Introduction
What happens when the technological age of AI meets the intersections of international trade and the never-ending speed of technology evolution?
A market environment in perpetual motion, a series of “tides” recasting industries and economies.
In this piece, we examine these changes and gaze into the future of international busine
xAl acquire X for $33 Billion
Elon Musk’s Al startup, xAl, has acquired his social media platform X (formerly Twitter) in an all-stock deal.
The transaction values xAl at $80 billion and X at $33 billion (adjusted from $45 billion due to $12 billion in debt).
Musk described the move as a step toward integrating data, models, compute, distribution, and talent between the two companies.
xAl, founded in 2023 to rival Open Al, has already embedded its Al chatbot Grok into X. This acquisition further merges Musk’s Al and social media ventures.
X’s valuation has fluctuated significantly since Musk purchased it for $44 billion in 2022.
Fidelity once estimated its value at under $10 billion, but it’s worth has rebounded amid perceived political influence.
Musk has aggressively expanded xAl, hiring top Al researchers from DeepMind, Microsoft, and OpenAl while raising $6 billion in December, valuing the startup at $45 billion at the time.
xAl has made rapid progress, with Grok 3 competing with top Al models.
Meanwhile, Musk continues efforts to challenge OpenAl’s for-profit transition, even submitting a $97 billion bid for OpenAl, which was rejected.
A key advantage for xAl is access to X’s vast data trove, which enhances Al training, as well as a built-in user base.
Musk has a history of intertwining his businesses, sometimes leading to legal scrutiny.
The acquisition highlights how X may serve Musk’s larger Al ambitions rather than operating primarily as a social media platform.
Elon Musk to step down from DOGE
Elon Musk announced he will step down from his role in the Trump administration at the end of May after a 130-day term as head of the Department of Government Efficiency (DOGE).
Claims to have overseen a $1 trillion reduction in the US deficit by cutting govt spending.
Called his tenure a “revolution in government,” likening it to a historic overhaul of federal spending.
DOGE claims to have saved Americans $130 billion, approximately $807 per taxpayer as of March 27.
The team aimed for a 15% reduction in federal spending by eliminating waste and fraud.
DOGE found 4.6 million federal credit cards for 2.3-2.4 million employees, calling it excessive.
Trump to announce new pharma tariffs soon
Donald Trump announced plans to impose new tariffs targeting the pharmaceutical industry.
But did not specify whether life-saving medications would be exempt or disclose the exact rates.
He stated that the tariffs aim to encourage drugmakers to produce within the US, emphasizing that the country should not rely on foreign nations, as seen during Covid-19.
Some drugmakers are preemptively shipping medicines to the US via air, fearing that Trump’s announcement may include European-manufactured pharmaceutical products.
Trump’s “America First” stance includes reciprocal tariffs on countries like India, which he claims has high tariff rates on US goods.
India proposes tariff cut on US farm import
Amid US tariff pressures, India has proposed lowering tariffs on US agricultural items, including almonds and cranberries.
India agreed to tariff cuts on bourbon whiskey, almonds, walnuts, cranberries, pistachios, and lentils in talks with US trade representative Brendan Lynch.
India has been open to reducing tariffs on over half of US imports worth $23 billion.
Last month, India reduced the custom duty on bourbon whiskey from 150% to 100%, and further tariff adjustments are expected
“Trump signals softer tariff stance, with potential breaks for some countries April 2.”
India-US tariffs will work out well: Trump
US President Donald Trump praised Indian Prime Minister Narendra Modi as a “great friend” and a “very smart man” while discussing US-India relations.
Despite expressing admiration, Trump reiterated concerns over India’s high tariffs, calling it one of the “highest-tariffing nations.”
The US plans to impose reciprocal tariffs on India starting April 2, with Trump accusing India of restrictive trade practices.
Trump revealed that India may soon acquire F-35 stealth fighters, signaling stronger defense ties between the two nations.
Elon Musk’s Starlink is close to securing final regulatory approval in India, partnering with Reliance and Airtel to expand in the market.
Softbank to invest $1 Trillion on Al in US
SoftBank Group plans to create Al industrial parks across the US with a potential investment of over $1 trillion, according to Nikkei.
CEO Masayoshi Son is expected to visit the US to discuss the initiative.
The industrial parks would utilize Al-equipped robots to address labor shortages.
In January, Son partnered with OpenAl and Oracle to launch a $100 billion joint venture for Al infrastructure in the US.
The venture aimed to scale up to at least $500 billion for data centers and physical campuses.
Initial funding came from SoftBank, OpenAl, Oracle, and Abu Dhabi state investor MGX, with first computing system is built in Texas.
60% of new IT service deals in India are cut to less than 18 months
Over 60% of new IT service deals in India are now shorter, lasting less than 18 months, reflecting clients’ preference for agility and faster results.
IT exports are projected to reach $210 billion in FY25, accounting for 18% of global outsourcing spending.
In 2025, India’s IT spending is forecast to rise by 11.2%, fueled by investments in software, cybersecurity, and data analytics.
Hiring is set to rebound in FY25, with over 150,000 freshers expected to be recruited, reversing recent declines
Tier-1
IT vendors may see mid-to-high single-digit growth rates in 2025, while
Tier-2
Vendors could experience accelerated growth but face scaling challenges.
Blackstone to buy stake in TikTok USA
Blackstone is considering a small minority investment in TikTok’s US operations, joining a group of ByteDance’s existing Non-Chinese investors led by Susquehanna International Group and General Atlantic.
“To comply with US law, an investor group is spearheading the creation of a separate US TikTok entity with Chinese ownership under 20%.
Trump has suggested he may extend the deadline further and reduce tariffs on China to facilitate a deal.
ByteDance has not disclosed the amount of new investment required to buy out Chinese shareholders.
The US administration was, according to earlier reports, working on a plan that would give Oracle and ByteDance investors control of TikTok’s US arm.