Super Micro Computer witnessed a 23% surge in its share value after revealing steps to address its delayed financial filings and avoid a potential Nasdaq delisting. The company has appointed BDO USA as its new independent auditor, replacing Ernst & Young, which resigned due to concerns over governance, transparency, and internal control issues. The new appointment comes just ahead of Nasdaq’s compliance deadline, allowing Super Micro to submit a filing plan for review. If accepted, the company could secure an extension until February 2025 to resolve its reporting challenges.
Despite the financial turbulence, optimism remains surrounding Super Micro’s AI server segment, which has shown strong demand. Analysts have highlighted the significant role of the compliance plan in maintaining investor confidence, while past challenges—including a prior delisting from Nasdaq in 2019 over missed reporting deadlines—serve as reminders of the stakes. Shares of the company have fallen by 24% year-to-date, with their current value standing far below the record highs achieved earlier this year.
If the compliance plan fails to gain approval, Super Micro can appeal the decision to Nasdaq’s Hearings Panel, triggering a 15-day stay of delisting, with the possibility of an additional 180-day extension. Industry observers are keenly watching how the company navigates its financial and regulatory hurdles, given its importance in the growing AI server market.
Super Micro’s history of regulatory and financial scrutiny adds complexity to its current situation, but its leadership remains optimistic about overcoming these challenges and capitalising on the booming AI technology demand.
Silicon Valley firm d-Matrix has launched its first AI chip, designed to enhance AI services like chatbots and video generators. Early samples are being tested by customers, with full-scale shipments expected next year.
The chip focuses on inference tasks, allowing multiple users to interact simultaneously with AI systems, such as generating or modifying videos. d-Matrix’s innovation aims to complement market leaders like Nvidia by specialising in real-time user requests.
Backed by over $160 million in funding, including from Microsoft‘s venture arm, the company has partnered with Super Micro Computer to offer servers equipped with its chips. CEO Sid Sheth highlights strong demand in video applications for multi-user interactions.
OpenAI, in partnership with Common Sense Media, has introduced a free training course aimed at helping teachers understand AI and prompt engineering. The course is designed to equip educators with the skills to use ChatGPT effectively in classrooms, including creating lesson content and streamlining administrative tasks.
The launch comes as OpenAI increases its efforts to promote the positive educational uses of ChatGPT, which became widely popular after its release in November 2022. While the tool’s potential for aiding students has been recognised, its use also sparked concerns about cheating and plagiarism.
Leah Belsky, formerly of Coursera and now leading OpenAI’s education efforts, emphasised the importance of teaching both students and teachers to use AI responsibly. Belsky noted that student adoption of ChatGPT is high, with many parents viewing AI literacy as crucial for future careers. The training is available on Common Sense Media’s website, marking the first of many initiatives in this partnership.
Catalonia‘s decision to eliminate 10,000 holiday lets in Barcelona over the next five years has sparked a legal challenge from the European Holiday Home Association (EHHA). The industry group filed a complaint with the European Commission, arguing that the ban, introduced in June, violates EU law by breaching the provision of services directive. The EHHA claims the restrictions are disproportionate and politically motivated, particularly given the housing crisis in Barcelona, where locals struggle to find affordable housing.
Catalan authorities have not granted new tourist flat licenses since 2014, but this has not alleviated the city’s housing shortage. The European Commission has expressed concerns that the new measures are excessive and could be harming the local economy. EHHA representatives argue that other factors, such as empty dwellings, are contributing more to the housing crisis than short-term rentals like Airbnb.
Barcelona’s move is part of a broader trend of European cities combating overtourism, following similar actions by places like Venice and Amsterdam. However, the issue is now reaching the EU’s political stage, with the European Commission weighing in on the matter and preparing to tackle short-term rental regulation.
The UK’s Competition and Markets Authority (CMA) has decided against investigating the partnership between Google’s parent company, Alphabet, and AI startup Anthropic. Following a detailed review, the CMA found the agreement did not qualify as a merger under UK competition law.
Concerns over competition prompted the CMA to scrutinise the deal, focusing on whether it gave Alphabet control over Anthropic’s business. The authority concluded that Alphabet’s involvement, including financial support and computing resources, did not result in material influence or loss of independence for Anthropic.
The agreement includes Google providing Anthropic with cloud services, distributing its AI models, and offering convertible debt financing. While the partnership is significant, Anthropic’s UK turnover fell below the £70m threshold required for it to qualify as a merger.
This ruling follows similar CMA decisions involving tech companies and AI startups, including clearing Microsoft’s investment in Mistral and Amazon’s $4bn stake in Anthropic. The watchdog remains vigilant about potential anti-competitive practices in the rapidly growing AI sector.
The European Central Bank (ECB) has raised concerns over a potential bubble in stocks tied to AI, warning that inflated expectations could lead to a sharp market correction. In its latest Financial Stability Review, the ECB highlighted the growing reliance of global markets, particularly in the US, on a small group of tech firms driving the AI boom. This concentration, it cautioned, could trigger widespread instability if these companies fail to meet earnings expectations.
Adding to the risks, the ECB pointed out that investors are accepting low premiums for equities and bonds while many funds are maintaining minimal cash reserves. This leaves markets vulnerable to liquidity shortages, potentially forcing asset sales that could accelerate price declines. Open-ended investment funds, in particular, were flagged for significant liquidity mismatches that could exacerbate any downturn.
The ECB also underscored broader economic challenges, including rising trade fragmentation, a concern amplified by the protectionist policies signaled by US President-elect Donald Trump. Such measures could harm eurozone growth, compounding vulnerabilities as governments like Italy and France face borrowing at much higher interest rates in the coming years. The ECB urged fiscal prudence to manage these pressures effectively.
Donald Trump’s media company, Trump Media and Technology Group, is reportedly in advanced negotiations to acquire Bakkt, a crypto trading platform backed by the Intercontinental Exchange. According to sources cited by the Financial Times, the deal would be an all-stock acquisition.
News of the talks caused Bakkt’s shares to skyrocket by nearly 66% before trading was temporarily halted due to volatility. Neither Trump Media nor Bakkt has commented on the matter, while the Intercontinental Exchange declined to respond.
If finalised, the deal would deepen Trump’s ties to the cryptocurrency industry, which he has actively supported long before the US presidential election. In a related move, Trump recently launched a new crypto initiative called World Liberty Financial.
Germany‘s Federal Court of Justice (BGH) has ruled that Facebook users affected by data breaches in 2018 and 2019 are entitled to compensation, even without proving financial losses. The court determined that the loss of control over personal data is sufficient grounds for damages, marking a significant step in data protection law.
The case stems from a 2021 breach involving Facebook’s friend search feature, where third parties accessed user accounts by exploiting phone number guesses. Lower courts in Cologne previously dismissed compensation claims, but the BGH ordered a re-examination, suggesting around €100 in damages could be awarded per user without proof of financial harm.
Meta, Facebook’s parent company, has resisted compensation, arguing that users did not suffer concrete damages. A spokesperson for Meta described the ruling as inconsistent with recent European Court of Justice decisions and noted that similar claims have been dismissed by German courts in thousands of cases. The breach reportedly impacted around six million users in Germany.
The court also instructed a review of Facebook’s terms of use, questioning whether they were transparent and whether user consent for data handling was voluntary. The decision adds pressure on companies to strengthen data protection measures and could set a precedent for future claims across Europe.
Africa’s largest mobile operator, MTN, is exploring partnerships with low-Earth-orbit (LEO) satellite providers to improve internet access in rural and remote areas, CEO Ralph Mupita announced on Monday. Satellite-based internet, increasingly popular in Africa through providers like Elon Musk’s Starlink, offers high-speed connectivity where traditional infrastructure is costly or impractical.
MTN is conducting trials with several LEO satellite operators and considering becoming a reseller for enterprise customers in specific regions. Competitors like Vodacom and Cell C are also embracing LEO partnerships, with Vodacom teaming up with Amazon’s Project Kuiper.
Mupita emphasised the need for regulatory fairness, calling for satellite providers to meet the same requirements as terrestrial operators, such as compliance with data privacy and spectrum access rules. While Starlink is operational in parts of Africa, regulatory hurdles remain in countries like South Africa, where a clear framework for satellite internet is still being developed.
With AI adoption surging, data centers are bracing for a 160% jump in electricity consumption by 2030, driven by the energy demands of GPUs. Sagence AI, a startup led by Vishal Sarin, is addressing this challenge by developing analog chips that promise greater energy efficiency without sacrificing performance.
Unlike traditional digital chips, Sagence’s analog designs minimise memory bottlenecks and offer higher data density, making them a viable option for specialised AI applications in servers and mobile devices. While analog chips pose challenges in precision and programming, Sagence aims to complement, not replace, digital solutions, delivering cost-effective and eco-friendly alternatives.
Backed by $58M in funding from investors like TDK Ventures and New Science Ventures, Sagence plans to launch its chips in 2025. As it scales operations, the startup faces stiff competition from industry giants and will need to prove its technology can outperform established systems while maintaining lower energy consumption.
