Plus, defense company RTX agrees to pay $200 million to settle export control violations. And Elon Musk’s Starlink says Brazil has frozen its finances. Zoe Thomas hosts.
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[00:00:16] [SPEAKER_01]: Here's your TNB Tech Minute for Friday, August 30th.
[00:00:20] [SPEAKER_01]: I'm Zoe Thomas for the Wall Street Journal.
[00:00:23] [SPEAKER_01]: Shares of Dell Technologies climbed over 4%.
[00:00:27] [SPEAKER_01]: It comes off the back of strong earnings the company released yesterday showing searching
[00:00:31] [SPEAKER_01]: demand for its artificial intelligence servers.
[00:00:34] [SPEAKER_01]: The company's overall server revenue blew away Wall Street expectations, increasing
[00:00:39] [SPEAKER_01]: 80% compared to last year, to nearly $7.7 billion.
[00:00:45] [SPEAKER_01]: Shipments of AI servers in particular nearly doubled from last quarter.
[00:00:50] [SPEAKER_01]: Defense company RTX has agreed to pay $200 million to settle allegations from
[00:00:55] [SPEAKER_01]: the U.S. State Department that it violated U.S. export controls.
[00:00:59] [SPEAKER_01]: These include transferring some of the technology behind Air Force One and U.S. military aircraft
[00:01:05] [SPEAKER_01]: to China.
[00:01:06] [SPEAKER_01]: The company voluntarily disclosed violations at several of its business units, according
[00:01:10] [SPEAKER_01]: to the State Department.
[00:01:12] [SPEAKER_01]: The State Department said it would suspend collecting half of the penalty if RTX spends
[00:01:17] [SPEAKER_01]: that money on compliance measures.
[00:01:19] [SPEAKER_01]: RTX said the settlement was in line with expectations.
[00:01:23] [SPEAKER_01]: And satellite internet business Starlink says Brazil has frozen its finances.
[00:01:29] [SPEAKER_01]: In posts on X, Starlink, which is part of Elon Musk's SpaceX, said the order was
[00:01:35] [SPEAKER_01]: issued in secret and without due process.
[00:01:38] [SPEAKER_01]: The business says it plans to address the matter legally.
[00:01:41] [SPEAKER_01]: Yesterday on X, Musk said Starlink would provide free service to its users in Brazil
[00:01:46] [SPEAKER_01]: until the situation is resolved.
[00:01:49] [SPEAKER_01]: The move escalates tensions between Musk and Brazil's Supreme Court, which earlier
[00:01:53] [SPEAKER_01]: this week threatened to ban Musk's social media platform X if the company did not
[00:01:58] [SPEAKER_01]: appoint a new legal representative for the country.
[00:02:01] [SPEAKER_01]: That's according to an order the court posted on X.
[00:02:04] [SPEAKER_01]: Brazil's Supreme Court didn't respond to a request for comment about Starlink
[00:02:08] [SPEAKER_01]: or the X ban.
[00:02:10] [SPEAKER_01]: We'll be off on Monday for Labor Day and we'll be back on Tuesday with the
[00:02:13] [SPEAKER_01]: next Tech News Briefing Podcast.