China And California Deals Go Through Some Growing Pains, Ask Tesla, Quixey

In a strong indication of the links in tech between China and Silicon Valley, social network giant Tencent has acquired a 5 percent stake in U.S. electric car maker Tesla for $1.8 billion. The rationale behind the deal is potential collaboration on automated ride-sharing and delivery services as well as related information, entertainment and e-commerce content. Alibaba-backed search engine startup Quixey in Silicon Valley has failed with strategic misalignment, cultural differences and disagreements over a commercial contract to blame. Quixey was one of Alibaba's first bets in Silicon Valley tech startups, and the Chinese conglomerate led financing of well more than $100 million in Quixey, starting from 2013 and ending with a $30 million loan and $10 million in cash last summer. It's a high-profile fail for Alibaba and its U.S. investment strategy.