CIA Readies for AI 'Game Changer'

Welcome back!

Here’s your must-read news this morning:

• Divided Fed holds rates steady

• CIA’s AI plans

• U.S. sanctions pro-censorship judge

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

— Josh

MARKETS

💰 Divided Federal Reserve Holds Key Interest Rate Steady

The Scoop: The Federal Reserve voted 9-2 to keep interest rates steady at 4.25%-4.5%, with two governors dissenting for the first time since 1993, amid calls from President Donald Trump to lower rates.

The Details:

• Governors Michelle Bowman and Christopher Waller dissented, arguing for rate cuts as inflation nears the Fed’s 2% target and the labor market shows potential weakness.

• The Fed’s statement noted moderated economic growth and elevated uncertainty, a less optimistic tone than June’s view of “solid” expansion.

• Fed Chair Jerome Powell said no decision has been made for September, lowering market expectations for a quarter-point cut to 46% from 64%.

• Trump continues to criticize Powell, demanding a 3% rate reduction to ease national debt and housing market pressures.

What’s Next: The Fed’s Jackson Hole retreat in late August could signal future policy shifts. Markets anticipate a possible September rate cut if employment data weakens. Meanwhile, Treasury Secretary Scott Bessent criticized the Fed on Wednesday, saying the central bank suffers from "Tariff Derangement Syndrome” and could benefit from a “little imagination” to boost the economy.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: The U.S. economy grew at a robust 3% annualized rate in the second quarter of 2025, surpassing the 2.3% Dow Jones estimate, driven by a trade balance rebound and stronger consumer spending. (CNBC)

• Trump announced a trade deal with South Korea, securing $350 billion in U.S.-directed investments and $100 billion in U.S. energy purchases, while imposing a 15% tariff on South Korean imports. (X)

• U.S. private payrolls grew by 104,000 jobs in July, exceeding Reuters' expectations of an increase of 75,000. (RTS)

• Commerce Secretary Howard Lutnick announced trade deals with Thailand and Cambodia, secured after a Trump-urged ceasefire, but did not disclose details. (BBG)

📈 Stock Market

• ⭐ Editor’s Pick: Microsoft reported fiscal fourth-quarter earnings of $3.65 per share and revenue of $76.44 billion, surpassing estimates of $3.37 per share and $73.81 billion. (INV)

• Meta reported second-quarter earnings that exceeded expectations, with earnings per share of $7.14 and revenue of $47.52 billion, surpassing analyst estimates of $5.92 and $44.80 billion, respectively. (CNBC)

• Samsung posted a second-quarter operating profit of $3.37 billion, falling short of expectations of $3.82 billion, with revenue of $53.5 billion, surpassing forecasts of $53.41 billion. (RTS)

• Qualcomm reported fiscal third-quarter earnings of $2.77 per share and revenue of $10.37 billion that slightly exceeded consensus estimates of $2.71 and $10.35 billion. (AP)

🏢 Industry

• ⭐ Editor’s Pick: Chinese investors are increasingly purchasing properties in America's hottest housing markets, driving up demand and prices in cities like San Francisco and New York. (NW)

• Apple closed its first store ever in China, located in Suzhou, as the tech giant grapples with declining sales and intensifying competition in its second-largest market. (BBG)

• JPMorgan Chase CEO Jamie Dimon met with Trump twice in the Oval Office, signaling a thawing of tensions between the president and the head of America’s largest bank. (WSJ)

• Mars plans a $2 billion investment through 2026 to expand its U.S. manufacturing, enhancing production in its confectionery and pet food sectors. (MI)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Trump signed a proclamation imposing a 50% tariff on copper imports, effective August 1. (CNBC)

• Trump announced a U.S.-Pakistan agreement to jointly develop Pakistan's substantial oil reserves. (X)

• Chevron has secured a restricted U.S. license to resume operations in sanctioned Venezuela, allowing limited oil activities without financial transfers to the Maduro regime. (RTS)

• U.S. jet fuel demand hit a seven-year high of 2.1 million barrels per day, up 411,000 barrels, according to the EIA. (INV)

🌕 Crypto

• ⭐ Editor’s Pick: JPMorgan Chase has deepened its crypto ties by partnering with Coinbase to leverage its blockchain platform for faster and more efficient USDC transaction settlements. (BD)

• The Justice Department has withdrawn its plans to charge Dragonfly Capital for its investment in Tornado Cash. (DC)

• Corporate Ethereum treasuries exceed $10 billion across 64 entities, with Bitmine Immersion Tech leading at 625,000 ETH, surpassing the Ethereum Foundation’s reserves. (SER)

• PublicSquare, a woke-free e-commerce platform, appointed Custodia Bank CEO Caitlin Long to its board to oversee its crypto treasury strategy. (BW)
  

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TECH

💻 CIA Prepares for AI 'Game Changer'

The Scoop: The CIA is bracing for a potential artificial general intelligence (AGI) breakthrough that could revolutionize the spy business, as global competition, particularly with China, intensifies in the race for advanced AI, according to the Washington Times.

The Details:

• CIA Deputy Director Michael Ellis warns that AGI, AI matching human cognitive abilities, could reshape intelligence and national security, impacting cyber operations and drone warfare.

• The agency is leveraging its Directorate of Science and Technology, CIA Labs, and In-Q-Tel investments to prepare for AGI and avoid technological surprise.

• AI is already transforming CIA operations, aiding analysts with data processing, translations, and planning, with in-house AI models deployed for classified work.

• China is aggressively pursuing AGI and superintelligence, exploring brain-computer interfaces and AI-powered robots, with a pilot program in Wuhan raising concerns.

What’s Next: The CIA’s focus on integrating AI and monitoring global developments signals a high-stakes race with China. President Donald Trump’s AI Action Plan aims to secure U.S. dominance, with CIA Director John Ratcliffe pushing for aggressive intelligence-gathering to counter China’s advancements.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: OpenAI is launching Stargate Norway, its first European AI data center, in partnership with Nscale and Aker, aiming to deploy 100,000 NVIDIA GPUs by the end of 2026 in a renewable-powered facility in Narvik. (CNBC)

• Meta CEO Mark Zuckerberg wrote in a memo that “superintelligence is now in sight,” predicting that context-aware glasses will become primary personal computing devices powered by advanced AI. (META)

• OneChronos partnered with Nobel laureate Paul Milgrom to launch the world’s first financial market for GPU compute, enabling auction-based trading to address AI-driven compute shortages. (UPM)

• Researchers developed an AI platform that can predict respiratory tract infections before symptoms appear. (NP)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Aurora launched the world’s first commercial driverless trucking service on Texas’ I-45 between Dallas and Houston, completing over 1,200 miles without a human driver. (TC)

• UW-Madison researchers are creating robots that “eat” metal and use a single “blood-like” system to store energy like animals do. (TDC)

• Top cosmetic surgeons are increasingly integrating robotics into plastic surgery, with experts predicting robots will soon assist with basic tasks like mapping and energy-based treatments. (THR)

• Autonomous Husqvarna robotic mowers will prepare the fairways at Royal Porthcawl for the AIG Women’s Open, marking the first time a major golf championship course is maintained autonomously. (CAM)

🚀 Defense & Space

• ⭐ Editor’s Pick: SpaceX is set to launch its Crew-11 mission for NASA today at 12:09 p.m. EDT, sending four astronauts to the International Space Station for a six-month science mission. (SP)

• Somaliland, which declared independence from Somalia since 1991, is offering the U.S. a military base at the Red Sea’s entrance and critical minerals to gain international recognition. (BI)

• The U.S. Navy’s Virginia Block V nuclear submarine has sparked concern in the Chinese military for its unmatched precision and multi-mission versatility in undersea warfare. (VP)

• The U.S. Army awarded Epirus a $43.5 million contract to deliver two high-power microwave systems, designed to counter drone swarms with enhanced range. (DN)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Ramp raised $500 million in a Series E-2 funding round led by Iconiq Capital, with participation from Founders Fund, valuing the expense management platform at $22.5 billion. (WSJ)

• Surge AI is negotiating a $1 billion debut funding round with investors including Andreessen Horowitz and Warburg Pincus, targeting a valuation of at least $25 billion. (BBG)

• Seoul-based AI chip startup FuriosaAI secured a $125 million Series C bridge round, led by Korea Development Bank and Industrial Bank of Korea, valuing the company at $735 million. (BW)

• Oxide Computer Company secured a $100 million Series B funding round led by Thomas Tull’s US Innovative Technology Fund. (OC)

FREEDOM

⚖️ U.S. Sanctions Brazilian Justice Alexandre de Moraes for Censorship Demands

The Scoop: The U.S. Treasury has sanctioned Brazilian Supreme Federal Court Justice Alexandre de Moraes for abusing judicial power to censor speech, target dissent, and persecute political opponents, including former President Jair Bolsonaro.

The Details:

• De Moraes was sanctioned under the Global Magnitsky Act for serious human rights abuses and corruption, including arbitrary detentions and censorship affecting U.S. citizens and companies.

• Bessent condemned de Moraes for an “oppressive campaign of censorship” and “politicized prosecutions.” The State Department previously revoked visas for de Moraes and his family.

• Sanctions block de Moraes’ U.S.-linked assets and ban U.S. transactions with him or entities he controls, with penalties for violations and potential secondary sanctions for businesses.

• He attempted to censor Rumble, a U.S.-based video-sharing platform, by demanding the removal of accounts and content critical of his actions or the Brazilian government.

What’s Next: This rare sanction against a sitting judge signals U.S. resolve to counter judicial overreach targeting free speech and Americans. Expect diplomatic tensions and possible Brazilian pushback as global scrutiny intensifies. Meanwhile, Brazilian officials are attempting to negotiate a trade deal with the U.S. even as Trump imposed a 50% tariff on the country.

Freedom Roundup

🏛️ Policy

• ⭐ Editor’s Pick: The White House unveiled a comprehensive 168-page report detailing crypto regulation recommendations, addressing banking, stablecoins, taxation, and measures to combat illicit finance. (TB)

• A Senate committee advances Sen. Josh Hawley’s (R-MO) bipartisan bill to ban stock trading by lawmakers, presidents, and vice presidents. (TH)

• The Trump administration secured a $50 million deal with Brown University to restore federal funding, requiring the school to commit to nondiscrimination in admissions. (UPI)

• The Trump administration froze $108 million in federal funding to Duke University, citing its affirmative action and DEI policies. (FOX)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: The White House called on UK Prime Minister Keir Starmer to cease threats against U.S. tech firms as Britain’s Online Safety Bill faces growing criticism for stifling free speech. (TEL)

• Army Secretary Daniel Driscoll canceled West Point’s job offer to former CISA Director Jen Easterly, who stands accused of censoring Americans during the 2020 election. (WT)

• House Judiciary Chairman Jim Jordan (R-OH) is leading a bipartisan delegation to Brussels, warning that the EU’s Digital Services Act imposes global censorship standards on U.S. tech platforms. (CLE)

• A University of Iowa official admitted in an undercover video that she and colleagues are circumventing federal directives aimed at ending reverse discrimination under the guise of DEI initiatives. (FOX)

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