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

In today’s edition we are tackling the following:

🤖 DeepSeek's R1 model competes with the best of U.S. AI.
🍎 Apple releases iOS 18.3 to fix critical zero-day flaw, urging users to update.
📺 YouTube denies hours-long unskippable ads, stating normal ad length is 15 seconds.
💬 OpenAI launches ChatGPT Gov for U.S. government, offering secure AI access.
🌍 Trump proposes new tariffs on semiconductors and pharmaceuticals.

TECH

• OpenAI Launches ChatGPT Gov for U.S. Government Agencies

  • OpenAI has launched ChatGPT Gov, a secure AI platform designed for U.S. government agencies, offering access through Microsoft Azure.

  • Features include conversation storage, custom GPTs, and IT management tools, with a focus on national security.

  • Agencies like the Air Force Research Laboratory and Pennsylvania state offices are already using it, reflecting early adoption in public service.

• Apple Releases Critical iOS 18.3 Update to Fix Zero-Day Flaw

  • Apple’s iOS 18.3 patch addresses a zero-day CoreMedia vulnerability (CVE-2025-24085), exploited for malicious code execution.

  • The flaw could allow attackers unauthorized access or control of devices, prompting urgent updates for all users.

  • Security experts emphasize the risk, especially for users with outdated iOS versions, urging immediate upgrades.

• YouTube Denies Reports of Hours-Long Unskippable Ads

  • Allegations of unskippable YouTube ads lasting hours were refuted by Google, which stated ads are capped at 15-60 seconds.

  • Google claims ad blockers may disrupt ad playback, causing abnormal behavior, but it reaffirmed the importance of ads for creators.

  • YouTube continues emphasizing its ad-based model for free platform access, maintaining transparency amid backlash.

BUSINESS

• Sam Altman Praises DeepSeek's R1

  • Chinese startup DeepSeek's R1 model rivals U.S. AI models in performance, triggering tech market volatility.

  • Nvidia's market value plunged by $600 billion, while the broader tech sector faced a 5.6% drop in the S&P technology index.

  • OpenAI CEO Sam Altman praised the R1 model, calling it 'invigorating,’ with plans to accelerate OpenAI's innovations in response.

• Tech Stocks Regain Some Ground After Rout

  • Following DeepSeek's market impact, major tech stocks have started recovering, indicating cautious investor confidence.

  • Industry reactions varied, with some leaders highlighting the need for heightened U.S. AI competitiveness.

  • Analysts suggest advanced hardware like Nvidia's remains critical for AI models, stabilizing the broader market outlook.

• The Fed Is About To Hit Pause On Rate Cuts

  • The Federal Reserve signals a shift, pausing rate cuts amid persistent inflation concerns and a surprisingly resilient economy.

  • Trump's push for immediate cuts contrasts with Fed Chair Powell’s cautious approach.

  • Analysts warn that tariffs and deportation policies could intensify inflation, potentially delaying further cuts until clearer trends emerge.

CONTENT

• DeepSeek Rattles Markets + SailPoint's Going Public Again

  • DeepSeek's $6M open-source AI model disrupted Wall Street, wiping billions off NVIDIA’s market cap and sparking debates on AI.

  • SailPoint returns to public markets with $1.6B in debt, raising questions about private equity’s ‘buy, fix, and flip’ approach.

  • A surge in startup shutdowns highlights the lessons of leaner teams and the challenges of scaling amidst economic uncertainty.

• How AI Is Changing Warfare, With Anduril CEO Brian Schimpf

  • Anduril uses AI to process battlefield data, enabling faster and better strategic decision-making for defense.

  • CEO Brian Schimpf discusses navigating complex US government procurement processes while leveraging commercial technologies.

  • The conversation highlights the intersection of geopolitics, technology, and the future opportunities for startups in the defense industry.

• Ray Dalio On The All-In Interview

  • Ray Dalio examines the US fiscal crisis, ‘The Big Debt Cycle,’ and its implications for real wealth and global markets.

  • Discusses portfolio construction, hedging against dollar risks, and parallels between today’s market and 1998-1999.

  • Analyzes potential US-China conflict, the impact on AI companies, and the role of innovation in mitigating geopolitical risks.

WORLD

• Trump Announces Plans for New Tariffs and Comments on AI Progress

  • President Donald Trump plans to impose tariffs on imported semiconductors and pharmaceuticals to boost U.S. manufacturing.

  • He criticized current subsidies under the CHIPS Act and suggested raising tariffs as a stronger measure.

  • Trump also acknowledged AI advancements by companies like DeepSeek, calling them both a "wakeup call" and a potential advantage.

• Doomsday Clock Moved Closer to Midnight

  • The Doomsday Clock now sits at 89 seconds to midnight, the closest it has ever been, reflecting growing nuclear and climate threats.

  • Contributing factors include the war in Ukraine, potential nuclear proliferation, and insufficient global cooperation on climate challenges.

  • The decision highlights the urgency for international efforts to address existential risks and prevent further escalation.

• Trump Pressures Egypt and Jordan to Accept Gaza 'Clean Out' Plan

  • President Trump is lobbying Egypt and Jordan to accept a plan allowing Palestinians from Gaza to relocate to their territories permanently.

  • The proposal has drawn criticism from regional leaders, who argue it undermines Palestinian sovereignty and exacerbates tensions.

  • U.S. officials suggest financial aid could incentivize cooperation, though both nations have thus far resisted the plan.

AND MORE…

• Boom Supersonic Conducts First Flight, Breaks Sound Barrier

  • Boom Supersonic’s XB-1 aircraft successfully achieved Mach 1 on its first test flight, marking a key milestone in the development of jets.

  • The test highlights progress toward a revival of commercial supersonic travel, with Boom aiming for routes by 2030 using its Overture aircraft.

  • Environmental concerns persist, particularly regarding fuel efficiency and carbon emissions, despite Boom’s pledge to achieve a net-zero.

• Sweden Suspects Sabotage After Damage to Cable Under Baltic Sea

  • Sweden launched an investigation into the undersea cable damage, which officials suspect resulted from deliberate sabotage.

  • The incident follows heightened NATO military activity in the Baltic Sea, amid concerns over escalating regional tensions.

  • The damage adds to a series of recent infrastructure attacks, raising fears about vulnerabilities in vital communication networks.

• Boeing Reports $6 Billion Annual Loss Amid Production Delays

  • Boeing posted a $6 billion loss for 2024 due to supply chain disruptions, delivery delays, and rising production costs.

  • The company is struggling to meet demand for its 737 MAX and 787 Dreamliner, which have faced repeated setbacks.

  • Analysts warn Boeing’s recovery could take years, with increased competition from Airbus and market pressure to resolve its issues.