Tech stocks led a week-long decline as US President Donald Trump’s global retaliatory tariffs were announced on Wednesday (April 2).
The announcement led to a market-wide sell-off that erased over US$6 trillion in market value and drove the Nasdaq Composite (INDEXNASDAQ:.IXIC) into a confirmed bear market.
This week’s pullback was the worst day in the stock market since the early days of the COVID-19 pandemic in March 2020.
New developments may arise unexpectedly as this situation unfolds.
1. Agility Robotics secures US$400 million
On Tuesday (April 1), the Information reported on a US$400 million funding round led by private equity firm WP Global for humanoid robot maker Agility Robotics.
The report cites an individual who claims to have seen the term sheet, noting that the new funding will give Agility Robotics, whose CEO is former Microsoft (NASADQ:MSFT) executive Peggy Johnson, a valuation of US$1.75 billion.
Prior to the report, the company unveiled advancements to its Digit robotic system on Monday (March 31), including extended battery, more efficient power usage, autonomous docking for charging, enhanced safety features and new, robust limbs and end effectors. The company says these structural changes will allow for a wider range of grasping angles and expanded manipulation capabilities.
Digit’s target applications include warehouse automation and last-mile delivery.
2. OpenAI finalizes US$40 billion funding in record-breaking deal
OpenAI finalized a US$40 billion funding deal on Monday, closing the largest private tech deal ever recorded.
The company received US$40 billion from SoftBank (3AG1.BE) and US$10 billion from a syndicate of additional investors that included long-time major investor Microsoft. This round increased OpenAI’s valuation to US$300 billion.
OpenAI will initially receive US$10 billion, with the remainder to be paid out by the end of the year. Anonymous sources for CNBC note that US$18 billion is reserved for the company’s US$500 billion Stargate project commitment.
The funding may also be reduced to US$30 billion if OpenAI doesn’t restructure into a for-profit entity by December 31, 2025. Restructuring would require approval by Microsoft and California’s AG.
In an announcement, OpenAI said it would deploy the funds to “push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools.’
Meanwhile, in a subsequently released report from Bloomberg, Japan Credit Rating Agency and S&P Global Ratings lowered their ratings for SoftBank as the company sought a bridge loan of up to US$16.5 billion to help fund its US AI investment commitments, according to sources who claim to know of early-stage discussions the company has had with lenders.
3. TikTok deal deadline extended amid negotiations
Earlier this week, the Information reported on a proposal from the Trump administration that would form a US-based TikTok subsidiary called TikTok America in an attempt to prevent a national ban of the popular social media app.
According to reports, the deal would see new US investors take a 50 percent stake in the company, licensing the algorithm from ByteDance, which would retain a 19 percent stake. Additional current investors would own about one-third.
The deal would put ByteDance in compliance with the Protecting Americans from Foreign Adversary Controlled Applications Act, which came into effect in January 2025. The law states that TikTok must be divested in a way that it is no longer considered to be controlled by a foreign adversary.
However, according to a Friday (April 4) Bloomberg report, representatives for ByteDance told the administration that the deal was off until Chinese officials could negotiate tariffs — which reached as high as 54 percent on several Chinese imports — announced by the Trump administration on Wednesday.
On Friday, Trump said he would extend the deadline to reach a deal by another 75 days.
“China has always respected and protected the legitimate rights and interests of enterprises and opposed practices that violate the basic principles of the market economy and harm the legitimate interests of enterprises,” spokesperson Liu Pengyu said. “China’s opposition to the imposition of additional tariffs has always been consistent and clear.”
4. Meta reportedly making billion-dollar data center investment
An anonymous source for Bloomberg claims that Meta Platforms (NASDAQ:META) is the unnamed company named in a previously reported US$837 million deal to develop a data center in Wisconsin.
According to the source, Meta will invest up to US$1 billion to build the center in Wisconsin, which offers an incentive deal to companies meeting investment thresholds across different counties.
Meta already has data centers in Iowa and Illinois and previously announced plans to build one in Louisiana.
During the company’s fourth quarter earnings call in January, CEO Mark Zuckerberg said his company intends to invest up to US$65 billion in AI infrastructure this year.
5. Microsoft announces personalized Copilot features
During an event commemorating Microsoft’s 50th anniversary, the company announced upcoming changes to its Copilot digital assistant that will allow users to tailor it to their own needs.
“You can now let Copilot live up to its name,” Mustafa Suleyman, who leads Microsoft’s consumer AI work, said during the event, which was held at its headquarters in Redmond, Washington.
Microsoft says users will have the ability to choose information Copilot can retain, such as preferences or past life events. Copilot will then be able to recall that information in future conversations. Users also have the option to opt out of personalization. The new features will roll out in the coming months.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.