Khosrowshahi Eyes Tesla for Cybercabs

TECH
Khosrowshahi Eyes Tesla for Cybercabs

Uber CEO Dara Khosrowshahi has made it clear that he would rather collaborate with Tesla on autonomous vehicles than compete with its upcoming Cybercab robo-taxi service.

In an interview with Stratechery, Khosrowshahi stated, “No one wants to compete against Tesla or Elon if you can help it. Their capabilities are pretty extraordinary.” He emphasized that the autonomous vehicle (AV) market could be a trillion-dollar opportunity, and Uber aims to be a key player.

Tesla’s Cybercab, set for trial in Texas this June, could compete directly with Uber’s AV partnerships, which include Waymo and Wayve. However, Khosrowshahi believes Tesla could benefit from working with Uber’s existing network of 150,000 Tesla drivers.

Comparing a potential partnership to McDonald’s working with Uber Eats, he argued that Tesla’s self-driving fleet would gain greater utilization and revenue by integrating with Uber. While no deal has been announced, Uber remains well-positioned in the AV market.

TECH
OpenAI Rejects Elon Musk’s Bid

OpenAI has formally rejected Elon Musk’s offer to acquire its nonprofit parent for $97.4 billion.

In a letter to Musk’s lawyer Marc Toberoff, OpenAI attorney William Savitt dismissed the proposal, stating, “The much-publicized ‘bid’ is in fact not a bid at all.” OpenAI’s board unanimously rejected the offer, emphasizing that the proposal was not in the best interest of its mission.

OpenAI Chairman Bret Taylor reiterated that the company “is not for sale” and that any corporate restructuring would only strengthen its nonprofit mission.

Musk responded to OpenAI CEO Sam Altman’s sarcastic reply on X with insults, escalating their long-standing feud.

The battle between Musk and OpenAI goes beyond this bid—Musk is suing OpenAI over its shift to a for-profit structure, while OpenAI continues to attract major investments from Microsoft and SoftBank’s $40 billion funding deal.

FINANCE
Berkshire Holds Apple, Trims Bank Stakes

Warren Buffett’s Berkshire Hathaway reduced its holdings in several financial stocks during Q4 2024, but held onto its Apple stake.

According to regulatory filings released Friday, Berkshire continued selling Bank of America, cut its stake in Citigroup, and reduced its position in Capital One Financial. However, its Apple position remained unchanged at 300 million shares, valued at $75.1 billion as of December 31—still its largest stockholding.

Berkshire also initiated a $1.2 billion position in Constellation Brands, the company behind Modelo and Corona. Meanwhile, it sold off shares of Ulta Beauty and added to its Domino’s Pizza and Pool Corp. holdings.

The filing provides a snapshot of Berkshire’s portfolio but does not explain the rationale behind these trades. Investors will look to Buffett’s annual letter on February 22 for further insights.

Constellation Brands’ shares fell 26% this year after missing earnings expectations and cutting its outlook in January.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.