WSJ Tech News Briefing: Palmer Luckey’s New Startup Wants to Replace Silicon Valley Bank

Date: October 16, 2025
Host: Julie Chang, The Wall Street Journal

Overview

In this TNB Tech Minute, Julie Chang covers major stories shaking up the tech industry. The main focus is Palmer Luckey’s new startup bank, Erebor, aimed at filling the void left by Silicon Valley Bank's collapse in 2023. The podcast also highlights EssilorLuxottica's record-breaking quarter thanks to AI-driven smart glasses, and Foxconn's evolving AI strategies with OpenAI and Nvidia.

Key Discussion Points and Insights

1. Erebor: Palmer Luckey's New Banking Venture

[00:16–01:01]

• Background:

  • Palmer Luckey, co-founder of Anduril and creator of Oculus, was left vulnerable when Silicon Valley Bank (SVB) collapsed in 2023.
  • "It nearly took down Lucky's defense startup Anduril with it, according to people familiar with the matter." — Julie Chang [00:27]

• Erebor’s Mission:

  • Luckey has been quietly at work on Erebor, a new bank intended to serve technology and crypto firms.
  • Erebor just received preliminary regulatory approval to operate.

• Funding and Backers:

  • Raised $275 million so far.
  • Investors include Peter Thiel, Bain Capital Crypto, and 776.
  • "It's backed by a number of investors including Peter Thiel, Bain Capital, Crypto and 776." — Julie Chang [00:41]

• Leadership:

  • Palmer Luckey will not run the bank day-to-day but will sit on its board.

2. EssilorLuxottica and Meta: Smart Glasses Boom

[01:01–01:31]

• Financial Performance:

  • EssilorLuxottica, known for Ray-Ban, posts its best quarter ever: $8 billion revenue (12% year-over-year growth).
  • "The eyewear group posted record breaking quarterly revenue, the equivalent of $8 billion, up 12% from last year and beating analysts expectations." — Julie Chang [01:05]

• Innovation Drive:

  • Partnership with Meta brought AI-powered smart glasses to market.
  • Strong consumer demand is credited to the presentation of three new models.

3. Foxconn Teams Up with OpenAI and Nvidia

[01:31–01:57]

• AI Push:

  • Foxconn’s chairman has met with OpenAI and has plans to meet with Nvidia for possible AI collaborations.

• Shift in Business Focus:

  • AI servers and cloud/networking products have replaced consumer electronics as Foxconn’s leading revenue generators in Q2.
  • "Its revenue from cloud and networking products including AI servers, topped smart consumer electronics to become its biggest business driver in the second quarter." — Julie Chang [01:42]

• Stock Market Boost:

  • Foxconn stock surged 8% on the news, bringing 2025’s gains to 21%.
  • The company forecasts a more than 170% Q3 revenue jump from AI server sales.

Notable Quotes & Memorable Moments

• "A new bank co founded by Palmer Lucky is looking to fill the gap left by Silicon Valley Bank." — Julie Chang [00:21]
• "[SVB’s collapse] nearly took down Lucky's defense startup Anduril with it, according to people familiar with the matter." — Julie Chang [00:27]
• "Erebor won preliminary regulatory approval yesterday to serve technology and cryptocurrency firms." — Julie Chang [00:36]
• "The eyewear group posted record breaking quarterly revenue, the equivalent of $8 billion, up 12% from last year and beating analysts expectations." — Julie Chang [01:05]
• "Foxconn stock jumped 8% on the news, bringing year to date gains to 21%." — Julie Chang [01:56]

Timestamps for Key Segments

• 00:16 – Palmer Luckey’s Erebor bank aims to replace SVB for tech and crypto clients
• 01:01 – EssilorLuxottica’s record quarter and new AI smart glasses with Meta
• 01:31 – Foxconn’s partnerships with OpenAI/Nvidia boost AI business and stock price

Tone & Language

Julie Chang maintains an informative, to-the-point, and analytical tone, focusing on succinctly breaking down key business and tech developments for busy listeners.