DOGE AI Tool to Revolutionize Government Efficiency

Welcome back!

Here’s your must-read news this morning:

• Trump offers Russia minerals for Ukraine peace

• World Humanoid Robot Games

• DOGE’s regulation-cutting AI tool

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

— Josh

MARKETS

💰 Report: Trump to Offer Economic Incentives to Russia for Ukraine Peace Deal

The Scoop: President Donald Trump has reportedly developed a creative proposal to provide Russia with access to critical minerals in Alaska and Ukrainian territories, coupled with economic incentives, to encourage an end to the Ukraine war. The plan is set to be discussed with Russian President Vladimir Putin in Anchorage on Friday, according to The Telegraph.

The Details:

• The U.S. may permit Russia to access Alaska’s natural resources and lift sanctions on Russia’s aerospace industry, providing Moscow with notable economic opportunities.

• The proposal includes allowing Russia to tap rare earth minerals in Russian-occupied Ukrainian territories, where Ukraine holds 5% of global reserves, including 19 million tons of graphite and a third of Europe’s lithium.

• Joint mining ventures in Ukraine could develop unexplored deposits of copper, lead, zinc, silver, nickel, cobalt, manganese, and rare earth elements.

• Russia could gain development rights in the Bering Strait, estimated to hold 13% of the world’s oil reserves, as part of the economic package.

What’s Next: The Anchorage summit will highlight Trump’s creative approach to diplomacy, with potential to ease tensions in Ukraine. While European leaders and Ukrainian President Volodymyr Zelensky emphasize Ukraine’s role in any agreement, the talks could influence U.S.-Russia relations and global mineral supply chains, shaping both regional stability and economic opportunities.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: U.S. wholesale inflation surged 0.9% in July, exceeding expectations, with the producer price index rising 3.3% year-over-year. (FBN)

• Mortgage rates dropped to a yearly low of 6.58% for 30-year fixed loans, down from 6.63% the previous week. (TS)

• Treasury Secretary Scott Bessent endorsed a half-point Federal Reserve interest rate cut in September. (RTS)

• David Zervos, Jefferies' chief market strategist and a potential Federal Reserve chair candidate, advocated for aggressive interest rate cuts. (CNBC)

📈 Stock Market

• ⭐ Editor’s Pick: Applied Materials reported Q3 adjusted earnings of $2.48 per share and revenue of $7.3 billion, surpassing estimates of $2.36 and $7.22 billion, respectively. (YF)

• John Deere reported a 25% drop in fiscal Q3 net income to $1.29 billion and a 9% decline in sales to $10.36 billion, surpassing expectations of $4.63 per share and $10.31 billion. (INV)

• Berkshire Hathaway disclosed a new $1.6 billion stake in UnitedHealth, holding 5 million shares of the healthcare giant by the end of Q2. (MS)

• S&P 500 futures rose 0.24% early Friday, following the benchmark’s third consecutive record close, while Nasdaq 100 futures edged up 0.07% and Dow Jones futures climbed 244 points, or 0.76%. (CNBC)

🏢 Industry

• ⭐ Editor’s Pick: The Trump administration is exploring a federal stake in Intel to bolster U.S. semiconductor production and expedite its delayed Ohio factory. (BBG)

• Jacklyn Bezos, mother of Amazon founder Jeff Bezos, passed away at 78 after a prolonged battle with Lewy body dementia. (BI)

• AbbVie announced a $195 million investment to expand its North Chicago manufacturing plant. (NS)

• Philips will invest over $150 million in U.S. manufacturing and R&D facilities in Pennsylvania and Minnesota. (RB)

💵 Energy & Commodities

• ⭐ Editor’s Pick: China is intensifying efforts to maintain control over global rare-earth supplies by warning foreign companies against building large inventories. (FT)

• Energy Secretary Chris Wright called for ending tax credits for solar and wind energy. (ICD)

• U.S. researchers launched experiments on high burnup nuclear fuel rods to enhance efficiency and extract more energy. (TE)

🌕 Crypto

• ⭐ Editor’s Pick: Treasury Secretary Scott Bessent confirmed the U.S. government won’t sell any of its $15-20 billion Bitcoin Strategic Reserve, with no plans for additional purchases. (FBN)

• The SEC has postponed decisions on Solana ETF proposals from Bitwise, 21Shares, Canary Funds, and Marinade Finance until October 16. (DC)

• Jack Dorsey's Block unveiled the Proto Rig, a Bitcoin mining rig designed to last a decade with swappable parts, aiming to cut miners' costs by 15-20% per upgrade cycle. (YF)

• Gemini, the crypto exchange backed by the Winklevoss twins, launched a self-custodial smart wallet. (CD)
  

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TECH

🤖 First-Ever World Humanoid Robot Games Begin in China

The Scoop: China launched the inaugural World Humanoid Robot Games in Beijing on Thursday, bringing together 280 teams from 16 countries to showcase advancements in AI and robotics.

The Details:

• Robots from manufacturers like Booster Robotics, Unitree, and Fourier Intelligence competed in events like soccer, track and field, and table tennis, with 192 university teams and 88 private enterprises participating.

• Scenario-based challenges tested robots’ real-world skills, including sorting medicines, handling materials, and performing cleaning tasks in simulated hospital and hotel settings.

• Teams, including Germany’s HTWK Robots, used the games to test innovative approaches, balancing research goals with competitive spirit.

What’s Next: The World Humanoid Robot Games, hosted at Beijing’s National Speed Skating Oval, will collect valuable data to refine robots for practical applications like factory automation. China’s $20 billion investment in robotics, coupled with a planned 1 trillion yuan ($137 billion) fund for AI and robotics startups, underscores the event’s role in advancing technology amid an aging population and global competition.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Leaked Meta AI guidelines permitted chatbots to engage in romantic or sensual conversations with children. (TC)

• The GSA launched USAi to enable federal employees to test AI models from OpenAI, Anthropic, and Google, aiming to streamline AI adoption and boost government efficiency. (GSA)

• WOOHOO, opening September 2025 in Dubai, aims to be the world’s first AI-powered restaurant, with AI-designed menus and curated lighting, sound, and service for a futuristic dining experience. (FOX)

• Google is integrating AI into its flight search to offer personalized, budget-friendly travel deals, intensifying competition with rivals like Expedia. (TIA)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Robot wars are fast becoming a reality on Ukraine’s frontlines, where AI-powered drones and ground robots are rapidly advancing warfare capabilities against Russia. (F24)

• Stanford University scientists developed a brain-computer interface that decodes inner speech, enabling communication for those with speech impairments. (NMLS)

• Scientists unveiled a trio of robots designed to autonomously explore and navigate lava tubes on Mars and the Moon. (ITC)

🚀 Defense & Space

• ⭐ Editor’s Pick: At an industry day in Alabama, the Pentagon detailed its Golden Dome missile defense system, revealing it will leverage AI to integrate sensors and interceptors for faster threat detection. (DO)

• Elon Musk revealed a redesign of SpaceX’s Starship, featuring massive triangular fins, among the largest ever for a rocket, to boost stability and prevent flight failures for Mars missions. (IE)

• The U.S. Army is poised to rapidly expand its use of 3D printing, with officials detailing plans to produce thousands of drone bodies and vehicle components. (BD)

• Scientists are developing a nuclear clock with unmatched precision, potentially capable of unveiling an invisible universe by detecting dark matter through subtle shifts in its resonance spectrum. (PM)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Cognition AI, creator of the AI coding assistant Devin, is said to have raised nearly $500 million at a $9.8 billion valuation, led by Founders Fund. (WSJ)

• AI startup Cohere raised $500 million, achieving a US$6.8 billion valuation, with funding led by Radical Ventures. (TCP)

• Sola Solutions, an AI-driven process automation startup, raised $21 million, including a $17.5 million Series A led by Andreessen Horowitz and a $3.5 million seed round led by Sarah Guo. (FOR)

• AI startup Create raised $8.5 million in a seed round led by Craft Ventures to develop a platform that simplifies app creation, aiming to be the "Shopify for apps." (PYMN)

FREEDOM

🪚 DOGE’s 'SweetREX' AI Tool Aims to Transform Government Efficiency

The Scoop: The Department of Government Efficiency (DOGE) is developing SweetREX Deregulation AI, an AI tool to streamline federal regulations and support President Donald Trump’s agenda to cut up to 50% of regulations by January 2026. Showcased in an Office of Management and Budget video call, SweetREX aims to simplify regulatory processes with cutting-edge technology, WIRED reports.

The Details:

• Developed by DOGE affiliate Christopher Sweet, SweetREX uses Google’s Gemini models to scan thousands of regulations, flagging those not required by statute for potential removal.

• The tool reviewed over 1,000 regulatory sections at HUD in under two weeks and drafted all deregulations at the CFPB, cutting review times from months to days.

• Staff from agencies like the State Department, EPA, and FDIC attended the call, signaling interest in exploring SweetREX’s use across government.

• SweetREX groups public feedback on proposed regulatory changes into AI-categorized “buckets,” streamlining the review process.

• DOGE estimates that repealing 100,000 regulations could reduce compliance costs by up to $3.3 trillion annually.

What’s Next: SweetREX’s development will accelerate, with DOGE targeting agency-specific deregulation lists by September 1, and a nationwide push by January 20, 2026. The tool aims to streamline internal workflows and enhance clarity in the regulatory code, potentially setting a global standard for AI-driven governance.

Freedom Roundup

🏛️ Policy, Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Ahead of the Netherlands’ October 29th snap election, a Dutch watchdog will convene TikTok, Facebook, and X, to address "harmful content," raising concerns about potential EU-driven censorship. (TEC)

• The Toronto International Film Festival reinstated a documentary about the Hamas’ October 7 terror attack on Israel, reversing its cancellation. (TOI)

• The UK’s tax authority plans to intensify social media surveillance to combat tax fraud, raising privacy concerns as it targets posts for financial investigations. (RTN)

• Over 80 fintech and crypto executives, including Shopify CEO Tobias Lütke and Gemini founders Tyler and Cameron Winklevoss, urged Trump to prevent banks like JPMorgan from imposing fees on customer data access. (BBG)

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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.