Ain’t gonna study war no more. After more than two years of fighting, Apple and Qualcomm opted for peace. Under a six-year deal, Apple will resume buying mobile modem chips for the iPhone from Qualcomm and pay an undisclosed amount to cover previously unpaid royalties. Apple’s current modem supplier, Intel, which was struggling to develop a 5G product, says it will drop out of the business altogether. Expect a 5G iPhone for 2020 backed by a Qualcomm modem. While Apple’s stock price was unaffected by the news, Qualcomm’s has since risen a total of more than 30%. Intel investors, seemingly sick of the company banging its head against the 5G wall, pushed its stock up 4% in premarket trading.
We’ll keep on fighting, til the end. The proposed merger of T-Mobile and Sprint may be in trouble-or not. Staff at the Justice Department aren’t satisfied with how the deal is structured, the Wall Street Journal reported on Tuesday. But T-Mobile CEO John Legere tweeted that the premise of the story was “simply untrue” and former Sprint CEO Marcelo Claure chimed in that the story was “inaccurate” because negotiations with the regulators continue. The truth may be that the staff is seeking concessions that the carriers are willing to make, such as spinning off some prepaid cellular business.
Shrinking in plain sight. Elsewhere on Wall Street, IBM said its revenue dropped for the third quarter in a row. At $18.2 billion, sales shrunk by 5% and were slightly less than analysts expected. IBM shares fell 3% in premarket trading on Wednesday. The public tech sector will continue to expand this week, with initial public offerings expected to debut in trading on Friday from Pinterest and Zoom.
Missing in action. The A.I. industry has a diversity problem, according to a new report from the nonprofit AI Now Institute. Only 20% of A.I. professors are women, while women make up 15% of Facebook’s A.I. research staff and 10% at Google.
Answering the call. In yesterday’s essay, Adam noted that founders of big tech companies rarely go quietly, referring to Foxconn founder Terry Gou. That quickly proved true, as Gou announced he would run for president in Taiwan. If he wins the primary to represent the Kuomintang opposition party, he would stand against Tsai Ing-wen, Taiwan’s first female President.
Incroyable. As the world reels from the tragic fire at Notre Dame in Paris and the French vow to rebuild the historic cathedral, it may be a video game company that helps come to the rescue. Intensely detailed 3D scans of the building made for the game Assassin’s Creed: Unity could be useful in guiding the reconstruction.