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

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

💻 OpenAI declares internal code red as Gemini overtakes ChatGPT benchmarks.
🧱 China halts Nvidia H200 chip orders amid semiconductor self-sufficiency push.
🎬 Warner Bros Discovery rejects Paramount bid amid stalled media consolidation talks.
⚛️ US nuclear revival struggles with costs despite major federal enrichment funding.
🚢 US forces track Russian tanker suspected of violating sanctions.

TECHNOLOGY

• Musk's Grok AI Generated Thousands of Undressed Images Per Hour on X (Bloomberg)
  _{^{More: Reuters, Washington Post, NBC News}}

  • Grok generated approximately 6,700 nonconsensual sexualized images per hour, including images of minors and celebrities.

  • Regulators in Australia, the UK, and the EU launched investigations into potential violations of child safety laws.

  • The controversy intensified as xAI simultaneously raised $20B while facing global regulatory scrutiny.

• Google AI OpenAI Gemini ChatGPT (WSJ)
  _{^{More: Fortune, Washington Post, Tom's Guide}}

  • OpenAI issued an internal code red after Gemini outperformed ChatGPT on multiple benchmarks and gained market share.

  • Google leveraged a massive distribution advantage by integrating Gemini across Search, Gmail, and Workspace ecosystem products globally.

  • ChatGPT traffic declined while Gemini reached 650 million monthly users, signaling a significant competitive shift ahead.

• China Asks Tech Firms to Halt Orders for Nvidia's H200 Chips (Economic Times)
  ^{_{More: Reuters, The Information, TipRanks}}

  • Chinese authorities directed domestic tech companies to suspend purchases of Nvidia's advanced H200 processors.

  • The directive reflects escalating tensions over semiconductor supply chains and technological self-sufficiency efforts in China.

  • Companies are being encouraged to prioritize domestic chip alternatives amid ongoing US export restrictions.

BUSINESS

• Polymarket Refuses to Pay Bettors Who Wagered the US Would Invade Venezuela (NY Post)
  ^{_{More: NBC News, CBS News, NPR}}

  • Polymarket declined payouts on Venezuela invasion bets following recent US military action in the region.

  • The platform faces disputes over how market resolution criteria should be interpreted after the strike.

  • Controversy highlights ongoing challenges in prediction markets regarding ambiguous outcomes and settlement rules for bettors.

• Warner Bros Discovery Rejects Paramount Amended Bid (The Wrap)
  _{^{More: CNN, CNBC, Variety}}

  • Warner Bros Discovery turned down a revised merger proposal from Paramount Global in the latest consolidation effort.

  • The rejection signals continued hesitation about major media mergers amid industry restructuring and regulatory concerns.

  • Both companies face pressure to scale operations as streaming competition and production costs continue rising.

• The cost of America's nuclear revival (Financial Times)

  • The Trump administration awarded $2.7B to three companies to boost domestic uranium enrichment capacity.

  • Nuclear revival faces significant cost challenges, with recent projects running billions over budget and years behind.

  • Utilities remain hesitant despite government support, citing financing concerns and preferring cheaper gas and renewable alternatives.

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MARKETS

WORLD

• Ship Closes in on Russia-Flagged Tanker Pursued by US Forces (Bloomberg)

  • US military forces are tracking a Russian-flagged oil tanker in international waters amid escalating tensions.

  • The pursuit reflects growing enforcement of sanctions and restrictions on Russian energy exports to global markets.

  • Maritime authorities coordinate efforts to monitor vessel movements suspected of violating international sanctions regimes.

• Trump Venezuela Greenland Ukraine Europe (NYT)

  • European leaders express concern over Trump's statements linking Venezuela, Greenland, and Ukraine policy positions together.

  • The comments signal potential shifts in the US foreign policy approach across multiple strategic regions simultaneously.

  • Allied nations assess implications for NATO, transatlantic relations, and international security commitments moving forward.

• Cubans Scared and Nervous After US Attack on Venezuela Destroys Morale (Bloomberg)

  • Cuban citizens report heightened anxiety following US military strikes on neighboring Venezuela this past week.

  • The attacks have damaged morale across the island as residents fear potential regional escalation effects.

  • Economic and diplomatic uncertainty grows as Cuba navigates the implications of increased US military activity nearby.

FUTURISM

• Dell Admits Customers Disgusted PCs’ AI (Futurism)
  _{^{More: PC Gamer, Kotaku, Dexerto}}

  • Dell executives acknowledged widespread consumer dissatisfaction with AI features integrated into personal computer products recently.

  • Customers expressed frustration over unwanted AI functionality that degrades performance and significantly invades privacy concerns.

  • The admission highlights growing backlash against forced AI adoption in consumer hardware and software products.

• Tesla Loses Trademark Cybercab (Futurism)

  • Tesla failed to secure trademark protection for its proposed Cybercab autonomous taxi service brand name.

  • The loss complicates the branding strategy for the company's planned robotaxi fleet rollout in the coming months.

  • Legal setback adds to mounting challenges facing Tesla's autonomous vehicle ambitions and commercial deployment timeline.

• Court Hallucinating AI Ready Deployed (Futurism)

  • Court systems are deploying AI tools despite known hallucination issues that generate false or misleading information.

  • Legal experts warn of potential miscarriages of justice when unreliable AI assists in judicial proceedings.

  • The trend raises urgent questions about technology standards and accountability in critical legal decision-making processes.

CONTENT

• Fusion Power Moves From Theory to Reality (The Social Radars)

  • David Kirtley explains Helion Energy’s plan to build a commercial fusion power plant on accelerated timelines.

  • He breaks down why fusion lingered decades away and which engineering breakthroughs finally shifted expectations forward.

  • Helion’s net electricity target could redefine clean energy economics and long-term global power infrastructure.

• Seven Big Thoughts on OpenAI’s Strategy and Future (Big Technology Podcast)

  • Sam Altman details OpenAI’s strategic direction following governance turmoil and renewed emphasis on core research priorities.

  • The discussion covers compute bottlenecks, model scaling limits, and tradeoffs between safety, speed, and commercialization.

  • Altman positions OpenAI as foundational infrastructure shaping how AI integrates into global economic systems.

• Inside Bari Weiss’s Rise and the Mogul Network (Channels with Peter Kafka)

  • Peter Kafka traces Bari Weiss’s transition from legacy media to building a powerful independent journalism network.

  • The episode connects Los Angeles, Sun Valley, and elite influence circles shaping modern media and technology alliances.

  • Weiss’s success illustrates how trust, distribution, and brand identity now determine scale in digital media.

EXTRAS

• Data Centers Backlash Impact Local Communities Opposition (Washington Post)

  • Local communities increasingly oppose data center construction due to the strain on power grids and water resources.

  • Residents cite noise pollution, environmental concerns, and minimal job creation as primary reasons for organized resistance.

  • The backlash threatens tech industry expansion plans as AI computing demands drive unprecedented infrastructure investment.

• Kalshi and Polymarket Use Sports Gambling as Entry Point for Prediction Markets (Bloomberg)

  • Prediction market platforms leverage sports betting popularity to attract mainstream users to political and economic markets.

  • Kalshi and Polymarket employ familiar gambling mechanics to reduce barriers for new participants entering prediction trading.

  • Strategy reflects an effort to normalize speculative markets beyond crypto enthusiasts and establish a broader retail user base.

• Roblox Age Check Estimation Chat (The Verge)

  • Roblox implements an AI-based age verification system to estimate user ages and restrict chat features accordingly.

  • The platform faces pressure to improve child safety measures following criticism about inadequate protection mechanisms.

  • New verification approach aims to balance security requirements with user experience for millions of young players.

AND MORE

• Israel approves the rollout of 4G mobile service for Palestinians in the West Bank after long delays.

• G7 finance ministers will meet in Washington to address rare earth and critical mineral supply concerns.

• Europe’s winter weather causes deadly travel chaos, grounding flights and halting rail services across multiple countries.

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

• South Korean president calls on China to help negotiate a freeze of North Korea’s nuclear program.

• The Press Association condemns Israel’s continued ban on media access to Gaza and pledges a coordinated response.

• UK issues Amber and Yellow weather warnings as Storm Goretti brings heavy snow and strong winds across regions.

• The United Nations chief criticizes a law blocking electricity and water to UNRWA facilities, citing humanitarian obligations.

• The Thai parliament dissolved the house ahead of a February general election, setting up national voting timelines.