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

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

🚀 SpaceX to compete in Pentagon contest for autonomous drone tech.
🕵️ Grok faces more scrutiny over deepfakes as Irish regulator opens EU investigation.
🎙️ Apple takes on YouTube and Spotify with a new push into video podcasting.
💰 Nexperia to receive $60M loan from Invest International to boost chip output.
📉 S&P 500 and Nasdaq futures fall ahead of the U.S. market reopening.

TECHNOLOGY

• SpaceX to compete in Pentagon contest for autonomous drone tech (Reuters)
  ^{_{More: Bloomberg, Economic Times, AOL}}

  • Elon Musk’s SpaceX and xAI are competing in a secret $100M Pentagon drone challenge.

  • The contest seeks voice-controlled swarming technology that translates commands into coordinated autonomous drone operations.

  • The initiative aligns with Pentagon efforts to accelerate drone deployment amid rising security concerns before major U.S. events.

• Apple takes on YouTube and Spotify with new video podcasting push (CNBC)
  ^{_{More: Business Insider, Bloomberg, AOL}}

  • Apple will introduce an integrated video podcast experience on Apple Podcasts this coming spring.

  • The update aligns Apple Podcasts with competitors such as Spotify, YouTube, and Netflix by embracing video podcasts.

  • Users can switch between watching and listening, use picture-in-picture, and download episodes for offline viewing.

• Grok faces more scrutiny over deepfakes as Irish regulator opens EU investigation (AP)
  ^{_{More: Reuters, Financial Times}}

  • X is facing an EU privacy investigation after Grok generated nonconsensual deepfake images of users.

  • Ireland’s Data Protection Commission launched the probe under strict European data protection regulations.

  • Grok sparked backlash for creating sexualized images, including possible minors, prompting added restrictions and scrutiny.

BUSINESS

• Nexperia to receive $60M loan from Invest International to boost chip output (Reuters)
  ^{_{More: MSN, Yahoo!}}

  • Dutch state lender Invest International will provide Nexperia a $60M loan to modernize and expand production.

  • Nexperia, owned by China’s Wingtech, faced turmoil after Dutch intervention installed European leadership.

  • A Dutch court ordered a probe into mismanagement while allowing the current European management team to remain.

• S&P 500 and Nasdaq futures fall before U.S. market reopening (Bloomberg)
  ^{_{More: Investing.com, Stockwits}}

  • US equity futures declined as investors adopted a cautious stance ahead of market reopenings.

  • S&P 500 and Nasdaq 100 futures signaled risk aversion ahead of Tuesday trading.

  • Asian stocks slipped in thin trading while several regional markets remained closed.

• Lawmakers remain deadlocked, leaving no clear end to the partial government shutdown (AP)
  ^{_{More: ABC, ABC7, Yahoo!}}

  • Lawmakers and the White House show no compromise over immigration oversight funding for the Department of Homeland Security.

  • The shutdown began after Democrats and Donald Trump failed to agree on DHS funding legislation through the end of September.

  • Most DHS employees work unpaid as agencies like ICE and CBP continue operations using prior funding.

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MARKETS

WORLD

• Alibaba unveils Qwen3.5 as China’s chatbot race shifts to AI agents (CNBC)
  ^{_{More: Yahoo!, Tech Buzz}}

  • Alibaba launched Qwen3.5 AI models with open-weight and hosted versions, improving performance and cost efficiency.

  • Qwen3.5 features multimodal capabilities, understanding text, images, and video simultaneously within one system.

  • The model supports coding and agentic abilities and works with open-source AI agents like OpenClaw.

• Australia central bank sees no set path for future rates, following Feb hike (CNBC)
  ^{_{More: Reuters, Yahoo!, Bloomberg}}

  • The Reserve Bank of Australia warned inflation would stay high without recent interest rate hikes.

  • The board unanimously raised the cash rate to 3.85%, reversing one of the earlier cuts in 2025.

  • Policymakers see persistent inflation risks and may tighten again if upcoming data remains above target.

• Anthropic's revenue run-rate doubled in India in 4 months, says CEO (Reuters)
  ^{_{More: Economic Times, AOL}}

  • Anthropic’s India revenue run rate doubled in four months, driven by strong adoption of Claude Code.

  • India became Claude’s second-largest market after the U.S., following expansion and the launch of a new Bengaluru office.

  • Backed by Amazon and Alphabet, Anthropic’s tools have stirred concerns about disrupting India’s IT services industry.

FUTURISM

• China’s tech shock threatens the U.S. AI monopoly and is ‘just getting started’ (CNBC)
  ^{_{More: Intellectia}}

  • China’s rapid AI advances threaten U.S. dominance, moving quickly up the technology value chain, analysts warn.

  • Rory Green of TS Lombard predicts a Chinese tech stack could dominate globally within a decade.

  • China has narrowed the AI gap by building advanced models using increasingly capable homegrown chips.

• Apple teases March 4 event with possible MacBooks, iPads, iPhone updates (The Verge)
  ^{_{More: MacRumors, Mashable, TechRadar}}

  • Apple will host a special experience on March 4 in New York, with parallel press events worldwide.

  • Invitations offer minimal clues, featuring a colorful segmented logo hinting at a low-cost MacBook.

  • Reports suggest multiple Mac launches, new iPads, iPhone 17e, displays, and possibly an AI Siri preview.

• UK plans stricter AI chatbot regulations to protect children online (CNBC)
  ^{_{More: Al Jazeera, CNN}}

  • The UK government will enforce stricter rules on AI chatbots to ensure child safety online.

  • Announcement follows reports of X’s Grok producing sexually explicit images involving children.

  • European countries are increasingly considering banning social media platforms for users under sixteen.

CONTENT

• Dario Amodei predicts a future “country of geniuses” inside data centers (Dwarkesh Patel)

  • Amodei discusses AI scaling, diffusion, and whether continual learning is necessary for progress.

  • Frontier AI labs face challenges in profitability, compute investment, and regulatory risks.

  • He explores US-China competition and the possibility of hosting “genius” data centers in both countries.

• SaaS is Dead, according to Klarna CEO Sebastian Siemiatkowski (20VC)

  • Sebastian Siemiatkowski argues that SaaS is facing obsolescence as agentic AI reshapes software and services.

  • Klarna leverages AI in customer service to outperform competitors such as Revolut and Nubank.

  • CEO shares insights on valuations, investor strategies, company downsizing, and AI adoption cycles.

• Jess Mah shares strategies for founders to thrive in 2026 startups (The Startup Podcast)

  • AI and rapid change are increasing founder anxiety, burnout, and pressure in Silicon Valley.

  • Jess Mah emphasizes hands-on building, role flexibility, and domain expertise for startup success.

  • Founders must adopt AI tools and practical strategies to stay competitive in 2026.

EXTRAS

• New Mexico approves full investigation into Jeffrey Epstein’s Zorro Ranch activities (Reuters)
  ^{_{More: NBC, AOL}}

  • New Mexico lawmakers created a bipartisan committee to investigate Epstein’s Zorro Ranch crimes.

  • The investigation will seek testimony from survivors, locals, and identify officials aware of abuses.

  • Epstein’s ties to politicians, scientists, and investors are under scrutiny amid the released files.

• BHP’s rising copper profits accelerate its strategic shift from iron ore (Bloomberg)
  ^{_{More: Financial Post}}

  • BHP’s copper production growth and metals rally offset weak performance in iron ore.

  • Copper now accounts for over half of BHP’s profits, reflecting CEO Mike Henry’s strategy.

  • Six-month profit rose 22% to $6.2B, sending shares to record highs.

• Brazil’s Lula gets image boost at Rio Carnival, but also faces legal risks (AP)
  ^{_{More: Bloomberg, Reuters}}

  • Rio’s Sambadrome hosted a lavish parade honoring President Lula ahead of his fourth term bid.

  • The opposition alleges that the tribute effectively launched Lula’s campaign six months early and threatens legal action.

  • Parade celebrated Lula’s rise from poverty to prominence, attended by him, Vice President Alckmin, and their wives.

AND MORE

• a16z searches Europe for the next high-value startup unicorn opportunity.

• One night in the audience of Netflix’s most ambitious live show yet.

• African defense tech company Terra Industries secures an additional $22M in funding in one month.

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

• Fractal Analytics’ modest IPO debut reflects ongoing concerns about AI in India.

• Some AI experts remain unconvinced about OpenClaw despite the surrounding hype.

• Security camera maker’s Search Party feature sparks backlash after Super Bowl advertisement.

• Flapping Airplanes aims to explore radically different approaches in the future of AI.