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

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

🖼️ Mother of Elon Musk’s child sues xAI over Grok’s sexual deepfake images.
🔒 Marlinspike introduces a privacy-first AI assistant as an alternative to ChatGPT.
📈 Chris Hohn’s TCI made $18.9 billion last year, shattering hedge-fund records.
🤝 Sequoia plans to invest in Anthropic, defying long-standing venture capital rivalries.
💵 China’s $7 trillion cash pile is rotating into stocks and gold.

TECHNOLOGY

• Mother of Elon Musk’s child sues xAI over Grok’s sexual deepfake images (AP)
  ^{_{More: Al Jazeera, The Guardian, CNN}}

  • Ashley St. Clair sued xAI, alleging Grok enabled sexually exploitative deepfakes, causing severe distress.

  • She claims images included altered photos from her teens and sexualized adult depictions.

  • After backlash, X restricted Grok’s photo editing, while xAI dismissed allegations and delayed responses.

• Led by Texas and New Hampshire, U.S. states race to hold bitcoin (CNBC)
  ^{_{More: AInvest, MSN}}

  • Texas became the first state to buy bitcoin via an ETF for a state reserve.

  • Several states, including New Hampshire, Arizona, and Massachusetts, plan or have legislated cryptocurrency strategic reserves.

  • States aim to demonstrate public finances can manage and integrate digital assets amid federal uncertainty.

• Moxie Marlinspike introduces a privacy-first AI assistant as a ChatGPT alternative (TechCrunch)
  ^{_{More: Time Magazine}}

  • Signal co-founder Moxie Marlinspike launched Confer, a chatbot designed to minimize data collection.

  • Confer encrypts chats and prevents conversation data from being accessed, stored, trained, or monetized.

  • The system uses TEEs, open models, and strong cryptography to protect sensitive user conversations.

BUSINESS

• Chris Hohn’s TCI made $18.9 billion last year, shattering hedge-fund records (WSJ)
  ^{_{More: Bloomberg, Forbes, MSN}}

  • TCI Fund Management became 2025’s most profitable hedge fund, earning $18.9 billion for clients.

  • The gains broke previous hedge-fund profit records, surpassing Citadel’s $16 billion in 2022.

  • Market volatility, geopolitics, and the AI boom created ideal conditions for skilled stock pickers.

• Sequoia plans to invest in Anthropic, defying long-standing venture capital rivalries (TechCrunch)
  ^{_{More: Yahoo!, AInvest}}

  • Sequoia will reportedly join Anthropic’s massive funding round, despite already backing OpenAI and xAI.

  • The move challenges VC norms that discourage investing in direct competitors within the same sector.

  • Anthropic targets up to $25 billion at a $350 billion valuation, led by GIC and Coatue.

• Trump’s voice in the new Fannie Mae ad was AI-generated with permission (AP)
  ^{_{More: ABC, NBC}}

  • The Fannie Mae ad uses an AI-cloned Trump voice, created with his administration’s approval.

  • The ad promotes an “all-new Fannie Mae” and calls it the “protector of the American Dream.”

  • This follows prior Trump family use of AI voice technology, including Melania Trump’s memoir narration.

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MARKETS

WORLD

• China’s $7 trillion cash pile is rotating into stocks and gold (Bloomberg)
  ^{_{More: Yahoo!, Business Times}}

  • Chinese households are reallocating roughly $7 trillion in maturing deposits as bank yields fall.

  • Funds are shifting toward stocks, wealth products, insurance, and gold amid improving market sentiment.

  • Officials welcome the move, seeing equity gains and AI momentum supporting sustainable economic growth.

• EU is moving to force Chinese suppliers out of key infrastructure (Reuters)
  ^{_{More: Financial Times, MSN}}

  • The EU is considering mandatory rules to phase out Chinese equipment from critical infrastructure.

  • Huawei and ZTE could be barred from telecom networks and solar energy systems.

  • Phase-out timing would depend on security risks, costs, and availability of alternative suppliers.

• Japan considers food tax cut ahead of upcoming snap general election (Bloomberg)
  ^{_{More: Japan Times, Yahoo!, Reuters}}

  • Japan’s ruling and opposition parties support a temporary cut to the 8% consumption tax on food.

  • The tax provides critical funding for social welfare amid Japan’s rapidly ageing population.

  • Prime Minister Takaichi may pledge the cut during next month’s general election campaign.

FUTURISM

• Physical AI officially enters the tech industry's global hype cycle (TechCrunch)
  ^{_{More: The Fuse}}

  • CES 2026 spotlighted physical AI, humanoid robots, and autonomy as automakers faded.

  • Embodied AI blends models, sensors, and motors to act intelligently in real environments.

  • US policy blocks Chinese vehicles, while Canada cuts EV tariffs, alarming industry leaders.

• Oshen created the first ocean robot to gather data in Category 5 hurricanes (NewsBytes)
  ^{_{More: UA News, TechCrunch}}

  • Oshen, founded by Anahita Laverack and Ciaran Dowds, builds fleets of autonomous robots for ocean data collection.

  • Their C-Star robots can survive 100 days at sea, operating in swarms to capture environmental conditions.

  • The company began with personal savings, using a sailboat as a testing platform for development.

• YC-backed Bucket Robotics successfully navigated its challenging first appearance at CES (TechCrunch)
  ^{_{More: The Fuse, Yahoo!}}

  • Bucket Robotics improvised logistics, driving booth equipment to CES to avoid risky flight delays.

  • Founder Matt Puchalski leveraged automotive industry experience and relentless networking to maximize CES exposure.

  • The startup showcased vision-based inspection technology aimed at automating surface quality checks in manufacturing.

CONTENT

• Zevi Arnovitz shares a non-technical PM’s guide to building with Cursor (Lenny's Podcast)

  • Zevi Arnovitz explains his AI workflow, enabling non-technical PMs to build real products using Cursor.

  • He demonstrates using multiple AI models, slash commands, and peer review techniques for product development.

  • Zevi also shares insights on leveraging AI for tech interviews and junior PM growth opportunities.

• Sam Harris talks with Judea Pearl about causality, AI, and antisemitism (Sam Harris)

  • They discuss why large language models won’t produce AGI and alignment concerns in the AI race.

  • Pearl reflects on his son’s murder, antisemitism, anti-Zionism, and the challenges facing Israel under Netanyahu.

  • The conversation also covers confronting anti-Zionism in universities and misuses of terms like “Islamophobia.”

• Kyla Scanlon explains why young Americans feel stuck in today’s economy (The Prof G Pod)

  • Kyla Scanlon discusses the changing American Dream and its impact on younger generations’ economic opportunities.

  • She explains how common economic signals can mislead and obscure real financial health.

  • Scanlon explores methods to interpret economic information amidst confusing media and market noise.

EXTRAS

• Musk seeks up to $134B from OpenAI and Microsoft damages (Reuters)
  ^{_{More: MSN, Business Insider, Bloomberg}}

  • Elon Musk claims OpenAI defrauded him, abandoning nonprofit roots while partnering with Microsoft.

  • Musk’s filing requests $79B to $134B in damages based on expert valuation.

  • The lawsuit argues Musk deserves a share of OpenAI’s $500 billion current valuation.

• Over 60 Labour MPs urge PM to ban social media for under-16s (BBC)
  ^{_{More: The Guardian, CNBC}}

  • 61 Labour MPs wrote to PM Starmer, urging a ban on under-16s’ social media access.

  • They cited children’s anxiety, unhappiness, and lack of social skills caused by addictive platforms.

  • Australia recently implemented a similar ban, with several other countries considering comparable restrictions for minors.

• Europe warns of a dangerous downward spiral after Trump threatens Greenland tariffs (AP)
  ^{_{More: Bloomberg, The Guardian}}

  • Eight European countries condemned Trump’s proposed 10% tariff over opposition to U.S. control of Greenland.

  • Allies warned that the threats undermine transatlantic relations and risk triggering a dangerous downward spiral.

  • European nations dispatched troops to Greenland for training, emphasizing that their presence poses no threat.

AND MORE

• Threads surpasses X in daily mobile users, according to recent data reports.

• South Korean noodle companies are betting on overseas demand to drive future growth.

• Trump administration setbacks benefit offshore wind and strengthen the US national electricity grid.

• Explore all the tools and more here to outperform the competition.*

• Chinese EV giant BYD is a strong buy, says Bernstein, beyond just cars.

• A space ethicist examines who will inherit the stars and related ethical issues.

• Silicon Valley debates leaving California, and it’s driven by more than 5%.