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

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

🤖 Meta's rogue AI agent exposed sensitive company & user data.
💰 NVIDIA quietly builds a multibillion-dollar business to rival its chips.
🏰 Josh D'Amaro officially takes over as Disney's new CEO on Wednesday.
⚖️ Arizona files first-ever criminal charges against Kalshi over illegal gambling.
💥 Tehran intensifies Gulf energy attacks after Israel hits Iranian gas field.

TECHNOLOGY

• Meta's rogue AI agent exposed sensitive company & user data (TechCrunch)
  ^{_{More: The Information, TOI, Yahoo!}}

  • A Meta AI agent posted a response without permission, triggering a major internal data breach.

  • The incident exposed company & user data to unauthorized engineers for two hours, rated 'Sev 1.'

  • It's not Meta's first rogue AI incident — another agent previously deleted an employee's entire inbox.

• Researchers uncover iPhone spyware capable of penetrating hundreds of millions of devices (Reuters)
  ^{_{More: Straits Times, Japan Times}}

  • 'Darksword' malware was found planted on dozens of Ukrainian websites, targeting iPhone users.

  • The spyware can steal data & cryptocurrency wallet info from potentially hundreds of millions of iPhones.

  • It's the second iPhone spyware found this month, signaling a flourishing market for mobile malware.

• NVIDIA quietly builds a multibillion-dollar business to rival its chips (TechCrunch)
  ^{_{More: MSN, Tech Buzz, FindArticles}}

  • NVIDIA's networking division is now its second-largest revenue driver, generating $31B last year.

  • The business covers all the tech needed to build an 'AI factory' for training AI models.

  • One analyst noted NVIDIA's networking unit now rivals Cisco's entire annual networking revenue.

BUSINESS

• Josh D'Amaro officially takes over as Disney's new CEO on Wednesday (CNBC)
  ^{_{More: Reuters, MSN, Hollywood Reporter}}

  • D'Amaro, former chairman of Disney Experiences, succeeds Bob Iger as chief executive at Disney.

  • His leadership will focus on theme park & streaming growth during a fast-changing global landscape.

  • Disney's stock is down over 10% year-to-date, reflecting mixed sentiment from Wall Street investors.

• Arizona files first-ever criminal charges against Kalshi over illegal gambling (Bloomberg)
  ^{_{More: CNBC, TechCrunch, The Verge}}

  • Arizona accused Kalshi of running an illegal gambling & election wagering operation in the state.

  • These represent the first criminal charges ever filed against the predictions platform, Kalshi.

  • Kalshi maintains that its event contracts are legally distinct from those offered by sportsbooks & casinos.

• State Department slashed Middle East expert jobs amid escalating Iran crisis (AP)
  ^{_{More: Washington Post, Economic Times, Yahoo!}}

  • The Bureau of Near Eastern Affairs lost resources & experienced staff amid escalating Iran conflict.

  • A lawyer with limited experience briefly led the bureau, replacing a 40-year veteran of the Middle East.

  • The administration proposed a 40% budget cut & eliminated the dedicated Iran office entirely.

MARKETS

WORLD

• Tehran intensifies Gulf energy attacks after Israel hits Iranian gas field (AP)
  ^{_{More: The Guardian, Al Jazeera, CNA}}

  • Iran struck Qatari LNG facilities & UAE energy sites, causing fires & extensive damage.

  • A ship burned off the UAE's coast as Iran tightened its stranglehold over the Strait of Hormuz.

  • Qatar halted LNG production after repeated Iranian missile strikes, risking major global supply delays.

• Independent Hong Kong panel begins hearing into deadly Tai Po inferno (Reuters)
  ^{_{More: Straits Times, Yahoo!}}

  • A judge-led panel began investigating the Tai Po blaze that killed 168 people in November.

  • The panel's lead lawyer said human factors rendered nearly all fire safety measures completely ineffective.

  • Families sought answers on why fire alarms never sounded & how escape routes were compromised.

• Thousands of Moldovans lose water after Russia strikes Ukrainian hydropower plant (Washington Post)
  ^{_{More: BBC, AP, Yahoo!}}

  • A Russian strike on Ukraine's Novodnistrovsk plant spilled oil into the Dniester River, polluting it.

  • The plant supplies water to around 80% of Moldova's 2.5M population, worsening the crisis significantly.

  • Moldovan President Maia Sandu directly blamed Russia, saying the attack threatens Moldova's entire water supply.

FUTURISM

• Nothing CEO says smartphone apps will disappear, replaced by AI agents (TechCrunch)
  ^{_{More: Yahoo!, Bitcoin World}}

  • Nothing CEO Carl Pei predicts that apps will be disrupted & replaced entirely by AI agents.

  • Pei shared his 'AI-first device' vision at SXSW, backed by $200M in Series C funding.

  • His concept envisions AI learning users' long-term intentions, nudging people toward personal goals.

• BMW brings back the i3 as a funky four-door EV (The Verge)
  ^{_{More: Engadget, InsideEVs.}}

  • The new i3 rides on BMW's Neue Klasse platform, delivering 463 HP & 476 lb-ft of torque.

  • BMW estimates 440 miles of range per charge, with DC charging speeds reaching up to 400kW.

  • The i3 supports bidirectional charging, allowing it to power homes during a blackout.

• Rebel Audio launches as an AI podcasting tool for first-time creators (TechCrunch)
  ^{_{More: MEXC, FindArticles, Bitcoin World}}

  • Rebel Audio is an all-in-one platform letting creators record, edit, clip, & publish without switching tools.

  • The platform recently secured $3.8M in an oversubscribed seed round, with public launch on May 30.

  • It targets first-time podcasters by lowering the barrier to entry with a simplified, integrated workflow.

• LLM Feature Integration with Real APIs*

  Building LLM-powered features means handling real APIs, real users, and real edge cases. You need engineers who can do the glue work that makes AI actually usable—Python, JavaScript, and everything in between.

  • Full-stack LLM integration

  • Production-ready implementation

  • 40–60% cost savings

CONTENT

• Semafor's Liz Hoffman breaks down the Pentagon's new economic defense unit (The Prof G Pod)

  • Liz Hoffman discussed the Defense Department's new economic unit, which is actively recruiting Wall Street bankers.

  • WSJ's Miriam Gottfried examined the $10B fee the Trump administration received for brokering the TikTok deal.

  • The episode also featured reflections on SXSW & a breakdown of key market indicators.

• Paradromics CEO Matt Angle details his brain-computer interface startup's latest progress (This Week in Startups)

  • Paradromics is seeking early clinical trial subjects as it moves its BCI technology toward commercialization.

  • The CEO of JetZero discussed his startup's blended-wing jets, which offer far greater fuel efficiency than traditional aircraft.

  • The Nutrisense CEO explained how continuous glucose monitoring, when combined with coaching, can significantly improve health outcomes.

• Sam & Jaron debate whether the Iran war is already failing (Sam Harris)

  • The hosts examined the Trump administration's inconsistent messaging around the ongoing Iran war.

  • They discussed rising conspiracism, antisemitism, & moral confusion spreading across both the left & right.

  • Topics also covered AI's disruption of white-collar work, wealth inequality, & the ultra-rich's philanthropy failures.

EXTRAS

• ChatGPT did not actually cure a dog's cancer, reports find (The Verge)
  ^{_{More: Tech Buzz, Decrypt}}

  • An Australian entrepreneur claimed ChatGPT helped him create a cancer vaccine for his dog.

  • The Verge's investigation found the viral story far more complicated than headlines suggested.

  • Experts warn AI medical 'success stories' risk creating dangerous misconceptions about its real capabilities.

• FDA approves J&J's once-daily psoriasis pill Icotyde to rival top shots (CNBC)
  ^{_{More: Yahoo!, Reuters}}

  • The FDA approved Icotyde, J&J's once-daily pill for the treatment of moderate-to-severe plaque psoriasis.

  • Icotyde targets the same IL-23 receptor as top-selling shots Tremfya & AbbVie's Skyrizi.

  • J&J projects Icotyde will exceed $5B in annual sales, though pricing has not yet been announced.

• Sam Altman's thank-you post to coders sparks memes & backlash (Futurism)
  ^{_{More: TechCrunch, Yahoo!}}

  • Altman thanked developers for writing complex code, as AI now makes that work largely obsolete.

  • Critics noted that OpenAI was trained on developers' code, yet the AI is now being used to replace them.

  • Responses ranged from outright anger to memes, mocking Altman's seemingly tone-deaf appreciation post.

AND MORE

• Facebook launches new monetization program to poach top creators from TikTok & YouTube.

• Apple adds 'Genius Browse' movie & TV recommendations to Apple TV app.

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

• This startup wants to make enterprise software look more like a prompt.

• Experts weigh in on the safety of injecting gray-market Chinese peptides.

• Russia caught stealing Ukrainian personal data using advanced iPhone hacking tools.

• These apps are designed to break your doomscrolling habit for good.