China Developing Human Brain-Machine Hybrid

Welcome back!

Here’s your must-read news this morning:

• Bezos weighs CNBC purchase

• Human brain-machine experiment

• Trump’s AI orders

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

— Josh

MARKETS

💰 Jeff Bezos Considering Making Play for CNBC Cable Network

The Scoop: Amazon billionaire Jeff Bezos is reportedly eyeing an acquisition of CNBC as the business news network prepares to spin off from Comcast later this year, potentially expanding his media empire with a "neutral voice" that could complement his troubled ownership of The Washington Post, according to the New York Post.

The Details:

• Bezos has signaled interest to business associates in acquiring CNBC after it becomes part of Versant, a publicly-traded company that will include CNBC, MSNBC, USA Network, and E! under NBCUniversal executive Mark Lazarus.

• Sources say CNBC would "align well with his interests" and serve as a neutral voice in his media portfolio, addressing headaches from The Washington Post's left-leaning reputation and subscriber exodus.

• The acquisition faces significant hurdles, including a two-year restriction preventing Versant from selling major assets without tax implications, and company sources indicate plans to grow CNBC rather than sell it.

What's Next: Bezos has not yet approached Comcast directly about the potential deal, though his net worth of $241 billion would easily cover any acquisition costs from Versant's $7 billion annual revenue.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Trump will visit the Federal Reserve headquarters tomorrow alongside OMB Director Russell Vought, FHFA Director Bill Pulte, and Deputy Chief of Staff James Blair to tour its $2.5 billion renovation. (X)

• U.S. existing home sales dropped to a nine-month low of 3.93 million units in June, a 2.7% decline from May, driven by high mortgage rates. (INV)

• The European Union is nearing a trade agreement with the U.S. to impose a 15% tariff on EU goods, averting a steeper 30% tariff set for August 1, according to two EU diplomats. (RTS)

• South Korea plans to propose a minimum $100 billion investment in the U.S. as part of a trade deal to bolster economic ties and address tariff concerns. (YON)

• Proposed U.S. sanctions on Russian oil, including 500% tariffs on countries buying Russian energy, could send U.S. energy surging. (NW)

📈 Stock Market

• ⭐ Editor’s Pick: Tesla reported second-quarter adjusted EPS of $0.40, meeting analyst estimates, and revenue of $22.5 billion, slightly above the $22.4 billion forecast as automotive revenue fell 16% year-over-year due to softer demand. (MF)

• Alphabet reported second-quarter earnings of $2.31 per share and revenue of $96.43 billion, surpassing analyst estimates of $2.17 and $93.9 billion. (CNBC)

• IBM reported second-quarter adjusted EPS of $2.31, missing the $2.65 analyst estimate, but revenue of $17 billion exceeded the $16.59 billion forecast driven by strong AI demand. (BBG)

• Southwest Airlines reported second-quarter adjusted EPS of $0.43, missing the $0.51 analyst consensus, with revenue of $7.24 billion falling short of the $7.30 billion estimate due to weak domestic travel demand. (INV)

• Chipotle reported second-quarter adjusted EPS of $0.33, meeting analyst expectations, and revenue of $3.1 billion, slightly below the $3.11 billion forecast. (BAR)

🏢 Industry & Deals

• ⭐ Editor’s Pick: Amazon founder Jeff Bezos is exploring a potential acquisition of CNBC. (NYP)

• The Nintendo Switch 2 sold 1.6 million units in its June 2025 U.S. launch, becoming the fastest-selling gaming hardware in U.S. history. (IGN)

• T-Mobile launched its Starlink-powered T-Satellite service nationwide on Wednesday, enabling text messaging and location-sharing in cellular dead zones. (VER)

💵 Energy & Commodities

• ⭐ Editor’s Pick: The U.N.’s top court ruled that countries have a legal obligation to combat climate change due to its adverse effects on human rights and the environment. (AP)

• Iran faces escalating protests over prolonged power and water outages amid a record-breaking heatwave. (OP)

• Silver prices surged to $39.40 per troy ounce, the highest since September 2011. (YF)

• California officials are urgently seeking a buyer for Valero’s Benicia refinery, set to close in April 2026, in a rare intervention highlighting the state’s concerns over fuel security. (RTS)

• Lucid Group partnered with Alaska Energy Metals, and Graphite One to secure critical minerals for U.S. EV manufacturing. (LM)

🌕 Crypto

• ⭐ Editor’s Pick: Goldman Sachs and Bank of New York Mellon have developed a system enabling institutional investors to purchase tokenized money market funds. (CNBC)

• Tether CEO Paolo Ardoino said that the stablecoin issuer is "well underway" with plans to conduct business in the U.S. (TB)

• Asymmetric Financial CEO Joe McCann is set to become the CEO of Accelerate, a new Solana-based crypto treasury company, aiming to go public through a $1.5 billion SPAC deal. (UC)

• Pump.fun founder Alon Cohen confirmed that the $PUMP airdrop will not take place in the immediate future. (X)

• Tesla’s Bitcoin holdings, unchanged at 11,509 BTC, surged to $1.2 billion in the second quarter, boosted by a 30% price rally. (CD)
  

TECH

🤖 China Developing Human-Machine Hybrids to Revolutionize AI Capabilities

The Scoop: China is pursuing a radical alternative to Western AI development by merging human brains directly with machines through brain-computer interfaces, positioning itself for a potential breakthrough in the global race toward artificial general intelligence, according to The Washington Times.

The Details:

• China is developing brain-computer interfaces for "cognitive enhancement," creating direct links between brain signals and computers to augment human thinking.

• While American companies like OpenAI scale up model parameters, China explores brain-inspired approaches partly due to semiconductor export controls that limit access to advanced chips used in Western AI development.

• A pilot program in Wuhan aims to "embody" AI throughout the city's industry and human interactions, with plans to expand across Hubei province and nationwide as China's most aggressive AGI effort.

• Georgetown analysts estimate 30-40% of Chinese government AGI spending goes toward these alternative pathways, though exact figures remain unclear due to research secrecy.

What's Next: China's human-machine fusion approach raises significant concerns about military applications and authoritarian control, as the technology could enable unprecedented surveillance and cognitive manipulation capabilities.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Google DeepMind’s Aeneas AI model decodes fragmented ancient texts with unprecedented accuracy, enabling historians to reconstruct historical narratives from damaged manuscripts. (DM)

• The Washington Post and Forbes have appointed AI-focused executives, signaling a major shift toward integrating AI as core infrastructure in news publishing. (DD)

• Proton launched Lumo, a privacy-focused AI chatbot with zero-access encryption, local data storage, and no user data logging, as a secure alternative to mainstream AI tools. (BC)

• Researchers developed UnMarker, a tool that swiftly removes watermarks from AI-generated images, exposing a systemic flaw in global deepfake defenses. (CBC)

• Seattle-based startup Humanly unveiled an AI-powered video bot that conducts lifelike job interviews. (GW)

• YouTube Shorts introduced new AI-powered features, including an image-to-video tool that transforms photos into six-second clips. (DIW)

• Google Photos introduced new AI-powered features, including a "Photo to video" tool to animate still images and a "Remix" feature to transform photos into styles like anime. (TC)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Meta unveiled a prototype wristband that uses AI to read muscle signals from hand gestures, allowing users to control computers without physical input. (NYT)

• China’s “dark factories,” fully automated plants producing vehicles with minimal human intervention, are setting a new standard for auto manufacturing, potentially threatening U.S. automakers. (UT)

• Google DeepMind’s AI-powered robotic arm achieved amateur human-level table tennis performance, winning 45% of matches against 29 human players. (PS)

• AI retail company VenHub opened a 24/7 Smart Store in Hollywood, California, offering cashier-less, AI-powered shopping with robotic inventory management. (LAM)

• Van Robotics’ AI-powered tutor robot, Abii, is enhancing K-5 math and reading education in 130 schools across 38 states and seven countries. (WIS)

🚀 Defense & Space

• ⭐ Editor’s Pick: The U.S. and China are racing to embed AI in drone swarms, cyber warfare, and gene-edited soldiers, with a potential Taiwan conflict serving as the first true test of their technological superiority. (FOX)

• Fueled by Russia’s invasion of Ukraine, German defense startups are pioneering AI-driven technologies, including cyborg cockroaches and tank-like robots. (RTS)

• Chinese researchers unveiled a mosquito-sized microdrone, designed for covert battlefield reconnaissance and special missions. (IE)

• Golden Dome program head Michael Guetlein announced that space-based missile interceptors are feasible, stating, “We have proven every element of the physics.” (SN)

• Defense tech startups showcased innovations like flying boats and AI-run factories at the Reindustrialize conference, aiming to revitalize U.S. manufacturing. (DO)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Vanta, a San Francisco-based cybersecurity compliance startup, raised $150 million in a Series D round led by Wellington Management, achieving a $4.15 billion valuation. (CNBC)

• Silicon Valley startup xLight raised $40 million to develop a prototype extreme ultraviolet (EUV) laser for chip manufacturing. (RTS)

• The Artificial Intelligence Underwriting Company launched with a $15 million seed round led by Nat Friedman’s NFDG to provide insurance for enterprises deploying AI agents. (PRN)

• London-based trading app Lightyear, a European rival to Robinhood, raised $23 million in a Series B round led by NordicNinja, valuing the company at $200-$300 million. (CNBC)

• New York-based AI tax platform april raised $38 million in a Series B round led by QED Investors, to expand its embedded tax solutions that streamline filing to 22 minutes. (BW)

FREEDOM

🧠 Trump Signs Executive Orders To Bolster AI Leadership, Target Woke Models

The Scoop: President Donald Trump unveiled his comprehensive AI Action Plan Wednesday, prioritizing U.S. dominance over China in artificial intelligence through aggressive deregulation, elimination of woke bias from government AI systems, and rapid federal adoption of the technology across all agencies.

The Details:

• The 28-page plan contains over 90 actions across three pillars—innovation, infrastructure, and international diplomacy—all designed for completion within six months to a year

• The "Preventing Woke AI" executive order requires agencies to buy AI only from companies ensuring "objective" systems free from diversity, equity, and inclusion references.

• A data center infrastructure order directs federal agencies to authorize AI facility construction on federal lands with streamlined permitting by end of 2025.

• The AI exports order establishes an "American AI Exports Program" to promote full-stack U.S. AI technology packages to allies with priority federal financing.

• The plan limits federal funding to states with "burdensome AI regulations" and mandates all relevant federal employees get access to frontier language models.

What's Next: The ambitious timeline and deregulatory approach could rapidly accelerate American AI innovation and deployment, positioning the U.S. to maintain its technological edge over China while expanding AI adoption across government and private sectors.

Freedom Roundup

🏛️ Policy

• ⭐ Editor’s Pick: The White House appointed former mining executive David Copley to lead a National Security Council office focused on strengthening critical mineral supply chains. (RTS)

• Vice President JD Vance criticized Microsoft for laying off 9,000 American workers while applying for over 6,000 H-1B visas, calling claims of a U.S. talent shortage “a bullsh*t story.” (X)

• Louisiana Gov. Jeff Landry (R) announced the state will join six Southern states to form a new university accrediting body focused on merit-based achievement. (NOLA)

• The Department of Education is investigating five colleges, including University of Miami, alleging scholarships exclusively for illegal aliens discriminate based on national origin. (DOE)

• Sens. John Fetterman (D-PA) and Kevin Cramer (R-ND) introduced legislation requiring brick-and-mortar businesses to accept cash payments to ensure access for the unbanked. (FBN)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Columbia University will pay $200 million to the federal government to restore the majority of funding cut by the Trump administration over allegations it violated anti-discrimination laws. (WSJ)

• Skydance Media pledged to the FCC to eliminate Paramount Global’s DEI initiatives and appoint a CBS News ombudsman to address bias complaints. (WRAP)

• Chinese authorities are secretly using a mobile forensics tool to extract GPS, messages, and app data from seized smartphones, including encrypted apps like Signal. (SCM)

• Denver’s Drip Cafe, a Christian coffee shop founded to employ the homeless, is countering protests from LGBTQ activists over its biblical stance on sexuality with worship services. (CBN)

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