Inside the World’s First Robot War

Welcome back!

Here’s your must-read news this morning:

• Cracker Barrel caves 

• World’s first robot war

• FBI whistleblower settlements

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

— Josh

MARKETS

💰 Cracker Barrel Reverses Logo Change Following Customer Backlash, DEI Criticism Persists

The Scoop: Cracker Barrel announced on Tuesday that it will abandon its new logo and restore the iconic "Old Timer" design, including the beloved "Uncle Herschel" imagery, following significant backlash from customers and public figures, including President Donald Trump.

The Details:

• The restaurant chain faced criticism after unveiling a text-only logo as part of a broader rebranding effort, which included modernizing restaurant interiors and removing the 1977 "Uncle Herschel" imagery, prompting a 6.35% stock price surge after the reversal.

• Cracker Barrel emphasized its commitment to its 1969 roots, stating the decision was driven by customer feedback and its core values of “hard work, family, and scratch-cooked food made with care.”

• Trump urged Cracker Barrel to revert to the original logo, calling the rebranding a misstep and later praising the decision to restore it.

What’s Next: While Cracker Barrel’s decision to reinstate the "Old Timer" logo aims to rebuild trust with its customer base and stabilize its market position after a $143 million loss in market value, some conservative commentators say it must remove its DEI policies and abandon its modern interior redesign to fully regain trust.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: The European Union plans to fast-track legislation by week’s end to eliminate tariffs on U.S. industrial goods, meeting a key demand by Trump. (BBG)

• Federal Reserve Governor Lisa Cook said she will sue the Trump administration to remain in her position after Trump fired her, citing alleged mortgage fraud. (CNBC)

• Trump doubled tariffs on Indian goods to 50%, among the highest U.S. rates, to penalize India for importing Russian oil. (FBN)

• Treasury Secretary Scott Bessent announced that tariff revenues from President Trump’s policies could exceed $500 billion annually, surpassing his prior $300 billion estimate. (RTS)

📈 Stock Market

• ⭐ Editor’s Pick: Nvidia is expected to report record-high Q2 sales of $46.52 billion and adjusted earnings of $1.02 per share after Wednesday's market close. (INPA)

• PVH, the owner of Calvin Klein and Tommy Hilfiger, reported fiscal Q2 adjusted earnings of $2.52 per share on $2.17 billion in revenue, exceeding analyst expectations of $2.01 per share and $2.12 billion. (FN)

• Okta posted fiscal Q2 adjusted earnings of 91 cents per share and $728 million in revenue, surpassing expectations of 84 cents and $711.8 million. (CNBC)

• Box reported Q2 earnings per share of 33 cents, surpassing analyst expectations of 31 cents, with revenue reaching $294 million against a consensus estimate of $290.78 million. (SA)

🏢 Industry

• ⭐ Editor’s Pick: Trump announced that Meta will invest $50 billion in its massive "Hyperion" AI data center in rural Louisiana. (BBG)

• Apple announced its "Awe Dropping" iPhone-centric event for September 9, where it will unveil the ultra-thin iPhone 17 Air alongside other iPhone 17 models. (MR)

• Intel faces scrutiny for partnering with Chinese surveillance firms Uniview and Hikvision, sanctioned by the U.S. for enabling human rights abuses. (FOR)

• A look at the possible remedies a U.S. court might impose on Google after its antitrust loss last year, including a potential breakup of its Chrome browser, with a decision expected this week. (NYT)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Exxon Mobil held secret talks with Russia's Rosneft to explore resuming operations in the Sakhalin-1 oil project. (WSJ)

• The Trump administration will review all Biden-era offshore wind farm approvals along the Atlantic coast. (INV)

• Vietnam will fully transition to ethanol-blended gasoline by next year to boost U.S. ethanol and corn imports. (RTS)

• The U.S. and South Korea agreed to deepen their nuclear energy partnership following a summit between Trump and President Lee Jae Myung. (USN)

🌕 Crypto

• ⭐ Editor’s Pick: Venture capital firm 1789 Capital, where Donald Trump Jr. is a partner, has invested double-digit millions of dollars into Polymarket and the president's son will join the prediction market's advisory board. (AX)

• Google Cloud is developing a private, permissioned blockchain for financial institutions to streamline payments and asset tokenization. (TB)

• Commerce Secretary Howard Lutnick announced that his department will publish GDP data on a blockchain to boost transparency. (CB)

• Trump Media and Crypto.com will form a $6.4 billion digital asset treasury focused on amassing CRO tokens, the native token of the Cronos blockchain. (CD)

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TECH

💻 Ukrainian Drones Force Russian Surrender in First-ever All-Robot Assault

The Scoop: In a groundbreaking moment on Ukraine’s eastern front, the 3rd Assault Brigade used drones to force the surrender of two Russian soldiers, marking what they believe is the first assault conducted entirely by robots, highlighting the transformative role of unmanned systems in the ongoing war, a POLITICO exposé reveals.

The Details:

• Ukrainian drone operators from the 3rd Assault Brigade, led by Commander Vladyka, spotted two Russian soldiers in a dugout and launched a ground-based kamikaze drone rigged with anti-tank mines, prompting the Russians to wave a surrender sign.

• The Russians followed an aerial drone to Ukrainian lines, where they were taken into custody, showcasing the brigade’s innovative use of combined aerial and ground drones for tactical operations.

• Drones now account for 60-70% of casualties in Ukraine, expanding the “kill zone” to 6-9 miles from the front, disrupting traditional resupply and forcing both sides to rely heavily on unmanned systems for logistics and assaults.

• Ukraine’s Ministry of Defense plans to deploy 15,000 ground robots by year-end, while elite units like the 429th Separate Regiment, led by Commander Yurih Fedorenko (“Achilles”), use AI-enhanced drones to strike deep into Russian territory, targeting logistics and defenses.

What’s Next: While drones are reshaping the battlefield, commanders like Fedorenko emphasize that human-operated systems like artillery and infantry remain critical, suggesting a hybrid future for warfare as both sides adapt to this rapidly evolving technological arms race.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: OpenAI plans to enhance ChatGPT’s safety features and content moderation in response to a lawsuit alleging the AI chatbot contributed to a 16-year-old boy’s suicide. (CNBC)

• Apple is exploring acquiring AI startups Mistral AI and Perplexity to bolster the company's AI capabilities. (TI)

• Anthropic introduced Claude for Chrome, a browser-based AI agent running in a sidecar window to handle tasks like web navigation and form filling for 1,000 Max plan subscribers. (TC)

• Google DeepMind's Weather Lab demonstrated superior accuracy in forecasting Hurricane Erin's path up to 72 hours ahead, outperforming traditional models. (ARS)

• Two AI researchers hired by Meta’s Superintelligence Labs quit within a month to rejoin OpenAI, while a third researcher also left the unit. (WIR)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Johns Hopkins researchers developed a voice-controlled surgical robot that uses AI to perform complex operations with human-like precision. (TOV)

• Zurich researchers taught their ANYmal robot dog to play badminton using reinforcement learning. (NA)

• MIT researchers are developing paperclip-sized robotic bees for potential agricultural missions in space, including pollinating plants on Mars. (CNN)

• North Carolina State University researchers unveiled the world's first autonomous multi-robot laboratory that uses AI to accelerate discoveries for quantum technologies. (IE)

🚀 Defense & Space

• ⭐ Editor’s Pick: SpaceX's Starship successfully completed its 10th test flight on the third attempt, achieving key milestones in satellite deployment and engine re-ignition. (SP)

• The Trump administration is exploring equity stakes in U.S. defense contractors, following its $9 billion investment for a 10% stake in Intel. (FBN)

• China is reviving NASA’s long-abandoned oblique-wing concept to develop a hypersonic "drone mothership" capable of flying at Mach 5 near space, autonomously launching swarms of drones. (FC)

• A U.S. Army paratrooper recounts achieving the service's first drone-to-drone kill during a training exercise, comparing the event to space combat from the film "Star Wars." (BI)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Blue Water Autonomy raised $50 million in Series A funding led by GV to develop autonomous unmanned vessels for the U.S. Navy. (FM)

• AI-native CRM startup Attio raised $52 million in Series B funding led by GV. (SA)

• Stealth AI startup Aurasell secured $30 million in seed funding within 28 hours in a round led by Next47, aiming to challenge Salesforce. (BI)

• Reframe Systems raised $20 million in Series A funding to scale its AI-powered microfactory model that can produce customized homes within 100 days of setup. (BIS)

• Splight raised $12.4 million to expand its software that promises to double grid transmission capacity on existing power lines without additional hardware. (LM)

FREEDOM

⚖️ FBI Whistleblowers, Punished for Exposing ‘Political Weaponization’ Under Biden, Secure Settlements

The Scoop: The Justice Department has reached settlement agreements with ten FBI whistleblowers who faced retaliation from the Biden administration for exposing instances of “political weaponization” within the bureau, providing them with lump sum payments for damages, the New York Post reports.

The Details:

• The whistleblowers, represented by Empower Oversight, endured demotions, security clearance revocations, and over 12 years’ worth of inappropriate suspensions, causing severe financial and emotional hardship.

• Notable cases include Special Agent Stephen Friend, punished for objecting to a SWAT team’s use in a January 6 case, and Special Agent Garret O’Boyle, falsely accused of leaking information.

• Additional cases involve Supervisory Special Agent Zachery Schoffstall, targeted for disclosing politically motivated misconduct; Monica Shillingburg, reassigned after raising concerns about gun background check processes; and Special Agent Michael Zummer, retaliated against for reporting prosecutorial misconduct.

• Settlements include lump sum payments for damages, with three agents—Friend, O’Boyle, and Schoffstall—required to be reinstated to duty, alongside full restoration of back pay and benefits for several others.

What’s Next: While these settlements provide relief and some measure of justice for the ten whistleblowers, Empower Oversight warns that many others still face retaliation without remedy, signaling ongoing challenges in addressing whistleblower protections and alleged politicization within the FBI.

Freedom Roundup

🏛️ Policy & Culture

• ⭐ Editor’s Pick: Elon Musk pledged to finance legal action against British officials he accused of covering up grooming gang crimes. (X)

• The Transportation Department threatened to withhold federal funding from states unless they enforce English proficiency rules for commercial truck drivers. (DOT)

• The Gates Foundation cut ties with Democrat-linked consulting firm Arabella Advisors. (NYT)

• The Michigan Supreme Court ruled that cell phone search warrants must specify data types tied to an alleged crime, deeming overly broad searches unconstitutional under the Fourth Amendment. (RTN)

• First Lady Melania Trump will lead the Presidential Artificial Intelligence Challenge to inspire K-12 students and educators to harness AI for solving community issues. (NYP)

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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.