Thursday, July 23, 2026

AI Competition & Security Concerns

Developing: A top White House official, Michael Kratsios, accused Chinese startup Moonshot AI of improperly using Anthropic's latest model, Fable, and accessing restricted Nvidia chips to develop its new Kimi model, prompting the Treasury to threaten sanctions. This allegation further fuels the debate in Washington over how to manage increasingly powerful Chinese AI and protect U.S. technology. Bloomberg.com The Hill

The Trump administration announced a $5 billion initiative to steer federal research and development funding towards AI for science, shifting focus from academic institutions to individual scientists. This overhaul aims to tackle scientific problems, accelerate drug discovery, and develop new materials using AI, with scientists gaining access to Department of Energy supercomputers and specialized datasets. The Guardian Politico

Bloomsbury, the publisher of Harry Potter, received a multimillion-pound payout as a beneficiary of a $1.5 billion copyright settlement between AI startup Anthropic and thousands of authors. The agreement compensates authors for the use of their protected work to train chatbots, with Bloomsbury listing 14,087 titles in the settlement. The Guardian

Software engineers are adapting to AI's disruption of their profession by actively pursuing new skills and pushing for collective action, with many feeling their roles are shifting from coding to reviewing AI-generated code. Some are deliberately avoiding AI tools to maintain their coding proficiency amidst layoffs and underemployment concerns. The Guardian

Tech Earnings & Market Volatility

Alphabet's stock fell despite reporting a quadrupled profit of $112 billion in Q2, fueled by AI investments and strong cloud computing growth, as investors reacted to the company's revised yearly capital expenditure forecast of $200 billion. This massive spending on AI infrastructure overshadowed its 12th consecutive quarter of double-digit revenue gains. The New York Times CNBC

Tesla's profits slid despite a rebound in car sales, missing Wall Street expectations, as the company pivots to robotics and AI. Shares dipped more than 3% in after-hours trading, reflecting investor concerns over price cuts and higher expenses. The Guardian The New York Times

IBM lowered its full-year forecast after a previous profit warning, but its stock saw a bounce as the cut was not as severe as investors feared. The company plans to improve productivity with AI, including a new coding tool called Bob, amidst ongoing discussions about AI's impact on mainframe sales and corporate hardware budgets. MarketWatch TechCrunch

ServiceNow's stock rose after its earnings showed momentum in cybersecurity and the company raised its annual subscription revenue forecast again due to AI-driven demand. The company is also investing $40 million in Indian banking software specialist BusinessNext to expand its AI-powered financial services push. MarketWatch TechCrunch

Political & Business Accountability

• Senator Elizabeth Warren has demanded urgent answers from Barclays regarding its "apparent failure to meaningfully investigate" former CEO Jes Staley's ties to convicted sex offender Jeffrey Epstein. Warren, the most senior Democrat on the US Senate banking committee, expressed deep concern over how the bank's internal investigation missed the "decades-long relationship." The Guardian
• The House of Representatives advanced a bill that would bar members of Congress from purchasing additional stocks while in office, aiming to address concerns about potential conflicts of interest. CNBC
• Democrats and Republicans are debating the Clarity Act, a significant bill backed by the crypto industry, as it approaches a Senate vote. A key point of contention is whether the bill should include a provision barring the President from selling crypto assets. The New York Times

Trade & Defense Policy

• A Senate panel advanced a bill targeting Chinese auto companies that could lead to a U.S. sales ban for Mercedes-Benz, whose largest individual shareholder is Chinese state-owned BAIC. The legislation aims to purge Chinese connected-car hardware from the U.S. market. CNBC Financial Times
• The House passed a provision to integrate Israeli-U.S. defense technology into the $1.15 trillion Pentagon budget, despite opposition from GOP Representative Thomas Massie, who called the measure "lopsided" in Israel's favor. The Intercept

Quick Shots

• 🚫 A closely watched social media addiction lawsuit against Meta was dropped, leaving no major tech companies facing trial in the case. TechCrunch
• 💰 Donald Trump Jr.'s investment firm, 1789 Capital, reported staggering returns of 200% after making investments in AI and defense technology. The New York Times
• 📱 Social app Yope raised $12.3 million in seed funding to build a private social network focused on small groups and messaging, eschewing algorithms and ads. TechCrunch
• 🎮 A new interactive game, Red Kiss, is guiding players through a blood-soaked Cold War Berlin with vampire spies, inspired by interactive theater and motion capture technology. The Guardian