Technology Sector
Google debuted its Pixel 11 lineup with upgraded storage and processors, while tech earnings and infrastructure deals showed mixed momentum as Cerebras sank on a revenue miss and Anthropic secured a $9.1 billion compute agreement with Riot Platforms. Security and regulatory pressures also impacted the sector, ranging from a new federal memo granting private firms cyber operation powers to data breaches at Uber Freight and new AI watermarking rules for Anthropic in the EU.
Google introduced the Pixel 11 series at its annual hardware event, unveiling four new smartphones priced higher than their predecessors due to rising memory costs. The base Pixel 11 starts at $899, representing a $100 price increase from last year's model, while the Pixel 11 Pro opens at $1,099 and the Pixel 11 Pro XL at $1,299. Google eliminated the 128GB tier entirely, doubling base storage to 256GB across the lineup with 12GB of RAM. All four devices, including the Pixel 11 Pro Fold, run on the new Tensor G6 chip manufactured on TSMC's 2nm process. The updated processor delivers improved power efficiency and powers deeper on-device Gemini AI integration, including expanded live translation and camera-based circle-to-search functions. The slab models are scheduled to ship on August 20, with pre-orders offering promotional discounts.
President Donald Trump signed a national security memorandum on Wednesday empowering federal law enforcement agencies to deploy cyber tools against foreign-based transnational criminal organizations targeting Americans. The directive instructs the administration to leverage private-sector innovations under the direction and authority of the U.S. government, specifically targeting crimes such as ransomware and financial fraud. The framework allows vetted private companies to enter agreements with government entities and other firms to gather intelligence and propose cyber interventions. Under federal supervision, these participating firms are authorized to conduct electronic surveillance and effects operations against designated targets. Such operations encompass actions that manipulate, disrupt, deny, degrade, or destroy information systems, networks, and infrastructure. Participating companies are required to maintain a bond or escrow of at least $1 million to qualify for the program. The Department of Homeland Security and the Department of Justice will oversee the initiative, which builds on past proposals that previously drew debate over interagency coordination and escalation risks.
Cerebras Systems shares dropped 14 percent in extended trading on Wednesday after the AI chipmaker reported second-quarter revenue that missed Wall Street expectations. The company posted total revenue of $180 million, falling short of the $194 million LSEG consensus estimate, alongside an adjusted loss of 5 cents per share. Despite the top-line miss, Cerebras raised its full-year core revenue outlook to a range of $880 million to $890 million, up from its previous forecast of $855 million to $865 million. CEO Andrew Feldman pointed to surging demand for the company's fast-inference specialty chips, which compete with market leader Nvidia. The chipmaker also reported $25.4 billion in remaining performance obligations and expects its core gross margin to expand to between 38 percent and 40 percent in the current quarter.