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Earth Intelligence

19 Oct 2023 — 4 min read

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Elon Musk & Mark Cuban vs The SEC
Nvidia Foxconn AI Factories

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Elon Musk & Mark Cuban vs The SEC:

Elon Musk and Mark Cuban have joined forces in a Supreme Court case to challenge the Securities and Exchange Commission's (SEC) in-house trials. They argue that these trials result in uneven outcomes for defendants. This case, known as SEC v. Jarkesy, questions the constitutionality of using internal judges without juries for SEC cases.
George Jarkesy, the plaintiff, claims this violates his Seventh Amendment rights. Musk and Cuban's support for Jarkesy highlights their concern about the SEC's growing trend of handling cases internally, especially after the SEC lost several insider trading cases in federal courts between 2013 and 2014. The billionaires also pointed out that the SEC had wrongfully accessed files in multiple cases, including Jarkesy's.
Despite introducing new regulations for public companies to report data breaches within four days, the SEC itself delayed reporting its own file-sharing errors. The Biden administration is appealing a 5th U.S. Circuit Court of Appeals decision which ruled in favor of Jarkesy. This court found that Jarkesy's right to a jury trial was breached. However, the Justice Department believes this decision was wrong and urges the Supreme Court to overturn it. Conversely, Musk and Cuban want the court to support the 5th Circuit's decision.
Adding to the narrative, Musk is currently under investigation by the SEC concerning his acquisition of Twitter. The billionaires lawyers state that the SEC's preference for internal proceedings over federal court juries undermines its own mission and negatively impacts investors and markets. Other figures and groups, including Phillip Goldstein, Nelson Obus, Manouch Moshayedi, and the Investor Choice Advocates Network, also support this brief.

Nvidia Foxconn AI Factories:

Nvidia is teaming up with Foxconn, known for producing iPhones, to create AI factories. The company views this collaboration as the start of a tech revolution. Nvidia's CEO, Jensen Huang, mentioned the joint venture would focus on training autonomous vehicles, robots, and advanced language models.
While Nvidia is renowned for gaming chips, powering games like Call Of Duty, it also supplies AI chips to major companies like Microsoft. In fact, OpenAI's ChatGPT was powered by over 20,000 Nvidia graphics processors.
Foxconn aims to expand beyond just electronics manufacturing with this move. This partnership announcement coincides with the U.S. imposing stricter AI chip export regulations to China, which may affect Nvidia's sales, given a significant portion of its data center chip revenue originates from China.

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