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

In today’s edition we are tackling the following:

🤖 Baidu integrates OpenClaw AI into search for 700M users.
🚫 Pentagon briefly lists Alibaba as military-linked, then withdraws filing.
💸 AI founders cash out early amid secondary market frenzy.
📉 Unicorn startups face steep valuation cuts as funding tightens.
🌕 Elon Musk proposes lunar catapult to launch AI satellites.

TECHNOLOGY

• Meta is working to bring facial recognition to its smart glasses (The New York Times) 

  _{^{More: The Verge, The Information, Engadget}}

  • Meta plans to integrate facial recognition into Ray-Ban smart glasses later this year.

  • The feature would identify people in real-time, raising significant privacy and surveillance concerns.

  • Privacy advocates warn that the technology could enable stalking and unauthorized data collection.

• OpenAI retires GPT-4o ahead of Valentine's Day, sparking user backlash (The Guardian) 

  _{^{More: TechRadar, Daily Dot}}

  • OpenAI is retiring GPT-4o on February 13, one day before Valentine's Day.

  • Users who formed emotional connections with the model's conversational warmth expressed grief online.

  • The timing has sparked accusations of cruelty from users who relied on GPT-4o.

• Baidu integrates OpenClaw AI into search app for 700M users (CNBC) 

  _{^{More: Invezz, Benzinga, TradingView}}

  • Baidu rolled out OpenClaw AI agent integration ahead of Lunar New Year celebrations.

  • The Austrian-developed AI agent now reaches 700M monthly active users directly.

  • The move intensifies China's AI competition as tech giants race for market dominance.

BUSINESS

• Bitcoin Ponzi scheme CEO sentenced to 20 years in prison (The Block)

  _{^{More: CoinDesk}}

  • Praetorian Group CEO Ramil Palafox received a 20-year sentence for $200M fraud.

  • The scheme defrauded over 90k investors worldwide while promising daily returns up to 3%.

  • Palafox spent millions on luxury cars, homes, and designer goods using investor funds.

• AI gold rush breaks Silicon Valley taboo as founders cash out early (The Wall Street Journal) 

  _{^{More: U.S. News, Crunchbase}}

  • AI startup founders are selling shares in secondary sales before IPOs.

  • The trend reflects unprecedented investor demand and concerns about valuation sustainability amid uncertainty.

  • Employee-focused tender offers have become retention tools as companies delay public listings.

• EU pursues policy to protect business verticals amid global trade tensions (Supply Chain Brain) 

  _{^{More: Bruegel, Intereconomics, Chambers}}

  • The European Union is developing policies to shield critical business sectors.

  • The initiative responds to increasing global trade disruptions and geopolitical economic pressures.

  • Protections aim to ensure supply chain resilience and industrial competitiveness across Europe.

• Explore the essential startup reading database*

  • Learning from the best is how you become the best. We've curated a list of top-notch articles, blogs, and readings that are pivotal for startup founders.

  • And here's the kicker: we've organized it all in a user-friendly Notion database for easy access and tracking. Double win!

  • As aspiring leaders and innovators, this list serves as a bridge to absorbing the knowledge that has propelled others to success.

MARKETS

WORLD

• US adds Alibaba to military-linked companies list, then withdraws filing (Economic Times) 

  _{^{More: Bloomberg, South China Morning Post}}

  • Pentagon briefly added Alibaba, Baidu, and BYD to the list of military-linked firms.

  • The filing was withdrawn minutes later without explanation, roiling affected company shares.

  • The move comes weeks before President Trump's expected spring trip to China.

• Russia blocks Meta's WhatsApp messaging service (Reuters) 

  ^{_{More: CNBC, NBC News, Al Jazeera}}

  • Russian authorities have blocked WhatsApp, cutting off over 100M users.

  • The ban escalates Russia's crackdown on Western tech companies and communication platforms.

  • Moscow urged users to switch to state-backed messaging app MAX instead.

• Binance fires investigators over potential Iran sanctions violations (Fortune) 

  _{^{More: The Block, BeInCrypto, Benzinga}}

  • Binance dismissed at least five compliance investigators who flagged Iran-related transactions.

  • The investigators uncovered over $1B in potential sanctions violations involving USDT.

  • The firings raise questions about Binance's compliance commitment under government monitorship.

FUTURISM

• Elon Musk plans giant catapult on Moon to launch AI satellites (Futurism) 

  _{^{More: TechCrunch, Engadget, The Mirror}}

  • Musk told xAI employees the company needs a lunar factory for AI satellites.

  • The plan includes an electromagnetic mass driver catapult to launch satellites into orbit.

  • SpaceX has pivoted from Mars to the Moon, claiming a lunar city achievable in 10 years.

• QuitGPT campaign urges ChatGPT boycott over Trump ties (Futurism) 

  _{^{More: MIT Technology Review, TechRadar, UNILAD}}

  • OpenAI president Greg Brockman donated $25M to Trump's MAGA Inc super PAC.

  • The grassroots movement urges users to cancel subscriptions and switch to alternatives.

  • Over 700k people have signed pledges to quit ChatGPT amid political backlash.

• Microsoft AI CEO predicts all white-collar tasks automated within 18 months (Futurism) 

  _{^{More: Fortune, Decrypt, Yahoo Finance}}

  • Mustafa Suleyman predicts AI will achieve human-level performance on professional tasks soon.

  • Jobs like lawyers, accountants, project managers, and marketers face near-term automation.

  • Studies show mixed results, with some AI tools actually slowing productivity by 20%.

CONTENT

• ‘Ben Thompson on AI Ads, SaaS, and Media’ (Cheeky Pint)

  • Ben Thompson joins John Collison to examine AI-driven advertising, SaaS durability, and structural shifts reshaping internet economics.

  • They revisit Stratechery’s origins, the 1,000 true fans model, and evolving creator monetization dynamics.

  • Thompson critiques U.S. TikTok policy failures, defends crypto’s relevance, and offers candid feedback on Stripe’s ACH execution.

• ‘Engineers Are Becoming Sorcerers’ with Sherwin Wu (Lenny’s Podcast)

  • Sherwin Wu explains how OpenAI reduced code review times dramatically using AI-assisted developer workflows.

  • The conversation explores shifting managerial roles and widening productivity gaps between AI power users and peers.

  • Wu argues the next two years offer engineers rare leverage before software development transforms fundamentally.

• ‘Something Big Is Happening’ + AI and Romance Novels (Hard Fork)

  • Kevin Roose and Casey Newton unpack signals suggesting a broader inflection point across artificial intelligence markets.

  • They analyze how generative AI is disrupting romance publishing and challenging traditional creative labor economics.

  • The episode closes with cultural reflections on technological acceleration and one optimistic development worth noting.

EXTRAS

• Apple wins long-running patent battle against Optis over 4G technology (9to5Mac) 

  • Apple secured a victory in a multi-year legal dispute over 4G patent licensing.

  • The ruling saves Apple hundreds of millions in potential royalty payments to Optis.

  • The decision sets a precedent for future telecommunications patent litigation in the industry.

• Venture capital unicorn companies face valuation pressure (Axios) 

  _{^{More: PitchBook, TechCrunch, Crunchbase}}

  • Unicorn startups are experiencing significant valuation cuts amid tightening investment conditions.

  • Investors are demanding profitability over growth, reversing previous funding era priorities.

  • Nearly half of US unicorns haven't been priced in three years.

• Anthropic expands board with former Microsoft CFO Chris Liddell (The Wall Street Journal) 

  • Anthropic appointed Chris Liddell, former Microsoft and GM CFO, to its board.

  • The hire signals Anthropic's focus on financial discipline and potential IPO preparation.

  • Liddell brings extensive experience scaling technology companies through major growth phases.

AND MORE

• U.S. trade team moves to narrow scope of steel and aluminum tariffs amid implementation issues.

• Blackstone’s private equity fund for wealthy investors gained about 20% last year, aided by SpaceX and OpenAI stakes.

• Hire AI engineers who build, deploy, and maintain models that perform reliably in production.

• Goldman Sachs’ top lawyer resigns after Department of Justice documents reveal links to Jeffrey Epstein.

• Malaysian Anti-Corruption Commission chief sues Bloomberg, calling its report misleading and defamatory.

• German Chancellor Merz calls for strengthened European defense and strategic autonomy at the Munich Security Conference.

• EU leaders agree on an economic restructuring plan to boost competitiveness amid pressure from the U.S., China, and Russia.

• Mexico’s Senate approves initial vote backing a 40-hour workweek measure.

• The Chinese yuan’s rally against the Indian rupee may extend as policymakers differ on currency strategy.