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

In today’s edition we are tackling the following:

📱 Trump proposes 25% tariff on all iPhones not built in the U.S.
🛠️ OpenAI’s $6.5B deal for Jony Ive’s AI-powered screenless device.
🇫🇷 What is Mistral AI? Inside OpenAI’s $6B open-source French rival.
🖥️ Windows adds AI tools to Notepad, Paint, and Snipping Tool.
🤖 Musk’s Grok AI quietly expands into U.S. government operations.

TECHNOLOGY

• OpenAI and Jony Ive’s AI gadget plans revealed

  • OpenAI’s $6.5B acquisition of Jony Ive’s io aims to build a screenless, voice-first AI device for daily tasks.

  • The gadget may resemble an AI-powered iPod Shuffle with cameras and microphones, launching as early as 2027.

  • It’s designed to complement smartphones, offering AI-driven interactions without traditional screens or apps.

• What is Mistral AI? Everything to know about the OpenAI competitor

  • Mistral AI, a French startup valued at $6B, develops open-source AI models like Mistral Large and Devstral for coding.

  • Its lineup includes multimodal models, chat apps, and tools optimized for STEM, with growing influence beyond Europe.

  • Despite smaller market share, Mistral positions itself as an agile, open alternative to OpenAI and Anthropic.

• Microsoft adds generative AI to Notepad, Paint, and Snipping Tool

  • Windows 11 Insiders get AI-powered tools in Notepad, Paint, and Snipping Tool for writing, image editing, and screenshots.

  • Notepad now drafts or rewrites text; Paint features Generative Fill and Sticker creation; Snipping Tool gets smarter cropping.

  • The updates aim to make core Windows apps more useful with embedded generative AI for creative tasks.

BUSINESS

•  Trump threatens 25% tariff on iPhones not made in the US

  • Trump proposed a 25% tariff on iPhones made outside the U.S., pressuring Apple to shift production domestically.

  • Apple shares fell 3% following the announcement, reigniting concerns about supply chain risks and manufacturing feasibility.

  • The move could significantly impact iPhone prices and U.S.-China trade tensions ahead of the election.

• Musk’s DOGE expands Grok AI to U.S. government

  • Elon Musk’s AI chatbot Grok is being deployed across U.S. government agencies, sparking legal and ethical concerns.

  • Critics warn about privacy risks, conflicts of interest, and improper access to sensitive government data.

  • Musk’s Department of Government Efficiency (DOGE) faces backlash over the lack of transparency and federal oversight.

• After Klarna, Zoom’s CEO also uses an AI avatar on quarterly call

  • Zoom CEO Eric Yuan used an AI avatar to deliver prepared remarks during the company’s Q1 earnings call.

  • The avatar, powered by Zoom Clips, reflects a rising trend of AI-driven executive communications in major tech firms.

  • Yuan joined live for the Q&A, blending AI-driven automation with human interaction in corporate reporting.

MARKETS

WORLD

• Tim Cook called Texas governor to stop online child safety legislation

  • Tim Cook urged Texas Governor Greg Abbott to veto a child safety bill requiring app age verification and parental consent.

  • Apple argues the bill threatens user privacy by forcing platforms to collect sensitive personal data from minors.

  • Despite Cook’s push, the bill passed with veto-proof majorities, setting a potential precedent for nationwide regulation.

• Ukraine and Russia complete major prisoner swap

  • Ukraine and Russia exchanged 75 prisoners each in one of the largest swaps since the war began.

  • The exchange, brokered by international mediators, signals rare cooperation amid continuing frontline hostilities.

  • Both sides framed the swap as a humanitarian gesture but broader diplomatic progress remains limited.

• Netanyahu accuses France, Britain, Canada of emboldening Hamas

  • Netanyahu slammed France, Britain, and Canada for threatening consequences unless Israel halts its offensive in Gaza.

  • He claims their pressure undermines Israel’s security and effectively supports Hamas by demanding a ceasefire.

  • The remarks follow mounting international calls for restraint and expanded humanitarian access to Gaza.

CONTENT

• Garry Tan of YC: Why the next unicorns are built by AI

  • Garry Tan shares how AI reshapes early-stage startups, product-market fit, and why ‘high-agency’ founders win.

  • Covers frameworks for scaling leaner, advice on design, vibe coding, and how YC advises AI-first companies.

  • Also explores AI’s impact on investing, open source models, regulation, and why first-time founders have hidden advantages.

• Google CEO Sundar Pichai on Gemini, self-improving AI, and world models

  • Sundar Pichai discusses Gemini’s role as a world model, agent memory, and self-improving AI via AlphaEvolve.

  • Covers AI diffusion, AI form factors, and the evolving future of Google Search powered by autonomous agents.

  • The conversation touches on AI’s limitations, public anxieties, and how Google plans to address future challenges.

• AI will change education forever | Possible Podcast

  • Sam Altman and Greg Brockman discuss how AI will radically transform education through personalized learning at massive scale.

  • They envision a future where AI tutors make learning more accessible, efficient, and tailored to each student’s needs.

  • The conversation explores optimistic futures for education, AI’s role in closing learning gaps, and its broader societal impacts.

FUTURISM

• Watch Tesla’s humanoid robot clean like a homemaker

  • Tesla’s Optimus robot now performs household chores like vacuuming and trash removal, following natural language commands.

  • The demonstration highlights major progress in real-world task execution beyond lab environments or factory floors.

  • Tesla says Optimus is a step closer to commercial readiness as a general-purpose household assistant.

• Function over flash: specialized robots attract billions with efficient tasks

  • Investors are pouring over $2.26B into specialized robotics, prioritizing efficiency over flashy humanoid designs.

  • These robots excel at focused tasks like hospital supply delivery or warehouse logistics, offering faster paths to profit.

  • Over 70% of 2025 robotics funding has gone to companies building task-specific machines rather than general-purpose bots.

• Watch China’s humanoid robot perform boxing

  • Unitree’s humanoid robots demonstrated punches, kicks, and spin moves ahead of a public robot boxing competition.

  • The robots showcased remarkable agility, executing straight punches, sidekicks, and even aerial spin kicks.

  • The demonstration highlights how Chinese robotics firms are pushing boundaries in dynamic motion and combat training.

EXTRAS

• New North Korean warship damaged during launch as Kim looks on

  • North Korea’s newest warship capsized during its launch ceremony, damaging the vessel in front of Kim Jong Un.

  • The 5,000-ton destroyer slid stern-first into the water while the bow remained stuck on land, causing structural failure.

  • Kim called it a ‘criminal act’ and ordered arrests, with analysts saying it could delay naval deployments for months.

• Glitch coding platform is shutting down

  • Glitch announced it will shut down hosting services, projects, and profiles starting July 8 due to rising costs.

  • Users can access dashboards and export code until the end of 2025, but new subscriptions are no longer accepted.

  • The platform cited operational challenges and abuse as key reasons behind the decision to wind down services.

• Inside Anthropic’s first developer conference

  • Anthropic’s ‘Code with Claude’ conference showcased how its AI agents now write 70% of the company’s code.

  • CEO Dario Amodei stressed AI agents are built to augment—not replace—humans, with growing uses in cybersecurity and biotech.

  • The company also announced $20K in API credits for researchers and emphasized Claude’s expanding autonomous agent capabilities.

AND MORE

• With Rosetta Stone, explore 25 languages on your schedule—and with TruAccent, gain the confidence to speak from day one.*

• Workday faces lawsuit over AI hiring bias, alleging its screening tool discriminates against applicants.

• Texas lawmakers propose new AI regulation bill, targeting AI use in government and industry.

• Trump threatens 50% tariffs on EU goods, spooking markets and investors.

• Harvard sues Trump administration over student ban, winning temporary court relief.

• Elf Labs is revolutionizing Disney characters with patented next-gen technology, including AR and VR.*

• Ukraine and Russia complete prisoner swap, exchanging 390 detainees in Turkey.

• Musk’s Grok AI expansion into U.S. government sparks conflict of interest concerns.