Techmeme Ride Home – Monday, March 17, 2025 Episode Title: Europe Wants To Wean Itself Off Silicon Valley
Host: Brian McCullough, Ride Home Media
Release Date: March 17, 2025

1. Europe’s Strategic Shift Away from Silicon Valley Big Tech

The episode opens with a significant development in the European tech landscape. Brian McCullough discusses how Europe is actively seeking to reduce its dependency on foreign, particularly Silicon Valley, big tech companies. This move is driven by the recognition of technology as a geopolitical imperative, where reliance on external tech can lead to vulnerabilities such as spying, hacking, and potential disruptions during conflicts.

At [00:04], McCullough states:

"Europe wants to wean itself off of foreign big tech. Could this be the sign of a future rift with Silicon Valley?"

Key Points:

• Eurostack Initiative: Over 100 EU companies, including leaders from cloud computing, telecommunications, and defense sectors, have collectively urged European lawmakers to adopt the "Eurostack" strategy. This initiative aims to build a sovereign digital infrastructure, reducing reliance on non-European tech giants.

• Stakeholder Involvement: The push involves prominent companies like Airbus, Element, Ova, Cloud, Marina, Nextcloud, and Proton. These entities have called for the EU to adopt a digital industrial strategy that prioritizes local innovation and self-sufficiency.

• Geopolitical Context: The call for Eurostack gains momentum against the backdrop of heightened geopolitical tensions, exemplified by U.S. Vice President J.D. Vance’s critical remarks at the Munich Security Conference. These tensions have underscored the fragility of the international order, prompting Europe to safeguard its digital sovereignty.

• Security Concerns: Wolfgang Oles, COO of Ecosia and a signatory to the Eurostack letter, emphasizes the necessity of digital sovereignty by referencing the Ukrainian crisis:

  "Trump switched off access to vital infrastructures because Ukraine was not ready to cede its land and hand over its minerals."

• Public Procurement Policies: The strategy includes advocating for public procurement requirements that favor European tech providers, thereby stimulating demand and investment in local digital solutions.

2. Rippling vs. Deal: A Battle for HR Tech Supremacy

The podcast then shifts focus to a high-stakes legal battle within the human resources (HR) technology sector. Rippling is suing rival startup Deal, accusing it of corporate espionage.

Key Points:

• Allegations: Rippling claims that Deal hired a mole in its Dublin office to access trade secrets via a honeypot Slack channel. The lawsuit alleges that the employee, referred to as DS, was tasked with gathering sensitive information on sales leads, pitch decks, and other proprietary data.

• Company Profiles: Both Rippling and Deal have transformed the HR landscape into multi-billion dollar operations. Rippling is valued at approximately $13.5 billion, while Deal holds a valuation exceeding $12 billion.

• Corporate Espionage Claims: Rippling’s general counsel, Vanessa Wu, stated:

  "We're all for healthy competition, but we won't tolerate when a competitor breaks the law."

• Legal Maneuvers: Rippling has obtained a court order for DS’s phone, but Deal’s CEO, Alex Boaziz, and his father, Philippe Boaziz, have been implicated in facilitating the espionage efforts. The lawsuit highlights the aggressive tactics employed to gain a competitive edge within the rapidly expanding HR tech market.

• Industry Impact: This legal tussle underscores the intense competition and high stakes involved in the HR technology sector, where both companies are striving to dominate an increasingly lucrative market.

3. Klarna’s Strategic Partnership with Walmart’s OnePay and CoreWeave’s AI IPO Prospects

Next, the discussion focuses on Klarna’s latest strategic moves and the implications for CoreWeave’s anticipated IPO.

Klarna and OnePay Partnership:

• Deal Overview: Klarna will replace an existing firm to offer Buy Now, Pay Later (BNPL) services to Walmart shoppers in the US later this year. Additionally, OnePay may acquire a stake in Klarna, positioning Klarna favorably ahead of its expected IPO.

• Market Position: Klarna, valued at approximately $15 billion after an 85% valuation drop from its peak of $46 billion in 2021, is preparing for a significant public offering. Brian McCullough notes the rivalry with Affirm, another major BNPL player, especially as Affirm’s stock has seen declines.

• Strategic Importance: Klarna’s partnership with OnePay is seen as a strategic maneuver to solidify its market position and expand its global footprint, contrasting Affirm's more US-centric approach.

CoreWeave’s IPO Prospects:

• Company Overview: CoreWeave, an AI hyperscaler providing GPU and CPU rental services, is preparing for one of the first major AI-focused IPOs of the year. Valued at $35 billion, CoreWeave aims to raise $4 billion to support its expansion.

• Market Context: The podcast compares CoreWeave’s potential IPO to recent tech IPOs like ARM and Reddit, highlighting CoreWeave’s significance as a bellwether for the AI industry’s public market perception.

• Risks and Opportunities: A major risk for CoreWeave is its lack of customer base diversification, with 62% of its revenue in 2024 coming from Microsoft. Despite this, securing a five-year, $11.9 billion contract with OpenAI marks a substantial growth opportunity.

• Future Outlook: The success of CoreWeave’s IPO could set the tone for future AI-related public offerings, influencing investor confidence and the broader tech industry’s trajectory.

4. Apple’s iPhone 17 Air: A Harbinger of Major Design Overhauls

The final topic of the episode revolves around Apple’s upcoming iPhone 17 Air, signaling significant design changes and future innovations.

Key Points:

• Design Innovations: The iPhone 17 Air will feature a slimmer profile, a 6.6-inch screen with slim borders, and a dynamic island interface. Despite its thinner build, Apple has maintained battery life through redesigned display and silicon components.

• Component Changes: The device, codenamed D23, incorporates Apple’s in-house modem chip, the C1, enhancing power efficiency but excluding mmWave 5G support. This change aids in achieving the thinner design without compromising battery performance.

• Future Prospects: According to Mark Gurman, quoted in the podcast, the iPhone 17 Air is the foundation for future Apple devices, potentially leading to portless and foldable iPhones by 2026. These innovations aim to streamline Apple’s product line and push the boundaries of smartphone design.

• Regulatory Considerations: Apple’s decision to retain the USB-C connector in the iPhone 17 Air aligns with European Union regulations mandating the switch from proprietary ports, avoiding potential conflicts with regulators.

• Broader Implications: The iPhone 17 Air represents the start of a new design philosophy for Apple, with intentions to extend these changes across other products. This includes incorporating more advanced technologies and exploring form factors such as foldable devices to celebrate the iPhone’s 20-year anniversary.

Notable Quotes:

• Brian McCullough:

  "Europe wants to wean itself off of foreign big tech. Could this be the sign of a future rift with Silicon Valley?"
  [00:04]

• Vanessa Wu, Rippling’s General Counsel:

  "We're all for healthy competition, but we won't tolerate when a competitor breaks the law."
  [During Rippling vs Deal Discussion]

• Wolfgang Oles, COO of Ecosia:

  "Trump switched off access to vital infrastructures because Ukraine was not ready to cede its land and hand over its minerals."
  [During Europe’s Digital Sovereignty Segment]

• Mark Gurman, Apple Scoop:

  "The iPhone 17 Air represents the beginning of a sea change for Apple, ushering in a new industrial design that accompanies this year's revamped iOS."
  [During Apple’s iPhone 17 Air Discussion]

Conclusion

This episode of Techmeme Ride Home provides a comprehensive overview of pivotal developments in the tech world. Europe’s strategic move towards digital sovereignty, intense rivalries within the HR tech sector, Klarna’s strategic partnerships amid its IPO preparations, and Apple’s groundbreaking design changes collectively highlight the dynamic and evolving nature of the technology landscape. Listeners gain valuable insights into how these shifts may influence future industry trends, regulatory frameworks, and global tech power dynamics.

This summary excludes non-content sections such as advertisements, intros, and outros to focus solely on the substantive discussions presented in the episode.