AI Genius Turns Down $1.5 Billion from Zuckerberg

Welcome back!

Here’s your must-read news this morning:

• Hasset defends BLS firing

• $1.5B offer rejected by AI star

• DOJ axes rule favoring race in hiring

I’ve got all the details for you, so let’s dive in.

— Josh

MARKETS

💰 White House Defends BLS Chief's Firing Amid Push for Deeper Overhaul

The Scoop: President Donald Trump is seeking a deeper overhaul of the Bureau of Labor Statistics (BLS) after firing Commissioner Erika McEntarfer, following a lackluster July jobs report, with plans to deliver “transparent and reliable” data, a top White House economic adviser said during an NBC interview on Sunday.

The Details:

• The BLS reported a mere 73,000 jobs added in July, missing expectations, with revisions slashing 258,000 jobs from May and June, leaving those months at 19,000 and 14,000 jobs, respectively.

• Kevin Hassett, National Economic Council director, justified the overhaul, pointing to outdated data collection and significant revisions, concerns he flagged in 2015 about an evolving economy.

• Hassett rejected claims of targeting unfavorable data, citing an 818,000 revision under Biden as evidence of systemic issues, and called for a “fresh set of eyes” to ensure transparency.

• Trump called the fired BLS commissioner's job numbers the "biggest miscalculations in over 50 years."

What’s Next: Trump plans to appoint a new economic data official this week, along with a new Federal Reserve governor, following the resignation of Fed Governor Adriana Kugler.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Artificial intelligence is quietly boosting the U.S. economy by an estimated $97 billion annually through productivity gains, a contribution often overlooked in GDP estimates. (WSJ)

• U.S. Trade Representative Jamieson Greer said that Trump’s tariffs on countries are likely to remain in place, signaling limited prospects for reductions amid ongoing trade negotiations. (RTS)

• Marlin Steel CEO Drew Greenblatt heralded a “once-in-a-generation” U.S. manufacturing boom driven by Trump’s tariffs, prompting foreign firms to build factories in America and hire local workers, a shift he says mainstream media ignores. (FBN)

• The Michigan Consumer Sentiment Index rose slightly to 67.8 in July, aligning closer to forecasts and signaling modest improvement in U.S. consumer confidence. (INV)

🏢 Industry

• ⭐ Editor’s Pick: Boeing workers in St. Louis will strike starting Monday after rejecting a contract offering a 20% wage increase over four years, the company’s first such strike since 1996. (INV)

• A Florida jury found Tesla’s Autopilot system 33% liable for a 2019 fatal crash, ordering the company to pay $243 million in damages. (RTS)

• Figma’s CEO Dylan Field, a 33-year-old Brown University dropout and Thiel Fellow, became a billionaire with a $6.6 billion stake after the company’s stock surged 250% in its $68 billion NYSE debut. (CNBC)

• Newsletter platform Beehiiv is gaining traction with $30 million in annual revenue and a $33 million Series B, positioning it as a potential billion-dollar startup in the competitive creator economy. (TI)

💵 Energy & Commodities

• ⭐ Editor’s Pick: China is curbing the flow of critical minerals to Western defense manufacturers, delaying production and forcing manufacturers to seek global stockpiles for munitions and jet fighters. (WSJ)

• India’s government has not instructed its refiners to halt Russian oil purchases, despite Trump’s tariff threats. (BBG)

• Eight OPEC+ nations, including Saudi Arabia and Russia, will boost oil production by 547,000 barrels per day in September 2025. (RZ)

• Pakistan's largest refiner, Cnergyico, will import its first-ever U.S. crude oil cargo of 1 million barrels, following a U.S.-Pakistan trade deal aimed at developing Pakistan’s oil reserves. (OP)

🌕 Crypto

• ⭐ Editor’s Pick: Andreessen Horowitz's Alex Rampell accused JPMorgan of implementing "Operation Chokepoint 3.0" by charging high fees and blocking access to fintech and crypto apps. (CD)

• Arkham Intelligence revealed that 127,426 BTC, now valued at $14.5 billion, was stolen from Chinese mining pool LuBian in 2020, marking the largest crypto theft by dollar value at the time. (CB)

• U.S. crypto ETFs outpaced Vanguard’s S&P 500 ETF with a record $12.8 billion in July inflows, marking their strongest month ever. (TB)

• Trump Media disclosed plans to launch a "Truth Token" cryptocurrency in an SEC filing, aiming to integrate digital assets into its Truth Social platform. (DL)
  

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TECH

💻 Zuckerberg’s $1.5 Billion Offer Fails to Lure Star AI Researcher

The Scoop: Andrew Tulloch, a prodigious AI researcher and co-founder of Thinking Machines Lab, was the prime target of Meta’s unprecedented talent acquisition effort, as Mark Zuckerberg offered a billion-dollar compensation package, according to the Wall Street Journal.

The Details:

• After failing to acquire Thinking Machines Lab, led by ex-OpenAI CTO Mira Murati, Zuckerberg zeroed in on Tulloch, a University of Sydney standout and former Facebook AI staffer.

• Zuckerberg offered Tulloch a billion-dollar compensation package, potentially reaching $1.5 billion over six years with bonuses and stock growth.

• Tulloch and all 50 Thinking Machines colleagues stayed, anchored by Murati’s leadership and a vision to advance customizable AI systems.

• Meta spokesman Andy Stone dismissed the offer as “inaccurate.”

• In 2016, Tulloch declined OpenAI’s modest offer, only joining in 2023 amid ChatGPT’s meteoric rise.

What’s Next: Tulloch’s dedication to Thinking Machines reflects a rising trend among researchers who prioritize mission-driven work over financial rewards, as the startup gears up to launch its first product in the coming months. However, not all share this perspective. Meta recently secured 24-year-old AI prodigy Matt Deitke with a $250 million compensation package, doubling their initial offer to outmaneuver competitors.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Apple has formed a new "Answers" team to develop a ChatGPT-like AI search engine. (TC)

• Wharton researchers found that even simple AI trading bots, left unsupervised, spontaneously collude to fix prices and maximize profits in simulated markets. (BBG)

• Fast-food chains like Taco Bell and Wendy’s are increasingly building and deploying AI-powered drive-thru systems to take orders. (TDU)

• The AI-driven "algorithmic audit" transforming car rental billing is nearing hotel room checkouts, with AI sensors already flagging issues like smoking or maintenance needs. (CNBC)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: A humanoid robot stunned New Yorkers by strolling through Midtown, grabbing hot dogs, trying on sneakers, and posing for selfies. (NYP)

• A fluffy AI-powered robot pet, Moflin, has become a hit in Japan, developing unique personalities based on how owners raise it. (STAR)

• China’s first AI robot, Xueba 01, has enrolled in a four-year PhD program, raising questions about AI’s role in academia. (INSP)

• An underwater robot, SuBastian, is captivating with live streams of vibrant coral and unseen sea creatures from the 4,000-meter-deep Mar del Plata Canyon. (F24)

🚀 Defense & Space

• ⭐ Editor’s Pick: Big Tech is rapidly deepening ties with the U.S. military, with Meta reversing its ban on military use of its AI models, OpenAI partnering with Anduril on combat systems, and Google exploring defense applications. (NYT)

• Microsoft disclosed that Chinese state-sponsored hackers exploited vulnerabilities in its SharePoint software to breach numerous organizations, omitting that China-based engineers have long maintained the product. (PP)

• Blue Origin’s NS-34 mission launched crypto billionaire Justin Sun and five others into suborbital space on Saturday, marking the company’s 14th crewed flight. (SP)

• The Pentagon has signed a record $3.5 billion contract with Raytheon to procure AIM-120 AMRAAM missiles for foreign military sales to 19 nations, including Japan, Germany, Australia, the U.K., Israel, and Ukraine. (TWZ)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Vast Data, an AI storage platform, is in talks with Nvidia and Alphabet’s CapitalG for a funding round that could value the startup at up to $30 billion. (RTS)

• SiMa.ai raised $85 million in a funding round led by Maverick Capital to expand its Physical AI platform for edge applications in robotics, automotive, and other industries. (PRN)

• Conversion, a San Francisco-based AI platform for optimizing digital advertising, raised $28 million in Series A funding led by Abstract Ventures. (TC)

• Subzero Labs secured $20 million in a seed round led by Pantera Capital to build Rialo, a blockchain focused on real-world applications like supply chain and identity verification. (FM)

FREEDOM

⚖️ DOJ Ends Carter-Era Rule Placing Race Over Qualifications

The Scoop: The Trump administration has terminated a 44-year-old consent decree from the 1979 Luevano v. Ezell case, which mandated race-focused hiring practices in federal agencies to promote DEI. The move, part of a broader push to prioritize merit over race, aims to restore equal opportunity in federal hiring.

The Details:

• The Justice Department ended the decree, which stemmed from claims that the Professional and Administrative Career Examination (PACE) discriminated against Black and Hispanic applicants, forcing agencies to prioritize racial outcomes over qualifications.

• Assistant Attorney General Harmeet Dhillon said the decree hindered hiring top talent, and its removal realigns federal employment with merit-based principles.

• The decision follows Executive Order 14173, signed in January, which eliminated DEI policies, including a 1965 order mandating race and gender considerations for federal contractors, with a phase-out deadline of April 21, 2025.

What’s Next: The decision, driven by Stephen Miller’s America First Legal, could face legal challenges as progressive critics claim that it undermines decades of civil rights progress.

Freedom Roundup

🏛️ Policy

• ⭐ Editor’s Pick: Despite a public feud with Trump, Elon Musk donated $15 million to Republican super PACs, including MAGA Inc., in June 2025, just days before announcing his new America Party. (POL)

• A federal judge rejected a lawsuit by 16 Democrat-led states to block the Trump administration’s cancellation of hundreds of millions in grants aimed at boosting diversity in STEM fields. (RTS)

• A draft Trump executive order would ease commercial space regulations, targeting a tenfold increase in launches and novel on-orbit activities by 2030. (BD)

• Trump praised Sydney Sweeney’s American Eagle jeans ad as “fantastic” after learning she’s a registered Republican. (NYP)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Republicans, led by Congressman Scott Fitzgerald (R-WI), are rallying against the UK’s Online Safety Act, warning that it threatens free speech and burdens U.S. tech firms with excessive regulation. (SPEC)

• Google has slashed funding for 58 DEI organizations, including the African American Community Service Agency and the Latino Leadership Alliance. (CNBC)

• America First Legal filed a civil rights complaint with the EEOC against Texas Roadhouse, alleging its DEI policies illegally prioritize race and gender in hiring and board appointments. (FBN)

• Barclays has withdrawn from the Net Zero Banking Alliance, citing insufficient membership to support its climate transition. (ESGT)

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