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Jon Keegan

Alphabet sells off its laser-based Starlink competitor

Alphabet has made some crazy bets on weird technology over the years. Some of the company’s famous Google X “moonshots” include:

- Life extension biotech
- “Superhuman” hearing
- Powered exoskeletons
- Plant decoders
- Internet drones that could stay aloft for five years
- Swarms of stratospheric internet balloons

The idea behind “moonshots” is that while most ideas might fail, you could end up disrupting an industry. Every once and a while they take off — like with Waymo, the self-driving car company that actually has a fleet of thousands of robotaxis — but most don’t pan out.

The Financial Times is reporting that Alphabet is throwing in the towel on Taara, its long-distance laser-based internet startup. The company is being spun off, with Alphabet keeping a minority stake.

The technology, which transmits high-speed internet via a series of tower-mounted lasers, can span distances of over 12 miles and was touted as an alternative to SpaceX’s Starlink satellite-based internet. For now, it’s being used to extend traditional fiber networks for telecom operators.

The idea behind “moonshots” is that while most ideas might fail, you could end up disrupting an industry. Every once and a while they take off — like with Waymo, the self-driving car company that actually has a fleet of thousands of robotaxis — but most don’t pan out.

The Financial Times is reporting that Alphabet is throwing in the towel on Taara, its long-distance laser-based internet startup. The company is being spun off, with Alphabet keeping a minority stake.

The technology, which transmits high-speed internet via a series of tower-mounted lasers, can span distances of over 12 miles and was touted as an alternative to SpaceX’s Starlink satellite-based internet. For now, it’s being used to extend traditional fiber networks for telecom operators.

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Driverless Waymo struck a child near school in California

A Google Waymo struck a child near a Santa Monica elementary school during morning drop-off last week, as self-driving cars by Waymo, Tesla, and others continue their expansion across the country. In a blog post, Waymo said the fully driverless car detected the child as they emerged from behind a parked SUV, braked sharply, and reduced speed from approximately 17 mph to under 6 mph before striking the child. The child suffered minor injuries and walked away.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

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Digging into Microsoft’s cloud backlog

Microsoft’s Azure cloud computing unit is seeing huge demand. In yesterday’s second-quarter earnings call, Microsoft CFO Amy Hood said the company’s commercial bookings increased 230% thanks to large commitments from OpenAI and Anthropic and healthy demand for its Azure cloud computing platform.

Hood said that the company’s “remaining performance obligations” (RPO) ballooned to a staggering $625 billion, up 110% from the same period last year. How long will it take for Microsoft to fulfill these booked services? Hood said the weighted average duration was “approximately two and a half years,” but a quarter of that will be recognized in revenue in the next 12 months.

Shares of Microsoft tanked today, down over 11%, despite the strong beat on revenue and earnings. Investors may be concerned that while huge, that extra demand was coming only from OpenAI, an issue that Oracle recently experienced.

But Hood said the non-OpenAI RPO still grew 28% year on year, which reflects “ongoing broad customer demand across the portfolio.”

US-ART-BASEL

Meta and Tesla are funding the future with their core businesses — but only one of them is still growing

The two tech giants, on back-to-back earnings calls, made it sound like they’re selling the same AI-powered future. But the picture of the underlying businesses, and how they’re using AI to furnish current sales, couldn’t be more different.

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