🦾 Chip Suppliers Get A Boost As...

Good morning. US stock futures rose in Monday morning trading as Wall Street looked toward several mega-cap tech earnings reports and the Federal Reserve’s rate policy decision.

🤖 Biden admin to offer subsidies for advanced chips

📝 Our report: Rumor has it that President Joe Biden's administration is gearing up to play the superhero card by dishing out billions of dollars in subsidies to top semiconductor manufacturing companies. According to a report by the Wall Street Journal (WSJ), a number of US and foreign firms could be likely recipients of the subsidies, though the U.S. Department of Commerce refused to discuss any potential applicants.  

 🔑 Key points:

• The forthcoming announcements aim to kick-start manufacturing of advanced semiconductors that power smartphones, artificial intelligence, and weapons systems, the WSJ reported, citing industry executives familiar with the negotiations.

• Among the likely recipients of the subsidies, Intel, Taiwan Semiconductor and Samsung all have ongoing projects in various US states valued in excess of $100 billion.

• In December last year, U.S. Commerce Secretary Gina Raimondo said she would make around a dozen funding awards for semiconductor chips within the next year, including multi-billion dollar announcements that could drastically reshape U.S. chip production.

💡 So what: The US government subsidizing semiconductor manufacturers signifies a strategic effort to bolster domestic production capabilities, reduce reliance on foreign suppliers, and enhance national security amid global supply chain disruptions. By incentivizing companies like Intel and Taiwan Semiconductor Manufacturing Co to build new factories in the US, the initiative aims to stimulate innovation, competitiveness, and job creation in the semiconductor sector. The move is expected to foster advancements in chip technologies, benefiting industries ranging from consumer electronics to healthcare.

Monday - No Major Economic News

Tuesday - Consumer Confidence

Wednesday - Fed Interest Rate Decision

Thursday - US Productivity

Friday - US Unemployment Rate

🧑🏾‍💼 Understanding the gig economy! 5 things you should know

🏪 This is how you create a business budget

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🤖 Open AI CEO: AI expectations unrealistic

WHAT: OpenAI CEO Sam Altman, speaking at the World Economic Forum in Davos, Switzerland, offered a lighthearted take on the long-term impact of AI, suggesting, "It will change the world much less than we all think and it will change jobs much less than we all think." Altman noted that he is skeptical about the feverish hype around AI and believes that the bar is being set so high that "people are begging to be disappointed, and they will be."

WHY: According to a recent study from the International Monetary Fund, AI may impact as many as 40% of all jobs in the world. And that percentage rises to 60% when it comes to advanced economies. That doesn't mean it will have a negative effect, however, as the report states that in half of those situations it will enhance productivity.

🗠 Reddit to seek $5 billion valuation

WHAT: Reddit is grappling with suggestions from initial meetings with potential IPO investors that its valuation should be no less than $5 billion, insiders familiar with the discussions have revealed. The San Francisco-based social media company and its advisers are targeting a valuation in the mid-single-digit billions, with the final figure likely dependent on the IPO markets’ nascent recovery.

WHY: The valuations under consideration demonstrate the extent of tech’s retreat from the heady days of the private funding boom that peaked in 2021. Reddit raised funds that year at a $10 billion valuation, and could potentially have been valued as much as $15 billion in an IPO, Bloomberg News reported in 2022.

✖️ Musk to ramp up content moderation plans at X

WHAT: Social media juggernaut X is on a quest to assemble a squad of 100 content moderators for its spanking new hub in Austin, Texas. The company said it hopes to complete hiring by the end of the year to meet its goal of fighting child abuse content on its platform.

WHY: Since Musk acquired the company formerly known as Twitter in 2022, the billionaire has been criticized for his own controversial posts and his efforts to overhaul the platform's content moderation policies.

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