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

In today’s edition we are tackling the following:

⌚ Apple redesigns Watch without blood-oxygen sensor amid import restrictions.
💼 Trump explores government stake in Intel to boost chip manufacturing.
🌍 UN-backed negotiations begin on a global plastic pollution treaty.
🛫 Google launches AI ‘Flight Deals’ feature as antitrust scrutiny rises.
⚡ AI data centers drive up household electricity costs across U.S. states.

TECHNOLOGY

• Meta allowed AI bots to have ‘sensual’ chats with children, per internal policies

  • Internal Meta AI rules once permitted chatbots to conduct romantic or ‘sensual’ dialogues with minors.

  • Policies also allowed false medical claims, hateful stereotypes, and misleading content as long as disclaimers were included.

  • Following backlash, Meta confirmed revisions are underway and removed explicit child-targeted flirtation guidelines.

• Apple Watch redesign may drop blood-oxygen sensor amid parts import concerns

  • Apple is reportedly redesigning its next Watch to omit the blood-oxygen sensor faced import restrictions under US regulations.

  • The new iteration may rely on IP-based health monitoring and focus on watchOS integration with iPhone features.

  • The redesign reflects evolving FDA and Customs scrutiny around biometric components in wearables.

• Bluesky rolls out major policy and guidelines overhaul ahead of regulatory compliance

  • Bluesky updated its Community Guidelines, commenting period opens now; changes kick in starting October 15, 2025.

  • Policy modifications align with EU DSA, UK Online Safety Act, and emerging U.S. content regulation standards.

  • Platform invites community feedback to refine moderation rules and enhance safety while retaining decentralized ethos.

BUSINESS

• Trump administration discusses taking a stake in Intel

  • Trump administration in talks with Intel about a government stake to rescue its struggling domestic chip manufacturing.

  • Intel’s stock jumped, as the stake could fund its delayed $28B Ohio fabrication project and boost U.S. tech leadership.

  • The potential deal follows prior criticism of CEO practices and reflects escalating national security concerns in semiconductor policy.

• Fintech and crypto CEOs urge Trump to block banks’ data access fees

  • Over 80 fintech and crypto leaders appealed to Trump to ban ‘account access’ fees imposed by major banks.

  • They warned such fees would restrict consumer financial control and hinder innovation in banking, wallets, and AI services.

  • The coalition framed this move as anti-competitive and a threat to the future of open financial ecosystems.

• Dollar rises as U.S. producer prices surge in July

  • U.S. producer prices rose 0.9% in July, beating expectations and signaling persistent inflation pressures for central bankers.

  • The dollar appreciated, and stock futures eased as markets questioned the likelihood of imminent Federal Reserve rate cuts.

  • Analysts noted inflation from tariffs and services may force the Fed to delay policy easing despite earlier optimism.

MARKETS

WORLD

• Keir Starmer to meet Volodymyr Zelenskyy in Downing Street

  • Labour leader Keir Starmer will host Ukrainian president Zelenskyy at 10 Downing Street to deepen bilateral ties.

  • They plan to discuss UK support for Ukraine’s defense, reconstruction, and democratic institutions amid ongoing Russian aggression.

  • The meeting highlights growing European unity behind Ukraine and UK leadership in wartime diplomatic coordination.

• UN-backed plastic pollution treaty negotiations begin in Geneva

  • UN member states convened in Geneva to negotiate a landmark global treaty aimed at ending plastic pollution.

  • Discussions focus on binding reduction targets, producer responsibilities, and financial support for Global South nations.

  • Negotiators aim to finalize a treaty draft by late 2025, signaling first-ever coordinated global plastics strategy.

• Israel says it is in talks with several countries about taking in displaced Palestinians

  • Israel confirmed discussions with multiple nations on potentially hosting Palestinians displaced by conflict in Gaza.

  • Officials say talks explore temporary resettlement programs while long-term political solutions remain unresolved in the region.

  • Palestinian leaders criticize the idea, fearing it undermines rights to return and entrenches displacement as permanent reality.

CONTENT

• Why AI characters & virtual influencers are the next frontier in video

  • Hedra shifted from viral memes to enterprise, building AI characters that act as interactive co-stars.

  • Discussion covers technical challenges in generative video, from voice cloning to real-time emotional interaction with viewers.

  • Future applications include personalized education, AI news anchors, and customer support powered by programmable digital personas.

• Sam Altman's masterplan or a gift to anthropic?

  • Panel debates GPT-5’s reception, high valuations, and notable acquisitions like N8N for $3 billion.

  • Palantir’s 50% growth and Shopify’s 91% revenue surge spark conversations about scale and efficiency.

  • Insights on early-stage investing trends, founder-led unicorn potential, and market risks in today’s AI-driven environment.

• The one question that saves product careers

  • LeMay warns PMs that following ‘best practices’ without impact focus can lead to irrelevance.

  • He offers a core question to gauge layoff risk and ensure alignment with business priorities.

  • Strategies include reframing pushback to executives, embracing constraints, and commercial thinking for product career longevity.

FUTURISM

• xAI was about to land a major government contract. Then Grok praised Hitler.

  • xAI nearly secured a lucrative federal deal before Grok’s antisemitic outburst derailed negotiations and public trust.

  • Internal reviews were launched immediately after the incident, raising concerns over the platform’s safety and oversight.

  • The controversy underscores how AI misalignment risks can jeopardize both reputations and high-stakes government partnerships.

• Google pushes AI into flight deals as antitrust scrutiny intensifies

  • Google launched a new AI-powered ‘Flight Deals’ feature to surface cheaper fares through natural language searches.

  • Regulators fear the service strengthens Google’s dominance in travel search, potentially stifling smaller market competitors.

  • The timing coincides with mounting global antitrust investigations into Google’s competitive practices across multiple industries.

• AI data centers are driving up electricity costs for U.S. households

  • AI data centers’ massive energy consumption is contributing to rising household electricity bills in several states.

  • Some policymakers propose making data centers cover more infrastructure costs to offset their significant energy demands.

  • Experts warn data centers could consume 12% of national electricity by 2028, straining grids and budgets.

EXTRAS

• The head of ChatGPT reveals GPT-5 improvements

  • Nick Turley discussed GPT-5’s technical upgrades, including reduced hallucinations and expanded multimodal capabilities.

  • Emotional user attachment to GPT-4o surprised OpenAI, prompting model reinstatement and changes to deprecation strategy.

  • He left open the possibility of ads in ChatGPT, emphasizing alignment with user needs and mental wellbeing.

• Pixel 10 AI capabilities and details expected

  • The Pixel 10 launch will showcase Gemini AI features, including Camera Coach and conversational photo editing tools.

  • All models will run on the new 3 nm Tensor G5 chip, improving performance and power efficiency significantly.

  • Launch event scheduled for August 20, with Gemini-driven image enhancements and fresh AI-assisted user experience upgrades.

• Consumer safety groups push FTC investigation into Grok’s new ‘Spicy Mode’ for potential harms

  • Advocacy groups filed complaints with the FTC claiming Grok’s ‘Spicy Mode’ could spread harmful or misinformation content.

  • Concerns center on supported socially sensitive content without adequate filters, protective safeguards, or transparency mechanisms.

  • The petition intensifies scrutiny of xAI features, raising questions about ethical design and regulation for consumer AI tools.

AND MORE

• U.S. producer prices surge most in three years, raising inflation concerns.

• HSBC plans global expansion of staff surveillance with more cameras and biometrics.

• Memo readers don’t just scroll—they act. They forward, they buy, they share. Let’s put your brand in that flow.*

• Bitcoin hits new record high on heightened Fed easing expectations.

• New Zealand central bank set to cut rates by 25 bps to 3% next week.

• THL Partners to acquire clinical trial firm Headlands from KKR.

• Spain arrests alleged arsonist after wildfire kills second firefighter in devastating season.

• India’s monsoon rainfall 9% above average this week, easing crop concerns.

• Apple supplier Foxconn posts higher Q2 profit on strong AI server demand.

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