TNB Tech Minute: Tesla Weighs Sale of China Business Ahead of Potential SpaceX Merger

**SPEAKER_1** (0:00)
This episode is sponsored by HPE. Today's networks must evolve from simply providing connectivity to harnessing AI to deliver exceptional connected experiences. At the break, HPE's Rami Rahim shares how self-driving networks can make that happen.

**Julie Chang** (0:16)
Here's your morning TNB Tech Minute for Friday, July 31st. I'm Julie Chang for the Wall Street Journal.
We exclusively report that Tesla is considering selling its China business to make way for a potential merger with SpaceX. According to people familiar with the matter, some Tesla executives have been told to prepare for a separation of the company's China operations, and Tesla advisors have discussed options, including a spinoff, sale, or closure. Any of those moves could have a major impact on Tesla. Its Chinese business transformed it into a consistently profitable global mass market leader in EVs, and its sale could impact its valuation if a SpaceX merger were to happen. Separating Tesla's China operations, including an EV factory there, would address potential conflicts arising from SpaceX's work as a major US defense contractor. Tesla didn't respond to requests for comment. Commenting on X, CEO Elon Musk denied that the topic had been discussed and called the report fake news.
Anthropic has said its AI models hacked three unsuspecting companies without the AI maker's knowledge in separate incidents dating back to April. Anthropic didn't say which companies were hit, but all three were notified on Monday. The news comes one week after OpenAI revealed that its AI technology had broken out of a testing sandbox, a digital prison that was supposed to be disconnected from the internet, and hacked the AI company Hugging Face. Anthropic said its models incorrectly believed that this hacking was part of their benchmarking exercise. A spokeswoman for Anthropic's testing partner, security firm Irregular, said the company is investigating the incident.
Shares of Universal Music Group, the label behind Taylor Swift, Lady Gaga and Bad Bunny, are down roughly 23 percent in Amsterdam, following disappointing subscription and streaming revenue. Growth in streaming services has cooled in recent years, and Universal stock is now down more than 40 percent over the past 12 months, as hopes for a revenue rebound failed to materialize. That's your TNB Tech Minute. Join us again this afternoon for more.

**SPEAKER_1** (2:26)
Here again is HPE's Rami Rahim to explain why it's critical for modern enterprises to use AI-powered self-driving networks.

**Rami Rahim** (2:34)
Gone are the days where humans can keep up with the complexity and overcoming the cyber attacks that are happening using elbow grease.
You must leverage agents and artificial intelligence in order to deliver a seamless connectivity experience to everyone and everything. It's not just people that are connected to the network today, it's AI agents, it's billions of things in fact. You can't do this manually. It must be done using artificial intelligence, and everything from the deployment of the network or speed matters, to the identification of issues that inevitably happen, to the remediation of those issues needs to be done without human intervention.

**SPEAKER_1** (3:19)
Find out how a self-driving network can help you deliver exceptional user experiences at hpe.com.