Inside the Startups Developing a Biological Computer

Welcome back! I hope you had a great weekend.

Here’s your must-read news for this morning:

• Trump's Canada tax win

• Lab growing a biocomputer

• House report on Twitter boycott

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

— Josh

MARKETS

💰 Canada Rescinds Digital Services Tax to Restart U.S. Trade Talks

The Scoop: On Sunday, Canada suspended its digital services tax on tech firms in a bid to advance trade negotiations with the U.S., averting a breakdown in talks after President Donald Trump threatened to halt all trade discussions over the levy.

The Details:

• The tax, enacted last year with retroactive application to 2022, targeted domestic and foreign tech giants like Amazon, Google, and Meta with a 3% levy, with first payments due Monday.

• The decision reverses Canada’s earlier stance to proceed with the tax despite U.S. objections, following Trump’s weekend announcement to terminate trade talks.

• Treasury Secretary Scott Bessent previously criticized the tax as discriminatory, highlighting its $2 billion retroactive impact on U.S. firms.

• Finance Minister Francois-Philippe Champagne said rescinding the tax enables progress on a new economic and security partnership with the U.S., prioritizing job creation and prosperity.

What’s Next: Canada is racing to secure a trade deal before Trump’s July 9 deadline. The president’s Fox News interview on Sunday rejecting delays for his “Liberation Day” tariffs intensifies the urgency. Canada must act swiftly to shield $762 billion in annual U.S.-Canada trade from the tariffs.

Markets Roundup

🏦 Economy & Stock Market

• ⭐ Editor’s Pick: Canada has scrapped its digital services tax on U.S. tech firms to advance trade talks with America, following Trump’s halt to negotiations. (CTV)

• Many top 10% earners, with incomes over $250,000, feel financially strained due to rising housing costs eroding their wealth. (WSJ)

• China's manufacturing contracted for a third consecutive month in June, a survey revealed Monday, as factories grapple with weak domestic demand and faltering overseas sales. (CNBC)

• Stock futures climbed early Monday, with S&P 500 futures up 0.39%, Nasdaq 100 futures rising 0.54%, and Dow futures gaining 254 points or 0.59%. (CNBC)

• South Korea will request an extension of the 90-day U.S. tariff pause, set to expire next week, as trade talks with Washington are expected to continue beyond the deadline. (RTS)

• The U.S.-UK trade deal comes into effect Monday, offering preferential tariffs on British cars imported to the U.S., while final levies on UK metal exports remain undecided. (CNBC)

🏢 Industry

• ⭐ Editor’s Pick: Tesla announced the first autonomous delivery of a Model Y from its Gigafactory Texas to a customer 30 minutes away. (ELE)

• The Justice Department settled its lawsuit against Hewlett Packard Enterprise’s $14 billion acquisition of Juniper Networks, requiring HPE to divest its Instant On wireless business and license Juniper’s Mist AI software code. (RTS)

• Nvidia insiders sold over $1 billion in stock over the past year, with a surge in sales as executives tap into booming AI-driven investor enthusiasm. (FT)

• The Wall Street Journal profiled OnlyFans’ secretive founder, Leo Radvinsky, as the platform’s parent company, Fenix International Ltd., considers a potential $8 billion sale. (WSJ)

• Trader Joe’s opened a new store in Los Angeles directly across from one of its oldest locations, planning to operate both despite customer confusion over the redundancy. (NYP)

💵 Energy & Commodities

• ⭐ Editor’s Pick: California’s gasoline crisis, driven by refinery closures and strict regulations, is a manufactured issue, with Democrat lawmakers now feigning solutions as prices soar, researcher says. (OP)

• Indonesia proposed a joint U.S. investment in a critical minerals project, involving its sovereign fund Danantara Indonesia, as part of ongoing tariff talks with Washington. (MIN)

• Finland’s Posiva, a radioactive waste management company, made the first copper piece for a waste storage canister at the Onkalo site, a major step toward the world’s first nuclear fuel graveyard. (IE)

• Gold prices rose from a one-month low, climbing 0.5% to $3,290.25 an ounce in Asia on Monday, supported by a weaker dollar, though easing Middle East tensions and optimism for U.S. trade deals limited safe-haven demand. (INV)

🌕 Crypto

• ⭐ Editor’s Pick: Global crypto investment products saw $2.7 billion in net inflows, marking an 11th consecutive week of gains, with year-to-date inflows reaching $17.8 billion, matching 2024’s pace, CoinShares reported. (TB)

• Ethereum co-founder Vitalik Buterin has cautioned that Sam Altman’s World project, which uses zero-knowledge proofs and iris scans for blockchain-based digital identification, poses significant privacy risks. (VIT)

• Gemini is launching tokenized stock trading for EU-based customers, starting with a tokenized version of Strategy’s MSTR stock on Arbitrum. (TB)

• Robinhood has launched micro futures for XRP and Solana, expanding its crypto derivatives offerings for U.S. traders. (CD)

• Robinhood CEO Vladimir Tenev says crypto securities are a multi-trillion dollar opportunity “in plain sight.” (WOAS)
  

TECH

💻 Meet the Lab Building a Computer with Human Brain Cells

The Scoop: A groundbreaking “biological computer” named CL1, developed by Cortical Labs and bit.bio, integrates 200,000 lab-grown human brain cells with silicon circuitry, heralding a new era of energy-efficient computing with potential to reshape neuroscience, pharmaceuticals, and beyond, according to the Financial Times.

The Details:

• The CL1, roughly the size of two shoeboxes, uses human neurons grown from stem cells to process information, displaying synchronized electrical activity on a screen.

• Unlike energy-intensive conventional electronics, CL1 consumes significantly less power, offering applications in robotics, security, and the metaverse.

• Early uses include neuroscience and drug research, analyzing how chemicals and epilepsy treatments affect neuronal processing.

• The device builds on its predecessor, DishBrain, which learned to play Pong using reward and punishment stimuli to train neurons.

What’s Next: The CL1 excels in research but faces hurdles in programming, neuron lifespan, and ethics for broader AI applications. CL1 units are slated to retail for around $35,000 each and are expected to be available by late 2025.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Baidu will open-source its Ernie generative AI model on June 30, challenging OpenAI, Anthropic, and Chinese rival DeepSeek. (CNBC)

• OpenAI has secured custom AI agreements with the Pentagon, the Indian government, and Grab, charging at least $10 million for its AI customization and consulting services. (TI)

• OpenAI is adjusting compensation to address Meta’s poaching of researchers, with Chief Research Officer Mark Chen writing in a leaked memo, “I feel a visceral feeling right now, as if someone has broken into our home and stolen something.” (WIR)

• Mark Zuckerberg’s months-long effort to compile “The List,” a curated roster of top AI engineers and researchers, has sparked intense buzz among the industry’s brightest minds. (WSJ)

• Meta has once again bolstered its AI division by recruiting four additional OpenAI researchers—Shengjia Zhao, Jiahui Yu, Shuchao Bi, and Hongyu Ren—following the recent hire of influential researcher Trapit Bansal. (TI)

• OpenAI has started using Google's AI chips to power ChatGPT and related services, aiming to reduce inference computing costs. (TI)

• Mayo Clinic’s StateViewer AI tool, which detects nine dementia types including Alzheimer’s from a single brain scan, achieved 88% accuracy. (IE)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Cortical Labs and bit.bio’s CL1 “biological computer,” using 200,000 lab-grown brain cells on silicon, seeks to create “synthetic biological intelligence.” (FT)

• Chinese researchers conducted the world's first human trial of a brain-computer interface implanted via blood vessels, allowing a paralyzed patient to move his limbs. (IE)

• The City of Dublin, Ohio, introduced Dubbot, a Knightscope robot, to patrol busy areas using cameras, GPS, sonar, LiDAR, microphones, and AI to detect threats and support police efforts. (ABC6)

• The NYPD plans to deploy specialized drones equipped with mesh nets to detect, track, and neutralize unidentified UAVs disrupting New York City’s skyline. (NYP)

• Beijing hosted China’s first fully autonomous 3-on-3 AI robot soccer match on Saturday night, with four teams of humanoid robots competing using entirely AI-driven systems. (AP)

🚀 Defense & Space

• ⭐ Editor’s Pick: China is outpacing the U.S. in the military space race, developing advanced satellite-tracking and "kill chain" technologies at a "breathtaking" rate, U.S. military officials warned. (TEL)

• The U.S. is countering drone swarm threats at military and infrastructure sites with advanced radar and portable “fly-away kits” for anti-drone defense. (CBS)

• Blue Origin, founded by Jeff Bezos, launched six passengers to the edge of space and back on Sunday, completing its 13th passenger flight in a 10-minute journey. (SP)

• Ukraine’s Defense Ministry approved the "Murakha" ("Ant") tracked robotic platform for combat, aimed at supporting front-line units in harsh conditions like enemy artillery and mined terrain. (KI)

• Germany plans to create a joint German-Israeli cyber research center and enhance intelligence collaboration, with Interior Minister Alexander Dobrindt unveiling a five-point “Cyber Dome” defense strategy. (RTS)

• Babcock, a London-based defense firm, has started building key components for the SSN-AUKUS, the UK’s most advanced nuclear-powered attack submarine. (IE)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Menlo Ventures is raising around $1.5 billion for new AI-focused funds, allocating $650 million for early-stage startups and $850 million for later-stage companies. (WSJ)

• French SaaS startup Bonx raised €7.3 million ($11.3 million) in a seed round led by 9900 Capital to modernize outdated ERP systems in manufacturing with its tailored platform. (EUS)

• Swedish healthtech startup Tandem Health secured €42.6 million ($50 million) in Series A funding, led by Kinnevik, to advance its AI-powered clinician assistant. (BEB)

• French startup Skynopy raised €15 million ($17.6 million) in a round led by Alven to build a real-time, high-speed satellite ground station network, aiming to simplify connectivity like using a smartphone. (TEU)

• Gensmo, a New York-based AI fashion startup, raised over $60 million in angel funding to enhance its platform, delivering hyper-personalized style recommendations, virtual try-ons, and immersive visual inspiration. (AR)

• Audos, a startup that identifies and trains everyday entrepreneurs to build million-dollar AI businesses, raised $11.5 million in combined Pre-Seed and Seed funding led by True Ventures. (FIN)

FREEDOM

🤐 House Report: Ad Group Orchestrated Twitter Boycott to Enforce Censorship Post-Musk Takeover

The Scoop: A House Judiciary Committee investigation found that the Global Alliance for Responsible Media (GARM), a now-defunct advertising industry coalition, orchestrated a corporate boycott of Twitter following Elon Musk’s acquisition, collaborating with foreign regulators to pressure the platform into censoring content, according to the Daily Wire.

The Details:

• GARM, created by the World Federation of Advertisers, leveraged its control over 90% of global advertising spend to coordinate boycotts against Twitter, now X, aiming to force compliance with its censorship standards, the report said.

• Emails show GARM’s head, Rob Rakowitz, worked with European and Australian regulators to pressure Twitter, while crafting public statements urging members to cease advertising, claiming the platform was “unsafe.”

• The report uncovered GARM’s political motives, with Rakowitz expressing intent to counter President Donald Trump’s influence.

• X is suing the World Federation of Advertisers, alleging anti-competitive practices, as the Federal Trade Commission (FTC) investigates GARM for potential antitrust violations.

What’s Next: In February, X broadened its lawsuit, originally aimed at the World Federation of Advertisers and companies like CVS and Twitch, to include major brands such as Lego, Nestlé, and Tyson Foods, alleging they engaged in an illegal boycott of the platform. The accused companies have urged a federal judge to dismiss the suit.

Freedom Roundup

🏛️ Economic Policy

• ⭐ Editor’s Pick: The Senate advanced Trump's “Big, Beautiful Bill” late Saturday, moving the tax and spending measure toward a final vote as early as Monday. (JTN)

• The Trump administration is considering cutting federal funds to hospitals providing gender-related treatments for children. (WSJ)

• Trump called Elon Musk a "wonderful guy" on Sunday, despite the Tesla founder’s claim that the "big, beautiful bill" would "destroy millions of jobs." (FBN)

• New York City mayoral candidate Zohran Mamdani (D) reaffirmed his plan to raise property taxes on "richer and whiter neighborhoods" and said that billionaires should not exist. (FOX)

• U.S. officials should establish an economic fusion center to integrate data and prevent strategic economic surprises from adversaries like China, a former Pentagon official argues. (WOR)

💻 Business & Tech Policy

• ⭐ Editor’s Pick: Trump announced that a group of affluent investors is poised to acquire TikTok, deferring additional details for two weeks. (AX)

• Republican Senators revised the tax bill, shortening a 10-year ban on state AI regulations to a 5-year pause with exemptions for issues like copyrights. (BBG)

• Denmark is set to pass a law granting citizens copyright protections over their image and voice to counter AI-generated deepfakes. (TG)

• The White House unveiled an AI Education Pledge, with over 60 companies committing to provide AI education resources to K-12 students over the next four years. (AX)

💬 Free Speech & Woke Retreat

• ⭐ Editor’s Pick: Defense Secretary Pete Hegseth announced the renaming of a Navy oil tanker, previously named for gay rights advocate Harvey Milk, to honor Medal of Honor recipient Oscar V. Peterson. (FOX)

• Congressional Black Caucus Chairwoman Yvette Clarke (D) and members met with Target CEO Brian Cornell to challenge the company’s DEI rollback, demanding reversal to avoid “lasting damage to the company’s brand and credibility.” (CBC)

• Organizers of several top Pride events lost an estimated $200,000 to $350,000 each in corporate funding this year. (NBC)

• The Swiss government paused revisions to its climate disclosure ordinance, delaying new reporting rules, including mandates for companies to align with Switzerland’s 2050 net-zero target. (ESGT)

• Some Florida universities maintain policies punishing students for using incorrect pronouns, despite state laws prioritizing free speech. (CF)

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