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In a historically unusual move, two of the world’s largest chipmakers, Nvidia and Advanced Micro Devices (AMD), have reportedly cut a deal with the Trump administration to hand over 15% of their revenues from certain chip sales to the U.S. government. Heres what to know about the deal and how Nvidias and AMDs stock prices are reacting. What’s happened? Yesterday, the Financial Times reported that chipmaking giants Nvidia and AMD have struck a highly unusual deal with the U.S. government. According to the Financial Times, the deal will see Nvidia and AMD give up 15% of revenues from chip sales of two specific chips to China, the H20 chipset by Nvidia and the MI308 chipset by AMD. In return for the 15% revenue-sharing agreement, the U.S. government has approved export licenses for those chips to China. Without export licenses, which the U.S. had previously failed to grant the companies, Nvidia and AMD could not legally export their chips to the country. The Financial Times cited people familiar with the situation, including a U.S. official as the sources of the information. “We follow rules the U.S. government sets for our participation in worldwide markets,” a Nvidia spokesperson told Fast Company when reached for comment. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership.” Fast Company has also reached out to AMD and the Commerce Department. The revenue-sharing agreement is an unusual one, as no other companies before now have ever agreed to share a portion of their revenue with the U.S. government in exchange for export licenses. The Trump administration has reportedly also not decided what the U.S. government will do with the proceeds it reaps from Nvidia and AMDs chip sales to China. A spokesperson for Nvidia did not deny the deal, with the company telling the Financial Times, We follow rules the US government sets for our participation in worldwide markets. What are the H20 and MI308 chips? Before the two chip giants made a revenue-sharing deal with the Trump administration, the H20 and MI308 chipsets had been waiting for months for export license approvals. The H20 chip by Nvidia and the MI308 chip by AMD were designed by the companies for the Chinese marketplace specifically, and within the constraints that the Biden administration had placed on exporting U.S. chips to China. But when Trump came into office earlier this year, his administration placed export controls on those chips over national security fears. Nvidia has previously disputed that its H20 chips could give Chinese industry a leg up in the AI race. Now, however, any supposed national security concerns are taking a back seat to profits, as the export licenses have now been granted after the revenue-sharing deal was agreed. That revenue-sharing agreement stands to see the U.S. government rake in billions as the chipmakers now have the go-ahead to sell to China. According to the Financial Times, one estimate noted that Nvidia could sell as much as $23 billion worth of its H20 chips to China in 2025 alone. How are Nvidia and AMD stock reacting? Obtaining export licenses for chips is usually considered a good thing by investors in any chipmaking company. However, after the Financial Times broke the news of the revenue sharing deal, shares of both Nvidia Corporation (Nasdaq: NVDA) and Advanced Micro Devices (Nasdaq: AMD) are down in premarket trading as of the time of this writing. NVDA shares are currently down about 0.71% and AMD shares are currently down about 1.6%. While these share price drops arent that large, any decline in a chipmakers stock price after winning an export license is pretty rare. This could suggest that investors are concerned that companies are ceding too much revenue to the U.S. government in exchange for export licenses, potentially harming their bottom lines. But just as likely is that investors arent entirely sure how to digest the news. The deal potentially sets a new precedent where companies that need export licenses now may need to start sharing their revenue directly with the U.S. government. Such a system is unheard of in free-market democracies.
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E-Commerce
Forget Cowboy Carter or the Eras tour, the hottest ticket this year is for your favorite podcast. Content creator tours sold nearly 500% more tickets this year compared to 2024, according to StubHub, with Alex Cooper’s “Unwell” tour, Crime Junkie’s podcast tour and Mel Robbins’ “Let Them” tour the highest in demand. With ticket prices at nearly 40% less than traditional live events on average, its easy to see why. Going to a live concert is only getting more expensive, with many concertgoers sucking up the eye-popping prices and price gouging on resale sites rather than deal with the potential FOMO. The average price of tickets sold across all live entertainment in 2024 was $159. The Taylor Swifts Eras tour cost fans an average of $1,088 per ticket in 2023, The New York Times reported. For the top six creator tours, it was just $99. Scheduling tour dates in locations often bypassed by mainstream artists, like Wyoming and Vermont, has also helped boost sales. During her own “Eras” tour, influencer Trisha Paytas paid visits to Tysons, Virginia and St. Louis, Missouri. Meanwhile, TikTok star Jake Shanes Therapuss cross-country tour stopped in places like Birmingham, Alabama and Athens, Georgia. When we look at state-level consumption, Illinois has emerged as the creator economy’s biggest fanbase, purchasing 20% more tickets than any other market, Adam Budelli, Partnerships & Business Development at StubHub told Fast Company. Texans are not only the largest single-state fanbase for female-hosted podcast content, but also show unique consumption patterns, with 7% more single-ticket buyers than California, despite having a smaller population. Thanks to the boom in video podcasts, what started as an audio-only experience enjoyed alone, now has more in common with your traditional chat show. Nearly three-quarters of podcast consumers watch their podcasts, compared with about a quarter who listen only. I think the biggest differentiator is that there are more opportunities for audiences who do attend to actually interact with the creators, creator economy expert Lindsey Gamble tells Fast Company. Because being able to tour and bring people out in real life shows that they actually have a community and relationship with their followers or subscribersenough where people are willing to dedicate their time and their dollars to see them in person. For creators, it can also be lucrative. As well as bringing in money through membership models and merch, with many podcasts typically over an hour long, a live show or tour is a natural extension of the existing format. We’re seeing fans who have built these deep, parasocial relationships with creators through podcasts and social media finally getting the chance to complete that connection in person, Gamble says. It’s different from a traditional concert where you’re watching a performance, where at creator events, fans feel like they’re hanging out with someone they already know intimately.
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E-Commerce
In a relentless pursuit of agility and efficiency, many organizations are aggressively flattening their hierarchies, effectively eliminating layers of middle management. This move to a flattened organizational structure is often inspired by the success of tech giants like Amazon and Google, with the goal of accelerating decision-making and streamlining operations. However, while automation can replace tasks, it cannot replicate the nuanced skills of strategy, vision, and decision-making that define true leadership. Even AI cannot replace the human element of leadership that drives innovation, inspires teams, and navigates complex strategic challenges. Our collective challenge, therefore, is to understand the unintended consequences of this organizational flattening and implement actionable strategies to ensure that we are not sacrificing our long-term leadership capacity for short-term gains. The good news is that with intentional effort and a rethinking of how experience is gained, you can still build a formidable bench of executive talent. Heres how: 1. STOP ERASING AND START REDEFINING YOUR MID-LEVEL EXPERIENCE The most significant leadership development challenges in flattened organizations stem from the absence of director-level readiness. Without mid-level roles, you might miss crucial opportunities to manage people, budgets, and complexity at scale. Think about the typical progression: from individual contributor to senior individual contributor, and then, traditionally, to manager. The manager role was where many learned the intricacies of people management, conducting performance reviews, navigating difficult conversations, and fostering team development. When organizations eliminate this stepping stone, employees can jump from senior individual contributor to director without ever developing these foundational skills. This creates a dangerous experience gap. To counter this, identify the core managerial and strategic skills that were learned in those now-eliminated roles and create alternative pathways to gain them. For instance, you could take on internal mini-CEO roles for specific projects, giving yourself full accountability for budget, team oversight, and strategic outcomes, even if for a temporary period. Even at an individual contributor level, you can seek out opportunities to lead specific initiatives or mentor newer team members to build these skills. 2. PRIORITIZE PROJECT-BASED LEADERSHIP AND EXECUTIVE SHADOWING In a flatter structure, traditional promotions are fewer, but opportunities for leadership experience arent. Empower yourself to lead complex, cross-functional initiatives. This is a powerful way for you to gain influence and exposure outside of your direct reporting lines, learning to navigate organizational politics, manage diverse stakeholders, and deliver results under pressure. Simultaneously, seek out executive shadowing opportunities. Ask if you can sit in on high-stakes meetings or strategic offsites. This direct access to senior thinking provides an unparalleled understanding of how decisions are made at the highest levels, building your confidence and presence. This real-time learning is invaluable when formal management layers are gone. 3. FORMALIZE MENTORSHIP, SPONSORSHIP, AND TARGETED CAPABILITY DEVELOPMENT Leadership readiness will not emerge by default in a flat structure; it must be deliberately built. Establish formal mentorship programs where senior executives provide direct coaching and feedback. Even more critically, sponsorship programs should be implemented where senior leaders actively advocate for emerging talent, opening doors and creating opportunities for growth you might not find on your own. Beyond these relationships, create targeted development tracks with clear milestones that focus on specific capabilities required for future executive roles. For example, if critical thinking under pressure is a key executive skill, you might find that participating in leadership simulations or strategic case studies allows you to practice decision-making in a safe environment. This ensures that even without traditional promotions, you are continually acquiring and demonstrating executive-level skills. BUILDING A CULTURE OF CONTINUOUS LEADERSHIP GROWTH In the absence of established leadership ladders, organizations must take deliberate, proactive steps to build their future leadership pipeline. This presents a unique opportunity, whether you’re just starting your career or are a seasoned executive, to define your impact by the comprehensive leadership development strategies you intentionally create. It also clearly communicates the new growth expectations for leadership within a flatter structure. If you lead an organization that has embraced flattening, you must recognize that designing meaningful development programs in this new landscape may be one of the most important contributions you make to your companys long-term success.
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E-Commerce
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