Bill Ackman Hints at Challenger to Zohran Mamdani

Welcome back!

Here’s your must-read news this morning:

• Ackman teases Mamdani challenger

• OpenAI’s China warning 

• Debanking probe widens 

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

— Josh

MARKETS

💰 Bill Ackman Warns of Economic Peril, Teases Centrist Candidate to Stop Mamdani in NYC Mayoral Race

The Scoop: Hedge fund billionaire and Pershing Square CEO Bill Ackman is sounding the alarm over Zohran Mamdani’s Democrat mayoral primary win, warning that the democratic socialist’s policies could devastate New York City’s economy while seeking a write-in centrist champion to challenge him in November.

The Details:

• Ackman slammed Mamdani’s push for defunding police, city-run supermarkets, rent freezes, and anti-Israel views, warning they would drive wealthy taxpayers out, slashing $5-10 billion in revenue from his industry alone.

• Fellow hedge fund billionaire Dan Loeb captured Wall Street’s dread, posting on X, “It’s officially hot commie summer,” after Mamdani’s victory.

• Philippe Laffont of Coatue Management said that a Mamdani win could trigger a wealthy investor exodus to low-tax states like Florida and Texas.

• When an X user urged Ackman to find a “well-known, articulate New Yorker” superhero, he replied, “I have one.”

What’s Next: Mamdani faces Republican Curtis Sliwa and independent incumbent Mayor Eric Adams in November, with Cuomo mulling a third-party bid. Ackman’s Wall Street-fueled push for a write-in contender could upend the race if a strong centrist steps up to counter Mamdani’s surge.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: White House chief economist Stephen Miran projects that Trump’s policies will cut fiscal deficits by $8.5 trillion to $11 trillion over the next decade. (BBG)

• Gasoline prices have dipped for the summer driving season, averaging $3.21 nationally—23 cents lower than last year. (WSJ)

• Young Americans aged 18 to 24 are slashing spending, with online and in-store purchases down 13% year-over-year from January to April, as economic pressures curb their shopping habits. (WSJ)

• U.S. new home sales plunged 13.7% in May to an annualized 623,000, well below the expected 694,000, reflecting a weakening housing market pressured by high mortgage rates and affordability issues. (INV)

• Trump warned Spain will face higher trade deal costs, potentially double, due to its refusal to meet NATO’s 5% defense spending target. (TH)

• San Francisco’s luxury housing market is once again surging, fueled by wealth from artificial intelligence startups and tech executives. (BBG)

• Federal Reserve Bank of Boston President Susan Collins said she expects the central bank to lower interest rates later this year. (RTS)

📈 Stock Market

• ⭐ Editor’s Pick: Nvidia shares climbed over 4% on Wednesday, closing at a record $154.31, surpassing its previous high of $149.43. (CNBC)

• Nasdaq and the NYSE are negotiating with the SEC to reduce regulatory burdens on companies, focusing on reforms like streamlined disclosure requirements and lower costs for initial public offerings. (RTS)

• Bumble's shares surged over 15% Wednesday after the dating app company disclosed in a securities filing plans to cut approximately 30% of its workforce. (CNBC)

• Shares of New York-based REITs Vornado Realty Trust, SL Green Realty, and Equity Residential fell 5.4%, 5.5%, and 2.3%, respectively, as Zohran Mamdani’s victory sparked concerns over his proposed rent control policies. (INV)

• Micron reported stronger-than-expected fiscal third-quarter earnings and revenue, with adjusted EPS of $1.91 versus $1.60 forecast and revenue of $9.3 billion against $8.87 billion anticipated. (CNBC)

• Wall Street firms are increasingly rolling out ETFs focused on futuristic sectors such as humanoid robots, UFOs, and quantum computing. (BBG)

🏢 Industry

• ⭐ Editor’s Pick: Tesla’s European vehicle sales dropped 27.9% in May, marking a fifth consecutive month of declines. (MTR)

• A mediator proposes a $20 million settlement between Paramount Global and Trump to resolve his lawsuit against CBS News over the "60 Minutes" interview with former Vice President Kamala Harris. (WSJ)

• Rubrik, a data management software vendor, will acquire AI model deployment startup Predibase within a price range of $100 million to $500 million. (BW)

• Nestlé plans to phase out artificial colors from its U.S. food and beverage products by mid-2026. (NBC)

• A union is advocating to expand Los Angeles’s $30 minimum wage to all workers. (NYS)

• The ultrawealthy are increasingly turning to prenuptial agreements to protect vast fortunes, with complex arrangements addressing assets like private jets, art collections, and business empires. (WSJ)

💵 Energy & Commodities

• ⭐ Editor’s Pick: CIA Director John Ratcliffe says U.S. strikes “severely damaged” Iran’s nuclear program, despite Defense Intelligence Agency report suggesting minimal impact, delaying Tehran’s goals by months. (JP)

• The Commerce Department told the Enterprise Products and Energy Transfer that they can load ethane for China but need approval to unload, hinting at easing export curbs amid U.S.-China trade shifts. (RTS)

• Shell denies acquisition talks with BP, refuting a Wall Street Journal report of early-stage discussions between the two UK oil giants. (RTS)

• Constellation Energy Corp. announced that its Three Mile Island nuclear plant restart in Pennsylvania is progressing ahead of schedule, with power production now expected as early as 2027, compared to the initial 2028 forecast. (WGAL)

• China is intensifying oversight of its rare-earth industry by requesting firms to provide information on their experts, aiming to prevent trade-secret leaks, with some experts asked to surrender their passports. (WSJ)

• Platinum hit $1,390.98 an ounce, its highest since 2014, driven by supply worries. (BBG)

🌕 Crypto

• ⭐ Editor’s Pick: Republic is launching digital tokens to track the private share performance of SpaceX, offering retail investors exposure to high-profile firms. (WSJ)

• Kraken obtained a MiCA license in Ireland, enabling it to provide crypto services across the European Economic Area. (CC)

• Metaplanet surpassed Tesla as the fifth-largest corporate Bitcoin holder, acquiring 1,234 BTC for $133 million, bringing its total to 12,345 BTC. (CD)

• Mike Novogratz’s Galaxy Asset Management closed its oversubscribed inaugural venture fund at over $175 million. (NW)

• Invesco and Galaxy Digital have filed for a spot Solana ETF. (YF)

• Trump-backed crypto project World Liberty Financial announced that its native crypto will soon be tradeable. (CN)

• Tether CEO Paolo Ardoino said that the stablecoin issuer aims to become the world’s largest bitcoin miner by the end of 2025. (TB)
  

TECH

💻 OpenAI Warns of Blacklisted Chinese AI Startup’s Plan for Global Domination

The Scoop: OpenAI has identified Zhipu AI, a Beijing-backed startup, as a formidable player in China’s push to dominate global artificial intelligence, signaling intensifying geopolitical tensions in the AI race.

The Details:

• Zhipu AI, founded in 2019, has emerged as one of China’s “AI tigers,” bolstered by over $1.4 billion in state-backed investments.

• Unlike DeepSeek, which grabbed headlines with its R1 model, Zhipu’s global expansion—spanning offices in the Middle East, UK, Singapore, and Malaysia—positions it as a key arm of China’s “Digital Silk Road” strategy.

• OpenAI highlighted Zhipu’s ties to the Chinese Communist Party, noting frequent engagements with officials like Premier Li Qiang, and its reported collaboration with China’s military.

• Zhipu’s AI infrastructure solutions aim to embed Chinese standards in emerging markets, offering a “responsible” alternative to Western models, according to OpenAI.

• The startup, valued at $2.78 billion, is reportedly exploring an initial public offering.

What’s Next: Zhipu AI’s rise challenges OpenAI, which is deepening U.S. ties through initiatives like the $500 billion Stargate Project and a $200 million Pentagon contract. As Zhipu expands, its inclusion on the U.S. Commerce Department’s Entity List may complicate its international push, while OpenAI doubles down on securing Western dominance in AI.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Google DeepMind unveiled AlphaGenome, an AI model that predicts DNA sequences regulating genes with high precision, a breakthrough that could transform genomic research and personalized medicine. (STAT)

• Google launches Gemini CLI, a new AI tool that lets developers use its Gemini AI models in their coding terminals, allowing them to ask for help with code, add features, fix bugs, or run commands. (TC)

• Meta defeated a copyright lawsuit from 13 authors over its Llama AI, with Judge Vince Chhabria ruling its book use for training is fair use, limited to this case. (CNBC)

• Microsoft faces a lawsuit from authors alleging the company used their books without permission to train its Megatron AI model. (AN)

• Getty Images has dropped its primary copyright infringement claims against Stability AI in their UK High Court lawsuit, shifting focus to trademark issues. (AP)

• Meta is rolling out a Message Summaries feature for WhatsApp, using AI to condense unread messages into bullet points. (EG)

• Anthropic’s Claude AI chatbot now allows users to build AI-powered apps directly within the app through a beta upgrade of its Artifacts feature. (TV)

• Meta recruited three OpenAI researchers—Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai—from its Zurich office to join its superintelligence team. (WSJ)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: At Nvidia’s annual shareholders meeting, CEO Jensen Huang highlighted robotics as the chipmaker’s largest growth frontier beyond AI, with self-driving cars leading as the first major application in a projected multitrillion-dollar market. (CNBC)

• Kepler Robotics’ Forerunner K2 humanoid robot rings the NASDAQ bell to launch the first AI-native curriculum for U.S. classrooms. (GNW)

• KFC and Pizza Hut in Shanghai deploy humanoid robots to welcome customers and suggest popular menu items. (XIN)

• Austin-based Apptronik launched Elevate Robotics, to develop "superhuman" non-humanoid robots for heavy-duty industrial tasks like heavy lifting, high-speed automation, and hazardous operations. (MAG)

• Samsung aims to capture the growing humanoid robot market by supplying advanced AI camera modules to enhance robots’ vision capabilities. (IE)

• Researchers say swarms of tiny, nose-navigating robots, each no larger than a speck of dust, could clear infected sinuses. (TG)

🚀 Defense & Space

• ⭐ Editor’s Pick: After NATO agreed on a 5% defense spending target, President Donald Trump criticized Spain’s refusal to comply, vowing to impose higher trade tariffs. (CNBC)

• Boeing has appointed Steve Sullivan, former Northrop Grumman vice president who led the B-21 bomber division, to head its struggling Air Force One program. (BD)

• NASA’s James Webb Space Telescope has captured an image of an exoplanet for the first time since it began science operations in July 2022, revealing TWA 7 b, a newly discovered body orbiting the young star TWA 7, 110 light-years away in the Antlia constellation. (TI)

• Washington-based New Frontier successfully tested its Mjölnir rocket engine, the world’s most advanced liquid-fueled propulsion system using full-flow staged combustion. (IE)

• A footwear startup, backed by a Reebok founder, has partnered with two aerospace firms to design a sneaker in orbit. (BBG)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Prediction market startup Kalshi raised $185 million in a Series C round led by Paradigm, achieving a $2 billion valuation. (WSJ)

• Metaview, founded by Uber and Palantir veterans, secures $35 million in Series B funding led by Google Ventures to advance AI-driven recruitment tools. (FM)

• Indian drone startup Raphe mPhibr secured $100 million in an all-equity Series B round led by General Catalyst. (TC)

• Lux Aeterna exited stealth mode Wednesday, securing $4 million in pre-seed funding to build a fully reusable satellite with a heat shield and parachute, targeting a 2027 launch. (SN)

• Singapore-based Centific, an AI data firm, raises $60 million in a Series A round led by Granite Asia to expand its global AI model development and deployment. (PRW)

• Zama, developer of the privacy-focused Confidential Blockchain Protocol, raised $57 million in a Series B led by Pantera Capital and Blockchange, valuing the company over $1 billion, with a testnet launch set for July 1. (TB)

• Norrsken VC, founded by Klarna’s Niklas Adalberth, has committed €300 million ($348 million) to back European AI startups. (BBG)

FREEDOM

🔍 Comer Investigates Potential Government Role in Debanking Conservatives

The Scoop: House Oversight Committee Chair James Comer (R-KY) is escalating his investigation into whether federal actors are orchestrating the debanking of conservatives, amid reports that the Trump administration is eyeing an executive order to shield politically targeted industries from such practices.

The Details:

• Comer’s probe, sparked by Marc Andreessen’s revelation that 30 tech founders were debanked for their politics under then-President Joe Biden, now seeks evidence of government-driven bias, with cases like Melania and Barron Trump’s debanking under scrutiny.

• In a letter to the Office of the Comptroller of the Currency (OCC), Comer demanded documents on communications with banks, the Treasury Department, and the White House about crypto activities, suspecting federal pressure to marginalize conservative clients.

• The Wall Street Journal reported Tuesday that Trump’s administration is considering an executive order to prevent banks from cutting off services to industries like crypto, responding to “Operation Chokepoint 2.0” targeting tech and crypto entrepreneurs.

• Trump previously reprimanded Bank of America CEO Brian Moynihan at the World Economic Forum, saying, “I hope you start opening your bank to conservatives,” alleging the bank refuses conservative business.

• The Trump Organization sued Capital One, alleging it closed hundreds of accounts in 2021 over “woke” motives.

What’s Next: Comer’s committee awaits OCC documents to expose any federal role in debanking, while Trump’s potential executive order could reshape banking regulations. The probe and lawsuit outcomes may galvanize GOP efforts to combat financial bias ahead of the 2026 midterms.

Freedom Roundup

🏛️ Economic Policy

• ⭐ Editor’s Pick: Senate Republicans may delay Medicaid cuts in Trump’s “One Big, Beautiful Bill” due to moderate pushback over rural hospital impacts, with $15 billion fund deemed insufficient. (PB)

• Senate Republicans, led by Sen. Mike Lee (R-UT), propose selling 1.2 million acres of public lands in Trump’s “Big, Beautiful Bill,” down from 2.2-3.3 million acres. (TH)

• Federal Housing Finance Agency's director Bill Pulte instructed Fannie Mae and Freddie Mac to develop a proposal for including crypto as a reserve asset in their single-family mortgage loan risk assessments. (TB)

• SEC Commissioner Hester Peirce indicated that in-kind redemptions for crypto ETFs are on the horizon. (CDO)

• A free market nonprofit urged the Treasury Department to ensure U.S.-EU trade deals eliminate “punitive” digital service taxes, fines, and regulations targeting U.S. firms like Alphabet, Apple, and Meta. (FBN)

💻 Business & Tech Policy

• ⭐ Editor’s Pick: Apple is set to propose additional App Store changes to satisfy European Union antitrust regulators, following a €500 million ($580 million) fine and an ultimatum from the bloc’s watchdogs. (BBG)

• U.S. Treasury bans certain transactions with Mexico’s CIBanco, Intercam, and Vector, citing money laundering concerns tied to fentanyl trafficking under new sanctions. (TD)

• A bipartisan group of lawmakers proposed legislation in both chambers of Congress to block federal agencies from utilizing AI models developed in China. (RTS)

• Palantir CTO Shyam Sankar said the American Tech Fellowship will train Heartland workers, from welders to engineers, to build AI data centers and chip factories, to drive economic growth in overlooked U.S. regions. (TC)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Iranian authorities are struggling to block Elon Musk’s Starlink satellites to restrict internet access. (BBG)

• Ogilvy is cutting about 5% of its workforce, roughly 700 employees, including its entire DEI team, in a restructuring to streamline operations. (ADA)

• Gumroad founder Sahil Lavingia was banned from science fiction writing community Codex Board over his work at DOGE. (X)

• To counter the EU’s Digital Services Act and protect free speech, professor John Rosenthal urges the Trump administration to challenge DSA fines on U.S. companies via the World Trade Organization and, if needed, Congress should pass an “anti-DSA” law banning compliance with foreign censorship. (CRB)

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