Markets remained mostly flat yesterday, showing little movement in either direction. However, Coca-Cola outperformed expectations, reporting stronger-than-anticipated quarterly sales driven by increased global demand. The company’s stock has risen ~7% this year, while rival Pepsi’s shares have declined by 16%.

The Musk-Altman Feud Escalates

The ongoing rivalry between Elon Musk and Sam Altman continues to heat up. Musk and a group of investors recently made an unsolicited $97.4 billion bid to acquire OpenAI, a move that Altman swiftly rejected.

Altman dismissed the offer just as quickly as a tech entrepreneur can mention AGI in conversation. The exchange became personal, with Altman labeling Musk as insecure and unhappy, and accusing him of attempting to slow OpenAI’s progress—particularly given Musk’s competing AI venture, xAI.

Tensions Rise

The history between these two figures goes back years. Both were part of OpenAI’s founding team in 2015, but Musk left after internal conflicts. Now, Musk has launched lawsuits against OpenAI, claiming it has deviated from its nonprofit mission.

Musk argues that acquiring OpenAI would help realign it with its original vision:

• His legal team asserts the company should return to being a safety-focused, open-source platform.
• A letter sent by Musk and co-investors suggests that OpenAI’s nonprofit entity should be compensated fairly if it relinquishes control of the for-profit division.
• The offer coincides with OpenAI’s reported discussions to raise $40 billion from SoftBank at a $300 billion valuation.

Even if Musk’s bid is rejected, it could increase the amount of equity that Altman and his team need to surrender to OpenAI’s nonprofit wing—ultimately limiting the shares available for major investors like Microsoft.

Unlike standard corporate acquisitions, OpenAI’s nonprofit board must evaluate buyout offers based on mission alignment, rather than shareholder profit.

Key Headlines

• Fed Chair Powell’s Senate Testimony: Federal Reserve Chair Jerome Powell addressed the Senate Banking Committee in his semiannual report, touching on key economic topics. Powell:
  • Confirmed the Fed is in no rush to cut interest rates
  • Urged lawmakers to reduce the national deficit
  • Acknowledged that Trump’s tariffs could impact inflation
  • Rejected the idea of a Fed-controlled digital currency while he remains in charge
  • Defended Fed staff, describing them as “overworked, not overstaffed.”
• Deloitte Drops Pronouns from Government Emails: The consulting firm instructed U.S. employees working on government contracts to remove gender pronouns from their email signatures, citing emerging client requirements. Deloitte also announced it will phase out its DEI (Diversity, Equity, and Inclusion) goals in the U.S., though its UK division continues to expand such initiatives. The shift follows President Trump’s directive to prohibit “gender ideology” in federal communications.
• Ford CEO Warns of Tariff Fallout: Jim Farley, CEO of Ford Motor Company, cautioned that Trump’s planned 25% tariffs on steel and aluminum could “blow a hole” in the auto industry. While Ford primarily sources steel domestically, some of its suppliers rely on foreign materials, which could drive up production costs, CNBC reports. Meanwhile, Coca-Cola is considering shifting more products to plastic bottles, since its aluminum cans are imported from Canada.

Shopify Shuts Down Yeezy.com Over Nazi Symbolism

Kanye West’s website, Yeezy.com, was taken offline by Shopify after it exclusively sold a T-shirt featuring a swastika for over 24 hours.

What Happened?

• During the Super Bowl, Ye appeared in a 30-second commercial, recorded on an iPhone from a dentist’s chair. In the ad, he simply said, “Um…um…go to yeezy.com.”
• Within an hour, his website removed all previous inventory and replaced it with one product—a $20 T-shirt displaying a swastika, labeled “HH-01”.
• The ad aired again later that night in Los Angeles, Atlanta, and Philadelphia.
• Shopify allowed sales to continue through Monday before removing the site Tuesday morning, citing a violation of its terms.

Shopify has faced prior criticism for hosting controversial merchandise, including Holocaust denial apparel. Last year, the company quietly removed its policy against hateful content.

Worst Flu Season in 15 Years

The flu is hitting harder than usual. According to CDC data, the percentage of doctor visits related to flu-like symptoms last week was higher than any peak in the past 15 years.

What’s Going On?

• Experts suspect this year’s flu strain is more severe than previous ones.
• Americans are taking fewer precautions, as concern over Covid has waned.

To reduce risk, doctors advise:

• Frequent hand washing with soap and water.
• Avoid touching the face (especially mouth, nose, and eyes).

Additional Updates

• Gaza ceasefire in jeopardy: Israeli Prime Minister Netanyahu threatened to resume military action if Hamas does not release hostages by Saturday. Hamas accused Israel of delaying aid deliveries, violating the agreement. Meanwhile, Jordan’s King Abdullah met with Trump at the White House to discuss U.S. plans for Gaza’s governance.
• Super Bowl Viewership Record: The 2025 Super Bowl drew 126 million viewers, a 2% increase from last year and an all-time high.
• Italy Cracks Down on the Mafia: Italian authorities arrested 160 members of Cosa Nostra in the largest anti-mafia operation in decades.
• Netflix Eyes Video Podcasting: The streaming giant is exploring expansion into video podcasts, previously engaging in talks with Call Her Daddy host Alex Cooper.
• BuzzFeed Launches AI-Powered Social Platform: CEO Jonah Peretti announced a new initiative focused on “spreading joy” and enhancing creative expression.