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U.S. Treasury yields dropped on Thursday after President Donald Trump announced a 90-day tariff reprieve for most countries, easing investor fears and reversing a sharp bond market sell-off.

As of 4:50 a.m. ET, the yield on the 10-year Treasury note fell by over 10 basis points to 4.288%, while the 2-year yield declined to 3.841%. This came after Wednesday’s spike in yields, when the 10-year briefly surged past 4.51%, reflecting high volatility in the bond market.

Typically seen as a safe haven during market turmoil, U.S. Treasurys experienced an unusual sell-off earlier in the week. Analysts attributed this to investor concerns over trade policy unpredictability and the broader impact of rising tariffs.

President Trump’s move to implement a temporary 10% universal tariff on most countries brought some relief, though China was excluded from the pause and saw its tariff rate rise sharply to 125% amid ongoing trade tensions.

Trump admitted to watching the bond market closely, saying, “The bond market is very tricky… but right now it’s beautiful.” This statement followed investor unease and a sudden spike in yields just a day earlier.

Market analysts view the tariff pause as a short-term calming signal but remain wary of longer-term trade policy shifts. “A 10% minimum universal tariff represents the largest increase in decades,” noted analysts at Deutsche Bank, adding that ongoing uncertainty is likely to keep markets on edge.

Adding to market stabilization was strong demand during Wednesday’s 10-year Treasury auction, further signaling that investor appetite for bonds remains intact despite recent turbulence.

Looking ahead, investors await key economic indicators. The Consumer Price Index (CPI) for March is set to be released at 8:30 a.m. ET, followed by weekly jobless claims and the Producer Price Index (PPI) on Friday — all of which will provide more clarity on the health of the U.S. economy.

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In a strategic move signaling its expansion beyond software, OpenAI is reportedly negotiating a $500 million acquisition of io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman.

This potential acquisition marks a major shift for OpenAI, best known for its software innovations like ChatGPT and API tools. By investing in physical products, the company is aiming to diversify its revenue streams and establish a foothold in AI-powered consumer tech.

AI Devices Without Screens

io Products is believed to be developing next-gen devices like screen less smartphones and ambient smart home gadgets. The startup’s approach challenges traditional tech norms by offering context-aware, screen-free interaction, positioning AI as a more natural extension of the user experience.

The team behind io Products includes several former Apple veterans, including Tang Tan and Evans Hankey, adding design credibility to the venture. The startup reportedly drew early backing from high-profile investors, including Laurene Powell Jobs, and is expected to hit $1 billion in funding by the end of 2024.

Jony Ive and Altman’s Vision

Jony Ive, celebrated for his iconic designs at Apple, launched LoveFrom in 2019 and later teamed up with Altman to reimagine consumer tech through io Products. Their goal: create devices that blend into everyday life, with AI at the core of user interaction.

OpenAI’s interest in io Products follows Altman’s past ventures into AI hardware, including Humane Inc., which was recently acquired by HP for $166 million. However, this new move suggests OpenAI might finally take a hands-on approach to consumer hardware rather than simply investing from the sidelines.

If finalized, the deal could reshape how users interact with AI in daily life, marking a significant milestone in the fusion of software intelligence and human-centered design.

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Google has officially opened applications for the 2025 edition of its Google for Startups Accelerator: Apps program, targeting 20 high-potential Indian startups developing AI-powered mobile applications. The initiative, supported by Google Play, is designed to nurture app-based ventures with cutting-edge AI resources, expert mentorship, and personalized growth support.

The three-month accelerator, set to begin in July 2025, is open to Indian startups in the Seed to Series-A funding stage with a published app on the Google Play Store. Participating startups will benefit from:

  • Tailored mentorship sessions
  • Insights into Google’s latest AI advancements
  • Performance optimization reports
  • Tools to enhance user engagement and scalability

According to Paula Wang, Managing Director of APAC Partnerships at Google Play, “The startup ecosystem in India continues to inspire us. With this program, we aim to give AI-powered app startups the tools they need to grow and innovate at scale.”

The accelerator also builds on the success of its first cohort, which saw notable advancements in app technology, design, and business growth. The 2025 edition will place a stronger emphasis on AI integration, helping startups align with the future of mobile innovation.

Applications are open until May 15, 2025, and selected startups will kick off the program with an immersive bootcamp in July.

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US government debt experienced a sharp sell-off on Monday, driven by hedge funds reducing risk in their portfolios and a broader investor move toward cash amid ongoing market turbulence. This significant shift in investment strategy has led to a notable spike in yields on US Treasuries.

Key Market Movements and Influences

  • Yield Surge:
    The benchmark 10-year Treasury yield surged by 0.19 percentage points to 4.18%, marking the largest daily rise since September 2022. Similarly, the 30-year yield experienced a jump of 0.21 percentage points, reminiscent of the dramatic swings seen during the early stages of the pandemic.
  • Deleveraging in Action:
    Hedge funds have been actively deleveraging—reducing the use of borrowed funds—by liquidating positions across the board. In particular, the unwinding of specialized basis trades in the fixed-income market has contributed significantly to the downward pressure on Treasury prices.
  • Investor Flight to Cash:
    Amid concerns over market volatility, many investors are selling off even traditionally safe assets like US Treasuries to raise cash, avoiding the possibility of locking in losses from declining equity positions. This flight to cash has further exacerbated the liquidity crunch in the Treasury market.

The Tariff Factor and Broader Implications

The recent announcement of steep tariffs by US President Donald Trump continues to reverberate through Wall Street, having already contributed to equity market declines and heightened investor caution. The resulting turbulence has led to a confluence of factors—deleveraging, basis trade liquidations, and a dash for cash—that together are reshaping the dynamics of the fixed-income market.

Market experts note that the current environment is akin to an “everything, everywhere all at once” trade, where multiple sectors and asset classes are being simultaneously affected. The sell-off in the US Treasury market, valued at $29 trillion, underscores the fragile state of liquidity across a range of high-grade assets, including corporate bonds and mortgage-backed securities.

As the market continues to navigate these choppy waters, investors and analysts alike are keenly watching for further moves that could signal deeper shifts in risk appetite across global financial markets.

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OpenAI has confirmed it will release a new open-source AI language model in the coming months, marking its first public model release since GPT-2 in 2019. The move signals a shift in strategy for the company, which has largely kept its AI models proprietary since partnering with Microsoft.

The news came through a feedback form posted by OpenAI, inviting developers, researchers, and the public to share their input to help shape the model’s design and usefulness.

OpenAI Shifts Gears Toward Open Source

OpenAI has not released any open-source models since GPT-2, now operating on GPT-4.5 and advanced proprietary models like o1 and o3. After Microsoft’s $1 billion investment in 2019—followed by additional investments exceeding $13 billion—OpenAI kept its models exclusive to Azure users. However, this exclusive cloud arrangement ended in January 2025, paving the way for a new direction.

Open-Source Rivals Gaining Momentum

OpenAI’s decision follows the rising success of open-source AI models such as:

  • Meta’s LLaMA, which has seen over 1 billion downloads since 2023.
  • Mistral and DeepSeek, which have surged in popularity, even leading DeepSeek to restrict API access due to overwhelming demand.

Tech giants like Spotify and cloud platforms (AWS, Azure, Google Cloud) have integrated these models to enhance services, while Chinese firms like Alibaba, Baidu, and Tencent have released their own open-source models in response.

  • Alibaba’s Qwen 2.5-Omni-7B processes text, images, audio, and video and is open-sourced on Hugging Face and GitHub.
  • Baidu’s Ernie 4.5 and Ernie X1 aim to offer powerful reasoning and multimodal capabilities.
  • Tencent’s Hunyuan T1 is positioning itself as a high-performance, affordable alternative to DeepSeek.

Meanwhile, AI startup Manus gained attention for its general-purpose AI agent powered by existing foundation models, further diversifying the open-source landscape.

With OpenAI now re-entering the open-source arena, the competition among global AI developers is expected to accelerate.

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The U.S. Department of Defense has awarded $13.7 billion in military space launch contracts to SpaceX, United Launch Alliance (ULA), and Blue Origin. This landmark agreement under the National Security Space Launch (NSSL) Phase 3 Lane 2 initiative ensures reliable access to space for critical military and intelligence missions from 2025 to 2029.

Announced by the U.S. Space Force’s Space Systems Command on April 4, the deal marks the first time three providers will jointly handle high-priority national security payloads.

Contract Breakdown:

  • SpaceX: $5.9 billion | 28 missions (~60%)
  • ULA: $5.4 billion | 19 missions (~35%)
  • Blue Origin: $2.4 billion | 7 missions (~13%), starting in Year 2 (pending certification)

A Strategic Move for National Security

General Chance Saltzman, Chief of Space Operations, emphasized the strategic importance of building a resilient launch architecture to safeguard both economic interests and national defense.

Missions under Lane 2 focus on high-energy orbits and complex security requirements, such as missile warning systems and secure communication networks. The launches are scheduled from fiscal year 2027 through 2032.

Blue Origin’s Competitive Entry

For the first time, Blue Origin joins the ranks of national security launch providers, despite its New Glenn rocket not yet being certified. The company is expected to earn certification before its first mission and was designated the “third best value provider.”

ULA’s New Vulcan Rocket Certified

ULA recently achieved a critical milestone by certifying its Vulcan rocket on March 26, paving the way to begin launching Phase 2 missions and take on its new Phase 3 responsibilities.

Dual-Lane Acquisition Strategy Explained

  • Lane 1: 30 missions, lower-risk, commercial-style payloads.
  • Lane 2: High-stakes national security missions requiring top-tier performance and reliability.

These contracts are part of the Pentagon’s broader strategy to reduce reliance on Russian-made RD-180 engines and strengthen the U.S. launch industry.

Annual mission assignments begin in late 2025 and will continue through 2029, ensuring consistent access to space for vital defense operations.

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AI video startup Runway AI has secured over $300 million in a funding round backed by tech giant Nvidia (NASDAQ: NVDA) and other major investors, boosting its valuation to $3 billion.

Key Investors & Expansion Plans

The funding round was led by General Atlantic, with participation from Fidelity Management & Research Company, Baillie Gifford, Nvidia, SoftBank Vision Fund 2, and other new and existing investors. Runway plans to use the fresh capital to enhance its AI-driven media generation technology and expand its research team.

Advancing AI in Film & Media

Runway is making strides in AI-generated content through its in-house Runway Studios, which focuses on creating original AI-driven films and animations. Recently, the company unveiled its latest AI model, Gen-4, capable of generating realistic, consistent characters, locations, and objects across multiple scenes.

The startup’s AI software has already been used in high-profile projects, including:

  • Generating select scenes for Amazon’s House of David
  • Creating visuals for Madonna’s concert tour
  • Producing an advertisement for Puma

Partnership with Lionsgate

Runway has also partnered with Lionsgate to develop an AI model trained on the studio’s content for use in upcoming film projects. While additional studio collaborations remain undisclosed, Runway’s Co-Founder and CEO, Cris Valenzuela, confirmed that more partnerships are underway.

The Future of AI-Generated Media

With Nvidia’s backing and increasing industry adoption, Runway is poised to redefine content creation using AI. The investment underscores the growing interest in AI-driven media production, signaling a shift toward more advanced AI-generated film and animation technology.

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Ford Motor Company has announced a new sales promotion allowing all car shoppers to purchase 2024-25 Ford and Lincoln vehicles at the same discounted price offered to its employees.

Why Ford is Offering Employee Pricing

Dubbed “From America, For America,” the campaign was launched on the same day that a new 25% U.S. tariff on foreign vehicles took effect. The move is seen as a direct response to rising concerns over potential price hikes in the auto industry.

According to an analysis by Anderson Economic Group, the new tariffs could lead to car price increases of up to $12,200 on some models. In response, Ford aims to make vehicle ownership more affordable during uncertain economic times.

“We understand that these are uncertain times for many Americans. Whether it’s navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help,” Ford said in a statement.

Promotion Details and Eligible Vehicles

The limited-time offer runs from April 3 through June 2 and includes significant discounts on various gas, hybrid, plug-in hybrid, and diesel models from Ford and Lincoln.

Excluded Models:

  • Ford Raptor series
  • 2025 Ford Expedition
  • 2025 Lincoln Navigator
  • Ford Super Duty trucks

To further promote the initiative, Ford has launched a 30-second ad campaign featuring actor Bryan Cranston, which will air during the NCAA Final Four 2025 tournament on April 6-7.

Ford’s Sales Surge Amid Tariff Concerns

Ford’s first-quarter earnings report revealed a 5% increase in sales, with a notable 19% spike in March, as consumers rushed to buy cars before potential price hikes. Dealerships have reported increased foot traffic, further confirming the impact of the new tariffs on consumer behavior.

Industry-Wide Impact of the Tariffs

The ripple effects of the tariffs are already being felt across the automotive sector. Stellantis, the parent company of Jeep, Chrysler, Dodge, and Ram, recently announced temporary production halts in Canada and Mexico, leading to the layoff of 900 U.S. workers and the temporary suspension of operations at its Windsor Assembly Plant from April 7 to April 21.

Ford’s decision to extend employee pricing to all customers comes at a crucial time as the auto industry adjusts to higher import tariffs. By offering substantial savings on a range of vehicles, Ford aims to ease the financial burden on consumers while maintaining sales momentum in a volatile market.

If you’re in the market for a new car, this limited-time offer could be an excellent opportunity to secure significant savings before vehicle prices potentially climb even higher.

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Stellantis has announced the temporary closure of two major assembly plants in Canada and Mexico in response to the new 25% automotive tariffs imposed by the U.S. government. This strategic move aims to mitigate the financial impact of increased import costs, affecting thousands of workers across North America.

Impact of Tariffs on Stellantis Operations

The new tariffs, implemented on all imported vehicles, have forced Stellantis to reassess its production strategy. The company has decided to

  • Halt production at its Windsor Assembly Plant in Ontario, Canada, for two weeks starting Monday.
  • Shut down its Toluca Assembly Plant in Mexico for the entire month of April.
  • Temporarily lay off around 900 U.S. workers at supporting plants.
  • Impact 4,500 hourly workers at the Canadian plant.
  • Require Mexican workers to report to the facility but remain inactive due to contractual obligations.

Antonio Filosa, Stellantis’ North American Chief, addressed employees in an internal email, stating, “We are continuing to assess the medium- and long-term effects of these tariffs on our operations but have decided to take immediate actions to manage the situation.”

Reactions from Industry Leaders and Unions

The decision has drawn strong reactions from industry stakeholders. Unifor National President Lana Payne, representing Canadian auto workers, criticized the tariffs, highlighting the immediate layoffs as a significant concern.

“Unifor warned that U.S. tariffs would hurt auto workers almost immediately, and these layoffs confirm our fears,” she said.

Stellantis’ rivals, Ford and General Motors (GM), have taken a different approach. While Stellantis is cutting production, GM is temporarily increasing truck production at its Indiana plant to counterbalance potential supply chain disruptions. Ford, meanwhile, has launched an employee discount program for all customers to maintain sales amid economic uncertainty.

Broader Impact on the Auto Industry

The automotive industry is facing increased uncertainty as companies adjust their production and pricing strategies. Stellantis’ move could be a sign of further disruptions, with potential ripple effects across suppliers, dealerships, and consumers.

U.S. auto sales surged in the first quarter as buyers rushed to purchase vehicles ahead of tariff-induced price hikes. However, if production slowdowns continue, vehicle availability and pricing could be significantly impacted in the coming months.

Stellantis remains in discussions with government officials, unions, and industry stakeholders to navigate the evolving trade landscape. The company is also in the midst of a CEO search, adding another layer of uncertainty to its future strategy.

With Stellantis taking drastic steps to manage the impact of tariffs, the North American automotive industry is entering a period of significant transition. While some automakers are adjusting production strategies, others are focusing on sales incentives to retain customers. As trade policies continue to evolve, manufacturers, workers, and consumers alike must brace for potential long-term changes in the industry.

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Qualcomm, the San Diego-based semiconductor giant, has acquired NeuralVision, a startup specializing in generative AI technology, as part of its push to advance AI-powered innovation across smartphones, laptops, and next-generation vehicles.

Expanding AI Capabilities

The acquisition, announced on Tuesday, underscores Qualcomm’s commitment to enhancing research and development in AI, particularly in generative AI, which enables machines to create text, images, and videos by recognizing patterns in vast datasets.

Qualcomm did not disclose the financial terms or closing date of the deal.

NeuralVision, previously a division of TechNova Research Group, is known for developing AI models tailored for edge computing—a key focus area for Qualcomm as it seeks to integrate power-efficient AI into mobile and automotive devices.

Strengthening Qualcomm’s AI Roadmap

Jilei Hou, Qualcomm’s Senior Vice President of Engineering, highlighted the significance of the acquisition:

“By incorporating NeuralVision’s expertise, we are reinforcing our leadership in AI-driven solutions that will shape the future of mobile computing and automotive technology.”

As part of the deal, NeuralVision’s founder and CEO, Alex Tran, will join Qualcomm’s AI research division, bringing expertise in deep learning and AI optimization for embedded systems.

“We are excited to contribute to Qualcomm’s vision of advancing fundamental AI research and scaling it across industries,” Tran said.

Broader AI Expansion

This acquisition follows Qualcomm’s recent purchase of Edge Impulse, a German AI company, to strengthen its Internet of Things (IoT) and edge AI capabilities.

With its latest move, Qualcomm is doubling down on next-generation AI solutions, ensuring its chips remain at the forefront of smartphone, PC, and automotive innovation.

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