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

In today’s edition, we are tackling the following:

⚖️ California bill would require AI companion safety protocols starting in 2026.
🧠 Claude gains automatic memory features for enterprise workflows.
📱 Apple introduces new iPhone defenses targeting spyware exploits.
💰 OpenAI and Microsoft agree on tentative partnership restructuring.
🚗 Mexico hikes tariffs on Chinese cars in trade overhaul.

TECHNOLOGY

• California bill regulating AI companion chatbots nears becoming law

  • California’s SB 243 requires AI companion operators to implement safety protocols and accountability measures on January 1, 2026.

  • Bill mandates protections against content promoting self-harm, sexual content with minors, and requires clear disclosures to users.

  • If signed by Governor Newsom by October 12, the law will make California the first state to regulate AI companions.

• Anthropic’s Claude gains automatic memory for Teams & Enterprise users

  • Claude now auto-remembers past chat context, preferences, and project priorities without needing manual prompts for Team/Enterprise.

  • Memory data is editable, optional, with an incognito mode that excludes chats from being stored to maintain privacy.

  • Feature targets work continuity: teams benefit from unchanged project goals, client needs, and recurring workflows seamlessly referenced.

• New iPhone security feature severely hampers spyware makers

  • Apple introduced memory integrity enforcement to protect against memory corruption exploits used by surveillance and spyware tools.

  • System change targets kernel and critical user-process protections, making many zero-day exploit tactics far less effective.

  • The new enforcement runs by default in iPhone 17/Air models, tightening Apple’s hardware-based defense against device targeting.

BUSINESS

• OpenAI and Microsoft reach tentative deal to revise partnership

  • OpenAI and Microsoft signed a non-binding MOU that allows OpenAI to restructure its organization with altered governance.

  • The agreement hands Microsoft continued early access to OpenAI’s AI tech while the nonprofit retains control over equity.

  • Regulatory approval is now required from multiple states; critics argue this could reshape competitive balance in the AI sector.

• Google, Meta, OpenAI face FTC inquiry on chatbot impact on kids

  • The FTC has ordered several major AI companies to reveal protections in place for children using chatbot companions.

  • The probe will examine testing, monitoring, limiting use by minors, content moderation, and emotional harm mitigation.

  • Companies have introduced some safety features; the inquiry will assess whether those ‘guardrails’ are adequate.

• Trump asks appeals court to allow removal of Fed Governor Lisa Cook

  • Trump is asking the appeals court to overturn a judge’s ruling that blocked his attempt to fire Lisa Cook immediately.

  • Cook denies allegations of pre-appointment mortgage fraud; maintains removal ‘for cause’ must align with law.

  • The case raises fundamental questions about Fed independence and presidential authority ahead of upcoming rate decisions.

MARKETS

WORLD

• Belarus pardons 52 prisoners after Trump’s intervention

  • Belarus released 52 political prisoners following Trump’s request, marking a rare diplomatic concession from Lukashenko’s government.

  • In exchange, the U.S. eased sanctions on Belarus’s airline Belavia, signaling cautious rapprochement despite tensions.

  • Human rights groups remain skeptical, warning that further repression could quickly erase goodwill generated by prisoner release.

• Mexico to raise tariffs on Chinese cars to 50% in major trade overhaul

  • Mexico announced 50% tariffs on Chinese vehicle imports, aiming to protect local manufacturing jobs and investments.

  • The sweeping overhaul targets $50 billion in imports, also impacting steel, textiles, electronics, and agricultural products.

  • Officials stress the plan strengthens competitiveness while reducing dependence on nations lacking formal trade agreements.

• Heat waves expose fossil fuel majors to mounting climate liability risk

  • Successive global heat waves intensify pressure on oil and gas giants over their contributions to climate change.

  • Lawsuits, regulatory inquiries, and investor backlash are increasingly linking fossil fuel profits to worsening environmental crises.

  • Companies face urgent pressure to accelerate renewable investments or risk growing reputational, legal, and financial consequences.

CONTENT

• OpenAI’s $10BN secondary sale, ramp hits $1BN ARR & Brex Hits $700M

  • Investors discuss Ramp’s $1B ARR, Brex’s $700M, and question whether AI growth is inflating all valuations.

  • OpenAI’s $10B secondary sale could mint 1,000 new millionaires, reshaping San Francisco’s tech wealth landscape.

  • Conversations extend to Anthropic’s author settlement, ASML’s Mistral stake, and major acquisitions reshaping SaaS.

• $46B of hard truths: Why founders fail and why you need to run toward fear

  • Ben Horowitz emphasizes confronting fear, arguing that avoidance undermines leadership while resilience often predicts founder success.

  • He revisits ‘Good Product Manager/Bad Product Manager,’ revealing its viral legacy and lessons from unconventional startup management.

  • Horowitz highlights AI opportunities, the risks of ‘founder mode,’ and lessons from backing giants like Stripe and Databricks.

• Inside OpenAI enterprise: forward-deployed engineering, GPT-5, and more

  • OpenAI executives share case studies, from T-Mobile’s AI voice support to Amgen’s drug discovery breakthroughs.

  • Discussion covers GPT-5’s multimodal benchmarks, progress on hallucination reduction, and enterprise customization.

  • They highlight why 95% of AI deployments fail, stressing infrastructure, autonomy, and real-world execution challenges.

FUTURISM

• Encyclopedia Britannica sues Perplexity over AI ‘answer engine’

  • Britannica and Merriam-Webster accuse Perplexity of copying content without permission, redirecting users away from original sites.

  • Lawsuit includes trademark claims against Perplexity for falsely attributing AI-hallucinated content to Britannica and Merriam-Webster brands.

  • Plaintiffs seek damages and a court order preventing further unauthorized use of their copyrighted content in Perplexity’s system.

• The hidden world of AI data annotators: jobs behind every chatbot

  • Freelancers annotate, evaluate, and even provoke AI responses, often under emotional strain, pay cuts, or opaque guidelines from big tech.

  • Some make thousands per month, but work is inconsistent and unstable, with ethical concerns over content exposure and compensation fairness.

  • The future seems tilted toward smaller, specialized annotator pools as platforms move from generalists toward domain experts.

• Sierra CEO Bret Taylor warns of dot-com bubble echoes

  • Bret Taylor compares current AI investment mania to the dot-com era, while arguing long-term value still exists.

  • Sierra focuses on AI agents resolving customer issues end-to-end, charging only when the solution succeeds.

  • He says voice, multilingual, and regulated agents are rising frontiers, nudging enterprise software toward purpose-built automation.

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EXTRAS

• Zookeeper in Thailand dies after being attacked by lions in front of visitors

  • A 58-year-old zookeeper was fatally mauled by lions at Safari World Bangkok after leaving his vehicle.

  • Visitors witnessed the attack in the drive-through exhibit; initial rescue efforts lasted fifteen minutes before intervention.

  • Authorities say safety protocols may have been breached; the zoo has closed the area pending investigation.

• Paramount Skydance prepares Ellison-backed bid for Warner Bros. Discovery

  • Skydance, under David Ellison and funded by Larry Ellison, is preparing a mostly cash bid for Warner Bros Discovery.

  • The acquisition would combine Skydance’s recent takeover of Paramount with WBD’s studios, networks, streaming, and news assets.

  • Warner Bros shares soared ~30% on the rumor, Paramount’s jumped ~15%, though no formal offer has yet been submitted.

• How to turn off autoplay on your social media feeds

  • Platforms like Facebook, Instagram, X, and Threads allow disabling autoplay for videos or limiting sensitive or unsolicited content.

  • On Facebook, go to Settings → Preferences → Media → Video Playback and set videos to never autoplay.

  • Instagram and others offer similar toggles through media settings; not all platforms allow full disablement yet.

AND MORE

• U.S. stock futures are muted ahead of key inflation data expected tomorrow.

• Investigators find rifle and release images of person of interest in Charlie Kirk killing.

• U.S. Treasury Secretary Bessent to meet Chinese Vice Premier in Madrid next week.

• Need to scale an AI team quickly? Athyna delivers vetted talent globally in under a week.*

• Baltics urge U.S. Congress to preserve military aid despite proposed cuts.

• UN Security Council, with U.S. backing, condemns airstrike on Qatar but omits naming Israel.