Magnificent 7 Weekly Briefing

October 23, 2026

Magnificent 7 firms ramp up AI spending and energy infrastructure while navigating production surges, legal challenges, and new share classes.

• Tesla reported a 43% profit slump but achieved surprise positive free cash flow while ramping production for its energy storage systems and Optimus robots. Amid safety probes and a fatal accident involving self-driving software, the company plans to sell Cybercabs by year-end and is exploring a merger with SpaceX. ^{1234567891011}
• Meta introduced a non-voting Class C stock to fund its $145 billion AI expansion and Muse agent rollout while navigating a $25 billion fine for privacy violations in New Mexico. The company also faced slowing ad revenue in Europe and a data leak involving its chatbot instructions on WhatsApp. ^{12131415161718192021}
• Nvidia expanded its AI infrastructure through new Vera CPUs and robotics platform updates, though its market lead in China has narrowed significantly as local competitors close in. The chipmaker has also backed over $170 billion in data center capacity and emerged as a potential bidder for edge AI firm Ambarella. ^{22232425262728293031323334}
• Amazon announced massive investments in Germany and a global AI buildout, though it faced reports of unpowered hardware in warehouses and potential job cuts in New York. The company also expanded its data center partnership with 3M and entered a joint agreement to evaluate small modular nuclear reactors. ^{3536373839404142}
• Microsoft and Google are collaborating to revive retired nuclear reactors for data center power, while both companies introduced new AI tools and faced regulatory pressures in the UK. Google also reached a major accuracy milestone in quantum computing, even as it sacrificed cloud revenue for AI research. ^{434445464748495051525354}
• Apple dramatically increased production targets for its upcoming foldable iPhone Duo despite drawing criticism over supply constraints and facing an Australian court order to allow third-party app stores. Meanwhile, developers expressed concern over potential antitrust settlements regarding the company's mobile ecosystem. ^55565758

Sources

1. Tesla Ramping Megapack Production ‘As Much As Possible’ After 2027 Capacity Nearly Sold Out Amid Data Center Demand Yahoo Finance
2. Tesla driver using Full Self-Driving struck and killed a man crossing I-80 The Verge
3. Tesla cuts spending before potential SpaceX deal RTÉ
4. Tesla Plans to Sell Cybercabs by Year End Amid Safety Probe TechCrunch
5. Tesla Says It Has Started Early Optimus Robot Production The Wall Street Journal
6. Tesla Profit Slumps as Musk Pours Money Into A.I. and Robots The New York Times
7. Tesla with profit decline - positive cash flow convinces investors Der Aktionär
8. Tesla has started building a factory to produce 10 million Optimus units per year note
9. Tesla loses Swedish union strike battle Financial Times
10. Committees—Not Musk—Are Discussing SpaceX-Tesla Merger The Wall Street Journal
11. US Appeals Court Overturns Class Action Lawsuit Over Tesla Self-Driving Claims Yahoo Finance
12. Meta Creates A Nonvoting Class C Stock As Revenue Jumps 26% Yahoo Finance
13. Meta's Ad Sales Are Suffering Now That Europeans Can Pick Less Personalization WIRED
14. Mark Zuckerberg considers leaving California over billionaire tax Business Insider
15. Meta’s Muse AI: USD 145 Billion Spending Plan, New Shares in 2027 Analytics Insight
16. Meta fined $25bn for 'lies' over user data privacy BBC
17. Meta Q3 revenue tops estimates and Zuckerberg says Muse accounts have topped 10 million Associated Press
18. Meta Reports Third Quarter 2026 Results And Announces New Class C Stock Meta
19. Meta Muse exposes users’ personal and business secrets when they share conversations Ars Technica
20. WhatsApp help pages leak Meta chatbot instructions WIRED
21. How Alexandr Wang Won Zuckerberg's Trust for a $100 Billion AI Bet Fortune
22. Charts: Nvidia's China AI chip lead shrinks 80% as Huawei closes in Digitimes
23. Ambarella gains as Nvidia emerges as potential third bidder Crypto Briefing
24. NVIDIA Vera CPUs empower local European infrastructure for agentic AI NVIDIA
25. NVIDIA and Google Cloud announce Vera Rubin infrastructure GA NVIDIA
26. NVIDIA expands AI infrastructure manufacturing capacity with supply chain partners NVIDIA
27. NVIDIA cuDSS launches in general availability NVIDIA
28. NVIDIA expands its Isaac robotics platform with new humanoid reference and simulation tools NVIDIA
29. NVIDIA partners with telecoms to build distributed intelligence networks NVIDIA
30. NVIDIA expands open models for Europe’s sovereign intelligence NVIDIA
31. Nvidia Backs $164.5 Billion Of AI Data Centers To Keep GPUs Selling Forbes
32. Nvidia Has Put More Than $170 Billion on the Line for Neoclouds The Information
33. Swedish AI company chooses Nvidia for higher capacity Realtid
34. ‘Most important strategic partner’: Mercedes’ Nvidia self-driving deal The Next Web
35. Amazon launches Youth Promise offering 30,000 jobs Amazon
36. Amazon s Nvidia Chips Are Sitting in Warehouses Without Power as AI Spending Soars, Business Insider Reports Yahoo Finance
37. Amazon's €16 Billion Germany Bet Goes Far Beyond AWS GuruFocus
38. Amazon announces €16 billion investment in Germany by 2027 Amazon
39. Amazon Gets Warrant to Buy $521.4 Million of 3M Stock in Expanded Data Center Partnership: MMM Rises Over 5% After Hours Yahoo Finance
40. AEP, Amazon and X-energy planning 12-SMR plant World Nuclear News
41. Amazon knows how to build big. The AI boom is testing just how big it can go. Business Insider
42. Amazon plans potential 5,000 job cuts, 15 warehouse closures in New York: Report Business Today
43. Microsoft introduces Flint-interactive for AI visualization Microsoft
44. Sundar Pichai uses AI agents to manage Google operations Business Insider
45. Google CEO Admits Cloud Business Is Sacrificing Revenue to Win AI Race Yahoo Finance
46. Microsoft and Google Are Reviving Retired Nuclear Reactors for AI Gadget Review
47. Microsoft expands its Sovereign Cloud with new control options for digital sovereignty Microsoft
48. Google Says Services Are Recovering After U.K. Cloud Outage Hits Businesses The Wall Street Journal
49. NVIDIA Runs Record Quantum Computing Simulation on Jülich Supercomputer NVIDIA
50. Google Ads Coming To AI Mode With Personal Intelligence Search Engine Roundtable
51. Google Makes Major Quantum Computing Breakthrough -- Hits 99.99% Accuracy Yahoo Tech
52. Microsoft pulls out of AI datacentre project in Essex over power supply concerns The Guardian
53. Microsoft Unveils 2.8 Trillion-Parameter AI Model, Claims Major Efficiency Gains TechRepublic
54. Microsoft Faces Tougher UK Antitrust Oversight as Regulator Targets Software and AI Dominance PYMNTS
55. Apple hikes iPhone Duo production by 44% to 14 million units as demand surges MacDailyNews
56. Australia mandates Apple allow third-party app stores and Fortnite The Verge
57. Apple’s iPhone Duo launch strategy draws criticism over supply constraints: Report Firstpost
58. Apple antitrust settlement talks spur developer worries The Information