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1.	Dem. Senators Say Microsoft, Google AI Deals Could Violate Antitrust Laws By Aaron Holmes Source: The Information

Democratic lawmakers are probing whether deals signed by Microsoft and Google to invest in AI startups including OpenAI and Anthropic have violated antitrust laws, according to letters sent to the CEOs of those firms on Tuesday. In the letters, Sen. Elizabeth Warren of Massachusetts and Sen. Ron Wyden of Oregon asked Microsoft and Google whether their multibillion-dollar investments in OpenAI and Anthropic, respectively, granted them control over how those startups operated or were used to funnel money back into their cloud computing businesses.

The letters built on a probe launched by the Federal Trade Commission in January into the deals between the cloud giants and AI startups. The FTC is simultaneously conducting a broad probe of Microsoft that was initiated under the Biden administration but has been carried on by Trump's appointees at the agency. So far, neither of those probes has escalated to an antitrust lawsuit. Meanwhile, the Department of Justice last year won a lawsuit against Google finding that the company has an unfair monopoly over the online search and ads markets, and the agency is now asking a judge to break up the company.

The Democratic senators' letter also echoes concerns that Elon Musk has raised in his lawsuit aiming to block OpenAI's conversion from a nonprofit to a for-profit company this year. Musk, an early OpenAI backer, has claimed that Microsoft board member Reid Hoffman violated antitrust laws by simultaneously serving on the board of OpenAI from 2018 to 2023. Warren and Wyden called Hoffman's dual roles "a blatant violation of US antitrust law." A Microsoftspokesperson declined to comment.

2.	Andreessen Horowitz Plots $20 Billion Artificial Intelligence Fund By Natasha Mascarenhas Source: Reuters

Andreessen Horowitz is raising $20 billion, its largest fund in the firm's history, to back mature artificial intelligence companies, according to a report from Reuters. The fundraising efforts come as the firm has been busy stockpiling several AI bets, from coding assistant Cursor to Elon Musk's xAI.

The fundraising haul, if closed, would be a significant step up from the firm's most recent fund raise, a $7.2 billion pool of capital split across five different funds in April 2024. Andreessen Horowitz didn't immediately respond to requests for comment.

3.	Key AI Supplier Tells Customers It Will Raise Prices Due to Tariffs By Anissa Gardizy Source: Reuters

Memory chip designer Micron recently told U.S. customers it plans to impose a surcharge on some products to account for President Donald Trump's tariffs, Reuters reported.

Micron makes hardware that's critical to storing data in data center servers, including those powered by Nvidia artificial intelligence chips. The move shouldn't come as a surprise, as Micron hinted late last month that it would respond to tariffs this way.

"Where tariffs do have an impact, we intend to pass those costs along to our customers," CEO Sanjay Mehrotra said.

Memory price hikes could hurt cloud providers that buy servers in large quantities. A spokesperson for Micron did not respond to a request for comment.

4.	Tech Stock Sell-Off Resumes By Martin Peers Source: The Information

The Trump tariff-driven stock market sell off resumed on Tuesday, after a market rally earlier in the day. Major tech stocks fell, led by Apple once again, which dropped 5% to $172.42 and is now down 31% for the year, according to Koyfin.

Tesla shares also fell 5%, bringing its year to date loss to 45%. The Nasdaq 100 index fell 2% while the S&P 500 index which reflects the broader market fell 1.6%.

The latest selloff follows the Trump administration's plans to increase tariffs imposed on China to 104%, as well as rising fears that the U.S. economy is headed into a recession.

5.	Space Entrepreneurs Sign Open Letter Endorsing Jared Isaacman for NASA Role By Julia Black Source: The Information

Twenty-four aerospace industry founders, investors and executives are preparing to submit a letter of support for Jared Isaacman's nomination as NASA Administrator, ahead of his appearance before the Senate Committee on Commerce, Science and Transportation on Wednesday.

Signatories include Bessemer Venture Partners managing partner David Cowan, Varda Space Industries co-founder Delian Asparouhov, Hadrian CEO Chris Power and Firefly Aerospace CEO Jason Kim. The letter was organized by the government relations firm Lewis-Burke Associates.

Isaacman, founder of the private fighter jet provider Draken International and CEO of payment processor Shift4, has also received significant support from the public space sector, including an open letter by a group of 28 former NASA astronauts. Isaacaman has faced some resistance from the committee's chairman, Texas Senator Ted Cruz, over his lack of government experience and potential conflicts of interest in his new role.

The letter, reviewed by The Information, focused on Isaacman's support of competition, writing, "Mr. Isaacman's remarkable success as a space entrepreneur uniquely positions him to foster collaboration between NASA and the burgeoning commercial space sector, particularly benefiting smaller, agile tech companies pushing the boundaries of how we approach aerospace." Isaacman has been critical in the past of NASA's contracting process, which favors large defense prime contractors.

Isaacman is a friend of Elon Musk and has extensive ties to Musk and his companies. In 2021, Shift4 entered into a five-year payment processing partnership with SpaceX's Starlink satellite internet service. Isaacman himself, who has also flown on a private SpaceX mission as a commercial astronaut, sold a $5 million personal stake in SpaceX earlier this year.

6.	Zoox to Begin Robotaxi Test in Los Angeles This Summer By Alex Perry Source: The Information

Zoox said Tuesday it will start collecting data for autonomous driving in Los Angeles this spring using cars driven by a human operator. The Amazon-owned company will then test autonomous driving, meaning autonomous rides monitored—but not driven by safety drivers, this summer.

The expansion to America's second-largest city means Zoox will be testing or operating cars in six cities. It will offer free rides to members of the public in San Francisco and Las Vegas this year. The moves follow rival Waymo's testing expansion into ten new cities this year, including Nashville, Las Vegas and San Diego.

Zoox does not currently have a commercial robotaxi service, but is building an app internally that will allow riders to hail robotaxis, said Zoox Chief Product Officer Michael White at autonomous driving summit RideAI last week.

7.	Amazon Expands Haul Bargain Store With Name Brands, Faster Shipping By Theo Wayt Source: The Information

Amazon is broadening its Temu bargain shopping competitor, Haul, to offer a wider variety of goods, including name-brand items from Amazon's own inventory that it ships from U.S. warehouses.

When Amazon launched Haul late last year, the storefront only offered unbranded products from outside sellers that shipped to U.S. shoppers from China with delivery times of more than a week. Haul has used a trade provision known as de minimis to avoid paying tariffs but that provision is set to disappear on May 2. In recent weeks, Amazon has started listing more inventory on  Haul, including some apparel that Amazon buys in bulk from companies like Adidas, Levi's and Gap. Those goods ship from within the U.S. with shorter delivery times than the other goods on Haul.

In addition, Amazon earlier this month added a browser-based version of Haul, which had previously only been available on its mobile app. The moves are likely to increase Haul's appeal as a destination for bargains as the U.S. slaps fresh tariffs on foreign goods. An Amazon spokesperson said Haul items may ship from a variety of locations and that the company is adding branded products in categories including fashion, home and beauty.

8.	Ripple Buys Prime Broker Hidden Road for $1.25 Billion By Yueqi Yang Source: The Information

Crypto company Ripple is paying $1.25 billion to acquire Hidden Road, a crypto and FX prime brokerage that has become popular for financing trading by institutions.

Ripple aims to use Hidden Road to help boost the use of its stablecoin, Ripple USD, as well as blockchain XRP Ledger. Hidden Road will accept Ripple USD as collateral and make use of XRP Ledger for post-trade activity. Ripple is effectively using its ample cash to boost the use of its products.

With Ripple's backing, Hidden Road aims to become the largest non-bank prime broker globally. Prime brokers are typically run by banks and finance trading by hedge funds and others. They provide leverage to traders and handle their trades, including taking on credit risk.

Hidden Road was founded in 2018 by Marc Asch, formerly with Steven Cohen's Point72 Asset Management, and has raised funding from investors including Citadel Securities, Coinbase and Ripple.

After the collapse of FTX, Hidden Road became popular for institutional investors because it takes on counterparty risks on behalf of its clients, meaning it's on the hook for completing a trade if a counterparty or trading venue defaults.

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