TechCheck

OpenAI just announced the prototype of a search engine called SearchGPT that now puts the pressure on Google, with what the startup says are more natural and intuitive results that include sources, similar to a product from Perplexity AI. The announcement alone yesterday was enough to send shares of Google down 3% after it had already been bruised by disappointing earnings results. That also doesn’t bode well for a slate of big tech earnings next week – where we’ll hear from Microsoft, Meta, Amazon and Apple.  

The NBA is announcing a $76 billion TV rights deal with ESPN, Amazon and NBC Sports, essentially a snub to NBA’s longtime partner Warner Bros Discovery. We break down how this deal will transform the future of sports streaming. Plus, chip stocks have been riding the AI wave this year. But with the recent sell-off, AI beneficiaries like Nvidia, Qualcomm and Micron are well off their respective highs. 

One lesson from Alphabet earnings that we can expect from all megacaps this season: it's not cheap to be a hyperscaler in the age of AI. CEO Sundar Pichai told investors he'd rather spend too much than too little to meet Google's AI moment – but that still leaves uncertainty around how long it’ll take until these massive investments show a return. Plus, semiconductors stocks are contributing to today’s broader tech sell-off, with names like Nvidia, Broadcom and Taiwan Semi sinking.  

The cloud security startup Wiz is now walking away from a monster $23B deal to be bought by Google, telling employees it'll opt instead to pursue an IPO. Anti-trust and investor concerns also reportedly played a factor, which could signal a win for Jonathan Kanter, Lina Khan and even JD Vance.

There’s a time bomb ticking in the AI space: spending is too high, and returns are too low. Megacaps like Meta, Google and Amazon have seen capex spending surge as they throw cash at building out the infrastructure to stay ahead of the AI game. Microsoft in particular has spent billions at a premium valuation, and shelled out $13 billion investing in OpenAI while Apple was reportedly able to secure a partnership with the startup darling for free just 18 months later. That could be a warning for the broader AI space, as experts sound the alarm on the widening gap between what companies are spending on AI, and what they’re getting back from it. 

Something that AI apparently can't do yet: inspect your home. OpenAI founder and CEO Sam Altman might've found that out the hard way, now suing the developer of a mansion that he paid $27 million for claiming shoddy workmanship, mold, raw sewage on the property and more. 

The latest in Silicon Valley to come out for former President Trump are Marc Andreessen and Ben Horowitz, two of the most influential names in the startup ecosystem. They point to overregulation of tech and take issue with Biden’s proposal on taxing unrealized capital gains, and say they believe that a Trump administration would help innovation flourish. 

Former President Trump’s newly announced running mate has longtime ties to Silicon Valley as a former venture capitalist -- but any optimism that another Trump administration would be friendlier to big tech deserves another look. His past statements show him aligning more with what insiders are increasingly calling “little tech.”

A new, high-stakes sport is gaining traction here in the U.S. SailGP, co-founded by Oracle’s Larry Ellison, is the Formula 1 of sailing, featuring ten teams from around the world racing on the most iconic waterfronts in the world. Avenue Capital’s Marc Lasry also has taken an interest, leading the investing group that acquired the U.S. team for more than $35 million. We sit down exclusively with SailGP CEO and champion yachtsman Russell Coutts on the league’s growth, its high-profile investors, skyrocketing funding, and more. 

CNBC’s Deirdre Bosa shares details about Tesla’s delay of its robotaxi, the market impact to ride-share companies, and more. Plus, Google has reportedly backed away from acquiring marketing software firm, HubSpot.