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

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

🧠 Klarna hits $1M revenue per employee by replacing manual work with AI tools.
🔐 Scientists train AI to embed secret messages invisible to cybersecurity systems.
🧬 Regeneron acquires 23andMe, pledges to protect user genetic data.
🦾 Nvidia launches cloud platforms to accelerate the development of humanoid robotics.
🌍 Spain removes 65K Airbnb listings in crackdown on illegal short-term rentals.

TECHNOLOGY

• Klarna’s Revenue Per Employee Soars to Nearly $1M Thanks to AI Efficiency Push

  • Klarna reports nearly $1 million in revenue per employee, citing major gains from AI-driven productivity improvements across departments.

  • CEO Sebastian Siemiatkowski credits tools like ChatGPT and internal AI platforms for reducing headcount while boosting performance.

  • Klarna's strategy reflects a broader fintech trend of leveraging automation to scale faster and cut operational costs dramatically.

• xAI posts Grok’s behind-the-scenes prompts

  • Grok’s system prompts were published to highlight its commitment to neutrality, skepticism, and truth-focused responses.

  • The release follows controversy after an unauthorized modification led Grok to make politically sensitive statements.

  • xAI aims to use this transparency to reassure users and demonstrate efforts to align Grok’s behavior with its principles.

• Scientists use AI to encrypt secret messages that are invisible to cybersecurity systems

  • Scientists developed a method to hide messages in AI-generated text that bypasses traditional cybersecurity detection.

  • Called EmbedderLLM, the tool enables covert communication without relying on standard encryption protocols.

  • The innovation has practical benefits but also raises serious concerns around ethical use and potential for abuse.

BUSINESS

• Genetic data will be safeguarded with 23andMe sale, drugmaker vows

  • Regeneron, acquiring 23andMe’s assets, pledged not to misuse customers’ genetic data, citing strict privacy and consent protections.

  • The acquisition follows 23andMe’s bankruptcy amid rising competition and declining trust due to repeated data breaches.

  • Regeneron aims to use the acquisition to enhance drug discovery without compromising user data integrity or confidentiality.

• Blackstone to acquire TXNM Energy in $11.5 billion deal

  • Blackstone agreed to acquire oil and gas firm TXNM Energy, citing strong long-term fundamentals in U.S. shale assets.

  • The deal includes the assumption of debt and is expected to close in Q3 pending regulatory approval.

  • TXNM will operate as a standalone company under Blackstone ownership, focusing on Permian Basin growth.

• JPMorgan highlights strength, downplays leadership shift at Investor Day

  • CEO Jamie Dimon reassured investors that the bank’s succession plans are solid, but declined to name a timeline to retire.

  • The company emphasized robust earnings, high interest income, and continued dominance across multiple banking segments.

  • JPMorgan also detailed its AI strategy, stating AI now supports risk modeling, fraud detection, and customer service enhancements.

MARKETS

WORLD

• Russia and Ukraine to 'immediately' start ceasefire talks, says Trump

  • Trump announced a breakthrough as both Russia and Ukraine agreed to begin ceasefire negotiations without preconditions.

  • Talks are expected to take place in Istanbul, aiming to halt fighting and restore basic humanitarian corridors.

  • Global leaders expressed cautious optimism, urging transparency and inclusion of international observers in the process.

• U.K. and EU agree to reset Brexit ties with new trade and security pact

  • A new deal strengthens economic and defense ties between Britain and the EU after years of post-Brexit tension.

  • The agreement includes joint climate goals, tech collaboration, and relaxed customs checks on key goods.

  • Officials framed the pact as a ‘reset moment’ that reflects mutual interest in geopolitical stability and trade growth.

• Spain blocks over 65,000 Airbnb listings amid crackdown on illegal rentals

  • Spain’s Consumer Rights Ministry took down tens of thousands of listings over non-compliance with housing regulations.

  • The move aims to curb tourist-driven rent inflation and protect long-term residents in popular cities like Barcelona.

  • Airbnb stated it is reviewing the action and urged for clearer guidance on lawful hosting requirements in Spain.

CONTENT

• Duolingo Co-Founder on AI and the Future of Work

  • Severin Hacker explains how Duolingo's AI-first pivot eliminated bottlenecks in content generation and personalized learning at scale.

  • He shares that AI will reduce the need for engineers but increase product velocity, forcing teams to rethink how they work.

  • Hacker discusses the shifting role of education, competition with OpenAI, and Duolingo’s long-term edge in data and pedagogy.

• Elon Musk Stuns Microsoft CEO

  • Elon Musk delivers a surprise critique of Microsoft’s AI strategy, questioning its reliance on OpenAI and perceived innovation lag.

  • The video unpacks broader tensions between Musk’s xAI and major players like Microsoft in the race for AI dominance.

  • Commentary explores how Musk’s provocations continue to shape industry narratives and reposition rivals in public discourse.

• Microsoft CPO: You Must Prototype With AI

  • Aparna Chennapragada says prompt engineering is now a core skill and the new foundation for product requirement documents.

  • She argues natural language experiences (NLX) are overtaking traditional UX and redefining product design in the AI age.

  • The conversation outlines how PMs must evolve into editors and tastemakers, curating agent behavior instead of building from scratch.

FUTURISM

• Nvidia unveils new robot cloud platforms to accelerate humanoid AI

  • Nvidia introduced cloud-based platforms designed to speed up the development of AI-powered physical robots and humanoids.

  • Tools include Isaac Lab for training agents and Project GR00T for general-purpose embodied AI tasks.

  • The company aims to support partners in building robots capable of interacting with the real world in dynamic environments.

• Researchers develop ultra-precise haptic tools to control robots remotely

  • POSTECH scientists created haptic devices that mimic real tool use, improving human control over robotic systems.

  • The tools offer high-fidelity feedback, enabling delicate operations like surgery or engineering from remote locations.

  • This innovation bridges the gap between human intuition and robotic execution, enhancing precision in complex tasks.

• AI humanoid robot is changing how you buy cars at dealerships

  • Dealerships are trialing humanoid robots that greet customers, answer questions, and guide them through vehicle options.

  • The AI assistant provides real-time specs, financing advice, and personalized recommendations using machine learning.

  • Car buyers report increased engagement and satisfaction, suggesting a potential shift in the retail experience industry-wide.

EXTRAS

• Microsoft employee stages protest at Build conference

  • A Microsoft engineer interrupted CEO Satya Nadella’s keynote to protest the company’s U.S. military and Israeli government contracts.

  • The protester held a sign reading ‘Our blood is on your hands’ and was quickly escorted out of the auditorium by security.

  • The moment sparked debate about tech ethics and corporate involvement in global conflicts among attendees and online observers.

• Microsoft debuts Grok-3 alongside xAI’s new model

  • Microsoft showcased Grok-3 at Build, the latest large language model developed in partnership with Elon Musk’s xAI.

  • The model emphasizes reasoning, long-context retention, and API integration across Microsoft’s suite of productivity tools.

  • Microsoft hinted at future collaborations with other AI labs to diversify model offerings within its Copilot ecosystem.

• US debt downgrade drives up borrowing costs

  • The U.S. credit rating was downgraded by a major agency, citing political instability and unsustainable fiscal policy.

  • The move triggered a sharp increase in Treasury yields, raising borrowing costs for the government, businesses, and consumers.

  • Economists warn the downgrade could slow investment and complicate efforts to stabilize inflation and national debt levels.

AND MORE

• Nvidia unveils NVLink Fusion, enhancing AI chip communication and expanding Taiwan operations.

• Tesla plans a limited robotaxi launch, starting with supervised rides in Austin next month.

• U.S. stocks rebound after downgrade, with investors regaining confidence.

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• Severe weather outbreak intensifies, bringing tornadoes and hail across multiple states.

• Joby completes dual eVTOL test flights, advancing air taxi development.

• Ferrari confirms first EV for 2026, signaling shift toward electrification.