Putin signs gas deal as Xi hints at regret

Google is negotiating omnibus licensing agreements with Blackstone, KKR, and EQT to give their portfolio companies access to Gemini AI models, treating private equity as a distribution channel for enterprise AI. The approach contrasts with OpenAI and Anthropic, which are building dedicated consultancy entities that embed engineers in portfolio companies. Google's strategy focuses on platform licensing rather than services, leveraging a $750 million partner fund and existing consulting relationships with Accenture, Deloitte, and others. Blackstone already has stakes in OpenAI, Anthropic, and CoreWeave, positioning itself as a distribution hub for multiple AI labs rather than committing to any single provider. The race to capture PE-controlled mid-market companies reflects AI's shift from one-off pilots to portfolio-wide deployments.

Analog Devices is in advanced talks to acquire AI power management startup Empower Semiconductor for about $1.5 billion, marking a massive premium for specialized data center voltage regulation technology. Empower makes integrated voltage regulators that sit closer to AI accelerators and GPUs, enabling faster power management as workloads change dynamically. The deal would be ADI's largest acquisition since the $21 billion Maxim Integrated purchase, reflecting how AI infrastructure spending has elevated power delivery from a commodity to a strategic differentiator. For a private startup with undisclosed revenues, $1.5 billion suggests ADI is paying primarily for customer relationships with hyperscalers and the intellectual property needed to solve AI's power density challenges.

D1 Capital Partners is positioned to emerge with roughly $20 billion in SpaceX equity when the rocket maker completes its anticipated IPO next month, making it one of the largest external shareholders in what could be the decade's biggest US listing. The hedge fund accumulated its stake through late-stage funding rounds and secondary purchases from early employees as SpaceX's valuation climbed from around $30 billion in 2018 to over $200 billion today. D1's windfall reflects the crossover investment strategy of building large private positions before IPOs, though it also faced significant drawdowns during post-COVID market volatility. SpaceX's public debut will test whether investors value the combined launch services and Starlink satellite internet business at current private-market levels, particularly as Starlink becomes the dominant value driver with its recurring revenue model.

Delaware's Court of Chancery voided Elon Musk's $55.8 billion Tesla compensation package, finding that he was a 'controlling stockholder' despite owning just 21.9 percent of the company due to his founder status and board influence. The 200-page ruling ordered rescission of the 2018 award even though Tesla shareholders re-approved it with 77 percent support in June 2024 after enhanced disclosure. Chancellor McCormick ruled the ratification vote couldn't cure the original fairness violations, creating uncertainty for founder-led companies about Delaware's corporate governance standards. Tesla responded by seeking reincorporation in Texas, signaling that leading tech companies may abandon Delaware if they view its courts as hostile to large founder incentive packages. The case challenges the traditional deference given to shareholder-approved executive pay and raises questions about what constitutes 'control' in modern corporate structures.

A Hong Kong-based hedge fund is rotating out of AI stocks into oil tanker equities, arguing that artificial intelligence companies are overspending on capex while shipping offers better risk-adjusted returns. The move comes as China-focused hedge funds outperform global peers with the Greater China Equities Index up 15 percent in the first half, led by managers like Triata Capital's 45.1 percent gain. The shipping play reflects concerns that AI infrastructure buildout is getting ahead of monetization, while tanker stocks benefit from physical supply constraints and freight rate dynamics rather than speculative growth assumptions. The rotation signals broader hedge fund skepticism about crowded AI positions as managers seek uncorrelated returns in asset-heavy, cash-generative sectors.

US authorities are ending fraud investigations against Indian billionaire Gautam Adani after he hired a Trump-linked lawyer and pledged $10 billion in US investments, according to multiple reports. The decision comes separately from Adani Group's $275 million settlement of US sanctions violations and follows the 2023 Hindenburg Research report that accused the conglomerate of stock manipulation and accounting fraud. Adani's net worth collapsed from over $120 billion to around $70-100 billion after the allegations but has partially recovered as immediate default fears receded. The resolution removes a major overhang for Asia's richest person while raising questions about whether investment pledges influence US enforcement outcomes. Indian regulatory probes by SEBI continue on separate tracks, suggesting the legal clarity may be limited to US jurisdictions.

China's Tianqi Lithium argues consensus battery demand forecasts are too conservative because they underestimate electric heavy trucks and ships, which could drive the next leg of lithium growth beyond passenger EVs. Electric trucks already account for 25-30 percent of new heavy-duty sales in China, with battery packs up to 20 times larger than passenger cars and higher daily utilization rates. CATL has built around 900 electric ships including cargo vessels with 15-minute battery swapping, targeting the $4 million annual fuel costs that large ships typically spend. The thesis comes as lithium prices collapsed from 2022-23 highs, forcing producers to emphasize new demand drivers beyond the passenger EV market that has dominated the first decade of battery growth.

British Airways is demanding up to £10 million from Heathrow after a Terminal 5 baggage system failure left 20,000 bags stranded over the weekend of 17-18 May. The breakdown forced BA to tell passengers to leave the airport and file lost baggage claims online rather than wait for bags, with staff warning minimum three-day delivery times for recovery. BA recorded 212 delayed flights the next day, roughly 29 percent of its schedule, as knock-on effects spread through its hub operations. The airline is positioning this as a Heathrow infrastructure failure rather than its own IT problems, seeking to recover customer reimbursement costs and operational disruption expenses. The dispute highlights the interdependence between airlines and airports, where system failures can trigger commercial fights over liability and cost allocation.

A deal to end the first LIRR strike since 1994 emerged after federal mediators intervened and Governor Hochul drew a red line against fare increases 'as much as eight percent.' The three-day shutdown stranded 200,000-300,000 daily commuters as five unions representing 3,500 workers walked out over wages and health benefits. Phased service resumes Tuesday at noon, though specific wage increases and benefit changes remain undisclosed pending formal contract publication. The settlement likely sets precedent for upcoming MTA negotiations with subway and bus unions, as well as other regional transit agencies managing post-pandemic ridership recovery and fiscal constraints. Hochul's affordability stance reflects political limits on transit funding even in pro-labor New York.

Nicotine pouches have become fashionable across Trump's political orbit, including Health Secretary RFK Jr., as Philip Morris International's ZYN brand captures 76 percent of the US market. The FDA authorized 20 ZYN products in January as 'appropriate for public health protection' compared to cigarettes, while the brand reached 334 million unit shipments from just 1 million six years ago. PMI's CEO now frames nicotine as 'misunderstood' with 'cognitive benefits,' finding clear political receptivity within Trump's health leadership despite public health concerns about youth uptake and addiction in non-smokers. The cultural adoption in elite political circles accelerates market growth and regulatory acceptance for PMI's smoke-free transition strategy, with ZYN generating roughly six times more profit per unit than international cigarette sales.