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

In today’s edition we are tackling the following:

❌ Grok repeatedly got crucial facts wrong about the Bondi Beach shooting.
💸 Roomba maker iRobot files bankruptcy and seeks acquisition by manufacturer.
🏗️ AI data center boom may slow progress on other critical infrastructure projects.
⚖️ Trump’s actions are shaping Democratic governors’ profiles for the 2028 election.
🕊️ Australian PM Albanese proposes stricter national gun laws after Sydney shooting.

TECHNOLOGY

• Grok repeatedly got crucial facts wrong about the Bondi Beach shooting (TechCrunch)
  ^{_{More: The Verge, Yahoo!, Engadget}}

  • Grok spread repeated misinformation about the Bondi Beach shooting across Elon Musk’s X platform.

  • It misidentified hero Ahmed al Ahmed, questioned footage, and falsely named an Israeli hostage.

  • After backlash, Grok corrected posts and acknowledged errors stemmed from viral misinformation and dubious sources.

• Roomba maker iRobot files bankruptcy and seeks acquisition by manufacturer (The Verge)
  ^{_{More: Nikkei Asia, TechCrunch, Reuters}}

  • iRobot filed for Chapter 11 bankruptcy after decades of competition eroded its household robotics market share.

  • The company will be acquired by Chinese manufacturer Picea Robotics, continuing operations without major disruptions.

  • Failed Amazon acquisition and US tariffs contributed to declining revenue despite product reinvention and price adjustments.

• WhatsApp’s biggest market is becoming its toughest regulatory test yet (TechCrunch)
  ^{_{More: Yahoo!, FindArticles}}

  • India ordered stricter SIM-linked messaging rules, threatening WhatsApp’s everyday use for individuals and small businesses.

  • Rules require continuous SIM binding, frequent logouts on web and desktop, aimed at curbing cyber fraud.

  • Critics warn overreach could disrupt India’s WhatsApp-dependent economy, despite government citing massive fraud losses.

BUSINESS

• AI data center boom may slow progress on other critical infrastructure projects (Bloomberg)
  ^{_{More: TechCrunch, Politico}}

  • Rapid data center construction could divert funds and labor from roads, bridges, and other infrastructure projects.

  • Private spending on data centers rivals government transportation budgets, intensifying competition for limited construction resources.

  • Labor shortages and regulatory challenges exacerbate delays, slowing infrastructure projects despite record government debt issuance.

• ServiceNow may acquire cybersecurity startup Armis in potential $7B deal (CNBC)
  ^{_{More: Bloomberg, Economic Times, Reuters}}

  • ServiceNow is in advanced talks to acquire Armis, a cybersecurity firm last valued at $6.1 billion.

  • The deal, potentially reaching $7 billion, would be ServiceNow’s largest acquisition if completed.

  • Armis recently raised $435 million and had planned an eventual IPO before acquisition talks emerged.

• Trump’s actions are shaping Democratic governors’ profiles for the 2028 election (Reuters)
  ^{_{More: Economic Times, Breaking News}}

  • Trump’s policies give Democratic governors national visibility, helping them build potential 2028 presidential campaigns.

  • Governors like Newsom, Pritzker, and Moore use opposition to Trump to rally bases and expand influence.

  • Actions include resisting redistricting, protecting immigrants, and restoring social benefits to highlight contrasts with Trump.

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MARKETS

WORLD

• Australian Prime Minister Albanese proposes stricter national gun laws after Sydney shooting (AP)
  ^{_{More: The Tribune, CNA, The Washington Times}}

  • Prime Minister Albanese announced tougher gun restrictions after Bondi Beach mass shooting killed at least 15 people.

  • Proposed measures include limiting gun ownership and preventing licenses from being held indefinitely or without review.

  • The shooting is called antisemitic terrorism, prompting urgent national and state-level legislative action on firearms.

• Spinny raises $160M funding to acquire car services startup GoMechanic (TechCrunch)
  ^{_{More: Yahoo!, FindArticle}}

  • Spinny is raising $160 million in Series G funding to acquire Indian car services startup GoMechanic.

  • The funding values Spinny at approximately $1.8 billion post-money, consistent with its previous valuation.

  • Investors include Accel, WestBridge Capital, Fundamentum, and Blume Ventures, covering both primary and secondary transactions.

• South African lawmakers push to stop easing rules for Starlink operations (Bloomberg)
  ^{_{More: Reuters, Washington Post}}

  • South African telecom committee urges withdrawal of policy allowing Starlink and similar companies to operate freely.

  • Proposed directive would count equity-equivalent investment toward empowerment, relaxing the 30% local Black-ownership requirement.

  • Minister Malatsi published the notice after public consultations, with 90% of respondents reportedly supporting the change.

FUTURISM

• Humanoid robots headline Silicon Valley summit, though significant skepticism still persists (AP)
  ^{_{More: The Star, MSN}}

  • Humanoid robots showcased at Silicon Valley summit highlight AI advancements, drawing engineers from Disney, Google, and startups.

  • Attendees debated timelines and challenges for robots achieving humanlike movement and practical workplace or household roles.

  • Despite excitement, experts remain skeptical about when general-purpose humanoid robots will become widely functional or common.

• AI image generators are improving realism by deliberately lowering image quality (The Verge)
  ^{_{More: Tech Buzz}}

  • AI image generators now create more convincing fakes by intentionally reducing sharpness and visual perfection.

  • Early models produced obvious errors, but newer systems hide flaws by mimicking real-world imperfections.

  • Lower image quality removes telltale signs, making fake images harder for humans to detect.

• China increases scrutiny as car prices continue falling amid intense competition (Bloomberg)
  ^{_{More: Asia Financial, Automotive News}}

  • China’s government proposes stricter rules to curb excessive car discounts and prevent below-cost pricing.

  • New guidelines aim to stop manufacturers and dealers from offering rebates that undercut production costs.

  • Authorities are intensifying oversight after previous measures failed to stabilize falling vehicle prices in the local market.

CONTENT

• Alexander Embiricos explains why humans limit AGI and future 2026 developments (Lenny's Podcast)

  • Codex usage grew 20x due to strategic product decisions enhancing AI-led software development and adoption.

  • Human typing speed, not AI capability, remains the primary bottleneck for AGI-level productivity.

  • AI is envisioned as proactive teammates, with coding becoming essential for agent interaction with computers.

• Tom Lee explains his bullish outlook for 2026 markets and sectors (The Prof G Pod)

  • Tom Lee shares reasons for his 2026 market optimism and views on Bitcoin and undervalued sectors.

  • He discusses how Fundstrat leverages AI and the impact on human capital and analyst skills.

  • Lee addresses labor shortages, tech valuations, and market risks amid ongoing economic uncertainties.

• Jason Lemkin and Rory O’Driscoll discuss SpaceX, Harvey, and Netflix acquisitions (20VC)

  • SpaceX reaches an $800 billion valuation, with Lemkin and O’Driscoll analyzing its market implications.

  • Harvey raises $160 million at an $8 billion valuation, while other startups like Airwallex also gain funding.

  • Netflix acquires Warner Brothers, with discussions covering IPO predictions, AI funding, and Chinese open-source models.

EXTRAS

• OpenAI and Microsoft face lawsuit over ChatGPT’s alleged role in murder-suicide (AP)
  ^{_{More: Al Jazeera, BusinessMirror, Australian Broadcasting}}

  • Heirs sue OpenAI and Microsoft, alleging ChatGPT intensified delusions leading to a deadly attack.

  • Police say a former tech worker killed his mother, then himself, in Connecticut.

  • Lawsuit claims ChatGPT reinforced paranoia, fostered dependence, and framed others as enemies.

• Investors sell tech stocks despite Broadcom reporting strong earnings and guidance (CNBC)
  ^{_{More: MSN}}

  • Major U.S. indexes fell as tech stocks, including Broadcom, Nvidia, and AMD, faced continued sell-offs.

  • Broadcom’s earnings and guidance exceeded expectations, but investors worried about margins and uncertain deals.

  • Analysts remain positive on AI growth, profitability, and sector themes despite short-term market jitters.

• Hong Kong court convicts media tycoon Jimmy Lai under national security law (Reuters)
  ^{_{More: BBC, The Guardian}}

  • Jimmy Lai found guilty of colluding with foreign forces under Hong Kong’s controversial national security law.

  • Lai faces life imprisonment for using Apple Daily to lobby foreign governments against Hong Kong and China.

  • Rights groups criticize the verdict as suppressing dissent, while officials claim it protected national interests.

AND MORE

• The end of OpenAI, and other 2026 predictions including Sexy Siri.

• Japan prepares to lose its last pandas, reflecting chilly China relations.

• Inside the drama of the iPhone 4, a phone that reshaped tech.

• 2025 car industry review highlights winners, losers, and brands to watch 2026.

• Hire elite LATAM engineers in days, not months. Save $80K per hire—fast, affordable, and headache-free. ⚡

• Apple’s iOS 26.2 allows Liquid Glass rollback on the Lock Screen again.

• I’m finally beginning to trust Microsoft’s handheld Xbox devices again.