gambles is wearing thin.


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    Chris Price

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  • A look at what happened in the US government this week

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    Two federal judges ruled that the Trump administration must use emergency funds to keep SNAP afloat during the shutdown. President Donald Trump visited Asia, striking a trade deal with China. Speculation about a Trump third term heated up again, despite its near impossibility. And judges made consequential rulings regarding federal workers and voter registration.Here are the top stories involving the U.S. government this past week.SNAP crisis as shutdown drags onTwo federal judges ruled nearly simultaneously on Friday that President Donald Trump’s administration must continue to fund the Supplemental Nutrition Assistance Program (SNAP), the nation’s biggest food aid program, using contingency funds during the government shutdown.One out of 8 households in the United States receives SNAP benefits. Here’s a closer look at the data.Pop-up food drives and “grocery buddies” are emerging around the country as SNAP hangs in the balance.Instacart, DoorDash, and Gopuff are among the companies offering discounts to SNAP recipients right now.Video below: Wisconsin bakery offers free bread to support locals facing food benefit lossTrump reaches deal with China while visiting AsiaTrump revealed plans to reduce tariffs on China and announced new trade agreements following a meeting with Chinese President Xi Jinping.Here are some takeaways from the agreement.China also said it will work with the U.S. to resolve issues related to TikTok, potentially finalizing a new ownership deal for the app. While in Asia, Trump met with Japan’s new prime minister, Sanae Takaichi, and announced roughly $500 billion in Japanese investments in the U.S.During his visit to Japan, Trump bragged about the state of the U.S. economy. However, experts say the reality for millions of Americans is not as rosy.Trump announced on social media Thursday, after meeting with the South Korean President Lee Jae Myung, that the U.S. will begin sharing nuclear submarine technology with the Asian country.Video below: President Trump delivers remarks at Yokosuka Naval Base aboard the USS George WashingtonIn other newsTrump is urging Republicans to eliminate the Senate filibuster to reopen the government, but GOP leadership is resisting the move.What is a filibuster and why does Trump want to get rid of it during the shutdown?Could Trump legally run for a third term? Experts say it’s nearly impossible. Here’s why.A federal judge in San Francisco on Tuesday indefinitely barred the Trump administration from firing federal employees during the government shutdown.A judge in D.C. blocked Trump’s proof-of-citizenship mandate for federal voter registration, calling it unconstitutional.Four Republicans joined Democrats in backing a Senate resolution to undo Trump’s tariffs around the globe.The Federal Reserve cut its key interest rate Wednesday for a second time this year as it seeks to shore up economic growth and hiring even as inflation stays elevated.Trump announced plans to begin testing nuclear weapons, raising fears of a new arms race as Russia and China respond with warnings.A Senate hearing for Trump’s surgeon general pick, Casey Means, has been postponed because she went into labor.The federal workforce grew 11% in the past decade. Here are the jobs that had the most and least growth.U.N. High Commissioner for Human Rights Volker Türk said that U.S. military strikes against boats on boats allegedly carrying illegal drugs from South America are “unacceptable” and must stop.Video below: What is the nuclear option? President Trump demands GOP end filibuster, Republicans say no

    Two federal judges ruled that the Trump administration must use emergency funds to keep SNAP afloat during the shutdown. President Donald Trump visited Asia, striking a trade deal with China. Speculation about a Trump third term heated up again, despite its near impossibility. And judges made consequential rulings regarding federal workers and voter registration.

    Here are the top stories involving the U.S. government this past week.

    SNAP crisis as shutdown drags on

    Video below: Wisconsin bakery offers free bread to support locals facing food benefit loss

    Trump reaches deal with China while visiting Asia

    • Trump revealed plans to reduce tariffs on China and announced new trade agreements following a meeting with Chinese President Xi Jinping.
    • Here are some takeaways from the agreement.
    • China also said it will work with the U.S. to resolve issues related to TikTok, potentially finalizing a new ownership deal for the app.
    • While in Asia, Trump met with Japan’s new prime minister, Sanae Takaichi, and announced roughly $500 billion in Japanese investments in the U.S.
    • During his visit to Japan, Trump bragged about the state of the U.S. economy. However, experts say the reality for millions of Americans is not as rosy.
    • Trump announced on social media Thursday, after meeting with the South Korean President Lee Jae Myung, that the U.S. will begin sharing nuclear submarine technology with the Asian country.

    Video below: President Trump delivers remarks at Yokosuka Naval Base aboard the USS George Washington

    In other news

    Video below: What is the nuclear option? President Trump demands GOP end filibuster, Republicans say no

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  • Pentagon Asks to Quadruple Missile Production: Report

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    The Pentagon has told suppliers of missiles to the U.S. that their production of the weapons needs to as much as quadruple, according to a report by The Wall Street Journal.

    This urgency to increase missile production, as the U.S. looks with concern at its stockpiles over the potential for a future war with China, was laid out at meetings between top Pentagon officials and representatives from U.S. weapons manufacturers, the Journal reported, citing unnamed people familiar with the matter.

    The depletion of missiles has been a focus of concern in recent years, particularly as the U.S. supplied Ukraine during Russia’s ongoing invasion. U.S. President Donald Trump is now weighing whether to give Ukraine Tomahawk cruise missiles.

    This is a breaking news story. Updates to follow.

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