Technology Sector
Technology companies are making major operational pushes across AI and automation, from Nvidia backing a $105 billion lease guarantee for an OpenAI data center project to Uber launching drone deliveries with Zipline. Meanwhile, legal and reputational hurdles persist, as Meta faces a landmark federal trial over youth addiction claims and Sainsbury's suspended its facial recognition system following a false shoplifting accusation. Elsewhere, ByteDance reached a copyright agreement for its AI generation tools, and Wispr secured $280 million in new funding.
Uber is partnering with drone delivery company Zipline to launch airborne Uber Eats deliveries later this year, backed by a strategic investment from the ride-hail giant. The companies are targeting one million daily drone deliveries by the end of 2029, starting in Zipline's existing market of Dallas-Fort Worth before expanding to dozens of additional U.S. cities. The rollout matches a strategy Uber used with Flytrex last year, combining platform access with minority funding to scale autonomous delivery without building proprietary hardware. Zipline recently closed an $800 million Series H funding round that valued the startup at $7.6 billion. Meanwhile, DoorDash launched its own regulated drone delivery program, DoorDash Air, following Federal Aviation Administration rules proposed under a 2025 order from President Donald Trump.
Meta faces trial in federal court as a coalition of states pushes for up to $1.4 trillion in penalties and sweeping platform overhauls over allegations that Facebook and Instagram are intentionally designed to hook children. Opening arguments begin Tuesday in Oakland before U.S. District Judge Yvonne Gonzalez Rogers in a multidistrict litigation brought by attorneys general from states including California, Colorado, New Jersey, and Kentucky. The plaintiffs argue that engagement-driving features such as infinite scroll, recommendation algorithms, and like counts foster compulsive use and fuel a youth mental health crisis while violating consumer protection statutes and the Children's Online Privacy Protection Act. The states are demanding fundamental product changes, including parental verification, the removal of image filters, and the end of autoplay and public like counts. Meta denies the claims as unsubstantiated, maintaining that it has built strong protections for teens and defending its reliance on ad revenue to fund operations.
Nvidia agreed to guarantee up to $105 billion in lease payments to support an OpenAI artificial intelligence data center in Ohio being developed by SoftBank-backed SB Energy. The chip maker will also invest $1.5 billion directly in SB Energy as part of the agreement, securing up to 8 gigawatts of computing capacity at the campus. SB Energy will build, own, and operate the facility under a 20-year lease with OpenAI, starting with an initial 4.25 gigawatts coming online in phases beginning in 2028. The commitment follows earlier discussions of a $250 billion backstop for a 10-gigawatt buildout, which was scaled back after investors raised concerns over Nvidia's risk exposure. SoftBank and SB Energy plan to build at least 10 gigawatts of new power generation and invest $4.2 billion in regional grid infrastructure through AEP Ohio. The project is expected to create 35,000 construction jobs through 2032 and 2,500 long-term operating positions.