Happy Thursday, N2K reader!

This week’s world-famous news haiku competition™ is about how Waymo is under federal investigation after a driverless car hit a child near a school (and thankfully the child survived). It’s a heavy topic, but I believe that you, yes, you, dear reader, can craft a worthy haiku on the subject that will bring moral and spiritual clarity to the moment, just as you do each and every week. So: Send me your entry — to our spiffy new email address, haiku at cheddar dot com — by noon ET today (Thursday), for consideration by your Cheddar peers!

And now for something completely different.

Matt Davis — Need2Know Chedditor

News You Need2Know

What’s the stock market up to, eh?

$SPX ( ▼ 0.51% )   $DJI ( ▲ 0.53% )   $NDX ( ▼ 1.51% )

Companies mentioned in today’s newsletter

$NVDA ( ▼ 3.41% )   $AMZN ( ▼ 2.36% )   $ABNB ( ▲ 2.08% )  

$100B A.I. dream on pause as Nvidia and OpenAI hit turbulence

Nvidia’s $NVDA ( ▼ 3.41% ) stock fell by 1.1% on Monday following reports of delays in its massive $100 billion investment in OpenAI. Insiders revealed uncertainty about the deal, initially announced in September, which included plans to build 10 gigawatts of computing power for OpenAI. Nvidia CEO Jensen Huang later clarified that the $100 billion figure was nonbinding and remains under negotiation.

Speaking to Bloomberg, Huang reaffirmed Nvidia’s commitment to OpenAI, calling it “probably the largest investment we’ve ever made.” He added, “I believe in OpenAI... they are one of the most consequential companies of our time. Sam [Altman, OpenAI CEO] is closing the round, and we will absolutely be involved.” While doubling down on his belief in OpenAI, Huang dismissed reports of dissatisfaction as “nonsense.”

Analysts suggest that the ambiguity surrounding the exact investment amount is causing concerns. “There wasn’t a strong ‘It will be $100 billion.’ It was, ‘It will be big,’” said Sarah Kunst, managing director at Cleo Capital, talking to CNBC. Dan Ives, an analyst at Wedbush, emphasized that this could partly be Nvidia’s strategy to avoid fueling competitors like Alphabet $GOOG ( ▼ 2.16% ) and Anthropic. “The Godfather of AI Jensen knows him and Nvidia are in a very strong negotiating position,” Ives told CNBC.

A Fed governor steps down from his White House post

Federal Reserve Governor Stephen Miran has officially stepped down as chair of the Council of Economic Advisers, fulfilling a pledge he made during his confirmation to the Federal Reserve Board of Governors. “In accordance with the pledge he made to the Senate… Stephen Miran has submitted his resignation,” confirmed White House spokesperson Kush Desai. Desai praised Miran’s tenure, noting his “brilliant insights and powerful advocacy” as key strengths during his time with the Trump administration.

Miran’s resignation concludes a contentious dual-role arrangement, which drew criticism from Senate Democrats. In a letter sent earlier this week, Senator Elizabeth Warren and 10 colleagues demanded Miran honor his vow to step down. The letter said: “Your extended tenure at the Federal Reserve has only compounded what was an improper arrangement from the outset.” Critics suggested Miran failed to demonstrate the political independence expected of Federal Reserve officials. Warren, via the social network X, later remarked that Miran’s resignation came “141 days too late.”

On the Fed, Miran has advocated for aggressive rate cuts, voting “no” on holding rates steady at multiple meetings, arguing instead for deeper reductions.

Amazon founder Jeff Bezos lays off Amazon reporter from newspaper he owns

The Washington Post laid off hundreds of employees yesterday, including Caroline O’Donovan, the newspaper’s Amazon $AMZN ( ▼ 2.36% ) reporter, who announced the news on X:

The layoffs gutted entire sections, including sports, books, metro, and international desks, along with the popular daily podcast Post Reports. A now former employee told The Daily Beast, “It’s an absolute bloodbath,” while another said, “Most people this morning are saying, ‘I’m shocked,’ and that’s after multiple meetings… where people said it’s going to be worse than we thought. It’s still somehow worse than we thought.”

The layoffs reflect restructuring under Amazon founder Jeff “I’m the 4th richest person in the world!“ Bezos’s ownership, drawing criticism from staff and observers alike. Bezos, whose wedding last summer in Venice, Italy, cost in excess of $50 million, declined to make an endorsement in the 2024 presidential election, losing the paper 250,000 subscribers and potentially causing the financial problems leading to the layoffs. Bezos, who earns roughly $218,000 per minute, subsequently gutted the paper’s opinion section in moves widely criticized as tributes to President Donald Trump in order to advance his various business interests.

More recently, the FBI raided the home of Hannah Natanson, a Post reporter, in connection with a leak investigation. “There was particular annoyance that Bezos didn’t say anything,” a Post staffer told the Columbia Journalism Review. 

Heather Kelly, a laid-off technology reporter based in San Francisco, expressed her devastation, saying, “It’s just a really bad way to see it end. I don’t know what’s next, but I’m not optimistic.”

In a note to staff, executive editor Matt Murray (who was not laid off) called the cuts “painful,” but said they would help the paper focus on “areas that demonstrate authority, distinctiveness, and impact.” Meanwhile, the Post’s Newspaper Guild condemned the cuts, urging Bezos — who as of a year ago had given to charity a mere 1.6 percent of his wealth, while his ex-wife has donated roughly six times as much — to reinvest or step aside as steward of the historic publication.

If anyone fancies starting an investigative news outlet solely to cover Amazon now, with Caroline O’Donovan at the helm, I’m pretty sure there’s a nonprofit to be started with her name on it. If only we could find a rich guy — or his ex-wife — to donate to it…

Song of the Day: Stella Lefty, ‘Slow Dancin’’

This single by rising L.A.-based singer-songwriter Stella Lefty has quickly become a viral breakout hit. Following the success of her previous single "Thinking ‘bout You," the track has received overwhelming praise for its nostalgic production and intimate songwriting, along with its “banger” energy. So, it’s just like this newsletter!