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

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

🤖 Tesla halts Model S and X to scale humanoid robot production.
🍏 Apple acquires Israeli startup Q.ai in a rare multibillion-dollar AI deal.
🏦 Federal Reserve holds rates steady amid political pressure and market volatility.
🌏 China executes members of Myanmar-linked scam syndicate in major crackdown.
🎥 Amazon’s Melania Trump documentary sparks backlash over politics and influence.

TECHNOLOGY

• Apple acquires Q.ai whose tech can analyze facial expressions and could enable non-verbal discussions with AI assistants (Financial Times) 

  _{^{More: Reuters, Bloomberg, MacRumors}}

  • An Israeli startup's technology detects subtle facial micro-movements, enabling users to communicate with Siri silently.

  • The deal marks Apple's second-largest acquisition ever after the three-billion-dollar Beats purchase in 2014.

  • CEO Aviad Maizels previously founded PrimeSense, which Apple acquired in 2013 to develop Face ID technology.

• Tesla ends Model S and X production to build humanoid robots (CNBC) _{^{More: NBC News, MotorTrend, FOX Business}}

  • Musk confirmed that production will end next quarter as the Fremont factory converts to produce one million Optimus robots annually.

  • Model S and X accounted for only 3% of deliveries in 2025, amid the first annual revenue decline.

  • Tesla unveiled the third-generation Optimus design, intended for mass production, along with a completely new supply chain.

• Google launches Project Genie, letting users create interactive AI worlds (Google DeepMind) 

  _{^{More: Engadget, Codecademy, The Verge}}

  • Genie 3 generates interactive 720p environments at 24fps from text prompts with minutes of consistency.

  • Now available to Google AI Ultra subscribers in the U.S. through an experimental web app prototype.

  • The world model represents a stepping stone toward AGI by enabling unlimited training environments for AI agents.

BUSINESS

• Samsung and SK Hynix warn memory chip shortage will persist until 2027 (Nikkei Asia) 

  _{^{More: TipRanks, The Register}}

  • Limited cleanroom capacity prevents expansion as AI data centers consume approximately 70% of chip output.

  • DRAM prices have already surged 50% year-to-date, with an additional 30% increase expected in early 2026.

  • SK Hynix reports that HBM, DRAM, and NAND capacity are essentially sold out for 2026 despite a 30% investment in revenue.

• iPhone 16 was the world's best-selling smartphone in 2025, with Apple taking seven top spots (Counterpoint Research) 

  _{^{More: MacRumors, 9to5Mac, MacTech}}

  • Apple and Samsung dominated the top ten list, accounting for 19% of overall smartphone sales in 2025.

  • The iPhone 17 series achieved 16% higher sales than its predecessor, driven by demand in the U.S., China, and Western Europe.

  • Premium flagships are expected to increase their presence in 2026 as memory shortages disproportionately impact budget devices.

• Nothing Phone 4 canceled for 2026 as company focuses on mid-range 4a series (Android Authority) 

  _{^{More: Digital Trends, GSMArena, 91mobiles}}

  • CEO Carl Pei confirmed Phone 3 remains the flagship for 2026 to avoid churning out annual updates.

  • The iPhone 4a series aims to deliver a flagship experience with premium materials, an upgraded display, and cameras.

  • Decision driven by rising component costs, particularly RAM, amid AI infrastructure demand, pressuring smartphone prices.

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MARKETS

WORLD

• SEC clarifies tokenized stocks subject to existing securities rules regardless of blockchain format (CoinDesk) 

  _{^{More: Blockhead, TradingView News}}

  • The SEC drew a sharp line between issuer-sponsored tokenized securities and third-party products that provide only synthetic exposure.

  • Only issuer-sponsored tokens where the company integrates blockchain into the official shareholder register represent true equity ownership.

  • Third-party synthetic instruments fall under derivatives rules, limiting retail investor access to eligible contract participants.

• Amazon's $40M Melania Trump documentary raises questions about White House influence and financial ties (New York Times) 

  _{^{More: Rolling Stone, The Globe and Mail}} 

  • Two-thirds of the New York production crew requested exclusion from credits amid criticism of director Brett Ratner.

  • Documentary projected to earn only $1 million opening weekend despite a $75M total investment.

  • White House screening held amid Minneapolis shooting drew outrage for tone-deaf timing and excessive promotional spending.

• China executes 11 members of Myanmar scam syndicate for fraud and homicide (BBC)

  • Chinese authorities executed eleven people linked to the Ming family criminal group, convicted in September 2025.

  • Defendants convicted of homicide, fraud, illegal detention, and running online scam operations, causing multiple deaths.

  • Executions in Wenzhou reflect Beijing's intensified crackdown on cross-border fraud networks operating in Southeast Asia.

FUTURISM

• Delivery robot destroyed by train after getting stuck on Miami tracks for 15 minutes (Futurism) 

  More: People

  • Coco Robotics delivery bot was struck by a Brightline train at 6 mph after braking from 17 mph.

  • The company blamed a rare hardware failure despite a nearby Uber Eats driver contacting them to report a stuck robot.

  • Incidents add to delivery robot controversies, including traffic disruptions, pedestrian collisions, and property damage across cities.

• ICE agents compile protestor data into a database, including facial scans and license plates (Futurism) 

  More: CNN

  • Border agents collected detailed information on Alex Pretti before his death, including physical identification from a prior encounter.

  • An internal memo advised agents to capture images, license plates, and general information about protesters and agitators.

  • Border czar Tom Homan confirmed efforts to create a database to identify arrested protesters for interference charges.

• Sam Altman admits OpenAI screwed up ChatGPT 5.2, making it worse at writing (Futurism) 

  More: Search Engine Journal, Medium

  • Altman acknowledged that the team focused on intelligence and coding capabilities while neglecting language performance in GPT-5.2.

  • Data scientist testing found a flatter tone, worse translation capability, inconsistent behavior, and major regression in instant mode.

  • Model struggles with real-world documents, forgetting earlier details, contradicting itself, and hallucinating nonexistent clarifications.

CONTENT

• The Wellness Industry Pt. 1 (The Nick, Dick & Paul Show)

  • Nick Bilton, Dick Costolo, and Paul Kedrosky examine the economics, incentives, and cultural appeal of the booming wellness industry.

  • The conversation explores how technology, startups, and influencers reshape health narratives and monetize anxiety at scale.

  • Hosts question whether wellness innovation delivers real outcomes or primarily capitalizes on regulatory gaps and consumer trust.

• Marc Andreessen: The real AI boom hasn't even started yet (Lenny’s Podcast)

  • Marc Andreessen argues that current AI adoption represents an early phase, not the peak, of long-term technological transformation.

  • He discusses software cost deflation, productivity gains, and why incumbents may initially benefit more than startups.

  • The episode frames AI as a general-purpose technology reshaping labor, company formation, and competitive advantage globally.

• Gokul Rajaram – Lessons from Investing in 700 Companies (Invest Like the Best)

  • Gokul Rajaram shares patterns observed across hundreds of investments spanning consumer, enterprise, and platform businesses.

  • He emphasizes distribution, founder judgment, and timing as stronger predictors of success than raw technical brilliance.

  • The discussion offers practical guidance on decision-making, portfolio construction, and sustaining long-term investing discipline.
    

EXTRAS

• Waymo robotaxi strikes a child near a Santa Monica elementary school during drop-off hours (TechCrunch)

  • The child sustained minor injuries after a robotaxi struck at six mph following hard braking from seventeen mph.

  • NHTSA is investigating whether the vehicle exercised appropriate caution given the proximity to the school and the presence of young pedestrians.

  • Incident occurs amid dual federal investigations into Waymo robotaxis illegally passing school buses in multiple cities.

• Amazon discovered hundreds of thousands of child abuse images in AI training data (Bloomberg)

  • Amazon reported 64,000 cases in 2024, with the number skyrocketing in 2025, shocking investigators.

  • Reports are often inactionable because Amazon claims no source data is available, unlike other tech giants that provide details.

  • The National Center for Missing and Exploited Children called high volume an outlier, raising questions about data safeguards.

• Universal Music, Concord, and ABKCO sue Anthropic for $3B over song copyright infringement (Music Business Worldwide)

  • The second lawsuit alleges that Anthropic torrented over 20,000 songs from pirate libraries to train AI models.

  • A complaint accuses the company of brazen infringement and seeks three billion in statutory damages for copyright violations.

  • The lawsuit has expanded beyond the original 2023 case, which covered five hundred works, to the alleged largest non-class-action copyright case.

AND MORE

• OpenAI’s Sora video-generation app is seeing a sharp slowdown in downloads and spending after its initial launch surge.

• Thailand’s Election Commission has officially set February 8, 2026, as the date for a general election and a constitutional referendum.

• Federal Reserve pauses rate cuts as dollar plunges and gold prices hit highs.

• Global winter travel disruptions continue as severe storms impact transport and safety across multiple regions.

• Athyna Intelligence gives AI teams access to vetted Latin American PhDs for post-training, evaluation, and 40–60% cost savings.

• App download trends show consumer interest shifting away from viral AI-powered tools toward more utilitarian software.

• Britain’s prime minister met China’s president in high-level talks on global economic and geopolitical issues.

• The Federal Reserve holds interest rates steady and resists political pressure to cut benchmark rates further.

• The President hosts a Cabinet meeting amid intensifying negotiations to avert a partial government shutdown.