Welcome back to your daily memorandum talking tech, business, AI, markets, and more. 🗞️

In today’s edition we are tackling the following:

💼 Grammarly acquires productivity startup Coda, bringing on its CEO.
🌊 A magnitude 7.3 earthquake strikes Vanuatu, causing widespread damage.
🚗 Honda and Nissan consider a merger to tackle EV competition.
🔍 Google integrates third-party tools into Code Assist.
🛠️ OpenAI introduces new developer features, vision, and fine-tuning tools.

TECH

• Google’s Code Assist adds third-party tool integrations

  • Google introduces support for third-party tools in Code Assist, its enterprise-focused AI code assistant.

  • The update allows developers to integrate external tools for smoother workflows and automation.

  • Designed to compete with GitHub Copilot, Code Assist now offers enhanced functionality for large teams.

• Honda and Nissan explore merger to navigate uncertain EV future

  • Honda and Nissan are in talks to merge, potentially forming a new holding company to compete with Tesla and BYD.

  • Nissan faces financial struggles, with earnings down 90% in 2024 and a bleak forecast unless rescued.

  • Both companies focus on hybrids while lagging behind Chinese EV makers in market share across Asia.

• OpenAI releases a slew of developer features in a 'Mini Dev Day'

  • OpenAI launched developer tools, including the full o1 API with support for structured outputs, vision, and faster reasoning.

  • New ‘reasoning effort’ parameter helps balance cost and accuracy, while APIs support WebRTC with a 60% drop in audio token prices.

  • Preference Fine-Tuning and beta SDKs for Go and Java were introduced, alongside enhanced developer controls.

BUSINESS

• Grammarly acquires productivity startup Coda, brings on new CEO

  • Grammarly acquired Coda to expand into an AI-powered productivity platform. Coda’s tools will bring generative AI and smarter workflows.

  • Coda CEO Shishir Mehrotra will replace Rahul Roy-Chowdhury as Grammarly’s new CEO. Roy-Chowdhury will stay on as an adviser.

  • Coda Docs will integrate Grammarly Assistant, combining AI chat, company knowledge, and productivity features for users.

• Ali Ghodsi on Databricks' growth and the future of AI

  • Databricks CEO Ali Ghodsi highlights the company’s success leveraging AI and data platforms to reshape enterprise analytics.

  • Ghodsi emphasizes the rising demand for AI-driven solutions as businesses transition to harnessing real-time data insights.

  • He predicts accelerated innovation in AI, with Databricks positioned to capitalize on emerging opportunities across industries.

• Meta fined $263m over 2018 security breach affecting 3m EU users

  • Meta faces this fine from the EU for failing to prevent a 2018 security breach that exposed data of over 3 million users.

  • The breach involved scraping vulnerabilities on Facebook, prompting regulators to tighten enforcement under GDPR rules.

  • Meta claims it has since implemented stronger safeguards, though repeated incidents continue to raise concerns over its data protection.

CONTENT

• Reid Hoffman discusses tariffs, Elon Musk's role, and defense spending

  • Hoffman highlights concerns about Trump's potential misuse of tariffs and the competitive rise of China's car industry.

  • He argues Elon Musk’s AI leadership impacts innovation but critiques Musk's overhyped role in projects like Dogecoin.

  • He advocates for reduced U.S. defense spending while urging Europe to bolster NATO contributions amid ongoing global conflicts.

• The story of Visa and its misunderstood origins

  • John Coogan explores Visa’s history, from Bank of America’s early credit card pilot to D. Hawk’s innovative structure.

  • Visa’s success stemmed from solving merchant authorization and clearing issues, creating a two-sided payment network.

  • Despite being universally recognized, Coogan explains why Visa's unique governance model remains overlooked in business lore.

• AI set to revolutionize the $100b accounting industry

  • Seventy-five percent of accountants are retiring in 15 years, creating a massive labor gap and opportunity for AI disruption.

  • a16z investors argue that while accounting lags in AI adoption due to accuracy demands.

  • Startups are encouraged to sell AI-powered solutions through accounting firms, promising faster, cheaper services to consumers.

WORLD

• Russian general killed in Moscow bombing claimed by Ukraine

  • A bombing outside Russian General Igor Kirillov's residence resulted in his death; Ukraine claimed responsibility.

  • Kyiv accused Kirillov of chemical weapons use; Moscow condemned the attack as terrorism.

  • Russia vowed retaliation, raising fears of escalation in the Ukraine conflict.

• Magnitude 7.3 earthquake hits Pacific island nation Vanuatu

  • Quake struck near Port Vila, causing significant damage and displacing residents.

  • Emergency services are responding, with reports of casualties and aftershocks continuing.

  • Neighboring nations, including Australia, pledged immediate aid and support.

• Israel and Hamas are close to ceasefire agreement

  • Mediated talks by Qatar and Egypt aim for a six-week truce and hostage-prisoner exchanges.

  • Israel seeks security guarantees, while Hamas pushes for troop withdrawal from Gaza.

  • US officials are pressing for a deal to stabilize the region before January's leadership shifts.

AND MORE…

• Google says customers can use its AI in ‘high-risk’ domains

  • Google now allows its AI for high-risk decisions, like hiring and healthcare, if human oversight is present.

  • OpenAI and Anthropic maintain stricter rules, banning or limiting AI use in similar cases.

  • Regulators highlight bias risks, with laws in the EU and U.S. enforcing audits and transparency.

• Forbes cuts ties with freelance writers over Google spam policies

  • Forbes suspended freelance following Google’s crackdown on ‘site reputation abuse.’

  • The decision impacts freelancers financially as their content is overhauled or removed to align with Google’s new policies.

  • Google's updated policies aim to reduce 'parasite SEO,’ where reputable domains host low-quality, outsourced content.

• Nvidia stock enters correction territory

  • Nvidia shares have dropped over 10% from their recent peak, marking a correction despite strong year-to-date gains of 163%.

  • Analysts cite short-term volatility amid concerns about relationships with major customers, including Google.

  • Optimism remains for Nvidia’s AI-driven semiconductor demand in 2025, with growth projections remaining strong.