Human Coder Defeats OpenAI

Welcome back!

Here’s your must-read news this morning:

• Commerce Dept. employee blocked from leaving China

• Human coder defeats OpenAI

• Buttigieg’s DOT directed billions to DEI

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

— Josh

MARKETS

💰 U.S. Commerce Department Employee Barred from Leaving China

The Scoop: A Chinese-American U.S. Commerce Department employee has been barred from leaving China since April, caught in an exit ban after failing to disclose his government role on a visa application, escalating tensions amid U.S.-China trade disputes.

The Details:

• The unnamed Patent and Trademark Office worker, a former U.S. Army veteran, was detained in Chengdu while visiting family and later traveled to Beijing with a U.S. official, though his current whereabouts are unknown.

• China’s Foreign Ministry claims it handles such cases lawfully, but the U.S. State Department criticized the “arbitrary” ban, noting it tracks dozens of similar cases, often targeting Chinese Americans, without transparent resolution processes.

• Rep. John Moolenaar (R-MI) called it “CCP hostage diplomacy,” while a high-level U.S. message urged Beijing to allow the man’s departure.

• The case follows a similar exit ban on a Wells Fargo executive, prompting the bank to suspend China travel.

What’s Next: As President Donald Trump pushes for a trade deal with China, the exit ban could complicate a potential Trump-Xi meeting, with no clear timeline for the employee’s release.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Trump and Chinese leader Xi Jinping are expected to meet before or during the Asia-Pacific Economic Cooperation summit in South Korea. (SCMP)

• Bangladesh signed a five-year deal to import 700,000 metric tons of wheat annually from the U.S., aiming to secure tariff relief from the Trump administration. (CNA)

• The European Union is intensifying preparations for retaliatory measures, including potential use of its anti-coercion instrument targeting U.S. services. (RTS)

• Commerce Sec. Howard Lutnick said Trump will "absolutely" renegotiate the USMCA to protect American jobs, by shifting manufacturing from Canada and Mexico to states like Michigan and Ohio. (FBN)

• Trump disputed a Wall Street Journal report claiming that Treasury Sec. Scott Bessent dissuaded him from firing Federal Reserve Chairman Jerome Powell, calling the story “typically untruthful.” (CNBC)

📈 Stock Market

• ⭐ Editor’s Pick: Global hedge funds saw their strongest inflows since 2015, attracting a record $37.3 billion in the first half of 2025, up from $7.2 billion the previous year. (RTS)

• Charles Schwab reported second-quarter adjusted earnings per share of $1.14, beating analyst expectations of $1.09, with record revenue of $5.85 billion surpassing the consensus forecast of $5.7 billion. (INV)

• American Express reported second-quarter adjusted earnings per share of $4.08, topping analyst estimates of $3.87, with revenue of $17.86 billion, a 9% increase that beat the $17.7 billion consensus forecast. (INV)

• The Peter Thiel-backed cryptocurrency exchange Bullish filed for an IPO. (CNBC)

• Jack Dorsey’s Block will join the S&P 500 effective Wednesday, July 23. (BBG)

🏢 Industry & Deals

• ⭐ Editor’s Pick: Microsoft SharePoint servers are under active attack through a zero-day vulnerability, with no patch available, allowing hackers to gain unauthorized access and execute remote code. (HNS)

• Astronomer CEO Andy Byron resigned after a viral Coldplay concert "kiss cam" video showed him embracing HR chief Kristin Cabot. (THR)

• In-N-Out Burger President Lynsi Snyder announced she is relocating her family from California to Tennessee, citing challenges in raising a family and doing business in the state. (NYP)

• PepsiCo is accelerating the phaseout of artificial colors from its U.S. food portfolio, with brands like Lay’s and Tostitos set to eliminate synthetic dyes. (FBN)

• Alaska Airlines resumed operations after a three-hour system-wide ground stop caused by an undisclosed IT outage affecting its entire network. (AP)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Chevron completed its $55 billion acquisition of Hess after winning a legal battle against Exxon Mobil. (WSJ)

• Israel’s Eilat Port will halt commercial operations due to unpaid debts and a nearly 80% revenue drop caused by Houthi attacks disrupting maritime traffic since the Gaza war began. (OP)

• The UK, Germany, and France will hold nuclear talks with Iran in Istanbul on Friday to address Tehran’s nuclear program. (RTS)

• Baker Hughes, Hunt Energy, and Argent LNG are crafting a plan to rebuild Syria’s oil, gas, and power sectors after Trump lifted sanctions. (RTS)

🌕 Crypto

• ⭐ Editor’s Pick: Trump signed the GENIUS Act into law establishing the first federal regulatory framework for stablecoins. (TB)

• U.S.-listed spot Ether ETFs saw a record $2.18 billion in weekly inflows. (CD)

• Weekly NFT trading volume across major blockchains surged to $143.5 million, the highest since January, driven by a 300% increase in Ethereum-based NFT activity. (TB)

• The UK Home Office is collaborating with police to sell a seized cryptocurrency stockpile, including at least 61,000 Bitcoin valued at over £5 billion ($7 billion), to address a £20 billion budget shortfall. (TEL)

• Charles Schwab plans to launch spot Bitcoin and Ethereum trading and issue its own dollar-pegged stablecoin. (DEC)
  

TECH

💻 Human Coder Defeats OpenAI in Grueling Coding Showdown

The Scoop: At a major programming competition in Tokyo, a human programmer beat OpenAI's advanced AI in a tough 10-hour contest, proving that humans can still outperform AI in complex problem-solving.

The Details:

• Przemysław Dębiak (nicknamed "Psyho"), a Polish coder who previously worked at OpenAI, won first place by scoring about 9.5% higher than the AI model.

• The competition involved creating the best solution for robot navigation on a grid, with Dębiak scoring over 1.8 trillion points while the AI got about 1.6 trillion.

• This was the first time the prestigious AtCoder competition featured a direct "Humans vs AI" battle, with OpenAI's model placing second among 12 top programmers.

• Dębiak used only basic coding tools and creative thinking to win, despite being sleep-deprived from three days of intense preparation.

What’s Next: This human victory echoes the folk tale of John Henry racing against a machine, but it may be short-lived. AI coding abilities are advancing rapidly - they can already solve over 70% of certain programming benchmarks. Future competitions may look very different as AI continues to improve and potentially dominates these contests.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Companies are increasingly citing reorganization and optimization for layoffs, but AI’s role in replacing jobs may be larger than disclosed. (CNBC)

• Elon Musk announced that xAI is developing Baby Grok, a kid-friendly AI chatbot app designed for safe, educational interactions. (LM)

• Netflix employed generative AI for the first time in its original series "The Eternaut," using the technology to create a building collapse scene in Buenos Aires. (TR)

• Scale AI and similar firms are shifting from low-cost data labelers to highly paid finance experts to support the development of advanced reasoning AI models. (FT)

• In Japan, where loneliness is a growing issue, AI chatbots are being deployed to combat social isolation. (JT)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Domino’s launched Domidog, a Boston Dynamics K9 robot prototype, to deliver pizzas on UK beaches this summer. (IT)

• Sarasota Memorial Hospital’s orthopedic surgeons are using handheld robotic devices to enhance precision in knee replacement surgeries. (HT)

• Singapore’s Airport is trialing a police robot developed, which autonomously patrols using cameras and sensors and serves as a ride-hailing personal mobility device for officers. (VNE)

• A robot will throw the ceremonial first pitch before the Los Angeles Dodgers’ game against the Minnesota Twins on Wednesday. (CP)

• Detroit hosted the Robo War event on Saturday evening, showcasing advanced AI-driven 9-foot-tall robotic gladiators from the Interactive Combat League, battling in a steel arena. (CBS)

🚀 Defense & Space

• ⭐ Editor’s Pick: The Trump administration launched a review of SpaceX’s federal contracts in early June, but officials concluded most deals were too critical to national defense and NASA missions to end. (WSJ)

• Taiwan’s $30,000 micro-drones, showcased during the Han Kuang 2025 exercises with units deployed for reconnaissance and minelaying, could disrupt a costly Chinese invasion through asymmetric warfare. (SOFR)

• South Korea plans to establish a lunar base by 2045, with the Korea Aerospace Research Institute aiming to develop a lunar lander by 2032. (SP)

• University of Illinois engineers developed a new laser with enhanced brightness and thermal control, promising advancements in drone and missile defense, fiber-optic communications, and precision manufacturing. (DP)

• The UK Army unveiled its ASGARD digital targeting system, aiming to boost battlefield lethality tenfold through AI-driven sensor networks that slash decision-making time from hours to minutes. (IE)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: BrightAI, a San Francisco-based startup enhancing physical infrastructure with AI, raised $51 million in a Series A round co-led by Khosla Ventures and Inspired Capital. (VCND)

• An Abu Dhabi Investment Authority subsidiary will invest $200 million for a roughly 3% stake in Micro Life Sciences, a leading Indian medical devices company, valuing it at $6.6 billion. (ISN)

• Greptile, an AI-powered code review startup, is in talks to raise a $30 million Series A led by Benchmark at a $180 million valuation. (TFN)

• Miami-based HOPE Hydration raised $20 million in a Series A funding round led by Pentair plc.

• Chicago-based cybersecurity startup Empirical Security raised $12 million in seed funding, led by Costanoa Ventures. (YF)

• Alabama-based fintech startup Occupi raised $3.105 million in an oversubscribed seed funding round co-led by Fenway Summer and Assurant Ventures. (GFS)

FREEDOM

✈️ Report: Buttigieg’s Transportation Dept. Allocated $80 Billion to DEI Grants, Postponed Air Traffic Control Upgrades

The Scoop: The Department of Transportation under Sec. Pete Buttigieg prioritized an $80 billion DEI agenda over modernizing outdated air-traffic-control systems, leaving the U.S. aviation sector grappling with delays and an aging infrastructure, according to the New York Post.

The Details:

• Buttigieg’s DOT allocated over half its typical annual budget to 400 diversity, equity, and inclusion grants, while air-traffic-control systems, saw minimal upgrades despite a $5 billion infrastructure boost.

• Buttigieg dismissed modernization, arguing it would only benefit airlines by allowing more flights, and instead blamed carriers for delays while denying DEI initiatives caused staffing shortages.

• The FAA, chronically understaffed at 80% of target controller levels since 2017, faced a nationwide flight grounding in 2023 due to a system outage, with hiring unable to keep pace with retirements and dropouts.

• Buttigieg’s team touted efficiency improvements and $4 billion in consumer refunds, but critics argue the $1.2 trillion infrastructure law’s aviation funds were largely spent on maintenance, not modernization.

What’s Next: With President Donald Trump’s $12.5 billion bill to revamp FAA systems, new Transportation Secretary Sean Duffy is poised to address long-standing aviation challenges, leveraging what experts call unprecedented engagement to overhaul the system.

Freedom Roundup

🏛️ Policy

• ⭐ Editor’s Pick: The Minneapolis DFL, the Democratic party in Minnesota’s largest city, endorsed democratic socialist State Sen. Omar Fateh over two-term incumbent Mayor Jacob Frey. (MST)

• Meta declined to sign the EU’s AI Code of Practice for general-purpose AI models, calling it an overreach that introduces legal uncertainties and stifles innovation. (TC)

• Elon Musk’s X rejected France’s demands to provide data in a criminal investigation into alleged algorithm manipulation, labeling the probe as an attempt to curb free speech. (CNBC)

• The Biden administration’s State Department spent over $1.2 million in taxpayer funds to renovate swimming pools at U.S. embassies in conflict zones like Haiti, Sudan, and Iraq. (FOX)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: The State Department barred Brazilian Supreme Court Justice Alexandre de Moraes from entering the U.S., citing his targeting of free speech platforms like Rumble. (RTW)

• The TSA is exploring a $5.5 billion shift to privatize airport security, integrating AI-driven biometric screening and digital ID systems, raising privacy concerns. (RTW)

• Thanet District Council in Kent is reviving plans to impose fines for public swearing. (BBC)

• Sequoia Capital’s Doug Leone defended partner Shaun Maguire’s post labeling NYC mayoral candidate Zohran Mamdani as pushing an “Islamist agenda,” clarifying in internal emails the distinction between “Islamists” and “Muslims.” (NYT)

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