PayPal files to become a bank in the U.S., the U.S. has paused the “$40 billion Technology Prosperity Deal” with Britain, and Ford shifts away from large EVs.
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Show Notes
Smartphone Prices Set to Rise in 2026 Amid AI-Driven Memory Chip Shortage
The rising demand for memory chips, especially DRAM for AI data centers, is predicted to negatively affect the smartphone market in 2026, causing a projected 2.1% drop in shipments and a 6.9% increase in average selling price. This price hike is attributed to growing component costs and semiconductor supply bottlenecks, with memory prices potentially rising another 40% by Q2 2026. While major companies like Apple and Samsung can better absorb these costs, mid-to-lower-end Chinese smartphone makers will face pressure on profit margins, possibly leading them to use cheaper components or push consumers toward more expensive devices.
Read More: CNBC
PayPal Applies for a U.S. Bank Charter
PayPal is applying to the FDIC and the Utah Department of Financial Institutions for a US bank charter for “PayPal Bank.” This move is intended to expand its financial services, leveraging its existing loan business to provide capital to small businesses and eventually offer interest-bearing savings accounts, following a trend of non-traditional financial companies, including cryptocurrency firms, seeking bank charters.
Read More: Engadget
U.S. Pauses $40 Billion Technology Deal With the UK
The United States has paused the implementation of the “$40 billion Technology Prosperity Deal” with Britain, an agreement covering AI, quantum computing, and civil nuclear energy. British officials confirmed this is due to U.S. concerns regarding London’s policies on digital regulation, a digital services tax, and food safety restrictions. Despite the deal being agreed upon in September and Britain having previously lowered some U.S. tariffs, both sides have paused the rollout. The UK government stated it would not compromise on its standards, and officials from both nations plan to continue talks in January to resolve the issues.
Read More: Reuters
Ford Scales Back Large EV Plans in Favor of Hybrids
Ford is undergoing a major shift in its electric vehicle (EV) strategy, canceling plans for large EV models and redesigning the F-150 Lightning as a hybrid due to lower-than-expected demand, high costs, and the end of a crucial EV tax credit under the Trump administration. This change is projected to cost the company $19.5 billion. CEO Jim Farley says the company will now focus investment on more profitable hybrid and gas-powered vehicles, along with smaller, more affordable EVs, calling it a “customer-driven shift” that reflects the slower EV adoption trend in the US.
Read More: BBC News
Ford Launches Energy Storage Business for Grid and Data Centers
Ford is redirecting its focus from large electric vehicles to launch a new energy storage business, investing $2 billion to repurpose planned battery manufacturing capacity into commercial grid and data center energy storage systems, with future residential products expected. This new venture, which will use cheaper LFP batteries and licensed CATL technology, targets 20GWh of annual capacity by 2027, with a Kentucky factory being repurposed while the Michigan plant will still produce LFP batteries for other Ford EVs and home storage.
Read More: TechCrunch
Apple TV App on Android Adds Google Cast Support
The Apple TV app on Android has been updated to version 2.2, adding Google Cast support. This new feature allows Android users to easily stream Apple TV content to their televisions, filling a previously missing essential feature. The casting option is exclusive to the Android version; the iOS app still lacks AirPlay support for Android devices. This update follows Netflix’s removal of its casting feature from phones to most smart TVs, potentially making Apple TV’s Android app a more convenient choice for content casting.
Read More: The Verge
Mozilla’s New CEO Outlines AI Strategy Focused on Trust and Choice
Mozilla’s new for-profit CEO, Anthony Enzor-DeMeo, sees the company’s privacy-focused mission and Firefox browser as well-suited to navigate the AI-driven tech landscape. While not building a proprietary large language model, Mozilla will introduce an “AI Mode” in Firefox, offering users model choices and emphasizing trust and open standards. Enzor-DeMeo is prioritizing Firefox, its main revenue source, to increase its user base and diversify revenue away from the Google search deal through subscriptions (VPN, Monitor), advertising, and new search/AI partnerships.
Read More: The Verge
Adobe Expands Firefly With Prompt-Based Video Editing
Adobe is enhancing its Firefly AI video generator with a new editor featuring a timeline for precise, prompt-based edits to elements like color and camera angles, eliminating the need for full clip re-generation. The update, now available, integrates third-party models like Black Forest Labs’ FLUX.2 for image generation and Topaz Labs’ Astra for video upscaling, alongside Runway and Adobe’s Firefly Video models (which can re-create camera motions). These continuous additions reflect Adobe’s push to compete in the AI creation market, currently offering unlimited generations to some subscribers until January 15th.
Read More: TechCrunch
Merriam-Webster Names “Slop” the 2025 Word of the Year
Merriam-Webster has selected “slop” as its 2025 word of the year, defined as “digital content of low quality that is produced usually in quantity by means of artificial intelligence.” The term reflects the widespread nature of low-quality AI-generated media, fueled by tools like Sora and Veo, which has led to a “slop economy.” Critics are concerned this trend is creating a digital divide, but the term’s influence extends beyond entertainment, describing the impact of AI on fields such as legal, cybersecurity, and academic writing.
Read More: TechCrunch