Iran stated that negotiations with Oman regarding a temporary route in the Strait of Hormuz are nearing completion. Iranian Deputy Foreign Minister Kazem Gharibabadi told IRNA that the two countries are discussing a "temporary channel" in the Strait of Hormuz for a period of "2 to 4 months." Gharibabadi noted that the talks are "in their final stages" and clarified that "this understanding does not mean the Strait of Hormuz will be fully reopened."
A top U.S. cybersecurity official has issued a warning, urging all computer systems nationwide to bolster their defenses against the rising threat of AI-driven cyberattacks. Acting Federal Chief Information Security Officer Michael Duffy stated on Wednesday that government and private sector entities have historically taken a reactive approach to cybersecurity. He emphasized that this strategy must change to prevent attacks before they occur in the AI era. "Given the AI capabilities we are now seeing, we likely won't have time to clean up the mess," Duffy said during a panel at a cybersecurity conference in Las Vegas. "Policy for the next decade cannot always be reactive after a major event."
Shares of SpaceX closed down 13% on Wednesday, driven by investor unease over surging AI spending, which overshadowed a quarterly earnings report that exceeded expectations. In its first earnings report as a publicly traded company, the space firm revealed that its capital expenditures for the second quarter surged sixfold to $18.4 billion. This figure surpassed analyst forecasts, with a significant portion of the spending directed toward the AI sector.
Alphabet announced a major restructuring of its AI division on Wednesday, with Chief Scientist Jeff Dean departing after 27 years at the company. According to a memo from CEO Sundar Pichai posted on the company's blog, Google DeepMind CEO Demis Hassabis will transition to the role of Chairman of the division while also serving as Chief Scientist for parent company Alphabet. Following the announcement, Alphabet shares fell approximately 4%.
Meta Platforms, Inc. is launching its first AI-powered coding agent, named Muse Code, aiming to compete with leading AI labs Anthropic and OpenAI. Muse Code is the latest major product release from AI chief Alexandr Wang, who leads Meta Platforms, Inc.'s super-intelligence lab and oversees the development of foundational models. Wang joined the company in June of last year and is a key figure in CEO Mark Zuckerberg's efforts to revitalize the company's struggling AI strategy. This new tool, similar to Anthropic's Claude and OpenAI's Codex, allows users to more easily build applications within a single interface while managing numerous AI-powered digital agents that can assist in the software development process.
SanDisk Corp. reported a net profit of $6.9 billion for its fourth fiscal quarter (ended July 3, 2026), reversing a year-ago loss, with full-year revenue surpassing the $20 billion mark. Revenue for the quarter was $8.97 billion, up 51% sequentially and 372% year-over-year. Approximately one-third of the sequential revenue growth came from higher shipment volumes, with the remaining two-thirds driven by price increases. GAAP net income for the quarter was $6.90 billion, up 91% sequentially, compared to a loss of $23 million in the same period last year. GAAP diluted earnings per share were $43.97, while non-GAAP diluted earnings per share were $39.25. GAAP gross margin was 84.6%, up 6.2 percentage points sequentially and 58.4 percentage points year-over-year. Operating expenses were $545 million, down 1% sequentially but up 14% year-over-year; non-GAAP operating expenses were $484 million, up 8% sequentially and 20% year-over-year. Operating profit was $7.037 billion, up 71% sequentially, compared to $18 million in the same period last year. In after-hours trading, SanDisk Corp. shares fell 8%.
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