Good morning. Over the weekend, I listened to an episode of ‘The Knowledge Podcast’ where host Shane Parrish interviewed Frank Slootman, chairman and CEO at Snowflake, and walked away with an interesting quote he made on the show: “Performance is something that we will give more time; behavior we won’t. And that’s because behavior is a choice, not a skill set.”

Well ok then, Frank. Time to make this week our b**ch.

Let’s jump into today’s storylines.

In today’s digest:

• Sam Bankman is so not freed

• Nvidia to Tesla…”move over”

• Pulse Points: What’s Trending

CRYPTO

From mansion to mom’s house…to behind bars

In an unprecedented turn of events that has sent shockwaves through the financial world, Sam Bankman-Fried, the billionaire founder of cryptocurrency exchange FTX, has been sent to jail over allegations of witness tampering. The courtroom drama unfolded over the weekend with a tension that could cut through steel, as U.S. District Judge Lorna Schofield ordered Bankman-Fried's detention.

The Press and Prosecution

Since his arrest in December, SBFs court appearances have become a series of pre-trial hearings, with the Justice Department accusing him of a "pattern of witness tampering and evading his bail conditions." The man's been busy, sending over 100 emails to the media and making over 1,000 phone calls to press members, most of which lasted 20 minutes each.

Defense attorneys argued that SBF was merely exercising his First Amendment rights. Members of the press, including the New York Times, even filed letters objecting to his detention. But the prosecution saw it differently, describing his actions as a “means of indirect witness intimidation through the press.” That intimidation? Sammy boy leaking private diary entries of his ex-girlfriend Caroline Ellison and former chief executive of his failed crypto hedge fund, Alameda Research.

Caroline, on the other hand, pleaded guilty to federal charges in December 2022. She’s cooperating with the government and is expected to be a star witness.

The ruling. Judge Kaplan, in a 33 minute ruling, found probable cause for witness tampering. He sent Bankman-Fried to jail ahead of his trial, citing his contribution to the Ellison story as an attempt to “hurt” and “discredit” a witness.

The bigger picture: In a world where the lines between legality and morality often blur, the Bankman-Fried case offers a vivid illustration of the complex interplay between law, media, and power. With over 100 phone calls with a Times author, restricted internet access, and a ban from smartphone use, the case paints a picture of a man caught in a web of his own making.

As the legal proceedings unfold, one can't help but ponder the broader implications of this case on free speech, the role of media, and the integrity of the legal system. The SBF saga is more than a legal battle; it's a reflection of our times, where truth, justice, and the very fabric of our society are put to the test.

TECH

Nvidia Outshines Tesla

In a world where artificial intelligence (AI) is no longer a sci-fi fantasy, Nvidia's recent AI-driven rally has pushed its earnings multiple higher than Tesla's. Yes, you read that right. Nvidia, the tech giant known for its graphics processing units (GPUs), is now outpacing Elon Musk's electric vehicle empire.

The Numbers Game: Nvidia's earnings multiple has soared to a staggering 220 times forward earnings, leaving Tesla's 70 times trailing in the dust. This rally was fueled by Nvidia's AI technology, which has become a critical component in various industries, from gaming to autonomous driving.

Why It Matters: This isn't just a battle of numbers; it's a testament to the power of innovation. Nvidia's success in AI technology is reshaping industries and driving growth in ways previously unimaginable. Their GPUs are not just for gaming anymore; they're powering the future.

According to analysts, Nvidia's growth is "not just a flash in the pan." The company's focus on AI and data centers has positioned it as a leader in the tech industry. As one expert put it, "Nvidia's AI-driven approach is a game-changer."

Tesla's Response? While Tesla might be lagging in earnings multiple, don't count them out just yet. The electric vehicle giant continues to innovate and expand, and who knows what Musk has up his sleeve next.

A race to watch…Nvidia's rise is a thrilling chapter in the ongoing saga of tech innovation. With AI at the forefront, the company's success story is a vivid reminder of the limitless potential of technology. As for Tesla, the race is far from over. The silicon showdown continues, and the world watches with bated breath.

Pulse Points

Neeraj Khemlani resigns as CBS news chief. CBS News President Neeraj Khemlani, who has overseen the network's news division and local stations for over two years, revealed on Sunday his decision to resign.

Ark Invest’s bitcoin ETF gets delayed. The U.S. Securities and Exchange Commission (SEC) has postponed its verdict on the Ark 21Shares Bitcoin ETF, marking another setback in the prolonged endeavor to integrate crypto assets into mainstream U.S. financial trading platforms.

Black-owned brands garner $14 billion from major retailers. Leading retailers have teamed up with not-for-profit Fifteen Percent Pledge ensuring that an equivalent 15% of their retail space champions black-owned enterprises.

Revised investor settlement greenlit for AMC Entertainment. Delaware judge gives the greenlight to AMC’s updated shareholder settlement this past Friday, sending their preferred stock up 27% and common stock down 27%.