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1.	Nvidia Will Pay Groq Backers and Staff at Deal’s $20 Billion Valuation By Ken Brown Source: Axios

Groq shareholders and employees will get handsome payouts from Nvidia as part of a $20 billion acqui-hire deal, Axios reported, ending speculation about the compensation in the unusual deal.

Most Groq shareholders will get paid at the deal’s $20 billion valuation with 85% of the payouts coming up-front and the rest in 2026.  Groq had been valued at $6.9 billion just a few months ago.

Nvidia will be hiring roughly 90% of Groq’s employees. Groq employees will be paid for their vested shares at the deal’s value with their unvested shares being valued depending on where they end up.

The deal, which is structured as a nonexclusive licensing agreement, could help Nvidia design server chips that are potentially cheaper and faster at running AI applications, compared to Nvidia’s current line of chips.

2.	Washington Seeks to Boost Control of Power Grid By Ken Brown Source: The Wall Street Journal

The White House is pushing the federal government to address power demands of AI by taking control of part of the nation’s power grid, The Wall Street Journal reported.

State utility regulators are pushing back, saying the effort violates federal law, which splits control of the power grid between states and Washington. The White House is trying to address two issues–rising electricity prices and the power demands of AI.

Some states are pushing back against the impact that data centers are having on electricity costs. The move by Washington is another example of its effort to control AI.

The federal government wants to gain control of how data centers connect to the power grid. Officials say the shift could make it easier and faster for data centers to construct their own power supplies. The federal government is pushing to get the new rules passed quickly, addressing the slow pace of change in the utility industry.

3.	China Issues Draft Rules for Human-Like AI Services By Juro Osawa Source: The Information

China’s top internet regulator issued draft rules to govern the use of AI services that involve human-like interactions, as Beijing tightens its oversight amid the country’s rapid AI adoption.

The Cyberspace Administration of China presented the draft rules to the public on Saturday to accept comments until Jan. 25, 2026. The rules are aimed at regulating AI that simulates human characteristics, thinking patterns and communication styles—and interact with human users through text, audio, images, videos and other means, according to the regulator.

The draft rules, for example, require AI service providers to introduce measures such as risk warnings and mental health protection, and intervene when users show signs of addiction.

Beijing’s move comes at a time when China is experiencing a rapid proliferation of AI products designed for consumers. The government is moving quickly to establish new regulations for such products.

4.	JPMorgan Freezes Accounts for Risky Stablecoin Payments By Yueqi Yang Source: The Information

JPMorgan in recent months has frozen accounts used by at least two fast-growing stablecoin startups operating in high-risk countries like Venezuela, The Information reported Friday. The bank’s moves highlight the risk that cryptocurrency transactions pose for banks, which are required to know the people they do business with and the source of their cash.

The bank froze accounts for Blindpay and Kontigo, two startups funded by venture capital firm Y Combinator that largely focus on Latin America. The companies connected to the bank through digital payments firm Checkbook.

The startups did business in Venezuela and other places that posed legal risks to the bank due to sanctions or other restrictions. JPMorgan said the freeze on the stablecoin companies’ accounts was not because of the nature of the businesses. “This has nothing to do with stablecoin companies,” a spokesperson for the bank said. “We bank both stablecoin issuers and stablecoin-related businesses, and we recently took a stablecoin issuer public.” The bank otherwise declined to comment on the matter.

5.	New Competition for Mag 7 Stocks By Ken Brown Source: The Information

The giant tech stocks have dominated the U.S. stock market for years, leading in profit growth and performance.

Despite the power of these stocks, the U.S. market was left in the dust in 2025 by most of the world’s markets, according to Goldman Sachs. The S&P 500 is up just under 18% so far in 2025, lagging Italy (54%), Spain (73%) and Korea (71%), and also behind emerging markets and global stocks generally.

The Mag 7 tech stocks–Nvidia, Apple, Microsoft, Google, Amazon, Broadcom and Meta Platorms–account for 36% of the S&P’s market capitalization. And a bigger share of its profit growth. Most analysts see these trends continuing. The scale of these companies means that almost all investors are heavily exposed to their big bets on AI.

What’s underappreciated is the importance of these stocks to the rest of the world. The top 10 U.S. companies account for 22% of the market capitalization of all of the world’s stock markets.

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