Across the Board
The Elon-gation of Power
As SpaceX prepares to go public, investors are asked to back an increasingly centralized corporate ecosystem
“SpaceX’s initial public offering is a bet on Elon Musk’s most audacious vision yet: an industrial empire combining hardware, software and artificial intelligence that brings rocket launches, satellites and computing resources into one sprawling conglomerate. If SpaceX hits its targeted valuation of $1.8 trillion, it will immediately become one of the world’s most valuable public companies. And for Tesla Inc….the question is increasingly about when — not if — SpaceX will absorb Tesla whole. To the faithful, Musk’s habit of intermingling his companies is part of the appeal. He’s a once-in-a-generation entrepreneur, and investors are betting on him and the tight ecosystem he has built around himself.” BLOOMBERG
OpenAI Joins the IPO Party
Alongside Anthropic and SpaceX, the company will soon open the door to public investors
“OpenAI has confidentially filed for an IPO with the Securities and Exchange Commission, joining the party a week after Anthropic did the same and days before Elon Musk’s SpaceX is set to hit the public market. OpenAI also plans to facilitate a tender offer that will allow employees to sell shares at the latest valuation, which was $852 billion post-money, and alleviate some near-term pressure for liquidity…. OpenAI rocketed into the mainstream following the launch of its ChatGPT chatbot in 2022, and has since ballooned into one of the most valuable private companies in the world. ChatGPT now supports more than 900 million weekly active users, but OpenAI faces increasingly stiff competition from rivals…. OpenAI CEO Sam Altman will be under pressure to make his case to investors…” CNBC
Power Play
AI's insatiable appetite for computing is reshaping energy demand and testing community tolerance
“The data center boom is accelerating. Data centers across the US are growing in number and in size. If all data centers permitted through 2025 come online, they will use between 224.3 terawatt-hours and 358.8 terawatt-hours of electricity annually, an increase of 50% over the previous year…. That’s more than all electricity used by any one US state in 2024, except Texas. The vast majority of this power use is driven by hyperscale data centers, mammoth facilities that use 40 megawatts or more each…. Tech giants have an insatiable appetite for more computing power to fund their AI ambitions. The race by tech companies to reach ever-greater AI ambitions has sparked a sweeping backlash from local residents and state and local officials wary of data center impacts on the environment, economy, and communities.” BUSINESS INSIDER
Going Against the Grain for a Win
A decision not to rely on Nvidia chips proves rewarding for an AI startup
“In the artificial-intelligence world, pretty much everyone wants to lay hands on chips and other computing hardware made by the market leader, Nvidia. Everyone except Darrick Horton, that is. Horton is the 28-year-old co-founder and chief executive of TensorWave. The Las Vegas-based cloud-computing startup refuses to use Nvidia’s graphics processing units…or its other products, out of concern that Nvidia controls too much of the AI infrastructure market. Instead, TensorWave exclusively uses hardware and software made by Advanced Micro Devices, Nvidia’s smaller rival in the GPU space. The startup has closed its Series B funding round, led by AMD and the hedge fund Magnetar Capital, raising $350 million at a post-money valuation of $1.55 billion. The investment nearly quadruples TensorWave’s value. As the AI boom accelerated and computing shortages worsened, exacerbated by bottlenecks in everything from power supply to memory-chip production, TensorWave expanded rapidly.” WALL STREET JOURNAL
BP Investors Criticize Governance
Leadership turnover and governance concerns are fueling investor questions about BP's direction
“BP is on its third CEO and third chairman in under three years, prompting investor scrutiny of the structure and oversight of its board as the oil major works to turn itself around and adapt to the supply shock. Weeks after CEO Meg O'Neill started in April, the chairman, Albert Manifold, was suddenly dismissed in late May. The board said this was due to "serious concerns" relating to governance standards, oversight and conduct…. One of the oil supermajor's top active investors told CNBC that some may be in danger of missing the bigger picture, while an activist shareholder said the company urgently needed to address the reasons for the turnover.” CNBC
GM Board Rejects Attempt to Split Chair and CEO Roles
GM shareholders revisited the longstanding debate over balancing leadership authority and board oversight
“The GM Board of Directors has rejected a proposal that would have required the company to separate the roles of board chair and chief executive officer…. Mary Barra currently serves as both General Motors chair and CEO…. The new proposal was presented by Paul Chesser, the director of the NLPC during General Motors’ annual shareholder meeting …. NLPC’s shareholder proposal called for General Motors to adopt a formal policy requiring the chair and CEO roles to be separated whenever possible. GM’s board, however, recommended that shareholders vote against the proposal.” GM AUTHORITY
Why Didn’t the Board Respond to Warning Signs of Fraud?
Even after the CEO admitted wrongdoing, the board didn’t alert investors or fire CaaStle's chief executive
“It should have been scandalous enough that there was a $283 million fraud. But then the next shoe dropped: The company’s board of directors waited three months to tell investors about it. Not only that, the fraudster was allowed to stay on as chief executive during that time. Not long ago, CaaStle looked like a high-flying start-up. CaaStle raised more than $600 million, and at its height in 2018 it was valued at $1.25 billion. CaaStle soon went bankrupt. This March, Ms. Hunsicker pleaded guilty to securities fraud. Investors…are scrambling to recover whatever money they can. They claim in multiple lawsuits that CaaStle’s board—which for much of its history had only three directors—failed to notice obvious warning signs of her fraud and then botched her response.” NEW YORK TIMES
Dutch Government Blocks Acquisition By U.S. Tech Company
Cross-border deal making challenged by Europe’s declining trust in the U.S.
“In November, a little-known American tech company announced a $115 million agreement to buy a little-known Dutch tech company. Deals like this usually fade into obscurity. Not this time. The proposed acquisition, which came as tensions festered between the Trump administration and Europe over issues as varied as tariffs and Greenland, set off a geopolitical uproar…. The Dutch government blocked the deal, the first known instance in which the Netherlands halted an acquisition by a U.S. tech company. In many ways, the details of the companies…are secondary to what the episode revealed: rising European suspicions about the United States. For years, the American government blacklisted Chinese technology companies over national security and data privacy concerns. Now similar logic was being applied against a U.S. company by a NATO ally.” NEW YORK TIMES
The School Yard Fights Now Taking Place at School Board Meetings
A new survey reveals how deeply partisan politics have affected school boards
“Reid Hoffman, billionaire co-founder of networking website LinkedIn, has decided not to stand for re-election to Microsoft's, opens new tab board of directors at its 2026 annual shareholder meeting…. Hoffman, who has served on the board since 2017, will stay on till the meeting. His decision was not a result of any disagreement with executives on any matter relating to policy or operations…. In 2016, he sold LinkedIn to Microsoft for $26.2 billion in what was at the time the tech giant's largest-ever deal.” REUTERS
“For as long as they have existed, America’s local school boards have navigated conflicts, hard decisions, and moments of intense public scrutiny. Disagreements over budgets, curriculum, and school boundaries are not new, nor are contentious school board meetings. Yet, over the last few years, something has changed. Disputes over pandemic-related school closures and masking policies put school boards in the national spotlight. Clashes between board members and protesters went viral. Media reports across the country showed boards struggling not only with the aftermath of COVID-19 but a host of hot-button issues involving race, gender, and sexuality. School boards became major battlegrounds for America’s culture wars.” BROOKINGS
Passing the Torch
Reid Hoffman's departure from Microsoft's board highlights the importance of board refreshment and succession planning
“Reid Hoffman, billionaire co-founder of networking website LinkedIn, has decided not to stand for re-election to Microsoft's, opens new tab board of directors at its 2026 annual shareholder meeting…. Hoffman, who has served on the board since 2017, will stay on till the meeting. His decision was not a result of any disagreement with executives on any matter relating to policy or operations…. In 2016, he sold LinkedIn to Microsoft for $26.2 billion in what was at the time the tech giant's largest-ever deal.” REUTERS
Netflix Elects New Chair, as Reed Hastings Steps Fully Away
Reed Hastings' departure marks the final chapter in Netflix's transition beyond its founder
“Reed Hastings is officially no longer affiliated with Netflix, the streaming giant he co-founded 29 years ago. In an SEC filing Friday, the company confirmed Hastings’ exit indirectly, noting the results of Thursday’s annual shareholder meeting. Venture capitalist Jay Hoag, a longtime Netflix investor and board member, was elected chairman at the meeting. Hastings stepped down in 2023 and became executive chairman.” DEADLINE
