China's Military Unveils Killer ‘Wolf’ Robots

Welcome back!

Here’s your must-read news this morning:

• Apple’s $600B investment

• China’s killer “wolf” robots

• Musk’s free speech victory

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

— Josh

MARKETS

💰 Apple Boosts U.S. Investment to $600 Billion with $100 Billion Manufacturing Push

The Scoop: Apple CEO Tim Cook and President Donald Trump announced a $100 billion U.S. investment, raising its four-year commitment to $600 billion, and launched the American Manufacturing Program (AMP) to bolster domestic supply chains, partnering with firms like Corning and TSMC to produce critical components for global markets.

The Details:

• AMP will collaborate with Corning, Coherent, GlobalWafers, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, Broadcom, and MP Materials for rare earth magnets.

• Corning’s Kentucky facility will produce all iPhone and Apple Watch glass as part of a $2.5 billion investment; Coherent’s Texas plant will make Face ID lasers.

• Apple’s U.S. silicon supply chain will churn out over 19 billion chips in 2025, with TSMC in Arizona and GlobalWafers in Texas as key players.

• Roughly two-thirds of U.S.-made components are exported globally, amplifying America’s manufacturing reach.

• Supports 450,000 supplier jobs across all 50 states and plans to hire 20,000 U.S. workers, focusing on R&D and AI.

What’s Next: Apple’s push for an end-to-end U.S. silicon supply chain aims to strengthen domestic manufacturing and innovation. The Houston server facility, set for 2026 production, and the new Apple Manufacturing Academy in Detroit will drive AI and manufacturing advancements.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: The U.S. imposed a 50% tariff on Indian goods, including an additional 25% penalty for India's Russian oil purchases. (CNBC)

• Trump teased a 100% tariff on imported semiconductors, sparing companies that produce in the U.S. or pledge to do so. (INV)

• Trump will select a temporary replacement for Federal Reserve Governor Adriana Kugler within days from a shortlist of three candidates. (RTS)

• High-profile conservatives are advocating for Heritage Foundation economist EJ Antoni to head the Bureau of Labor Statistics following Trump’s dismissal of Commissioner Erika McEntarfer last week. (BBG)

📈 Stock Market

• ⭐ Editor’s Pick: McDonald’s reported Q2 net income of $2.25 billion, or $3.14 per share, with adjusted earnings of $3.19 per share and revenue of $6.84 billion, exceeding Wall Street’s expectations. (INV)

• Uber reported Q2 earnings of 63 cents per share and revenue of $12.65 billion, surpassing Wall Street's $12.46 billion forecast. (YF)

• Airbnb’s Q2 earnings beat expectations with $1.03 per share and $3.10 billion in revenue, up 13% from $2.75 billion, and net income rose 16% to $642 million from $555 million a year ago. (SW)

• Shopify's stock surged 20% as the e-commerce platform exceeded Q2 expectations with adjusted earnings of 35 cents per share and $2.68 billion in revenue. (CNBC)

🏢 Industry

• ⭐ Editor’s Pick: United Airlines grounded its entire mainline fleet nationwide on Wednesday due to a technical glitch in its Unimatic system. (UT)

• Hotel chain La Quinta faces backlash for allegedly outsourcing front desk check-ins in Miami to Indian workers. (NYP)

• Eli Lilly’s experimental daily obesity pill achieved an average 12% weight loss in a closely-watched trial, paving the way for its approval to compete against Novo Nordisk's Wegovy. (CNBC)

• Sen. Tom Cotton (R-AR) questioned Intel’s board chair about CEO Lip-Bu Tan’s investments in Chinese tech firms with military ties, raising national security concerns. (TH)

💵 Energy & Commodities

• ⭐ Editor’s Pick: The Trump administration canceled a massive offshore wind farm project approved in the final days of the Biden administration. (FOX)

• General Motors inked a deal with Texas-based Noveon Magnetics to source U.S.-made rare earth magnets, reducing reliance on China. (MIN)

• Germany’s zero-subsidy offshore wind auction collapsed without any bids. (OP)

• The Department of the Interior is expediting the expansion of the Skyline Mine, a major Utah coal project. (DOI)

🌕 Crypto

• ⭐ Editor’s Pick: Tornado Cash co-founder Roman Storm was convicted of operating an unlicensed money transmitting business but acquitted on sanctions violations. (CC)

• Ethereum’s daily transactions hit an all-time high of 1.74 million, driven by growing corporate adoption of ETH treasury strategies. (TB)

• China is set to launch yuan-backed stablecoins through Hong Kong to bolster the renminbi’s global role and counter the dominance of U.S. dollar-backed stablecoins. (FT)

• Ethereum treasury firms, amassing 2 million ETH and targeting 8%-14% DeFi yields, could ignite a “DeFi Summer 2.0” by channeling billions into protocols. (CT)
  

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TECH

🪖 China’s Military Showcases Killer ‘Wolf’ Robots

The Scoop: China’s military unveiled gun-toting “wolf” robots, designed for stealth, precision strikes, and rough terrain navigation, showcasing enhanced reconnaissance and combat capabilities, according to CCTV footage.

The Details:

• Upgraded from earlier robots, these “wolves” carry rifles, climb stairs, and haul heavy loads.

• Capable of precision strikes from 328 feet, they operate in coordinated “wolf packs” with roles like scouting, shooting, or carrying supplies.

• A “pack leader” gathers and transmits reconnaissance imagery, reducing risks to human soldiers in dangerous conditions.

• The U.S. Army has tested Ghost Robotics Vision 60 robot dogs armed with AI-enabled AR-15/M16-pattern rifles at Red Sands in Saudi Arabia and Fort Drum, New York, for counter-drone missions.

What’s Next: China’s “wolf” robots may see increased deployment in global exercises, signaling automated warfare’s rise. Meanwhile, the U.S. is pushing for rapid fielding of robotic formations, with Project Convergence refining tactics and the Replicator initiative countering China’s numerical advantage.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: China is using AI to monitor and manipulate public opinion, conducting influence campaigns in Taiwan while collecting data on U.S. Congress members and influential figures. (NYT)

• OpenAI will provide its ChatGPT enterprise service to U.S. federal agencies for $1 per year, aiming to accelerate adoption across government operations. (BBG)

• xAI's Grok Imagine tool, featuring a "spicy" mode, has sparked controversy by generating unsolicited deepfake nude videos of Taylor Swift. (TV)

• Google's Jules, now out of beta, is an AI coding agent powered by Gemini 2.5 Pro that automates software development tasks, including bug fixes, feature implementation, and code reviews. (TC)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Chinese robotics firm Unitree's A2 Stellar Explorer robot dog, capable of carrying a 220-pound adult and performing stunts like front flips. (FUT)

• Japan’s Henn na Hotel, the world’s first robot-staffed hotel, has evolved into a hybrid model blending quirky robotic service with human hospitality. (WIR)

• Realbotix's AI-powered robot, Aria, now assists guests at Tix4Vegas kiosks in Las Vegas' Fashion Show Mall, selling show tickets and providing recommendations. (GN)

• At Moo Acres Farm in Fairfield, Vermont, a robotic milking system has slashed labor demands and boosted efficiency. (WCAX)

🚀 Defense & Space

• ⭐ Editor’s Pick: Radiant Industries signed a first-of-its-kind agreement with the Department of the Air Force to deliver a portable nuclear microreactor to a U.S. military base. (BNN)

• Emil Michael, Under Secretary of Defense for Research and Engineering, laid out America's plan to outpace Russia and China in drone warfare. (NN)

• Anduril is opening a Taiwan office and selling AI-powered attack drones to bolster the island’s defenses against escalating Chinese threats. (SEM)

• Solid Aero's TALAY, the world’s first sea-skimming drone, flies stealthily at 9.8 feet, hits 124 mph, and conducts strike missions with a 66-pound payload. (IE)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: AI video startup Runway is seeking to raise approximately $500 million at a pre-money valuation exceeding $5 billion, while competitor Luma AI targets over $1.1 billion at a pre-money valuation above $3.2 billion. (TI)

• AI drug discovery startup Chai Discovery raised $70 million in a Series A round led by Menlo Ventures’ Anthology Fund with Anthropic, valuing the company at $550 million. (PR)

• Tavily raised $25 million, led by Insight Partners and Alpha Wave Global, to enhance its platform that connects AI agents to real-time web data. (TC)

• Lava Payments raised $5.8 million from investors, including Lerer Hippeau, to develop a digital wallet platform for AI-driven transactions in the agent-native economy. (YF)

FREEDOM

⚖️ Elon Musk's X Secures Court Victory Over California’s AI Deepfake Law

The Scoop: A federal judge this week struck down a California law restricting AI-generated deepfake content during elections, one of the nation’s strictest measures, citing conflicts with federal online platform protections, in a victory for Elon Musk’s X.

The Details:

• Judge John Mendez ruled the law, signed by Gov. Gavin Newsom (D), violated Section 230 of the Communications Decency Act, shielding platforms like X from liability for third-party content.

• The law aimed to block deceptive AI-generated election content, prompted by concerns over realistic deepfakes, like a satirical video of Kamala Harris shared by Musk.

• Mendez also signaled intent to strike down a second law requiring labels on altered campaign materials, calling it a First Amendment violation likely to censor speech.

• The lawsuit, initiated by video creator Christopher Kohls and joined by X, Rumble, and the Babylon Bee, argued the laws stifled free expression.

• California officials, including Newsom’s office, are reviewing the ruling but defend labeling deepfakes to protect election integrity.

What’s Next: Mendez’s forthcoming opinion on the second law could further solidify Elon Musk’s push for fewer restrictions on AI-generated content. The ruling may signal to other states to avoid similar regulations, risking defeat in court.

Freedom Roundup

💬 Free Speech & Woke Retreat

• ⭐ Editor’s Pick: Secretary of State Marco Rubio directed diplomats to lobby against the EU’s Digital Services Act for stifling free speech and burdening tech firms. (RTS)

• America First Legal files civil rights complaint against Harvard Medical School, urging DOJ to probe alleged illegal DEI practices. (AFL)

• India ordered X to remove approximately 1,400 posts or accounts from March 2024 to June 2025, escalating tensions with Modi’s government over content regulation policies. (RTS)

• Consumers’ Research called on the Justice Department to probe DISH for discriminatory DEI practices, cited on a now-deleted webpage, which may violate Trump’s anti-DEI executive orders. (DW)

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DISCLAIMER: The CAPITAL newsletter is for informational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research and consult a qualified financial advisor before making investment decisions. The CAPITAL newsletter and its owner and operator, Josh Caplan, are not liable for any loss or damage resulting from reliance on this information. The CAPITAL newsletter is solely owned and independently operated by Josh Caplan, separate from any employer affiliations.