Newsletter May 23, 2023

Quick Six

US lawmakers race against the clock for bipartisan debt deal
The clock is ticking on a deal to raise the federal borrowing limit -- 10 days and counting until the June 1 deadline -- as lawmakers scramble to agree on raising the debt ceiling to avert a potentially devastating default. The political hot potato has Congressional Republicans calling for massive spending cuts to address the nation's $31.4 trillion debt. President Joe Biden and Democrats accuse the GOP of holding the U.S. economy hostage by playing politics with a matter that historically receives bipartisan support.
WHAT WOULD HAPPEN IF THE US GOES INTO DEFAULT?

China puts Micron on black list over national security risks
US semiconductor giant Micron has failed a national security review, China's cybersecurity watchdog said, telling operators of "critical information infrastructure" to stop buying its products. It marked the latest escalation in the bitter chip war between the US and China, with Washington looking to cut off Beijing's access to cutting-edge semiconductors. About 10% of Micron's $30.8 billion annual revenue last year came from China, according to its data.
THE ONGOING MICROCHIP WAR BETWEEN US AND CHINA

Prohibitive costs cast cloud over generative AI revolution
The explosion of generative AI has taken the world by storm, but one question all too rarely comes up: Who can afford it? OpenAI bled around $540 million last year as it developed ChatGPT and says it needs $100 billion to meet its ambitions. Building on the scale of OpenAI, Microsoft or Google requires an eye-watering investment on state-of-the-art chips and recruiting researchers.
MANY COMPANIES ARE PRICED OUT OF AI DEVELOPMENT

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Big Tech: EU fines Meta; TikTok vs. Montana

Facebook owner Meta has been fined a record 1.2 billion euros ($1.3 billion) for transferring EU user data to the US in breach of a previous court ruling. The Irish Data Protection Commission (DPC), which acts on behalf of the European Union, said the European Data Protection Board (EDPB) had ordered it to collect "an administrative fine in the amount of 1.2 billion euros". The DPC has been investigating Meta Ireland's transfer of personal data from the EU to the US since 2020.

TIKTOK FILES LAWSUIT AGAINST MONTANA TO HALT STATE BAN

Western states act to save Colorado River

Western US states said Monday they have reached an agreement to cut the amount of water they take from the dwindling Colorado River, which is threatened by a quarter of a century of drought and worsening climate conditions. The plan comes after years of bitter wrangling, with states refusing to give ground even as the water course has reached crisis point, threatening drinking water supplies for 40 million people, and imperiling electricity generation across the American West.

SEE THE TERMS OF THE $1.2B AGREEMENT TO SAVE THE RIVER

Cobain's smashed guitar auctions for $600K

A guitar smashed on stage by Nirvana front man Kurt Cobain sold for nearly $600,000, almost 10 times its original estimate, at a rock-themed auction. The busted black Fender Stratocaster was put back together, but is no longer playable. It was signed by all three members of the 1990s Seattle grunge outfit. The auction house said it had expected the instrument to sell for $60,000 at the event in front of a live audience at the Hard Rock Cafe in New York City. Instead, it went for $595,000.

SEE HOW OTHER ROCK MEMORABILIA FARED AT THE AUCTION

Extra point

What former Nirvana member went on to front another band that also made the Rock & Roll Hall of Fame? Name the artist and the band.

Friday's answer: In Lomal, Montana, the temperature went from -54°F to 49°F in 24 hours -- a world record 103-degree swing -- on Jan. 15 1972.