Judge Signals Section 230 Risk for Google; Nvidia Arms Meta with Grace CPUs; Microsoft Valuation Gap
Judge Beth McGowen tentatively ruled TikTok’s design features may not qualify for Section 230 immunity, a shift that exposes Google to similar design litigation. Nvidia will supply Meta with millions of Blackwell and Rubin GPUs and deploy Grace CPU‐only servers, while Microsoft shares trade at a valuation discount vs Alphabet.
1. Tentative Ruling on Section 230
Santa Clara County Superior Court Judge Beth McGowen issued a tentative ruling that challenges TikTok’s reliance on Section 230 immunity for product design claims. The decision stems from a 2024 lawsuit by California, New York, 12 additional states and the District of Columbia alleging features like autoplay, infinite scrolling and beauty filters harm young users, potentially exposing Google to analogous litigation over its platform’s structural design.
2. Nvidia's Data Center Expansion
Nvidia agreed to a multi‐year deal to deliver millions of Blackwell and Rubin GPUs to Meta and will deploy the first large‐scale Grace CPU‐only servers in Meta’s data centers. This move intensifies competition for Intel and AMD in the CPU market and may influence infrastructure decisions at Google Cloud for AI and inferencing workloads.
3. Microsoft-Alphabet Valuation Gap
Microsoft’s shares are trading at a rare valuation discount to Alphabet on forward price‐to‐earnings multiples, marking the first such reversal among the Magnificent Seven in years. The gap underscores shifting investor sentiment within Big Tech, as market participants reassess growth prospects and risk profiles across leading platform companies.