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

In today’s edition we are tackling the following:

⚖️ Judge finds Google monopolized ad tech.
⚙️ OpenAI unveils Flex tier for slower, cheaper o3 and o4-mini API tasks.
🛡️ Discord sued by NJ for failing to protect minors from harmful platform content.
📱 Instagram’s Blend creates shared Reels feeds between friends via DMs.
📉 Global Payments stock drops 17% after announcing $24B Worldpay acquisition.

TECH

• OpenAI Launches Flex Processing for Cheaper, Slower AI Tasks

  • OpenAI introduces Flex, a discounted API tier for slow, non-urgent AI jobs with less reliable uptime and slower responses.

  • Flex supports o3 and o4-mini models, targeting tasks like model testing, data labeling, and enrichment workflows.

  • The move positions OpenAI to compete on pricing with Google and others launching cost-effective AI infrastructure tools.

• Discord Gets Sued for Allegedly Violating Child Safety Laws

  • New Jersey filed suit against Discord, accusing it of failing to protect minors and enabling access to harmful content.

  • The platform allegedly lacks robust age checks and default safety settings, exposing young users to predators and abuse.

  • Discord pushed back, citing recent safety upgrades and stating it was not contacted before the state’s legal filing.

• Instagram's New Blend Feature Creates a Custom Reels Feed for You and Your Friends

  • Instagram launched Blend, a shared Reels feed that updates daily with videos based on you and your friends’ interests.

  • Users can create Blends within DMs, and the feature supports both one-on-one and group chat-based content sharing.

  • The release comes as Meta ramps up social discovery tools amid uncertainty surrounding TikTok’s future in the U.S.

BUSINESS

• Google Found to Hold Illegal Monopolies in Ad Tech Markets

  • A federal judge ruled Google illegally monopolized ad tech, giving the DOJ grounds to pursue major structural remedies.

  • The case centers on Google’s dominance in publisher ad servers and exchanges, stifling competition and inflating ad costs.

  • Google plans to appeal, arguing its ad services help publishers and that breaking them up would harm innovation.

• Tim Cook's Efforts Lead to Temporary Tariff Exemptions for Apple Products

  • Apple secured a temporary tariff exemption on iPhones and Macs following CEO Tim Cook’s negotiations with U.S. officials.

  • The exemptions shield Apple from broader China-related tech import tariffs, helping stabilize hardware prices for now.

  • The administration insisted Apple received no favoritism and said additional tech tariffs are still on the table.

• Global Payments Shares Drop 17% Following $24 Billion Worldpay Deal

  • Global Payments’ stock plunged after announcing a $24.25 billion acquisition of Worldpay from GTCR and FIS.

  • The deal includes FIS acquiring Global Payments’ Issuer Solutions business as part of the transaction restructuring.

  • Investors reacted negatively to the scale and strategy of the deal, despite expected gains in global market share.

CONTENT

• AI Progress and Impact on Ecosystem Players

  • Jill Chase outlines CapitalG’s AI investment strategy, focusing on defensibility over speed in today’s competitive landscape.

  • She explains the shift from copilots to autonomous agents, and how that changes software design and market dynamics.

  • Startups like Motif and Abridge show how AI can be used both inside the product and across operations and GTM.

• Building and Evaluating AI Agents

  • Sayash Kapoor critiques current AI agents, arguing they often underperform in real-world scenarios despite polished demos.

  • He stresses better evaluation standards are needed to measure agent reliability and real-life problem-solving ability.

  • The talk promotes a more grounded approach to building useful agents, avoiding hype-driven design and empty claims.

• AGI is Still 30 Years Away

  • Erdil and Besiroglu argue that AGI won't arrive before 2045, citing the need for multiple breakthroughs beyond current AI capabilities.

  • They challenge the "intelligence explosion" concept, suggesting economic growth will stem from scaling AI labor and capital together.

  • The discussion emphasizes that AI's integration into the economy will be gradual, influenced by societal norms and infrastructure.

WORLD

• Hamas Offers Hostage Release in Exchange for End to Gaza War

  • Hamas said it will release all remaining hostages if Israel ends the war, frees prisoners, and starts Gaza reconstruction.

  • The group rejected a 45-day ceasefire proposal, demanding a full agreement with no disarmament, which Israel insists on.

  • Talks mediated by Egypt remain stalled while Israeli operations continue, causing mounting Palestinian casualties in Gaza.

• U.S. and European Officials Discuss Ukraine Peace Efforts in Paris

  • U.S. and EU diplomats met in Paris to push for a unified peace plan after a deadly Russian strike on Sumy civilians.

  • European leaders want Washington to adopt a firmer stance as Ukraine pushes for a ceasefire and more military backing.

  • Officials also discussed sending a multinational force to Ukraine if a broader peace framework takes shape.

• Saudi Defense Minister Visits Tehran Ahead of Iran-U.S. Nuclear Talks

  • Saudi Arabia’s defense chief met with Iranian leaders just days before U.S.-Iran nuclear talks are scheduled to resume.

  • The visit signals Riyadh’s efforts to stay close to negotiations that could impact regional military and economic dynamics.

  • It reflects Saudi Arabia’s broader push to play a strategic diplomatic role amid shifting alliances in the Middle East.

AND MORE…

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• American Citizen Hijacks Small Plane in Belize, 3 Injured

  • A U.S. citizen hijacked a Tropic Air flight in Belize, injuring three passengers before being fatally shot by an armed passenger.

  • The hijacker demanded more fuel to leave the country; the plane landed safely after circling until nearly out of fuel.

  • Authorities are investigating how the suspect boarded with a knife and had previously been denied entry into Belize.​

• Trump Intensifies Feud with Fed, Suggests Firing Chair Powell

  • President Trump criticized Fed Chair Jerome Powell for not cutting interest rates, suggesting he could remove him from office.

  • Trump's comments have raised concerns about potential political interference in the Federal Reserve's independence.

  • Powell, whose term ends in 2026, has stated he will not resign early and emphasized the Fed's legal independence.​

• Mortgage Rates Surge Amid Trade War Tariffs

  • Mortgage rates have risen sharply as new tariffs from the ongoing trade war increase costs for homebuilders and consumers.

  • The higher rates are impacting housing affordability, with potential buyers facing increased monthly payments.

  • Economists warn that prolonged tariffs could further strain the housing market and slow economic growth.