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1.	Meta and OpenAI Say They Will Buy Arm's First AI Server Chip By Anissa Gardizy Source: The Information

Meta Platforms and OpenAI said Tuesday they will purchase an AI server chip produced by Arm, which previously only helped other companies design such chips. SoftBank-owned Arm said later this year it will produce a central processing unit that can handle AI tasks more efficiently than graphics processing units, the type of AI chip Nvidia produces.

"People kind of thought CPUs were dead" until the rise of AI agents and other products began powering a new boom in the chips, Arm CEO Rene Haas said at a launch event in San Francisco. The chip launch represents a break from Arm's long-standing role as a neutral supplier of chip designs.

Nvidia CEO Jensen Huang recorded a video congratulating Arm's launch, as did executives of major Arm IP customers such as Amazon Web Services and Microsoft. (Nvidia, for instance, uses Arm technology to develop its own CPU that works alongside GPUs in the company's best-selling AI systems.)

Santosh Janardhan, Meta's head of infrastructure, said Meta collaborated with Arm on the chip, called the Arm AGI CPU, and that Meta plans to use the chip alongside its own AI chip. Arm said OpenAI, Cloudflare, and SAP are also planning to buy the chip. A spokesperson for OpenAI said the Arm chip will be particularly useful for running AI agents that perform multi-step tasks. Companies such as OpenAI and Meta have long sought to use a variety of chips to lessen their dependence on Nvidia's systems.

2.	Software Stocks Drop Once Again on AI Fears By Kevin McLaughlin Source: The Information

Shares of multiple business software providers, including Salesforce, Atlassian and HubSpot, all saw significant declines after The Information reported that Amazon Web Services is developing AI that automates sales, business development and other internal functions.

This is the latest sign of investors' concern about the threat that AI could pose to traditional business software providers. These fears are often triggered by new product and feature announcements from OpenAI and Anthropic, but this is one of the first instances where AWS has been a catalyst.

Like many business software providers, AWS has teams of staff who work with outside partners, such as consultants, who help sell their products. By finding ways to automate parts of the work these staff perform, AWS hopes to free them up for more valuable projects.  It wouldn't be surprising to see the software providers start talking about using AI to achieve the same goals.

3.	Meta Approves New Executive Stock Plan Tied to Aggressive Stock Goals By Nick Wingfield Source: The Information

Meta Platforms has agreed to dole out a bounty of new stock options to its top leaders that will pay out only if the company hits aggressive new share price goals. To collect the maximum amount of options included in those packages, Meta will need to hit a share price that translates to a more than $9 trillion market capitalization within the next five years—roughly six times its current valuation.

The company disclosed the new stock option incentive program for its executive officers in a series of filings with securities regulators on Tuesday evening. Those executives include Chief Product Officer Chris Cox, Chief Financial Officer Susan Li, Chief Legal Officer Curtis Mahoney, Chief Operating Officer Javier Olivan, Chief Technology Officer Andrew Bosworth and President Dina Powell. The options vest in seven tranches with escalating exercise prices that go up to $3,727.12. Meta's more recent closing stock price was $592.92

"This is a big bet," a Meta spokesperson said in a statement. "These pay packages will not be realized unless Meta achieves massive future success, benefiting all of our shareholders."

Meta CEO and co-founder Mark Zuckerberg, who already owns substantial shares in the company, was not a recipient of the new stock awards.

Other companies have also recently established audacious share price goals as part of their executive compensation plans. In November, Tesla shareholders approved a pay package for CEO Elon Musk worth up to $1 trillion, which requires the company to achieve an $8.5 trillion market capitalization for Musk to receive the full amount. Tesla is currently valued at $1.2 trillion.

Meta also disclosed substantial grants of new restricted stock units to some of its executives (unlike options, restricted stock grants have no exercise price). Cox, Olivan and Bosworth each received RSUs valued at more than $47 million at Meta's current share price. Meta's RSUs vest over a four year period.

4.	Jury: Meta Must Pay $375 Million in New Mexico Child Safety Case By Nick Wingfield Source: The Information

Meta Platforms must pay $375 million in civil penalties for violating New Mexico consumer protection laws, a jury in Santa Fe ruled on Tuesday.

Meta vowed to appeal the ruling in the trial, which started early last month. The case was based on a lawsuit that New Mexico Attorney General Raúl Torrez filed in 2023, alleging that Meta had created a breeding ground for child predators on Facebook and Instagram. The case grew out of a state undercover operation in which investigators created accounts on Facebook and Instagram posing as users who were younger than 14. Those accounts received sexually explicit material and solicitations from adults.

The state argued that Meta claimed its platforms were safe for children while hiding internal documents that acknowledged serious problems with sexual exploitation and other harm to children on its platforms. "The jury's verdict is a historic victory for every child and family who has paid the price for Meta's choice to put profits over kids' safety," Torrez said in a statement.

In a statement posted on X by a Meta spokesperson, Andy Stone, the company said it disagreed with the verdict. "We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content," the statement said. "We will continue to defend ourselves vigorously, and we remain confident in our record of protecting teens online."

Another phase of the New Mexico trial, without a jury, will begin on May 4, in which the state will argue that Meta has caused a public nuisance and seek an injunction for further damages and to force Meta to implicate age verification and other changes.

Separately, a jury in Los Angeles has been deliberating in a personal injury trial against Meta and YouTube since Friday. In that case, a plaintiff has argued that she became addicted to the companies' apps when she was a minor, worsening her mental health.

5.	Chinese AI Firm SenseTime Reports First Positive Operating Margin By Juro Osawa Source: The Information

Chinese AI company SenseTime said its earnings before interest, taxes, depreciation and amortization turned positive during the second half of last year, the first time since its listing in 2021.

SenseTime, founded in 2014, is one of the pioneers among the last generation of AI companies in China that focused on deep learning and computer vision before the generative AI era. It is best known for its advanced facial recognition and image analysis technologies.

But in recent years, the company has shifted its focus toward generative AI, developing its own SenseNova AI models as well as AI applications, such as a workplace AI assistant and an AI photo app. Its improving earnings suggest that the transition is starting to yield results.

Hong Kong-listed SenseTime said its 2025 revenue rose 33% to more than 5 billion yuan ($725 million), marking the fastest growth in three years. Revenue from its generative AI business, which includes AI models, applications and infrastructure services, grew 51%.

Like other AI companies, SenseTime isn't profitable. But the company said its net loss in 2025 narrowed significantly to 1.78 billion yuan, from 4.3 billion yuan in 2024.

6.	Meta Names Bosworth to Oversee Internal AI Use By Jyoti Mann Source: The Wall Street Journal

Meta Platforms has tapped chief technology officer Andrew Bosworth to oversee its transition into an AI-first organization, according to a report by The Wall Street Journal.

Bosworth will lead the company's AI for Work initiative, part of a broader push to improve Meta's efficiency through the adoption of AI tools. Earlier this month, Meta also formed a new organization focused on its AI efforts, called Applied AI Engineering, which Bosworth oversees.

In a memo to employees, Bosworth told staff that early efforts inside Meta to use AI "have created real momentum and set us up for this next phase," according to The Journal. Another Meta executive, Guy Rosen, previously ran the AI for Work effort. Bosworth, who has served as CTO since 2022, also heads Reality Labs—the division responsible for Meta's wearables and mixed-reality efforts.

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