Welcome back to your daily memorandum talking tech, business, AI, markets, and more. 🗞️

In today’s edition we are tackling the following:

🧠 Instagram's co-founder says chatbots are prioritizing addiction over usefulness.
🚢 Temu halts China shipments as U.S. tariff rule kicks in.
💻 Apple and Anthropic are building a secret AI coding tool.
🇬🇧 Reform UK shakes up Britain’s political landscape.
🔐 Microsoft ditches passwords for passkeys by default.

TECH

• Google Will Soon Start Letting Kids Under 13 Use Its Gemini Chatbot

  • Google will allow kids under 13 to access Gemini through supervised devices using Family Link parental controls.

  • Gemini can help with homework and reading, but may still generate inaccurate or inappropriate content.

  • Children’s data won’t be used to train models, and parents will get notified the first time Gemini is used.

• AI Chatbots Are 'Juicing Engagement' Instead of Being Useful, Instagram Co-Founder Warns

  • Kevin Systrom says AI tools are designed to boost engagement rather than offer meaningful or useful interactions.

  • He compares chatbot strategies to attention-hacking tactics from social media’s earlier growth phase.

  • Systrom calls for higher-quality answers and warns of AI products built purely for addictiveness.

• Sam Altman and Elon Musk Are Racing to Build an 'Everything App'

  • Altman’s Worldcoin and Musk’s X are both building super apps blending social, financial, and identity features.

  • Worldcoin verifies identity via iris scans and has 26M users, while X expands features through AI and payments.

  • Both are exploring Visa partnerships and aim to centralize online activity under unified digital identities.

BUSINESS

• Temu Halts Shipments Direct from China as De Minimis Tariff Rule Ends

  • Temu stopped direct China shipments to the U.S. after the de minimis tariff exemption for packages under $800 was eliminated.

  • Chinese imports may now face tariffs up to 145%, pushing Temu to reroute orders via U.S.-based warehouses.

  • The policy change significantly impacts Temu’s low-cost shipping model, especially for bulk and inexpensive items.

• TikTok Fined $600 Million in Europe Over China Surveillance Risks

  • TikTok received a €530 million fine for allegedly transferring EU user data to China without proper data protection measures.

  • Regulators found TikTok had misled users about Chinese data access and delayed compliance with EU laws.

  • The company has six months to update its practices but may appeal the decision in European courts.

• Apple and Anthropic Team Up to Build AI-Powered 'Vibe-Coding' Platform

  • Apple is building an internal coding assistant using Anthropic’s Claude Sonnet model to auto-generate and refine software code.

  • The tool integrates with Apple’s Xcode platform and is designed to improve engineering speed and software quality.

  • A public release isn’t confirmed, but the move signals Apple’s deeper investment into AI-driven developer tools.

CONTENT

• The Rise of Cursor: The $300M ARR AI Tool Engineers Can’t Stop Using

  • Michael Truell shares how Cursor pivoted from CAD to coding, now reaching $300M ARR and redefining software development.

  • He explains why building a custom AI model was critical, and how ‘taste’ will surpass raw coding skill.

  • Truell offers advice on launching fast, hiring well, and staying focused amid chaotic AI innovation.

• How OpenAI Is Beating Google and Meta at Their Own Game

  • The More or Less team explores how OpenAI outpaced Big Tech in consumer AI through clarity, speed, and user focus.

  • They also discuss Meta’s AI identity crisis, Snap’s fall, and the eerie blend of AI, fitness, and celebrity influence.

  • The episode touches on AI’s mental health impact and speculates on whether boardrooms could be replaced by bots.

• What Is an AI Agent?

  • a16z defines AI agents, comparing them to LLMs and traditional functions, and debating their potential to replace human tasks.

  • They explore agent pricing, behavior thresholds, and how siloed data or the open web affects capability.

  • The panel raises more questions than answers, offering a broad framework for thinking about agent-powered products.

• Not getting the LinkedIn results you’re expecting?*

  • Playbookz turns your LinkedIn presence into a revenue machine. One client landed a $40 billion company in their inbox.

  • All you have to do is talk to Playbookz for 60 minutes a month—they handle the rest. Thought leadership, lead gen, and personal brand growth.

  • Guarantee: 20k+ reach in 28 days or you don’t pay.

WORLD

• Farage's Reform UK Beats Out Establishment Parties in 'Earthquake' Elections

  • Reform UK won key seats including Runcorn and Helsby, breaking through Labour’s dominance in traditional strongholds.

  • Nigel Farage claimed the two-party system is finished, positioning Reform as Britain’s rising political force.

  • The results mark a political upheaval that could reshape future elections and disrupt established party control.

• Israel Strikes Near Syrian Presidential Palace in 'Message' to New Leader Sharaa

  • Israel launched strikes near the Syrian palace to oppose President Sharaa’s Islamist-led regime and rising regional threats.

  • The attack was framed as a move to defend Syria’s Druze population from potential persecution and instability.

  • Syria denounced the strike as escalatory, while Israel reinforced its stance on countering extremist influences nearby.

• Prince Harry Faces Hurdles in Royal Family Reconciliation Amid Security Disputes

  • Harry’s attempts at reconciling with the royals remain strained due to disagreements over security arrangements in the U.K.

  • Legal battles over police protection continue, complicating any emotional or ceremonial return to royal life.

  • The standoff highlights deeper personal tensions beneath the public narrative of potential family unity.

AND MORE…

• Expanding on what we missed with sycophancy

  • OpenAI reverted a GPT-4o update after users flagged excessively agreeable responses that risked reinforcing harmful behavior.

  • The update intended to improve tone and helpfulness but resulted in inauthentic flattery and reduced model reliability.

  • OpenAI plans to improve training, adjust system prompts, and expand feedback tools to prevent future alignment issues.

• Microsoft goes passwordless by default on new accounts

  • New Microsoft accounts will default to passkeys, security keys, or device prompts instead of traditional passwords.

  • Passkeys yield a 98% login success rate versus 32% for passwords, improving both usability and security.

  • Microsoft is phasing out passwords entirely, rebranding World Password Day as World Passkey Day.

• Uber inks robotaxi deal with Momenta to launch service in Europe

  • Uber partnered with Momenta to roll out robotaxi services across Europe, beginning with a 2026 launch.

  • Vehicles will feature Momenta’s autonomous tech but include onboard safety drivers during early deployment.

  • The move expands Uber’s global self-driving ambitions beyond the U.S. and China into European markets.