Sam Altman Cooks Zuck

Welcome back!

Here’s your must-read news this morning:

• Fed likely to keep rates steady

• Sam Altman calls out Meta

• Scandalous USAID contract 

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

— Josh

MARKETS

💰 Federal Reserve Expected to Leave Interest Rates Unchanged

The Scoop: The Federal Reserve is set to hold its benchmark interest rate steady at its policy meeting on Wednesday amid calls from President Donald Trump for a full percentage point cut.

The Details:

• Fed policymakers are hesitant to ease rates, citing tariffs that could lift prices and disrupt the Fed’s dual mandate of low inflation and high employment.

• Recent data shows a resilient job market and tame inflation, bolstering the case for patience.

• Trump has ramped up attacks on Fed Chair Jerome Powell, deriding him as a “numbskull” for not slashing rates.

• “No FOMC member is pushing for a policy shift, so holding steady is straightforward,” said JPMorgan’s chief U.S. economist Michael Feroli.

What’s Next: Investors will scrutinize Powell’s post-meeting remarks and the Federal Open Market Committee’s “dot plot” of rate expectations for signals on future policy. A prolonged Israel-Iran conflict could disrupt energy markets further, potentially pushing the Fed toward a dovish stance if sustained oil price spikes weaken demand, according to Oxford Economics’ Ryan Sweet.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: U.S. retail sales dropped 0.9% in May, exceeding economists' expectations of a 0.5% decline, with April's figures revised downward to a 0.1% contraction from an initial 0.1% gain. (INV)

• Blue-collar wages have risen by nearly 2% in real terms during the first five months of President Donald Trump’s second term, marking the strongest gain under any administration in almost six decades. (NYP)

• U.S. homebuilder sentiment fell to a 2.5-year low of 32 in June, down 2 points from May, as high mortgage rates dampened housing market confidence. (CNBC)

• U.S. wealth surged last year, creating over 379,000 new millionaires—more than 1,000 daily—according to a report. (RTS)

• Two educational toy companies urged the Supreme Court on Tuesday to expedite their challenge to tariffs imposed by Trump. (CCB)

• Trump described Japan as "tough" in ongoing trade negotiations and criticized the European Union for failing to present what he deems a fair trade agreement. (RTS)

• China unveiled plans to accelerate the global expansion of its digital yuan, seeking to promote a multipolar international currency system, with a new e-CNY operations hub to be established in Shanghai. (INV)

📈 Stock Market

• ⭐ Editor’s Pick: U.S. stock futures edged up early Wednesday, with S&P 500 futures rising 0.14%, Nasdaq 100 futures gaining 0.18%, and Dow futures climbing 24 points, or 0.06%, as investors awaited the Federal Reserve’s rate policy decision later in the day. (MW)

• Cathie Wood’s flagship Ark Innovation ETF has mounted a robust recovery, surging over 50% since early April. (BBG)

• Regencell Bioscience Holdings, a Nasdaq-traded Chinese herb company with no revenue, has surged 46,000% in 2025, reaching a market capitalization of $29.7 billion. (CNBC)

• Private equity firms are sitting on roughly $1 trillion in unsold assets, capital that would typically have been returned to investors in a normal market, PricewaterhouseCoopers reported. (RTS)

🏢 Industry

• ⭐ Editor’s Pick: Streaming surpassed broadcast and cable combined in May, capturing the largest share of total television viewing for the first time, Nielsen reports. (MPN)

• JetBlue plans to cut flights and enact cost-saving initiatives, citing an "unlikely" break-even in 2025 amid softer-than-anticipated travel demand. (CNBC)

• Intel plans to lay off 15% to 20% of its Intel Foundry division workers starting in July, impacting the unit that designs, manufactures, and packages semiconductors for external clients. (TO)

• Kraft Heinz plans to eliminate artificial dyes from its U.S. products by the end of 2027. (KH)

• General Mills also announced plans to phase out artificial colors from its full range of U.S. retail products by the end of 2027. (RTS)

💵 Energy & Commodities

• ⭐ Editor’s Pick: The CEOs of Shell and TotalEnergies expressed alarm over escalating Israel-Iran strikes, warning of potential disruptions to global energy markets if oil infrastructure is targeted. (CNBC)

• The Trump administration proposed opening 82% of Alaska's 23-million-acre National Petroleum Reserve to oil and gas leasing. (RTS)

• The European Commission unveiled a plan to phase out all Russian gas and liquefied natural gas imports to the European Union by the end of 2027. (EN)

• The world’s largest banks increased fossil fuel financing to $869 billion in 2024, a 23% rise from 2023, reversing a decline since 2021. (OP)

• China aims to nearly double its nuclear power capacity to 200 gigawatts by 2040, surpassing the U.S. to become the world’s leading nuclear power generator, according to the China Nuclear Energy Association. (SCMP)

🌕 Crypto

• ⭐ Editor’s Pick: The Senate voted 68-30 to pass the GENIUS Act, a landmark bill establishing the first federal regulatory framework for stablecoins. (CD)

• JPMorgan Chase will pilot its JPMD deposit token on Coinbase’s Base blockchain. (BBG)

• Coinbase seeks SEC approval to offer "tokenized equities," enabling blockchain-based stock trading, potentially competing with brokerages like Robinhood. (RTS)

• Chinese bitcoin mining equipment manufacturers Bitmain, Canaan, and MicroBT, which together produce over 90% of global mining rigs, are shifting production to the U.S. to evade tariffs. (TIA)

• Andreessen Horowitz's blockchain division, a16z crypto, has acquired an additional $70 million in EigenLayer's EIGEN tokens to bolster the Ethereum restaking project's launch of its new developer platform, EigenCloud. (TB)

• Iran's Nobitex crypto exchange appears to have been hacked for over $81 million in assets across Tron and EVM-compatible chains. (CT)
  

TECH

💻 Sam Altman Reveals Meta’s Failed $100 Million Effort to Poach OpenAI’s Top Talent

The Scoop: Meta CEO Mark Zuckerberg’s ambitious push to build a superintelligence AI unit is hitting roadblocks, OpenAI CEO Sam Altman said. On his brother Jack Altman’s Uncapped podcast, Altman disclosed that Meta’s offers, surpassing $100 million, to recruit top researchers from OpenAI and Google DeepMind have failed to attract top talent.

The Details:

• Altman said Meta dangled $100 million signing bonuses to OpenAI’s Noam Brown and Google’s Koray Kavukcuoglu, but both passed, noting, “so far, none of our best people have decided to take them up on that.”

• He pinned OpenAI’s researcher retention on its pursuit of artificial general intelligence, contrasting it with Meta’s cash-heavy recruitment playbook.

• Meta tapped Scale AI co-founder Alexandr Wang to helm its AI division and onboarded DeepMind’s Jack Rae and Sesame AI’s Johan Schalkwyk.

• Meta bolstered its AI strategy with an over $14 billion investment in Scale AI last week.

• Altman acknowledged respect for some Meta strengths but said he doesn’t “think they’re a company that’s great at innovation,” calling its AI efforts lackluster.

What’s Next: It remains to be seen whether Meta can bolster its AI team to match the pace of OpenAI, Anthropic, and Google DeepMind. OpenAI’s expected release of a new open AI model could further set Meta back in the AI race. Altman’s reported plans for an AI-driven social media platform could also pose a potential challenge to Meta.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Amazon CEO Andy Jassy signaled forthcoming workforce reductions as the company intensifies its adoption of AI, noting that over 1,000 generative AI services and applications are either in development or already built. (AA)

• Shanghai-based AI startup MiniMax debuted its open-source MiniMax-M1 reasoning model, claiming it surpasses DeepSeek’s R1 while using half the computing power for tasks like math and coding. (BBG)

• Meta and EssilorLuxottica plan to launch AI-powered smart glasses under the Oakley and Prada brands, with Meta teasing the Oakley debut for June 20. (CNBC)

• Generative AI chatbots like ChatGPT are gaining traction for daily news consumption, with “significant numbers” of users tapping them for headlines and updates, a survey found. (BW)

• Adobe launched Firefly, its first dedicated mobile app for its generative AI platform to create images, videos, audio, and vectors from text prompts. (CNET)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Amazon opened a 2.8 million-square-foot robotics facility in Charlton, Massachusetts, with hundreds of 1,500-pound-lifting robots aiding over 1,000 workers to fulfill thousands of orders. (SCD)

• Waymo is broadening its robotaxi service footprint, adding 80 square miles across Los Angeles, the San Francisco Bay Area, and Silicon Valley. (TC)

• MIT researchers developed a specialized AI that designed a jumping robot capable of outperforming a human-engineered robot, achieving greater jump height and improved landing performance. (RAN)

• Hexagon’s humanoid robot AEON, leveraging Nvidia’s AI and simulation-first training, autonomously runs factory machines, sorts parts, and scans assets for rapid industrial deployment. (FE)

• Taking cues from bees, University of Pennsylvania engineers have developed a versatile swarm of small robots that construct durable, complex structures without blueprints or central control. (IE)

🚀 Defense & Space

• ⭐ Editor’s Pick: Chinese scientists claim to have developed the world’s first 6G-powered electronic warfare system, capable of jamming advanced radars, including those on F-35 jets. (SCMP)

• The UK’s Air Force officially commissioned the Protector RG Mk1 drone, a 5,750-mile-range remotely piloted aircraft capable of patrolling entire continents without landing. (IE)

• Honda conducted a successful test of its 6.3-meter reusable rocket prototype, achieving a 271-meter altitude and safe landing, marking progress toward its 2029 suborbital spaceflight goal. (HON)

• The Exploration Company, a European startup, detailed plans to develop reusable spacecraft for human spaceflight, aiming to support lunar and orbital missions by the early 2030s. (SP)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Ramp has secured $200 million in new funding, boosting its valuation to $16 billion, with the round led by existing investors including Founders Fund. (BBG)

• Autonomous vehicle startup Applied Intuition secured $600 million in a funding round co-led by BlackRock-managed funds and Kleiner Perkins, boosting its valuation to $15 billion from $6 billion. (BBG)

• Elon Musk’s xAI is negotiating a $4.3 billion equity investment to complement its $5 billion debt financing plans. (BBG)

• Defense tech startup Mach Industries raised $100 million at a $470 million valuation in a funding round led by Khosla Ventures and Bedrock Capital. (TC)

• Teamworks, a sports software company, raised $235 million in a funding round led by existing investor Dragoneer Investment Group, valuing the firm at over $1 billion. (INV)

• Coralogix, an Israeli developer of software and AI system monitoring platforms, secured $115 million in a Series E funding round led by NewView Capital, achieving a valuation exceeding $1 billion, while launching “Olly,” its first AI agent to empower nontechnical users to fully leverage its platform. (CCT)

🔒 Cybersecurity

• ⭐ Editor’s Pick: Viasat, a U.S. satellite communications firm, was hit by the Chinese-linked Salt Typhoon cyber espionage campaign during the 2024 presidential race, a new report reveals. (BBG)

• Meta expressed alarm after Iranian state media urged citizens to delete WhatsApp, citing unsubstantiated claims of data sharing with Israel. (AP)

FREEDOM

💸 Report: USAID Awarded $800 Million Contract to Alleged Fraudster for “Root Causes of Migration” Initiative

The Scoop: The Biden administration’s USAID reportedly awarded an $800 million contract to a partnership linked to a firm whose founder admitted to a long-running bribery scheme, raising serious questions about oversight, according to the Daily Wire. Intended to curb Central American migration through climate-focused projects, the deal proceeded despite known integrity issues. The Trump administration, with Elon Musk’s Department of Government Efficiency (DOGE), later scrapped the contract as it moved to dismantle the agency.

The Details:

• On a Friday, the Department of Justice disclosed that Walter Barnes III, founder of Vistant, and USAID official Roderick Watson pleaded guilty to a $1 million bribery scheme that secured $544 million in contracts, fueled by cash, a lavish wedding, and a house down payment.

• The $800 million contract, granted in August 2024 to PMCG CollaborateUp JV LLC, involved CollaborateUp, a small Virginia consultancy championing diversity and climate initiatives, operating from a suburban home.

• In 2023, USAID flagged the contract as dubious, citing Vistant’s outsized role despite Barnes’ ban for lacking integrity, but a June 2024 court injunction cleared the way for its approval.

• By November 2023, USAID’s inspector general had uncovered Vistant’s corruption, yet the General Services Administration awarded the partnership two open-ended contracts extending to 2029.

• USAID waited until November 4, 2024—the day before the election—to seek a warrant for official Matthieu Zahui, accused of diverting contracts to a friend; he faces no charges yet.

What’s Next: Last week, the House passed a $9.4 billion rescission package by a slim margin, targeting cuts to USAID and public broadcasting. The Senate now faces a 45-day deadline to approve the measure with a simple majority, or it will lapse. Even if enacted, the cuts are a modest slice of the $180 billion in savings DOGE has identified.

Freedom Roundup

🏛️ Economic & Healthcare Policy

• ⭐ Editor’s Pick: The Trump administration is exploring measures to tighten restrictions and raise costs for pharmaceutical firms advertising directly to consumers. (BBG)

• The U.S. Senate’s "Big, Beautiful Bill" draft would increase the CHIPS Act’s tax credit for semiconductor factories from 25% to 30% through its expiration at the end of 2026. (BL)

💻 Business & Tech Policy

• ⭐ Editor’s Pick: The White House confirmed that Trump will extend TikTok’s U.S. operations deadline by 90 days for the third time. (CNBC)

• X filed a lawsuit against New York, challenging a state law mandating disclosure of content moderation practices, arguing it violates First Amendment free speech protections. (RTS)

• G7 nations pledged to boost AI adoption in public sectors and small businesses while committing to spur investment in emerging quantum technologies. (TCP)

• The SEC withdrew two Biden-era ESG-focused proposals—one mandating enhanced ESG disclosures for investment advisers and another revising shareholder proposal and resubmission rules. (EN)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Brands are scaling back or abandoning socially driven advertising campaigns amid a growing backlash against DEI initiatives. (FT)

• A judge blocked the Trump administration’s attempt to dismantle the State Department’s Counter Foreign Information Manipulation and Interference Hub, formerly the Global Engagement Center, ruling that the move violates a prior injunction, preserving the agency criticized for its role in online censorship. (RTN)

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