Indian IT stocks have shown resilience, declining only about 1% compared to a broader market drop of nearly 3% amid Middle East tensions. This relative strength is attributed to a weakening rupee, which benefits exporters, and a prior sector correction earlier in the year.
Anthropic CEO Dario Amodei has publicly rebuked OpenAI, accusing it of lying about ethical limits in its Pentagon deal and moving opportunistically after Anthropic rejected broader military use of its AI. Despite the acrimony, Anthropic has reportedly reopened negotiations with the Pentagon to establish acceptable guardrails for military AI use.
Amazon has initiated layoffs within its robotics division, cutting at least 100 white-collar roles involved in developing warehouse automation. The company stated these organizational changes are intended to best position teams for innovation, affirming that robotics remains a strategic priority.
The main topics covered are the performance of Indian IT stocks during geopolitical crisis, the ethical dispute between AI firms Anthropic and OpenAI over military contracts, and layoffs at Amazon's robotics unit.
Business News›Tech›Newsletters›Tech Top 5›IT stocks strong amid Middle East crisis; Anthropic CEO rebukes OpenAI
IT stocks strong amid Middle East crisis; Anthropic CEO rebukes OpenAI
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The Middle East conflict continued to test global markets, but India's IT stocks remained resilient. This and more in today's ETtech Top 5.
Also in the letter:
■ Amazon's layoffs
■ Funding disparity in Startup Inc
■ Satya Nadella on AI bubble
Shares of major Indian IT companies have held relatively steady even as broader markets came under pressure from the escalating conflict involving the US, Israel, and Iran.
What's happening? The conflict has entered its sixth day, with no clear signs of easing. During this period, the Nifty IT has slipped only about 1%, outperforming the Nifty 50, which has declined nearly 3%.
On Wednesday, IT stocks even rallied, rising 2.25%, moving against the broader market sell-off triggered by geopolitical uncertainty.
Why is this happening? A key factor could be the weakening rupee.
A weaker rupee tends to benefit Indian IT exporters, since most revenue is earned in US dollars while a large share of operating costs is rupee-denominated.
Another reason is that the sector had already corrected sharply earlier in the year. The Nifty IT Index dropped roughly 20% in February, after concerns about AI-driven automation intensified following Anthropic’s Claude coworker plugins, which can automate several enterprise tasks.
Today's closing price:
Also Read: TCS is in ‘advanced’ talks for more AI data centers in India
The dispute between Anthropic and the US administration escalated further, with CEO Dario Amodei saying the company is facing retaliation for refusing to offer what he called “dictator-style praise” to President Donald Trump.
Upsetting top deck: In a message to employees, Amodei criticised OpenAI for moving quickly to secure a Pengaton deal after Anthropic rejected broader military use of its models.
Earlier this week, OpenAI CEO Sam Altman admitted the company’s move may have appeared “opportunistic and sloppy.”
Yes, but: Altman said OpenAI’s agreement would contain the same ethical limits that Anthropic had sought, including restrictions around domestic mass surveillance.
Amodei rejected that claim, calling OpenAI’s public statements “straight up lies” and accusing Altman of trying to wrongly “present himself as a peacemaker and dealmaker.”
Talks reopened: Despite the rhetoric, negotiations have resumed. Amodei, FT reported, has restarted discussions with the Pentagon over acceptable guardrails for military use of Anthropic’s models.
Also Read: Claude AI helped bomb Iran. But how exactly?
A revised agreement could allow defence agencies to continue using Anthropic’s AI without formally blacklisting the company.
Several Silicon Valley firms have backed Anthropic’s stance after the dispute surfaced last week.
Also Read: ETtech Explainer: Anthropic’s rapid rise, Pentagon standoff and everything in between
Amazon has begun another round of layoffs, this time affecting employees in its robotics division.
What's happening? At least 100 white-collar roles have been cut from the robotics unit, according to Reuters. The division develops robots and automated systems used in Amazon’s warehouses and logistics operations.
The company confirmed that organisational changes within the team, but did not disclose the precise number of employees affected.
Company's POV: “We regularly review our organisations to make sure teams are best set up to innovate and deliver for our customers,” Amazon said in a statement.
Business Insider reported that robotics vice president Scott Dresser informed staff of the cuts in an internal memo on Tuesday. He described the move as “difficult but necessary,” adding that robotics remains a strategic priority for Amazon.
Zoom out: The layoffs are part of a broader wave of workforce reductions at the company.
Women entrepreneurs in India continue to face a steep funding gap, receiving only Rs 4 out of every Rs 100 raised by founders, according to a report by venture capital firm Kalaari Capital.
What's happening? The study highlights a persistent imbalance in venture funding flows, with women-led startups capturing a small share of total capital deployed in India’s startup ecosystem.
Kalaari said the issue reflects a structural market inefficiency, not merely a diversity concern. Greater participation of women in the economy could add hundreds of billions of dollars to India’s GDP.
By the numbers:
Research insights: A Boston Consulting Group study found that companies led by women deliver 10% higher cumulative revenue over five years and build teams that are three times more gender-inclusive. Despite this, they continue to attract a smaller share of venture funding.
Microsoft CEO Satya Nadella has dismissed fears of an artificial intelligence bubble following OpenAI’s massive $110 billion funding round, saying the real test lies in measurable economic impact.
No bubble: Nadella argued that the bubble should focus less on hype and more on real-world deployment.
“At the end of the day, there is only one thing that matters, which isn't about talking endlessly about the technology; it's about seeing that technology in the real world having real impact. To me, a bubble is a bubble if you don't have examples of AI diffusion,” he said.
Sam Altman, CEO, OpenAI
Up and up: Meanwhile, OpenAI continues to scale rapidly. According to The Information, the ChatGPT maker crossed $25 billion in annualised revenue by the end of last month.
The company has been emphasising revenue growth as it raises unprecedented sums of capital. OpenAI is currently valued at about $840 billion.
Also Read: AI-led job disruption is real, but so is human adaptability: Microsoft CEO Satya Nadella
Also in the letter:
■ Amazon's layoffs
■ Funding disparity in Startup Inc
■ Satya Nadella on AI bubble
Infosys, TCS, Wipro and other IT stocks stay resilient amid US–Israel–Iran conflict
Shares of major Indian IT companies have held relatively steady even as broader markets came under pressure from the escalating conflict involving the US, Israel, and Iran.
What's happening? The conflict has entered its sixth day, with no clear signs of easing. During this period, the Nifty IT has slipped only about 1%, outperforming the Nifty 50, which has declined nearly 3%.
On Wednesday, IT stocks even rallied, rising 2.25%, moving against the broader market sell-off triggered by geopolitical uncertainty.
Why is this happening? A key factor could be the weakening rupee.
- The rupee touched an intraday high of 91.4125 per dollar before closing at 91.60, up about 0.6%.
- A day earlier, it had fallen 69 paise to a record low of 92.18 per dollar, pressured by rising crude oil prices amid Middle East tensions.
A weaker rupee tends to benefit Indian IT exporters, since most revenue is earned in US dollars while a large share of operating costs is rupee-denominated.
Another reason is that the sector had already corrected sharply earlier in the year. The Nifty IT Index dropped roughly 20% in February, after concerns about AI-driven automation intensified following Anthropic’s Claude coworker plugins, which can automate several enterprise tasks.
Today's closing price:
- Infosys: down 0.2%, closed at Rs 1304.9 on the BSE.
- Wipro: up 0.05%, closed at Rs 195.7.
- Tata Consultancy Services: down 0.1%, closed at Rs 2583.5.
- Hexaware Technologies: up 1.6%, closed at Rs 463.
- Coforge: down 1.4%, closed at Rs 1152.5.
Also Read: TCS is in ‘advanced’ talks for more AI data centers in India
Dario Amodei says Anthropic punished for not offering Trump dictator-style praise
Dario Amodei, CEO, AnthropicThe dispute between Anthropic and the US administration escalated further, with CEO Dario Amodei saying the company is facing retaliation for refusing to offer what he called “dictator-style praise” to President Donald Trump.
Upsetting top deck: In a message to employees, Amodei criticised OpenAI for moving quickly to secure a Pengaton deal after Anthropic rejected broader military use of its models.
- “The main reason [OpenAI] accepted [the DoD’s deal], and we did not, is that they cared about placating employees, and we actually cared about preventing abuses,” he wrote.
Earlier this week, OpenAI CEO Sam Altman admitted the company’s move may have appeared “opportunistic and sloppy.”
Yes, but: Altman said OpenAI’s agreement would contain the same ethical limits that Anthropic had sought, including restrictions around domestic mass surveillance.
Amodei rejected that claim, calling OpenAI’s public statements “straight up lies” and accusing Altman of trying to wrongly “present himself as a peacemaker and dealmaker.”
Talks reopened: Despite the rhetoric, negotiations have resumed. Amodei, FT reported, has restarted discussions with the Pentagon over acceptable guardrails for military use of Anthropic’s models.
Also Read: Claude AI helped bomb Iran. But how exactly?
A revised agreement could allow defence agencies to continue using Anthropic’s AI without formally blacklisting the company.
Several Silicon Valley firms have backed Anthropic’s stance after the dispute surfaced last week.
Also Read: ETtech Explainer: Anthropic’s rapid rise, Pentagon standoff and everything in between
Amazon layoffs: robotics team hit in latest cuts
Amazon has begun another round of layoffs, this time affecting employees in its robotics division.
What's happening? At least 100 white-collar roles have been cut from the robotics unit, according to Reuters. The division develops robots and automated systems used in Amazon’s warehouses and logistics operations.
The company confirmed that organisational changes within the team, but did not disclose the precise number of employees affected.
Company's POV: “We regularly review our organisations to make sure teams are best set up to innovate and deliver for our customers,” Amazon said in a statement.
Business Insider reported that robotics vice president Scott Dresser informed staff of the cuts in an internal memo on Tuesday. He described the move as “difficult but necessary,” adding that robotics remains a strategic priority for Amazon.
Zoom out: The layoffs are part of a broader wave of workforce reductions at the company.
- Amazon cut around 16,000 jobs in January.
- Another 14,000 corporate roles were eliminated in October last year.
Startups led by women receive just Rs 4 out of every Rs 100 raised by founders: Report
Women entrepreneurs in India continue to face a steep funding gap, receiving only Rs 4 out of every Rs 100 raised by founders, according to a report by venture capital firm Kalaari Capital.
What's happening? The study highlights a persistent imbalance in venture funding flows, with women-led startups capturing a small share of total capital deployed in India’s startup ecosystem.
Kalaari said the issue reflects a structural market inefficiency, not merely a diversity concern. Greater participation of women in the economy could add hundreds of billions of dollars to India’s GDP.
By the numbers:
- Women-led MSMEs face a credit shortfall of over $158 billion.
- This points to a significant pool of untapped entrepreneurial potential.
Research insights: A Boston Consulting Group study found that companies led by women deliver 10% higher cumulative revenue over five years and build teams that are three times more gender-inclusive. Despite this, they continue to attract a smaller share of venture funding.
Microsoft CEO Satya Nadella downplays AI bubble fears amid OpenAI's $110 billion fundraise
Satya Nadella, CEO, MicrosoftMicrosoft CEO Satya Nadella has dismissed fears of an artificial intelligence bubble following OpenAI’s massive $110 billion funding round, saying the real test lies in measurable economic impact.
No bubble: Nadella argued that the bubble should focus less on hype and more on real-world deployment.
“At the end of the day, there is only one thing that matters, which isn't about talking endlessly about the technology; it's about seeing that technology in the real world having real impact. To me, a bubble is a bubble if you don't have examples of AI diffusion,” he said.
Sam Altman, CEO, OpenAI
Up and up: Meanwhile, OpenAI continues to scale rapidly. According to The Information, the ChatGPT maker crossed $25 billion in annualised revenue by the end of last month.
The company has been emphasising revenue growth as it raises unprecedented sums of capital. OpenAI is currently valued at about $840 billion.
Also Read: AI-led job disruption is real, but so is human adaptability: Microsoft CEO Satya Nadella
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