Ex-employee stole Grok secrets

What we’ll cover today:

💰 Nvidia’s mystery buyers driving 40% of revenue

🇺🇸 Intel’s foundry locked in by the U.S.

👶 Meta’s chatbots forced into babysitting mode

🛰️ Grok drama: ex-employee, stolen secrets, OpenAI tension

🛰️ Grok Watch: xAI vs Former Employee

• What happened: Elon Musk’s company xAI has sued a former employee, Xuechen Li, for allegedly stealing Grok’s trade secrets and trying to take them to OpenAI.

• Who is Li: He joined xAI in February 2024 as part of a 20-person technical team and worked on training and developing Grok’s AI models.

• The allegation: Before resigning in July, Li allegedly copied confidential files onto a personal device, hid his actions by deleting logs and renaming files, and later admitted to part of the theft.

• Why it matters: xAI claims the stolen material included advanced AI features more powerful than ChatGPT, which could give OpenAI an unfair advantage.

Nvidia’s Revenue Risk 💰

• Nvidia made $46.7B last quarter. Two customers alone made up almost 40% of that.

• These are middlemen like equipment makers and distributors, not the big cloud players directly.

• If one of those customers cuts back, Nvidia’s revenue could take a big hit.

• For now, analysts think the risk is low since those buyers are loaded with cash and still building data centers fast.

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Intel’s Deal with the U.S. 🇺🇸

• Intel’s chip-making unit is losing billions, and many wanted it sold off.

• The U.S. government just blocked that by taking a 10% stake and adding penalties if Intel tries to spin it out.

• Intel got $5.7B in CHIPS Act money as part of the deal.

• The company now has to keep running a money-losing unit because of government pressure, not market logic.

Meta Tightens Teen Safety 👶

• Meta will stop its chatbots from talking to teens about suicide, self-harm, eating disorders, or sexual topics.

• This change came after a Reuters report showed unsafe responses, some even sexual toward minors.

• Teens will only get access to limited, safe AI characters focused on learning or creativity.

• Regulators are already investigating, and Meta is moving fast to avoid bigger backlash.

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