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

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

🎥 Runway unveils Gen-4.5, enabling more realistic text-to-video generation
📱 India orders smartphones to include a monitoring app despite privacy concerns
🧠 Paralyzed gamer uses neural implant to control video games competitively
💸 Regulators shut CryptoMixer.io after $1.4 billion laundering allegations
🛍️ Texas probes Shein over labor violations and toxic materials use

TECHNOLOGY

• DeepSeek Debuts New AI Models to Rival Google and OpenAI (Bloomberg)
  ^{_{More: VentureBeat, Seeking Alpha}}

  • Chinese startup DeepSeek launched advanced AI models, positioning itself as a competitor to Western tech giants.

  • New models demonstrate capabilities rivaling GPT-5 and Gemini in natural language processing and reasoning tasks.

  • Release intensifies global AI competition as Chinese firms accelerate development despite technology export restrictions.

• Runway Gen-4.5 Video Model Challenges Google and OpenAI (CNBC)
  _{^{More: MarketScreener, Seeking Alpha}}

  • Runway unveiled the Gen-4.5 model, enabling more realistic video generation from text prompts and images.

  • Platform targets creative professionals with enhanced control over motion, style, and temporal consistency in videos.

  • Launch escalates competition in generative video AI against Google's Veo and OpenAI's Sora models.

• India Orders Mobile Phones Preloaded with Government App for Cyber Safety (Reuters)
  ^{_{More: Business Standard, The Star, GSMArena}}

  • The Indian government mandates that all smartphones sold domestically must include a preinstalled cybersecurity monitoring application.

  • The directive raises privacy concerns as the app will track potential security threats and user activity.

  • Policy mirrors similar measures in China and reflects growing government control over digital ecosystems.

BUSINESS

• Swiss, German Authorities Shut Down CryptoMixer.io in Money Laundering Crackdown (Reuters)
  _{^{More: Decrypt, CoinDesk, BleepingComputer}}

  • European regulators seized a cryptocurrency mixing service allegedly used to launder over $1.4 billion in proceeds.

  • Joint operation highlights intensifying international enforcement against crypto-based financial crime and illicit transaction obfuscation.

  • Shutdown follows similar actions against Tornado Cash as authorities target anonymity tools in digital assets.

• OpenAI Partners with Thrive Holdings on AI Business Initiative (NYT)
  ^{_{More: Bloomberg, CNBC, TechCrunch}}

  • OpenAI acquired a stake in Thrive Holdings to embed AI teams within accounting and services firms.

  • Partnership aims to accelerate enterprise AI adoption with OpenAI receiving equity and service compensation.

  • Initiative represents OpenAI's expansion into circular dealmaking alongside infrastructure partners like AMD and CoreWeave.

• Shein Probed by Texas Attorney General Over Labor Practices (Reuters)
  ^{_{More: FOX Business, Insurance Journal}} 

  • Texas AG Ken Paxton investigates fast-fashion retailer over alleged violations of labor laws and product safety.

  • Probe examines toxic materials use, misleading claims about ethical sourcing, and data privacy practices.

  • Investigation adds pressure on Shein following European scrutiny over prohibited items sold on platform.

MARKETS

WORLD

• Failed Bank Relied on Brazil's XP for Its Breakneck Growth (Bloomberg)
  ^{_{More: Euromoney, Brazil Stock Guide, Finance Magnates}}

  • Collapsed Brazilian lender had depended heavily on XP investment platform for customer acquisition and deposits.

  • The partnership model enabled rapid expansion but created vulnerabilities when the distribution relationship deteriorated under regulatory pressure.

  • Failure exposes risks in Brazil's fintech ecosystem, where traditional banks partner with digital platforms.

• Trump Downplays Venezuelan Airspace Threat as US Mulls New Steps (Bloomberg)
  ^{_{More: CNN, NBC News, Al Jazeera}}

  • The president-elect dismissed Venezuelan restrictions on US aircraft as Washington considers additional sanctions on the Maduro regime.

  • Tensions escalate following disputed Venezuelan elections and increased migration flows toward the US southern border.

  • Administration evaluates diplomatic and economic measures while avoiding military escalation in the region.

• Trump-Backed Candidate Sees Lead Shrink in Honduras Vote Count (Bloomberg)
  ^{_{More: Reuters, CNN, Washington Post}}

  • The conservative candidate endorsed by Trump experiences a narrowing margin as final ballots are tallied in the presidential election.

  • Opposition disputes preliminary results, citing irregularities in rural voting districts amid international observer scrutiny.

  • The outcome will shape Honduras’s relations with Washington and regional migration policy negotiations.

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FUTURISM

• AI Startups Embrace "Vibe Coding" Over Traditional Development (Futurism)
  _{^{More: TechCrunch, JP Morgan Insights}}

  • Emerging trend sees developers using natural language prompts instead of manual coding for application development.

  • The approach relies on AI models interpreting intentions and generating functional code with minimal technical specification.

  • Movement challenges conventional programming practices but raises questions about code quality and maintainability.

• Apollo CEO Disputes Private Credit Risk Hysteria Claims (Bloomberg Opinion)

  • Apollo Global Management chief defends industry against warnings of systemic risks in $1.6 trillion market.

  • Regulators and economists express concern about leverage levels and the lack of transparency in private lending.

  • Debate intensifies as private credit replaces traditional bank lending without equivalent regulatory oversight.

• Paralyzed Gamer Plays First-Person Shooter Using Brain Implant (Futurism)
  ^{_{More: Yahoo, GagaGet, Vice}}

  • An individual with a spinal cord injury successfully controls video game characters through neural interface technology.

  • Brain-computer interface translates intended movements into digital commands, enabling competitive gameplay performance.

  • Breakthrough demonstrates potential for neural implants to restore interactive capabilities beyond basic communication.

CONTENT

• Ads Coming to ChatGPT! Join Us Live Today! (This Week in Startups)

  • Databricks secures $5 billion funding at $14 billion valuation as AI infrastructure investment continues accelerating globally.

  • OpenAI reportedly plans to introduce advertisements within ChatGPT, marking a significant shift in monetization strategy for the platform.

  • Runway ML releases a new text-to-video model surpassing benchmarks, while white collar job displacement concerns intensify.

• The Case for National Service, How to Avoid Burnout, and How Scott Galloway Became Prof G (Prof G Pod)

  • Scott Galloway shares what he would tell President Trump in a private meeting and offers advice on burnout prevention.

  • The episode features listener questions covering leadership, personal wellness, and navigating career pressures in competitive professional environments.

  • Galloway reflects on his academic career, explaining why teaching remains one of his most fulfilling professional achievements.

• How to Do the Most Good (Making Sense with Sam Harris)

  • Sam Harris and philosopher Michael Plant explore happiness science, effective altruism, and measuring well-being across global populations.

  • Discussion covers Nozick's Experience Machine, Derek Parfit's Repugnant Conclusion, and why depression treatment outperforms cash transfers.

  • Plant explains massive disparities in charitable impact and examines AI's potential effects on human flourishing meaningfully.

EXTRAS

• Trump News: Live Updates on President-Elect's Transition (NYT)
  _{^{More: CNN}}

  • Ongoing coverage tracks cabinet appointments, policy announcements, and preparations for the January inauguration.

  • Trump finalizes senior administration positions while outlining priorities for the first hundred days in office.

  • Transition team navigates confirmation process as Senate prepares hearings for key nominees.

• Hong Kong Fire Kills Dozens in Residential Building (NYT)
  _{^{More: NBC News, CBS News}}

  • Deadly blaze in older apartment complex claims multiple lives and injures scores of residents.

  • Authorities investigate potential building code violations and inadequate fire safety systems as the cause.

  • Tragedy renews scrutiny of aging infrastructure and enforcement gaps in densely populated urban areas.

• Chile Investors Query What Happens After Kast Wins (Bloomberg)
  _{^{More: Reuters, Street Insider, The Week}}

  • Market participants assess implications of conservative candidate José Antonio Kast's projected presidential victory.

  • Investors anticipate a shift toward business-friendly policies but question the approach to constitutional reform and social programs.

  • Election outcome signals rightward political swing in Chile following years of progressive governance.

AND MORE

• Bank of Japan signals December rate hike as yields reach 2008 levels.

• Bitcoin crashes below $86,000 amid crypto market liquidations totaling nearly $1 billion.

• US and Ukraine complete peace talks in Florida ahead of Moscow envoy meeting.

• Nvidia invests $2 billion in chip-design software maker Synopsys for AI collaboration.

• South Korean police investigate a major Coupang data breach affecting 34 million users.

• Databricks seeks $5 billion funding round at $134 billion valuation despite margin pressures.

• Airbus grounds 6,000 A320 aircraft for emergency software fixes during peak travel weekend.

• Roko’s Basilisk skips the buzz words and cuts straight to what moves markets, products, and careers.*

• Hong Kong investigates fire safety violations after deadly apartment complex blaze kills dozens.