Good morning. And just like that, we’ve emerged from the thick of tech earnings season. Six of the Magnificent Seven have reported their calendar first quarter earnings (Nvidia doesn’t report until May 28).
My big takeaway: It’s better to have an M than an A in your name.
Microsoft and Meta saw their shares surge after reporting results. Apple and Amazon, not so much. In fact, by week’s end, Apple had been knocked off its throne by Microsoft as the world’s most valuable company. Go figure. —Alexei Oreskovic
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The foldable iPhone is coming
Apple is planning a big shake up to its most important product line, including launching its first foldable iPhone, according to a report in The Information on Saturday.
It’s no secret that Apple’s iPhone business, which accounts for half of its revenue, could use a boost. IPhone sales in Apple’s most recent quarter increased a scant 2%—and that’s actually a positive result, considering that iPhones sales declined in three of the previous four quarters.
The company’s revitalization plan includes some big changes to the design of the iPhone, whose form has stayed relatively unchanged over the years. An ultrathin iPhone is set for release later this year, The Information reports, while Apple’s first foldable phone is on deck for a Fall 2026 launch. The foldable device will open like a book to produce an 8-inch display, and will feature a 5.7-inch exterior screen when closed, the report said.
Along with the new handset designs, Apple will move to a staggered release schedule, launching its high-end models in the fall (as it currently does), but releasing its standard models in the spring. Whether the new shapes and schedules will give iPhone the sales spark it needs remains to be seen—Apple’s business in China is under pressure, the Trump tariffs could raise U.S. iPhone prices significantly, and consumer demand for a foldable iPhone is hardly a given. But with iPhone sales in a long slump, Apple can't afford to not change. —AO
Google is bringing its AI chatbot to children under 13
When is a child too young to use an AI chatbot?
For Google, the answer appears to be never.
Beginning this week, the company will offer children under the age of 13 access to its Gemini AI chatbot—even if parents have set up Google’s special family account to restrict their children’s internet activity, according to a report in the New York Times.
The Times cited an email Google sent to parents of an 8-year-old, notifying them that their child would soon be free to play with the AI bot—to do things like make up stories and get homework help—unless the parents take steps to opt-out. The email advised parents to remind their kids that Gemini isn’t human, and that, while Gemini has safeguards for children, it’s not perfect and kids might see inappropriate content.
“We’ll also let you know when your child accesses Gemini for the first time.” How thoughtful!
The Anthropic millionaires are coming
Anthropic is putting some cash in employees’ pockets.
The buzzy San Francisco AI startup (and arch-rival of OpenAI) is planning to buy its stock back from hundreds of current and former staffers, reports The Information. Share repurchases are a standard way for privately held startups to let workers cash out some equity—something that’s become especially important in a dormant IPO market—but it’s the first time that Anthropic has done one of these deals.
Employees who have worked at Anthropic for at least two years will be able to sell up to 20% of their shares, for a maximum payout of $2 million per employee, according to the report. Anthropic will buy the shares for the same price Anthropic fetched in its most recent March funding round, which valued the company at $61.5 billion. —AO
More tech
—TikTok fined. Ireland slaps the company with a $600 million fine for failing to guarantee data is safe from Chinese government.
—Apple App Store liberation. Apps can seek direct payments (i.e. sans Apple’s 30% commission) from U.S. users. Thanks Judge Gonzales Rogers.
—GTA’s new ETA. Rockstar games says it needs more time to make Grand Theft Auto VI a “quality” experience. New release date: May 2026.
—Tesla's Euro woes. From France to Sweden, registrations of new Tesla vehicles are in free fall.
—Apple’s Anthropic vibe. The iPhone maker and the AI startup are developing a computing coding copilot that will let Apple employees “vibecode.”
—Lyft CEO’s “falcon mode.” Manage like a bird of prey.
