News From the Nido
China’s Rare Earth Controls, Trump’s 100% Tariff, Strava’s IPO Run, Aeroméxico’s Market Return, Meta’s AI Talent Grab, Salesforce’s $1B Mexico Bet, CIBanco’s Exit, Sora's Surge
Your Monday dose of the stories shaping the week at Nido
China’s New Rare Earth Export Controls Shift Global Tech Dynamics
China has expanded its export controls on rare earth elements, adding five new materials and introducing licensing rules that affect foreign companies as well. Effective in November and December, this move enhances Beijing’s influence ahead of a key summit and echoes U.S. semiconductor restrictions. The changes, crucial for industries like EVs and defense, may exacerbate the divide between Chinese and Western technology sectors. (Reuters)
China’s latest export curbs are both a defensive and strategic maneuver—weaponizing its dominance in critical minerals to counter U.S. tech sanctions. This escalation marks a structural shift from interdependence to fragmentation in global tech supply chains, amplifying risks of long-term supply instability and strategic decoupling.
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Trump’s 100% Tariff: A New Chapter in U.S.-China Tensions
President Trump has announced a 100% tariff on Chinese imports starting November 1, 2025, following China’s restrictions on rare earth mineral exports vital for technology. This move heightens trade tensions and caused U.S. stock market declines, with China signaling potential retaliation. (Wall Street Journal)
Trump’s dramatic move to double tariffs on Chinese imports signals renewed friction in U.S.-China relations, rattling investor confidence. With tech and manufacturing supply chains in the crosshairs, expect more volatility, defensive reactions from companies, and a likely chill in cross-border dealmaking as markets digest impacts and await China’s countermeasures.
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Strava’s IPO Journey
Gen Z’s Shift to Running Culture Strava is gearing up for an IPO with a valuation of $2.2 billion, fueled by a surge in popularity among Gen Z who are increasingly turning to running clubs for socialization. The app has experienced an 80% year-over-year increase in downloads, with over $180 million spent on its subscription tier by September. (Techcrunch)
It’s clear that Gen Z is more health-conscious than previous generations, both in the activities they pursue and the products they consume. Health-focused retailers like Whole Foods and Erewhon have become cultural touchstones, while fitness influencers dominate online platforms. Running clubs, once niche, have surged in global popularity and now often double as social events. Diplo’s running club, for example, ends with a live DJ set. Other wellness-centered social activities, such as coffee shop DJ sessions, reflect a broader trend of gathering without compromising health. Against this backdrop, it is a strong moment for health and fitness tech companies to go public, and Strava is no exception.
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Aeroméxico Soars Back to Stock Markets After Restructuring
Aeroméxico is returning to U.S. and Mexican stock markets with a global share sale representing about 11% of its equity, valued at $4.3 billion. This dual offering includes American Depositary Shares on the NYSE and local shares on the BMV, addressing commitments from its Chapter 11 restructuring. However, challenges remain, including regulatory scrutiny and a stagnant Mexican equity market. (El Economista)
Aeroméxico’s re listing marks both a symbolic and strategic milestone in its post-bankruptcy recovery, but it also underscores the fragility of Mexico’s capital markets and the airline’s dependence on bilateral policy outcomes. The success of this offering will hinge less on nostalgia and more on whether the company can regain investor trust amid a turbulent aviation and regulatory landscape.
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AI Talent Shift Thinking Machines Lab Co-Founder Joins Meta
Andrew Tulloch, co-founder of Thinking Machines Lab, has left to join Meta as the company intensifies its efforts to attract top AI talent. Reports suggest that Meta previously sought to acquire the startup and lured several employees, including Tulloch, with enticing offers. A representative from Thinking Machines Lab confirmed his departure, citing personal reasons for his career shift. (Wall Street Journal)
We have seen how Meta’s ongoing effort to build an AI “super team” offering significant compensation packages to attract top AI talent. This trend hasn’t slowed down in recent months, with Meta acquiring talent from many leading AI companies. This acquisition is different, Tulloch was a co-founder of Thinking Machines Lab. Founded just this February, the startup closed a $2B seed round with a $12B valuation in July.-
Salesforce’s $1B Investment to Transform Mexico into AI Hub
Salesforce is committing $1 billion over five years to establish Mexico as a leader in tech innovation and digital transformation. This investment will create a new office in Mexico City, accommodating up to 2,000 employees, and launch a Global Delivery Center for multilingual consulting across the Americas. The initiative aims to foster collaboration between humans and AI agents to enhance customer success. (Salesforce)
Salesforce has established itself as the dominant CRM platform among large enterprises in Mexico, underpinning the customer operations of leaders such as Xcaret, Grupo Bafar, and FEMSA. These organizations rely on Salesforce for its scalability, robust data management, and seamless integration capabilities. The platform’s sophistication has made it a cornerstone of Mexico’s ongoing digital transformation, particularly as companies move from manual operations to agentic enterprise models, where humans collaborate with intelligent AI agents to optimize workflows, automate processes, and personalize customer experiences.
However, the same transformation that empowers corporate giants could deepen the technological divide across Mexico’s business landscape. While Salesforce dominates at the enterprise level, SMEs tend to prefer alternatives like HubSpot, Zoho CRM, Microsoft Dynamics, or locally developed systems. These solutions offer simpler interfaces, lower costs, and local support.
As Salesforce pivots toward agentic tools designed for complex organizations, a question emerges: what will this mean for smaller firms? -
CIBanco’s License Revoked Amid U.S. Sanctions Fallout
CIBanco has voluntarily surrendered its banking license due to severe operational challenges stemming from U.S. Treasury sanctions. Despite no evidence of wrongdoing found in over 100 days of investigations, the sanctions led to liquidity issues and asset devaluation. Tenedora CI, the bank’s majority shareholder, stated the decision was made to protect depositors and the financial system while committing to cooperate with regulators for an orderly closure. (El Economista)
SoftBank’s $5.4 Billion Robotics Acquisition
SoftBank Group is set to acquire ABB’s robotics division for $5.4 billion, marking a significant investment in the burgeoning robotics and AI industry. This move aligns with SoftBank’s “Physical AI” initiative, which aims to integrate AI with advanced robotics. ABB’s robotics unit, boasting 7,000 employees and $2.3 billion in revenue last year, will enhance SoftBank’s technology portfolio. (Bloomberg)
This acquisition underscores SoftBank’s ambition to dominate the intersection of AI and robotics. By integrating ABB’s proven industrial robotics expertise, SoftBank positions itself to accelerate innovation in smart manufacturing and automation. For ABB, selling the division provides immediate capital to refocus on electrification and automation, areas with steadier growth. Strategically, it’s a win-win: SoftBank gains a world-class robotics platform, while ABB can streamline its business and fund future ventures. The deal also reflects broader market trends, where AI-driven automation continues to attract significant investment from global tech giants. -
OpenAI’s Sora Surpasses 1 Million Downloads in Record Time
OpenAI’s new AI video app, Sora, achieved over 1 million downloads within five days, outpacing ChatGPT. The app, which is currently iOS-only and invite-based, topped Apple’s App Store chart. However, it faced criticism from the Motion Picture Association regarding copyright issues due to user-generated content. OpenAI plans to enhance controls for rights holders, while CEO Sam Altman requests patience during policy adjustments. (CNBC)
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