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Musk Backs Possible SpaceX-Tesla Merger as SpaceX Posts $4.4bn Quarterly Profit

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Elon Musk has expressed support for a possible merger between SpaceX and Tesla, saying the companies could benefit from closer cooperation in artificial intelligence, robotics, chip design and space-based computing.

The comments came as SpaceX reported its first quarterly profit since going public, recording net income of $4.4 billion for the July to September period, compared with a loss of $1.1 billion a year earlier. Revenue jumped 161% to $14.6 billion, driven largely by growing demand for artificial intelligence computing services.

Speaking to analysts on Tuesday, Musk described a merger as “a good idea” but cautioned that discussions remained preliminary and there was no guarantee an agreement would be reached. SpaceX shares rose nearly 5% in after-hours trading following his remarks.

Independent director committees at both companies have been established to examine the proposal at shareholders’ request. Musk said he would not participate in their discussions because of his potential conflict of interest, given his leadership roles and significant ownership stakes in both businesses.

Musk is chief executive of Tesla and serves as chief executive, chairman and chief technology officer of SpaceX. A regulatory filing showed he owned 48.4% of SpaceX as of June 30 and controlled more than 82% of its voting power. He holds about 20% of Tesla.

Any merger would require approval from a majority of all Tesla shares, rather than only those participating in a vote, which Musk described as a high hurdle. The committees have yet to agree on terms.

SpaceX began trading on the Nasdaq on June 12 following an initial public offering priced at $135 a share that raised approximately $85.7 billion. Its first earnings report as a listed company showed second-quarter revenue of $7.8 billion and a net loss of $541 million.

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The turnaround in the latest quarter was led by its artificial intelligence division, now called “Super Intelligence”. Revenue from the unit increased more than ninefold year on year to $7.6 billion, making it SpaceX’s largest source of sales and overtaking its Starlink satellite internet business.

The company attributed the growth to cloud computing agreements, wider use of its Grok chatbot and its acquisition of artificial intelligence coding start-up Cursor.

SpaceX’s cloud customers include Anthropic, which agreed in May to pay nearly $45 billion over three years for computing capacity at its Colossus data centres. Google also signed an agreement in June to pay $920 million a month from October through June 2029.

Despite the strong revenue growth, spending remains substantial. SpaceX invested $19.6 billion during the quarter, including $16.4 billion in artificial intelligence infrastructure. Capital expenditure for the first nine months of the year reached $48 billion.

The company’s computing capacity rose to 1.7 gigawatts from 0.6 gigawatts a year earlier. Musk said he was confident SpaceX could bring an additional 10 gigawatts online in 2027, although power supply, cooling systems and electrical equipment remained constraints.

Starlink revenue rose 69% to $5.2 billion, with consumer subscribers reaching 13.6 million. However, average monthly revenue per consumer fell to $69 from $83 a year earlier.

SpaceX also completed the first revenue-generating flight of its Starship rocket, carrying 26 next-generation Starlink satellites into orbit. The vehicle is central to Musk’s plans for expanding satellite deployment and eventually reaching Mars.

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MOL Targets End to Russian Oil Imports by 2027, Seeks EU Funding for Energy Shift

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Hungarian oil and gas company MOL says it expects to be technically ready to phase out Russian crude imports by the end of 2027, while urging the European Union to provide funding for alternative supply routes.

MOL Hungary chief executive György Bacsa told Euronews that the transition would require significant investment in energy infrastructure. He warned that reducing dependence on Russian oil could increase energy costs and place additional pressure on households and businesses in Hungary and Slovakia, both of which remain heavily reliant on Russian crude.

Bacsa said higher costs could lead to social unrest and political instability, making financial support from Brussels important to ensure the transition does not create further economic difficulties.

The company is preparing to seek EU funding for energy diversification for the first time, following a change of government in Budapest. The move marks a shift from the approach taken under former prime minister Viktor Orbán, whose government maintained close energy ties with Russia and opted out of some EU initiatives aimed at reducing reliance on Russian supplies.

MOL’s plans depend partly on expanding access to non-Russian crude through alternative pipeline routes. The company is calling for EU support to develop the infrastructure needed to transport oil from other suppliers and strengthen the region’s energy security.

The European Union has maintained its focus on ending imports of Russian energy following Moscow’s invasion of Ukraine. However, the transition has been more complicated for landlocked countries in central Europe, where existing infrastructure and limited access to alternative routes have contributed to continued dependence on Russian supplies.

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A 2025 study by the International Monetary Fund estimated that a complete interruption of Russian energy supplies could increase Hungary’s energy spending by around 15% by 2030. Such an increase could put additional pressure on the country’s economy and make the shift to alternative sources more difficult.

For MOL, being technically prepared to stop buying Russian oil by the end of 2027 does not remove the financial and logistical challenges involved. The company says investment in pipelines and other supply infrastructure will be necessary to secure reliable alternatives.

Bacsa’s warning highlights the challenge facing EU policymakers as they seek to reduce Russian energy imports while limiting the economic and political consequences for member states that remain dependent on them.

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Global Markets Slide as Nvidia Leadership Shake-Up and Iran Tensions Weigh on Investors

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Global stock markets mostly fell on Friday as investors assessed the potential impact of Jensen Huang’s departure from Nvidia on the artificial intelligence industry, while rising oil prices added to concerns over the prolonged conflict involving Iran.

European shares opened lower, with London’s FTSE 100 down 0.2% and benchmark indices in Paris and Frankfurt each losing 0.3%. US stock futures also edged down, including contracts linked to the technology-heavy Nasdaq 100.

The selling followed losses on Wall Street on Thursday. Nvidia shares fell 4.3%, while the S&P 500, Nasdaq Composite and Dow Jones Industrial Average each declined by around 0.4%. The Dow closed at 52,297.09. Some rival chipmakers moved higher, with Advanced Micro Devices gaining 5.9%.

Nvidia announced that Huang had stepped down immediately as president, chief executive and board member. The company’s long-serving chief financial officer, Colette Kress, took over as interim chief executive.

Huang co-founded Nvidia and became one of the most influential figures in the development of AI technology. His departure has raised questions about the company’s future direction and the wider industry, particularly given Nvidia’s central role in supplying chips and financing AI infrastructure.

The announcement followed reports alleging two affairs, including one involving a woman suspected of spying for China. The reports have raised national security concerns, although the allegations have not been independently established.

Ben Barringer, head of technology research at Quilter Cheviot, said he did not expect an immediate effect on Nvidia if its order book remained strong and it continued meeting performance targets.

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However, he warned that Huang’s absence could weaken Nvidia’s influence over longer-term debates about AI regulation and investment, potentially affecting the wider technology sector.

Asian markets were mixed. Japan’s Nikkei 225 gained 0.5% to close at 61,142.35, while South Korea’s Kospi fell 1% to 5,290.53. Shanghai’s Composite declined 0.6% to 3,634.35, and Hong Kong’s Hang Seng was down more than 1.5% at 23,637.60.

Taiwan’s Taiex rose 1.35% to 43,675.12, supported by a 0.43% gain in TSMC. Australia’s S&P/ASX 200 fell 0.7% to 9,082.20. Chip stocks were mixed, with Tokyo Electron rising 1.7%, while Kioxia fell 2.2%. Samsung Electronics lost 1% and SK Hynix declined 3.2%.

Oil prices advanced after US President Donald Trump said Washington did not need an agreement with Iran, despite the continuing conflict in the Middle East.

At around 07:00 GMT, Brent crude rose 0.7% to $96.48 a barrel, while US West Texas Intermediate gained 0.2% to $88.91. Brent had traded near $72 before the war began in late February.

Gold futures for December delivery edged up to $3,899 an ounce. In currency markets, the euro strengthened to $1.1061, while sterling slipped to $1.3229. The dollar eased to 159.79 yen.

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Reports of Second Alleged Affair Add to Pressure on Nvidia CEO Jensen Huang

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Nvidia chief executive Jensen Huang is facing renewed scrutiny following reports of a second alleged extramarital relationship, as the company’s board prepares to consider allegations involving the technology executive and a woman linked to a suspected Chinese intelligence operation.

The Wall Street Journal, citing people familiar with the matter, reported on Wednesday that Nvidia’s board was preparing to meet to discuss the situation. The report did not establish that the board had decided to remove Huang from his position.

The New York Times separately reported that video evidence showed the 63-year-old executive behaving affectionately with Kimberly Powell, Nvidia’s 48-year-old vice president of healthcare. The newspaper said bystanders had reportedly seen the pair being affectionate at a hotel during a conference in San Jose, California.

Powell has played a prominent role in Nvidia’s efforts to expand the use of its chip technology in higher education and healthcare. The reports have not established whether the alleged relationship has affected her position at the company.

The latest claims follow Huang’s admission that he had a relationship with Alice Huang, a senior executive at Singapore-based data centre company Megaspeed.

The Wall Street Journal reported that Jensen Huang and Alice Huang had been photographed together in Taipei in 2024 and 2025. US intelligence officials reportedly circulated a memo last spring alleging that Alice Huang was an operative for China’s Ministry of State Security. The allegation has not been independently established.

In a message to Nvidia employees on Sunday, the chief executive acknowledged the relationship, writing: “I was unfaithful to my wife.”

On the same day, Nvidia’s board announced that it had launched an independent investigation following reports that its founder and chief executive had been the target of a foreign intelligence effort.

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“I support the investigation and will cooperate fully. I love our country and our company,” Huang said in his statement.

Members of Congress have also reportedly asked Huang to provide a closed-door briefing about his interactions with Alice Huang, according to The New York Times.

Political and business scrutiny

The controversy comes as Nvidia remains at the centre of the global artificial intelligence boom, which has driven its shares to record levels and made Huang one of the technology industry’s most influential executives.

He has appeared alongside US President Donald Trump at several White House events and received the National Medal of Science from the president last month.

Huang has also joined other prominent technology leaders, including Elon Musk, Jeff Bezos and Mark Zuckerberg, in supporting industry-led efforts to regulate artificial intelligence.

The debate over AI oversight has intensified as concerns grow about the technology’s potential risks. Trump has opposed calls for greater government intervention and dismissed warnings that artificial intelligence could pose an existential threat.

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