HeyWhatsNew: Everything Nintendo Switch 2 and Trump’s Tariffs Trigger the Tech World
Hey there, Heyuppers. It’s been an exciting week for tech, let’s take a look at what’s been happening in the week beginning 31/03/2025.
Automattic Lays Off 280 Employees Amid Legal Battle with WP Engine
Automattic, the parent company of WordPress.com, has laid off 280 employees (about 16% of its workforce), reducing its headcount from 1,777 to 1,495. CEO Matt Mullenweg stated that while revenue is growing, the layoffs were necessary for the company’s long-term stability amid a competitive market and rapidly evolving technology.
The job cuts coincide with a legal dispute between Automattic and WP Engine, a third-party hosting provider. The lawsuit, filed in 2024, involves Automattic blocking WP Engine from WordPress.org’s server and its acquisition of the Advanced Custom Fields (ACF) plugin.
Nintendo Switch 2 Unveiled with Major Upgrades
Nintendo has officially unveiled the Switch 2, set for release on June 5, 2025, with a base price of $449 or $499 bundled with Mario Kart World. Preorders start on April 9. The console retains the hybrid nature of its predecessor but boasts several upgrades, including a 7.9" LCD screen with 1080p handheld and 4K docked resolution, a 120Hz refresh rate, 256GB of internal storage with MicroSD Express support, and redesigned magnetic Joy-Cons with improved durability. It also introduces a built-in game chat, a microphone, and a new C button for additional controls. The console is backward-compatible with original Switch titles, and Nintendo Switch Online's expansion pack will now include GameCube games, launching alongside a wireless GameCube controller.
The launch lineup includes Mario Kart World, with rumored titles like Metroid Prime 4, Pokemon Legends Z-A, and Final Fantasy VII Remake/Rebirth. Third-party titles announced during the April 2 Nintendo Direct include Elden Ring: Tarnished Edition, Hades 2, Street Fighter 6, Cyberpunk 2077, and Borderlands 4. The Switch 2 also features improved ventilation, dual USB-C ports, and a redesigned Pro Controller with programmable back buttons. Additionally, Nintendo is introducing a matching camera for video chat and game integration.
OpenAI’s GPT-4o Accused of Training on Paywalled Books Without Permission
A new research paper from the AI Disclosures Project claims that OpenAI’s GPT-4o was likely trained on paywalled books from O’Reilly Media without permission. The study found that GPT-4o demonstrated a higher recognition of non-public O’Reilly content compared to earlier models like GPT-3.5 Turbo. Researchers used a “membership inference attack” method to test whether the AI model had prior knowledge of specific texts, analyzing 13,962 excerpts from 34 O’Reilly books. The findings come amid ongoing lawsuits accusing OpenAI of copyright infringement over its data training practices. While OpenAI has struck licensing deals with various publishers, it has also lobbied for AI training on copyrighted works to be considered fair use.
Tesla Sales Plunge 13% Amid Musk Backlash and Nationwide Protests
Tesla’s sales dropped 13% in Q1 2025, marking its worst production and delivery report in three years. The company delivered 336,681 vehicles, significantly below analysts’ expectations. This decline comes amid growing concerns over Elon Musk’s leadership, including his controversial involvement in the Trump administration and inflammatory social media behavior, which have fueled a nationwide protest movement, Tesla Takedown. The protests, combined with Tesla’s struggles in key markets like Europe and China, have contributed to a nearly 36% drop in the company’s stock price this year. Musk is betting on AI and autonomous vehicles to turn things around, but previous promises about self-driving technology have yet to materialize.
Trump’s Tariffs Trigger Global Market Slump and Tech Stock Sell-Off
U.S. President Donald Trump’s announcement of sweeping tariffs on over 180 countries, including a 54% levy on China, sent shockwaves through global markets, with U.S. stock futures plummeting in extended trading. The tariffs, which also include a 10% baseline on all U.S. imports, sparked sharp declines in major tech stocks, particularly Apple and Nvidia, both heavily reliant on Chinese and Taiwanese manufacturing. Despite a modest rise in regular trading, markets worldwide, including Japan and Hong Kong, followed Wall Street’s downturn, with investors flocking to gold as a safe-haven asset.
Tesla also faced setbacks, reporting a 13% drop in Q1 2025 deliveries, falling short of investor expectations. Meanwhile, Chinese electric carmakers such as Xiaomi and Xpeng saw robust sales, outpacing their competitors. The economic fallout from Trump’s tariff strategy, described as "worse than the worst-case scenario" by analysts, is expected to have far-reaching effects on global trade. However, excitement in Hong Kong's IPO market is rising, fueled by DeepSeek's AI breakthrough, with multiple companies making successful listings despite ongoing U.S.-China trade tensions.
Amazon Makes Last-Minute Bid for TikTok
Amazon has reportedly made a last-minute bid to acquire TikTok ahead of its April 5 deadline to divest its Chinese ownership or face a U.S. ban. However, sources indicate that the bid is not being taken seriously by those involved in the discussions. President Trump is scheduled to meet with officials on Wednesday to discuss TikTok's future. Meanwhile, other potential deals are in the works, including an Oracle-led bid with Andreessen Horowitz and private equity firm Blackstone, which is considering supporting ByteDance’s non-Chinese shareholders in a bid for TikTok’s U.S. operations.
That’s a wrap for this week, catch up with us again next week for everything tech and trending.
