Global Tech and Business Giants Restructure Amid Economic and Regulatory Pressures

30th July 2025

Tesla has signed a $4.3B battery supply deal with LG Energy Solution to produce lithium iron phosphate batteries in Michigan, boosting its U.S.-based energy storage capabilities and reducing reliance on Chinese imports. Novo Nordisk appointed veteran Maziar Mike Doustdar as CEO to revive the company after a major stock decline driven by U.S. competition and supply challenges. Microsoft is renegotiating its agreement with OpenAI to secure long-term access to its advanced AI, even in the event of reaching artificial general intelligence. Meanwhile, Meta is under investigation by Italy’s antitrust authority for possibly abusing its market dominance by embedding Meta AI into WhatsApp without sufficient user consent. Lastly, Capgemini narrowed its revenue outlook due to ongoing economic uncertainty but remains cautiously optimistic, moving forward with a $2.3B share buyback and expanding its AI services through a $3.3B acquisition. All in today’s Read It and Eat !

Major Headlines 

Tesla Inks $4.3B Battery Deal With LG Energy, Tapping U.S. Supply Chain

Tesla is taking another big step to diversify its supply chain and this time, it's doing so closer to home. The electric vehicle giant has reportedly signed a $4.3 billion deal with South Korea’s LG Energy Solution (LGES) to source lithium iron phosphate (LFP) batteries for its energy storage systems, according to a person familiar with the matter. The move is seen as part of Tesla’s broader push to reduce its dependence on Chinese imports, especially amid rising U.S. tariffs.

The batteries will be manufactured at LGES’s facility in Michigan, which recently began producing LFP cells, a market historically dominated by Chinese firms. While LGES confirmed it had signed a multi-year global supply agreement worth $4.3 billion, it didn’t name Tesla directly, citing confidentiality obligations. Tesla has yet to comment.

This deal marks a strategic shift. As demand for electric vehicles cools, both Tesla and LGES are turning more attention to energy storage, a segment increasingly powered by the needs of data centers and AI infrastructure. Tesla CFO Vaibhav Taneja previously noted that tariffs have had a disproportionate effect on the company’s energy business, and Tesla is actively working to secure non-China-based suppliers to offset that impact.

LGES’s early move into U.S.-based LFP battery production gives it a competitive edge. Unlike rivals like Samsung SDI and SK On, who have plans but no active LFP lines in the U.S. yet, LGES is already delivering at scale. The deal is set to run from August 2027 to July 2030, with room to expand both the contract period and volume based on future discussions.

As Tesla's car sales face headwinds and EV tax incentives shrink, its energy storage unit is quietly becoming a bigger player already accounting for over 10% of its revenue. And with big bets like this one, it’s clear Tesla sees even more growth ahead. Bloomberg 

Novo Veteran Tasked With Reviving Weight-Loss Giant Amid Market Challenges

After more than 30 years at Novo Nordisk, Maziar Mike Doustdar is stepping into the spotlight as the company's new CEO just as the weight-loss drugmaker faces one of its toughest chapters yet. Doustdar, who rose through the ranks from an office clerk to head of international operations, now has the job of turning around a company that’s lost two-thirds of its value in the past year.

Doustdar has made it clear he plans to move fast. While he hasn’t laid out full details, he hinted at cost-cutting measures ahead, saying he’ll be “realigning the cost base.” The announcement came as Novo lowered its earnings outlook, largely due to stiff competition in the U.S. from Eli Lilly, which has gained significant ground in the obesity drug market.

As the maker of blockbuster drug Wegovy, Novo was once Europe’s most valuable company. But supply issues, weaker drug trial results, and increasing political scrutiny have shaken investor confidence. The company’s stock has plunged by over $400 billion since last June leading to the ousting of former CEO Lars Fruergaard Jorgensen in May.

Despite skepticism over his U.S. market experience, Doustdar defended his credentials, citing over a decade of executive leadership. “Setbacks don’t define companies,” he told investors. “Our response does.” Backed by board support and known for pushing action, Doustdar has promised to streamline operations, drive innovation, and restore growth both for Novo and its shareholders. Yahoo.Finance 

Microsoft in Talks to Secure Long-Term Access to OpenAI Technology

Microsoft is reportedly in advanced discussions to ensure continued access to OpenAI’s cutting-edge technology, according to sources cited by Bloomberg News. The potential deal would allow Microsoft to keep using OpenAI’s most advanced models even in the event that OpenAI declares it has achieved artificial general intelligence (AGI), a milestone where AI could surpass human intelligence.

Currently, Microsoft holds an exclusive license to OpenAI’s tech, but a clause in their agreement would limit that access if AGI is reached. To avoid being shut out of future breakthroughs, both sides have been meeting regularly to renegotiate the terms. An updated agreement could be finalized within weeks.

The discussions are happening alongside broader negotiations around Microsoft’s equity stake in OpenAI and its approval for OpenAI’s transition into a public-benefit corporation. Neither company has commented publicly on the latest developments.

Tensions over OpenAI’s AGI clause have surfaced before, with reports suggesting Microsoft and the AI startup have been at odds over its implications. Meanwhile, OpenAI also faces pressure from other fronts, including a high-profile lawsuit from Elon Musk, who has accused the company of straying from its original mission to develop AI for public good.

As Microsoft prepares to report its quarterly earnings, its partnership with OpenAI is expected to remain a key area of investor focus especially as OpenAI begins working with other cloud providers like Google, Oracle, and CoreWeave. Bloomberg 

Meta Faces Italian Antitrust Probe Over WhatsApp AI Integration

Italy’s antitrust authority has opened an investigation into Meta Platforms over concerns that the company may have abused its dominant market position by integrating its Meta AI assistant into WhatsApp without proper user consent. The watchdog believes this move could potentially violate European Union competition rules and may give Meta an unfair advantage in the growing AI market.

According to the regulator, Meta AI which was added to WhatsApp’s interface in March 2025 is now embedded in the app’s search bar, making it easily accessible to users. The concern is that this integration could unfairly steer users toward Meta’s AI services, locking them into the platform and limiting opportunities for competitors. Meta’s approach, the authority said, appears to bundle two distinct services, which could hinder merit-based competition.

Meta has responded by saying it’s cooperating fully with the investigation and emphasized that the AI feature is meant to enhance user experience. “Offering free access to our AI features in WhatsApp gives millions of Italians the choice to use AI in a place they already know, trust, and understand,” a company spokesperson said in a statement.

The investigation is being carried out in coordination with the European Commission, with Italian officials conducting inspections at Meta’s local offices, supported by the country's tax police. If Meta is found to have violated EU competition law, the company could face fines of up to 10% of its global revenue. Reuters 

Capgemini Narrows Revenue Forecast, Stays Cautious Amid Economic Uncertainty

Capgemini has tightened its full-year revenue outlook, signaling a cautious tone as demand remains soft and the broader economic picture stays uncertain. The French IT consulting giant, known for its cloud, AI, and enterprise management services, now expects revenue growth between -1% and +1% at constant currency. That’s a narrower range than its previous forecast of -2% to +2%.

Despite the uncertainty, Capgemini is moving ahead with a €2 billion (about $2.3 billion) multi-year share buyback program. “As we enter the third quarter, we’re seeing some signs of stability,” CEO Aiman Ezzat said in a statement. “Still, we’re maintaining a cautious approach given ongoing geopolitical tensions and sluggish economic growth.”

For the first half of the year, Capgemini reported a 15% drop in operating profit, totaling €976 million. Revenue came in at €11.11 billion, a slight 0.3% decline on a reported basis, though flat to slightly positive when adjusted for currency fluctuations. The company noted that clients have been cutting back on non-essential spending, which dampened demand during the first half.

Capgemini reaffirmed its operating margin forecast of 13.3% to 13.5% for the full year, excluding any impact from its planned acquisition of U.S.-listed WNS. The $3.3 billion deal, announced in July, aims to expand Capgemini’s AI capabilities and enhance its service offerings. While Capgemini shares initially rose nearly 7% following the update, early gains eased to just 0.3% by mid-morning trading. Analysts say the results are solid, but investor sentiment may remain muted given the broader softness in the tech sector. Reuters 

Minor Headlines

• Nasdaq Nordic Trading Resumes After Technical Glitch Triggers Cancellations. TechCrunch 

• Telefonica Reports $59 Million Q2 Loss Amid Currency Volatility. Yahoo.Finance 

• Apple’s Supply Chain Shift Marks Major Win for India Over China. Reuters 

• Trump to Decide Soon on Whether to Extend China Tariff Pause. Bloomberg 

• Anthropic Nears New Funding Round, Eyes $170 Billion Valuation as Revenue Climbs. TechCrunch 

• Toyota Achieves Record Global Sales Despite Uncertainty Around Trump Tariffs. Reuters 

• Hermès Sales Climb as Birkin Brand Defies Luxury Market Slowdown. Reuters 

• Vertical Future Listed for Sale After Losses Deepen and Insolvency Looms. CityAM