Good morning and welcome to Tech News Now, TheStreet’s daily tech rundown.

In today’s edition, we’re covering Elon Musk’s latest move in the war between Delaware and his brands, Nvidia’s latest foothold in the burgeoning AI space, and a startling number to contend with in the world of tech employment.

Neuralink’s new home

Tesla CEO Elon Musk had quite the ugly surprise near the end of January when a Delaware judge struck down his $55 billion pay package at Tesla, effectively knocking his title of “world’s richest man” off the shelf. Musk was quick to take to X to bemoan the situation, tweeting “Never incorporate your company in the state of Delaware” on Jan. 30.

Musk has now switched Neuralink’s state of incorporation from Delaware to Nevada, according to a Feb. 9 report from Bloomberg. This echoes the same move he made in 2022 when he renamed Twitter to X, also moving its state of incorporation from Delaware to Nevada.

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Musk has a history of setbacks in Delaware, where Tesla  (TSLA)  is still officially incorporated. The CEO says he intends to move the EV company as well, but to do so, a shareholder vote will be required first.

Tech companies bleeding employees

It’s only mid-February, but tech companies have already cut 34,000 jobs this year, including big names like Microsoft, Snap, eBay, and PayPal. While a range of reasons have been given for the workforce reductions, analysts believe the changes signal some companies taking stock of their spending and making room to invest further into AI.

“The lay-offs are going to continue and it may get worse. It’s become contagious,” Jefferies analyst Brent Thill said.

2023 saw a whopping 263,000 jobs cut across the tech sector, per data from Layoffs.fyi.

Nvidia’s custom AI chips 

Nvidia is already a mainstay in the world of AI chips, but now the technology giant is building an entire unit designed to make chips for cloud computing companies. This means these chips would be custom-built for a customer’s specific needs.  

Reuters was the first to report this after hearing from nine sources. Considering the rise in demand for chips for artificial intelligence tasks, Nvidia is looking to secure its leading position and offer an alternative to in-house designed chips that brands like Amazon or Meta could opt for. This new unit would differ from Nvidia’s off-the-shelf chips as these can be customized for whatever use case these brands need.

Beyond Amazon and Meta, Reuters also reports that Nvidia has met with Google, Open AI, Microsoft, and brands in the video games, telecom, and automotive sectors.

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