Robot Fight Club Wants to Become the Next UFC

Welcome back!

Here’s your must-read news this morning:

• Inflation cools slightly in July

• Robot fight club

• State Dept.: UK curbs free speech, violates rights

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

— Josh

MARKETS

💰 Inflation Eases Modestly in July, Dipping from Previous Month

The Scoop: Inflation moderated slightly in July, with the Consumer Price Index (CPI) rising 0.2% monthly and 2.7% annually, a small step toward the Federal Reserve’s 2% target, as policymakers consider rate cuts to bolster a softening labor market amid President Donald Trump’s push for lower rates.

The Details:

• Core CPI, excluding food and energy, rose 0.3% monthly and 3.1% yearly, slightly above the expected 3% annual increase.

• Food prices remained flat, with groceries down 0.1% monthly but up 2.2% yearly; egg prices dropped 3.4% monthly.

• Energy prices fell 1.1% in July, with gasoline down 2.2% monthly and 9.5% yearly.

• Housing costs, a key CPI driver, increased 0.2% monthly and 3.7% yearly.

• A weaker July jobs report raised the odds of a 25-basis-point rate cut in September to 94.4%, according to the CME FedWatch tool.

What’s Next: This encouraging inflation dip fuels optimism for economic relief, with the Fed likely to cut rates in September to support jobs and growth.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Investors ramped up bets on a September Federal Reserve rate cut after July’s mild CPI increase, signaling limited tariff-related price impacts. (RTS)

• Trump threatened to allow a “major lawsuit” against Federal Reserve Chairman Jerome Powell over the costly renovation of the Fed’s headquarters. (FOX)

• Trump criticized Goldman Sachs CEO David Solomon, urging him to replace the bank’s chief economist or “focus on being a DJ” after warnings that new tariffs would raise U.S. consumer prices. (CNBC)

• Chinese factories, facing steep U.S. tariffs, are making deep cuts to shifts and workers’ pay, exacerbating underemployment and deflationary pressures. (INV)

📈 Stock Market

• ⭐ Editor’s Pick: Global share markets soared to a record high on Wednesday, with the MSCI All Country World Index hitting 950.13, driven by mild U.S. inflation data. (INV)

• CoreWeave reported Q2 revenue of $1.21 billion, exceeding LSEG’s $1.08 billion consensus estimate, with a 21-cent per share loss. (CNBC)

• Circle reported its first quarterly earnings as a public company, with Q2 revenue rising 53% to $658.1 million from $430 million a year ago. (YF)

• Cava reported Q2 revenue of $280.6 million, missing Wall Street’s $285.6 million expectation. (SS)

💵 Energy & Commodities

• ⭐ Editor’s Pick: The Department of Energy chose 11 companies, including Oklo and Valar Atomics, for a pilot program to accelerate testing of small nuclear reactors, targeting deployment by July 4, 2026. (DOE)

• The EIA projects record-breaking U.S. power consumption of 4,186 billion kWh in 2025 and 4,284 billion kWh in 2026, surpassing the 2024 record of 4,097 billion kWh. (RTS)

• Natural gas storage rose by 7 billion cubic feet last week, below the expected 10 billion, signaling stronger demand and a bullish market for natural gas prices. (INV)

• Researchers developed a new self-healing plastic that surpasses steel in strength while remaining lightweight and flexible. (IE)

🌕 Crypto

• ⭐ Editor’s Pick: Terraform co-founder Do Kwon pleaded guilty to wire fraud and conspiracy to defraud in a U.S. case tied to the $40 billion collapse of the TerraUSD stablecoin, potentially facing up to 25 years in prison. (TB)

• Crypto exchange Bullish priced its initial public offering at $37 per share, offloading 30 million shares to raise $1.1 billion, setting the stage for its NYSE debut today. (MS)

• Ethereum treasury company Bitmine filed to expand its at-the-market equity offering by $20 billion to fund additional ETH purchases. (YF)

• Ethereum treasury company EthZilla saw its stock soar after Peter Thiel acquired a 7.5% stake in the firm. (DC)
  

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TECH

🤖 San Francisco Startup Pioneers 'Robot Fight Club,' Aiming to Rival UFC

The Scoop: In a San Francisco warehouse, entrepreneur Cix Liv’s startup REK is forging a new combat sport where VR-piloted humanoid robots fight in cages, mixing MMA, pro wrestling, and anime flair, Core Memory journalist Ashlee Vance reveals in an exposé. Liv sees his “robot fight club” rivaling the UFC, with armored, sword-wielding bots and compelling storylines.

The Details:

• REK operates from a no-frills warehouse with four Unitree Robotics humanoid bots, equipped with armor, boxing gloves, and swords, controlled remotely using VR headsets and combat controllers.

• The sport builds on earlier robot competitions like BattleBots, but focuses on anthropomorphic humanoids for mainstream appeal, with recent underground events held by the Ultimate Fighting Bots (UFB) league in San Francisco.

• Liv, a VR pioneer, leads REK with CTO Amanda Watson, a former Oculus engineer, to develop AI-trained fighting moves and VR software for real-time robot control.

• Current humanoid robots, mostly from Chinese firms like Unitree and Booster, face challenges like overheating and balance issues, costing up to $100,000 each and requiring complex software tweaks.

What’s Next: REK is self-funded but faces technical hurdles, including refining robot hardware and VR latency for seamless combat. Liv plans to either partner with UFB or launch an independent league, potentially licensing REK’s technology globally.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Chinese authorities have directed local firms to shun less advanced U.S. chips, notably Nvidia’s H20, for government and national security projects. (BBG)

• Perplexity offered $34.5 billion to acquire Google’s Chrome browser, a bold move nearly twice its $18 billion valuation, aimed at challenging Google’s search dominance amid ongoing antitrust scrutiny. (WSJ)

• Microsoft is aggressively targeting Meta's AI engineers with multimillion-dollar offers, matching Meta’s lavish compensation packages. (BI)

• Anthropic will offer its Claude for Enterprise and Claude for Government models to all three branches of the U.S. government for $1 per agency for a year. (CNBC)

• A study found that endoscopists using AI in colonoscopies detected fewer precancerous adenomas without it, hinting AI reliance may erode clinicians' skills. (MDT)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: In a first, Google and IBM expressed confidence that the first industrial-scale quantum computer could be realized by 2030. (FT)

• The 2025 World Robot Conference in Beijing featured over 1,500 robotics products, with humanoid robots showcasing advanced capabilities in martial arts, soccer, and battery swapping. (IOT)

• Chinese scientists claim to have developed the world's first robot capable of conducting full plant-breeding process to enhance crop yields. (XIN)

• University of Waterloo researchers are developing micro-robots to noninvasively break down kidney stones. (TR)

🚀 Defense & Space

• ⭐ Editor’s Pick: The U.S. Army used a SkyRaider FPV drone armed with a Claymore mine to shoot down another drone mid-air at Fort Rucker, marking a first in drone warfare. (DIE)

• Canadian authorities launched a drone corridor along parts of the Canada-U.S. border, a significant step in modernizing border protection. (CTV)

• United Launch Alliance’s Vulcan Centaur rocket launched its first national security mission, aimed at enhancing GPS resilience against jamming and spoofing threats. (SN)

• The U.S. Army is testing AI battlefield analytics, secure communication networks, and advanced sensors at Fort Huachuca to boost military readiness. (KVOA)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: OpenAI is set to invest in a rival to Elon Musk's Neuralink called Merge Labs, which will be co-founded by Sam Altman, aiming to raise $250 million at an $850 million valuation. (FT)

• Squint, a startup leveraging AI and AR to streamline manufacturing processes, secured $40 million in a Series B round led by The Westly Group, valuing the company at $265 million. (FOR)

• Profound, a startup aiming to help brands maintain visibility in AI-driven search, raised $35 million in a Sequoia-led Series B round. (FOR)

• Jump, a sports betting platform co-founded by Marc Lore and Alex Rodriguez, secured $23 million in a funding round led by Seven Seven Six. (SBJ)

FREEDOM

📢 State Department: UK Committed 'Significant Human Rights' Abuses by Restricting Free Speech

The Scoop: The State Department’s Human Rights Practices report accuses the United Kingdom of significant human rights issues, including imposing serious restrictions on free speech, citing the Online Safety Act and bans on silent prayer near abortion clinics.

The Details:

• The report details “serious restrictions” on free speech, including prosecutions over social media posts and public space protection orders curbing political expression deemed “hateful” or “offensive.”

• Notable cases include a man jailed for eight weeks for a meme linking migrants to knife crime and Adam Smith-Connor, convicted for silent prayer near an abortion clinic.

• The Online Safety Act is criticized as a threat to free expression, a view echoed by Elon Musk’s X.

• Post-Southport attack, the report alleges government censorship targeted political speech, describing “two-tier” law enforcement as a key issue.

What’s Next: UK Prime Minister Keir Starmer has defended his government’s commitment to free speech as a democratic cornerstone. However, U.S. monitoring of cases like Adam Smith-Connor’s suggests ongoing diplomatic friction. Reform UK leader Nigel Farage has pledged to repeal the Online Safety Act if his party wins the next general election.

Freedom Roundup

🏛️ Policy & Free Speech

• ⭐ Editor’s Pick: A State Leadership Initiative report accuses bureaucrats in conservative states of operating a “shadow government” to implement DEI and gender ideology policies through national associations. (FOX)

• Brazilian President Luiz Inacio Lula da Silva announced that a proposal to regulate social media platforms is ready. (USN)

• Canada’s Special Representative on Combating Islamophobia endorsed controversial proposals to allow authorities to delete politicians’ online posts deemed “disinformation.” (RTN)

• Administrators at the University of Tennessee, Vanderbilt University, and Belmont University acknowledged continuing DEI programs by rebranding them to circumvent Trump's policies. (CF)

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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.