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• AI TRENDS

• TECH TRENDS

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AI TRENDS

Nvidia Stock Plunges Almost 20% Off Its Peak

Nvidia, the AI chip powerhouse, recently experienced a 20% drop in its stock, despite exceeding Q2 2025 earnings expectations.

So, why the plunge? Investors reacted to a key red flag: gross margin contraction. While Nvidia’s revenue soared 35% year-over-year, its gross margin dropped from 78.4% to 75.1%, raising concerns about long-term profitability.

Why the sudden sell-off?

• Gross margins matter: Nvidia’s pricing power and operational efficiency have been top-notch, but the dip in margins has investors fearing more cost pressures ahead.

• Global risks loom: Economic uncertainty, especially trade tensions with China and Japan, compounds these concerns.

Should you buy the dip?

Nvidia remains a leader in AI and machine learning, with strong long-term potential. However, short-term risks like geopolitical issues and margin contraction mean investors should tread carefully.

AI to boost sales of new iPhone 16

iPhone 16: Apple’s AI-Powered Leap Forward

Apple’s much-anticipated iPhone 16 series is here, and it’s clear that AI is the star of the show. With features powered by the new Apple Intelligence AI framework, Apple aims to revolutionize the smartphone experience and take on competitors like Samsung and Google.

Key iPhone 16 Features:

• Apple Intelligence AI Framework: The backbone of the iPhone 16, offering real-time AI-driven enhancements for photography, writing tools, and Siri interactions.

• Camera Control Button: Simplifies photography while using AI to recognize objects and locations within images, taking mobile photography to the next level.

• AI-Powered Photo Editing: Automatically remove unwanted objects, enhance quality, and search photos using natural language queries.

• Advanced AI Writing Tools: Offering real-time grammar, tone, and clarity suggestions, making content creation across apps like Notes and Mail more polished.

• Enhanced Siri: With better language understanding, Siri delivers smarter and more context-aware responses.

• Privacy-Focused AI: All AI processing happens on-device, keeping user data safe by limiting transmission to external servers.

Can AI Help Apple Regain Its Edge?

Apple’s iPhone 16 comes during a challenging period of declining sales and intense competition. While the iPhone 16’s AI capabilities represent a bold leap, rivals like Samsung’s Galaxy S24 and Google’s Pixel 8 are also packing advanced AI features. The big question: Will Apple’s new tech be enough to sway consumers?

The Road Ahead

The iPhone 16 launches on September 20, but not all AI features will be available at release—the full Apple Intelligence suite will roll out with iOS 18 in October. Whether Apple’s latest innovation will boost its market share or fall short in the AI race will depend on how well these features deliver.

OpenAI o1 is with a new Strawberry AI model

OpenAI’s new o1 model: Thinking before it speaks

OpenAI has just unveiled its o1 model—formerly known as Project Strawberry—and it’s already generating buzz. Released on September 12, o1 is available to ChatGPT Plus and Team users, boasting major upgrades in its ability to reason through complex problems.

Whether it’s tackling tricky math equations, generating more accurate code, or handling multistep scientific challenges, this model shows a marked improvement over its predecessors.

So what sets o1 apart? OpenAI says the model has been trained to think before responding, similar to how a human would work through a problem. This means it’s able to refine its approach, try different strategies, and recognize mistakes during the problem-solving process. According to OpenAI, the model now performs similarly to PhD-level students in advanced benchmarks across physics, chemistry, and biology.

But the advanced thinking comes at a cost. In the API, o1-preview is priced at $15 per 1 million input tokens—a step up from previous models. However, there’s good news for free-tier users: OpenAI is planning to release o1-mini, a scaled-down version for everyone, though no timeline has been confirmed yet.

With its enhanced reasoning capabilities, o1 represents a significant leap toward human-like AI, and OpenAI plans to roll out continuous updates to make it even smarter in the future.

TECH TRENDS

Instagram Unveils Major Child Safety Changes

Instagram Introduces Sweeping Child Safety Updates

Instagram, a favorite among teens, is rolling out significant updates to boost child safety on the platform. These changes come as concerns mount from parents and advocacy groups about the risks young users face online.

Key Features:

• Default Privacy for Minors: Instagram will now set accounts of users under 18 to private by default. This means only approved followers can view their content, reducing exposure to unwanted interactions.

• Nighttime Notification Pause: Notifications will be paused for users under 18 from 10 PM to 7 AM to promote healthier screen habits and reduce late-night scrolling.

• Parental Supervision Tools: New tools allow parents to see which accounts their child has recently messaged and the topics they follow—though they can’t view actual message content—giving them more control over their child’s activity.

Instagram’s head, Adam Mosseri, emphasized that parents should have the final say in their children’s online activity. He admitted that these changes could slow down teen user growth, but stressed that safety takes priority.

The updates arrive as social media platforms like TikTok and Snapchat face increasing scrutiny over their impact on teens’ mental health. With calls for better protection, Instagram aims to address issues like cyberbullying, exposure to inappropriate content, and harmful online trends.

Challenges and Industry Response

While the changes are welcomed, one issue lingers—accurate age verification. Many teens lie about their age to bypass restrictions. Instagram is working on improving its verification methods and requiring parental approval for users under 16 to switch to public accounts.

The child safety overhaul is receiving praise from advocacy groups like Common Sense Media, though they argue that these updates are long overdue. Meanwhile, some teens, especially influencers, may feel frustrated with the default privacy settings that limit public exposure.

A Risk to Instagram’s Business?

With over 1 billion monthly active users, Instagram’s updates could affect its bottom line. By limiting teen engagement and interaction, the platform may see slower growth in a critical demographic. However, Mosseri stated that the company is willing to take these risks to prioritize safety.

The rollout begins this week, starting with new accounts for minors, while existing accounts will soon follow. As Instagram continues to navigate the tricky balance between user growth and safety, its effectiveness in protecting young users will be closely watched by both parents and regulators.

Elon Musk polls X users on $5 billion Tesla investment in xAI

Elon Musk is gauging public sentiment on whether Tesla should invest $5 billion in his AI startup, xAI. On Tuesday, Musk launched a poll on X (formerly Twitter), with over 70% of the 322,000 respondents voting in favor of the massive investment. While board approval and shareholder votes are still required, Musk noted the poll aims to "test the waters."

Musk's xAI—founded last year as a competitor to OpenAI and Google—has been gaining momentum. The startup raised $6 billion in series B funding earlier this year, bringing its valuation to $24 billion. As Tesla’s profit margins hit a five-year low due to price cuts on its vehicles, the company continues to ramp up its AI and software spending, with plans to invest up to $10 billion in AI-related projects this year.

With Tesla eyeing Nvidia hardware and other AI developments, Musk’s next move could dramatically impact both companies STARTUP SCENE

Swiggy boosts IPO target to ₹5,000 crore amid strong revenue growth

Swiggy, the food and grocery delivery giant, is ramping up plans for its upcoming IPO, proposing a fresh issue of ₹5,000 crore—surpassing its initial goal of ₹3,750 crore. The company will seek shareholder approval for this move at an extraordinary general meeting (EGM) scheduled for October 3. Alongside the fresh issue, Swiggy is planning a ₹6,664 crore or $798,270 offer for sale.

Swiggy confidentially submitted its draft prospectus to SEBI, with the final IPO size potentially differing from current plans. This comes after Swiggy posted impressive financials for FY24, increasing operating revenue by 36% to ₹11,247 crore while reducing net losses by 44% to ₹2,350 crore. In comparison, rival Zomato reported ₹12,114 crore in revenue and a profit of ₹351 crore for FY24.

Swiggy, which also operates the quick-commerce division Instamart, faces competition from Zomato-owned Blinkit, Zepto, Flipkart Minutes, and BigBasket. Meanwhile, Swiggy has seen high-profile secondary transactions, with Amitabh Bachchan's family office, Raamdeo Agrawal, and Hindustan Composites acquiring stakes in the company ahead of the IPO.

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