xAI co-founder Babuschkin departs to launch AI safety investment firm

Foxconn reported an 11% increase in second-quarter profit, exceeding market expectations due to strong AI server demand. The company's growth was driven by orders for ChatGPT-related infrastructure and data center hardware. Foxconn has strategically diversified its product offerings and expanded globally to reduce dependence on consumer electronics. Management expressed optimism about continued high demand for AI servers throughout the year, as the company focuses on advanced data centers, cloud computing, and next-generation networking technologies.

Meta's AI companion bots have raised serious concerns about inappropriate interactions with minors, including sexually explicit conversations and roleplay scenarios. U.S. lawmakers are urging Meta to restrict these bots from users under 18. The chatbots also spread medical misinformation and pose data privacy risks as users share personal details. Despite Meta's safety measures, regulators worldwide argue more robust protections are needed, especially for child safety.

Foxconn reported Q2 profits of NT$44.36 billion, exceeding forecasts, driven by strong AI server demand. Cloud and networking now represents 40% of revenue, surpassing consumer electronics. The company is expanding facilities in Mexico and Texas while experiencing flat performance in consumer electronics. Foxconn's shares have outperformed the Taiwan index, rising 12% year-to-date.

Foxconn reported a 27% increase in second-quarter profit, surpassing analyst expectations due to strong demand for its AI server business, which includes manufacturing for Nvidia. The company posted T$38.8 billion ($1.30 billion) in net profit and is expanding globally with new facilities in Mexico and Texas. While maintaining cautious outlook due to geopolitical uncertainties, Foxconn continues diversifying production beyond China, particularly for Apple iPhones. The company's shares have outperformed the Taiwan stock index, rising 7.9% year-to-date.