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

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

💻 Apple’s M5 chip boosts AI performance 4x across MacBook, iPad, and Vision Pro.
⚙️ Anthropic releases Claude Haiku 4.5, faster and cheaper than Sonnet 4.
🤖 Honor unveils robot phone with fold-out camera and emotional AI features.
🇨🇳 Trump to set price floors and 100% tariffs targeting China’s rare earths.
🎌 Japan warns OpenAI over Sora 2’s use of copyrighted anime content.

TECHNOLOGY

• Apple unleashes M5, the next big leap in AI performance for Apple silicon (Apple Newsroom) 
  _{^{More: 9to5Mac, CNBC, MacRumors}}

  • M5 delivers over four times the peak GPU compute performance for AI compared to the M4 chip.

  • New chip features Neural Accelerators in each GPU core and an improved sixteen-core Neural Engine for faster processing.

  • Available now in the fourteen-inch MacBook Pro, iPad Pro, and Apple Vision Pro, starting at $1,599 for MacBook.

• Anthropic launches new version of scaled-down Haiku model (TechCrunch) 
  _{^{More: CNBC, VentureBeat, The New Stack}}

  • Claude Haiku 4.5 matches Sonnet 4 performance at one-third the cost and twice the speed for coding tasks.

  • Model scores seventy-three percent on SWE-Bench Verified, equaling larger models released earlier this year.

  • Available free to all users on the Claude.ai platform, it costs one dollar per million input tokens for developers.

• Honor reveals a new smartphone with a fold-out robotic camera arm (CNBC) 
  _{^{More: GSMArena, Android Police, Interesting Engineering}}

  • Honor announced a Robot Phone featuring a gimbal camera that moves autonomously with AI-powered multi-modal intelligence capabilities.

  • A device designed as an emotional companion with personality, making sounds and reacting to surroundings like the Wall-E character.

  • Full details will be revealed at Mobile World Congress Barcelona in March as part of a $10B U.S. dollar in AI transformation.

BUSINESS

• Ontario premier criticizes Trump after Stellantis moves production from Canada to the US (Associated Press) 
  _{^{More: CBC, CTV News, Yahoo Finance}}

  • Stellantis shifts Jeep Compass production from Brampton, Ontario, to Illinois as part of a $13B U.S. investment.

  • Ontario Premier Doug Ford blames Trump tariffs, threatens retaliation, saying Canada must fight back against economic pressure.

  • Canada threatens legal action against Stellantis after the company received billions in subsidies for an electric vehicle battery plant.

• Mark Cuban warns that OpenAI's new plan to allow adults-only erotica in ChatGPT could backfire (Fortune) 
  _{^{More: Axios, Business Insider, Yahoo Finance}} 

  • Cuban warns parents will abandon ChatGPT over concerns kids could bypass age verification for adult content starting in December.

  • The move comes amid Deutsche Bank data showing OpenAI subscription growth has stalled in Europe, signaling revenue struggles.

  • The company already faces lawsuits from families alleging ChatGPT conversations contributed to teenage suicides and mental health crises.

• The Trump administration will set price floors across a range of industries to combat China, Bessent says (CNBC) 
  _{^{More: CNN, CSIS, Notus}}

  • Treasury Secretary Bessent announces the government will establish price floors across industries following China's rare earth export restrictions.

  • Trump threatens additional one-hundred percent tariffs on China ahead of the expected Xi meeting in South Korea.

  • The U.S. is considering equity stakes in strategic companies to reduce dependence on China's rare earth mineral dominance.

MARKETS

WORLD

• Madagascar coup leader Randrianirina to be sworn in as president, sources say (Reuters)

  _{^{More: Al Jazeera, CBC, France 24}}

  • Colonel Michael Randrianirina will be sworn Friday after ousting President Rajoelina following youth-led protests over poverty.

  • The African Union suspended Madagascar immediately, UN condemned the unconstitutional power change after the military takeover this week.

  • Randrianirina promises elections within eighteen to twenty-four months and will accelerate the appointment of a new prime minister.

• Government publishes evidence in collapsed China spy case (BBC) _{^{More: ITV News, LBC, South China Morning Post}}

  • Deputy adviser Matthew Collins stated that China conducts highly capable, large-scale espionage operations threatening UK economic security.

  • The case against Christopher Cash and Berry collapsed after prosecutors deemed the evidence insufficient for a national security threat.

  • Conservatives demand full China files release, question why statement references Labor government's positive relationship with Beijing.

• Hegseth Says US Will 'Impose Costs' on Russia if Ukraine War Does Not End (Reuters) 
  _{^{More: CNN, Washington Post, Epoch Times}}

  • Defense Secretary warns US will impose costs on Russia for continued aggression if war doesn't end soon.

  • Trump is considering providing Ukraine with Tomahawk missiles capable of striking Moscow ahead of Friday's Zelensky meeting.

  • Hegseth pledges firepower coming through European weapons purchases, urges allies to significantly increase their defense spending.

FUTURISM

• Japan asks OpenAI not to infringe on 'irreplaceable' manga and anime content (Engadget) 
  _{^{More: The Register, GameSpot, Dexerto}}

  • The Japanese government formally requests that OpenAI stop Sora 2 from generating videos using copyrighted anime and manga content.

  • Minister Minoru Kiuchi calls anime and manga irreplaceable treasures, warns OpenAI must respect copyright or face legal action.

  • Politicians threaten to invoke the AI Promotion Act Article 16, requiring disclosure of Sora specifications and filtering processes.

• Liberate bags $50M at $300M valuation to bring AI deeper into insurance back offices (TechCrunch) 
  _{^{More: GlobeNewswire, Yahoo Finance, CB Insights}}

  • San Francisco startup raises fifty million from Battery Ventures to automate insurance sales, service, and claims with AI agents.

  • The company scaled from ten thousand monthly automations to 1.3 million resolutions, and now serves over sixty insurance customers nationwide.

  • Voice AI assistant Nicole handles customer calls while backend agents complete end-to-end tasks across SMS and email.

• Google releases Veo 3.1, adds it to Flow video editor (TechCrunch) 
  _{^{More: 9to5Google, BGR, The Decoder}}

  • Google launches Veo 3.1 video model with enhanced realism, improved prompt adherence, and richer audio generation capabilities.

  • Flow filmmaking tool now supports audio generation across Ingredients to Video, Frames to Video, and Extend features.

  • The new Insert feature adds objects to scenes with automatic shadow and lighting adjustments. The removal tool is coming soon.

CONTENT

• Ben Horowitz and Ali Ghodsi: How to Run a $100 Billion Business (a16z)

  • Ben Horowitz and Databricks CEO Ali Ghodsi share lessons on scaling leadership, high-performance cultures, and deal-making.

  • They discuss radical candor, balancing ambition with burnout, and executing Microsoft-level partnerships with precision.

  • The episode reveals how Databricks evolved through crises to become one of the world’s most valuable private companies.

• AI Bubble, Stablecoin Boom, and Runnin’ Down a Dream (BG2)

  • Bill Gurley and Brad Gerstner break down the $3T AI CapEx boom and red flags in circular AI transactions.

  • They explore the explosive rise of stablecoins, digital finance rails, and crypto’s next regulatory challenges.

  • Gurley also shares insights from his new book Runnin’ Down a Dream and his transition toward purpose-driven work.

• Genspark’s Super AI Agent Is INSANE (Greg Isenberg)

  • Greg Isenberg demos Genspark’s multi-agent AI platform capable of image, video, and presentation creation for $20/month.

  • The tool integrates GPT-5, Claude, and Gemini to optimize results and automate workflows across business tasks.

  • It includes an AI calling agent, photo editor, and MCP integrations—positioning Genspark as an all-in-one AI suite.

• One set of small overlooked stocks could skyrocket to record highs*

  • A fatal flaw in AI could devastate the Nasdaq, sending shares of Nvidia, Microsoft, Apple, and more plummeting.

  • "For AI... We have to produce massive electricity that we don't have. Nuclear has become very safe, very good." President Trump.

  • Here's why nuclear stocks are expected to skyrocket under Trump's second term.

EXTRAS

• Top Walmart exec says American manufacturing comeback is real and good for business (CNBC) 

• _{^{More: Washington Post, Walmart Corporate, Consumer Goods Technology}}

  • Walmart CEO John Furner says nearly two-thirds of products sold are made, grown, or assembled in the United States.

  • The company is investing in a new beef processing facility in Kansas, creating over six hundred jobs and partnerships for domestic production.

  • Furner emphasizes investing in US manufacturing benefits business flexibility, employment, jobs, and strengthens supply chain resilience.

• How much can Tesla pay Elon Musk? Delaware's Supreme Court will decide (NPR) 
  _{^{More: BBC, Reuters, SEC}}

  • Delaware Supreme Court hears arguments over Musk's compensation package, potentially worth over $100 billion at current prices.

  • The lower court voided the 2018 package, finding board members too close to Musk. The second shareholder vote in 2024was also rejected.

  • Tesla moved its incorporation from Delaware to Texas after ruling that, broader Dexit trend prompts new Delaware corporate law protections.

• Tariffs are pushing prices higher, and consumers are feeling the hit, Fed's Beige Book shows (CNBC) 
  _{^{More: Invezz, PYMNTS, Atlanta Fed}}

  • Federal Reserve Beige Book reports tariff-induced input cost increases across many districts, with businesses passing costs to consumers.

  • Economic growth has changed little since September, and consumer spending has nudged lower except for the wealthy's strong luxury and travel spending.

  • Report comes amid government shutdown entering third week, delaying key economic data releases from Labor and Commerce departments.

AND MORE

• China’s Communist Party will meet in plenum to shape the next five-year plan.

• S&P 500 ends higher on strong bank earnings and chip stock rallies.

• Shutdown may cost the U.S. economy about $15 billion weekly, Treasury says.

• U.S. judge blocks Trump’s planned mass federal layoffs during shutdown.

• Trump signs executive order ensuring troops are paid amid shutdown.

• Trump authorizes CIA covert operations in Venezuela against Maduro.

• Oil prices rise as Trump says India will halt Russian oil purchases.

• Your brand deserves to be in front of people who actually make decisions. That’s Memo’s audience.*

• Dozens are still missing days after Mexico’s floods devastated 100,000 homes.