Sam Altman Sounds Alarm Over Looming AI Threats

Welcome back!

Here’s your must-read news this morning:

• U.S.-Japan trade deal

• AI bioweapon fears 

• Trump targets woke tech

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

— Josh

MARKETS

💰 Trump Announces U.S.-Japan Trade Deal with 15% Tariffs, Secures $550 Billion Investment

The Scoop: President Donald Trump on Tuesday announced a trade agreement with Japan, featuring reciprocal 15% tariffs on exports, including lowered auto duties, and a massive Japanese investment in the U.S.

The Details:

• The agreement lowers Japan’s auto tariffs to 15% from 25%, a relief for Japan’s economy.

• Japan will invest $550 billion in the U.S., with America receiving 90% of the profits, and gain access to Japanese markets for cars, trucks, rice, and other agricultural products.

• Japan’s markets surged post-announcement, with auto stocks like Toyota (up 11%), Honda (8%), and Mazda (17%) spiking, and the Nikkei 225 rising over 2%.

What’s Next: The deal includes a separate liquified natural gas agreement. With Japan’s auto stocks surging and markets optimistic, the agreement will reshape the U.S.-Japan relationship and potentially influence upcoming trade deals like the European Union.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Trump announced a reduction in U.S. tariffs on Indonesian goods from 32% to 19%, alongside Indonesia’s commitment to purchase Boeing aircraft, U.S. energy, and farm products, while supplying critical minerals to the U.S. (CNBC)

• Trump’s One Big Beautiful Bill Act has driven a 16.6% surge in business capital expenditures in the first half of 2025 and an 11% rise in business equipment production. (FBN)

• Trump softened his stance on firing Federal Reserve Chair Jerome Powell, noting “he’s going to be out pretty soon anyway.” (CNBC)

• Trump announced that the Philippines will face a 19% tariff rate under a new trade deal, while also declaring the Asian country will provide an "open market" with zero tariffs. (YN)

• Trump announced that his administration is exploring the elimination of capital gains taxes on home sales to boost the housing market. (RTS)

• U.S. and Chinese officials will convene in Stockholm next week to negotiate extending the deadline for a trade deal. (INV)

📈 Stock Market

• ⭐ Editor’s Pick: General Motors reported second-quarter adjusted EPS of $2.53 and revenue of $47.12 billion, exceeding analyst estimates of $2.44 and $46.28 billion, but shares fell over 7% due to a $1.1 billion tariff-related profit loss. (BBG)

• AT&T reported second-quarter EPS of $0.54, edging past the $0.53 analyst estimate, with revenue of $30.8 billion surpassing the $30.45 billion consensus. (INV)

• Lockheed Martin reported second-quarter results with earnings of $1.46 per share, impacted by $1.6 billion in program losses, while revenue of $18.2 billion fell short of the $18.58 billion estimate. (INV)

• SAP reported fiscal second-quarter results, with adjusted earnings of €1.50 ($1.76) per share beating consensus estimates of €1.43 ($1.68), but revenue of €9.03 ($10.59) billion fell short of the expected €9.09 ($10.67) billion. (YF)

• Texas Instruments reported second-quarter earnings of $1.41 per share and revenue of $4.45 billion, surpassing LSEG consensus estimates of $1.35 and $4.36 billion. (CNBC)

🏢 Industry & Deals

• ⭐ Editor’s Pick: Coca-Cola announced plans to launch a new product made with U.S. cane sugar this fall. (FBN)

• OpenAI has signed a $30 billion annual deal with Oracle for data center services to support its Stargate initiative, leasing 4.5 gigawatts of capacity across U.S. sites. (TC)

• Amazon has acquired Bee, a San Francisco-based AI startup, to enhance its Alexa ecosystem with a $49.99 wearable wristband that records conversations. (VER)

• Bari Weiss is pursuing a sale of her media startup, The Free Press, seeking a valuation exceeding $200 million. (FT)

• Trump met with Amazon founder Jeff Bezos at the White House last week, though the purpose and precise timing of the visit remain unclear. (CNBC)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Surging AI data center electricity demand pushed the price of PJM Interconnection’s latest U.S. capacity auction to a record $329.17 per megawatt-day, a 22% increase over last year’s high. (OP)

• U.S. states have constructed fewer than 400 electric vehicle charging ports through April under $7.5 billion federal infrastructure programs, falling short of targets. (RTS)

• The Hershey Company announced a double-digit candy price increase, averaging between the low teens and 20%, due to surging cocoa costs. (WSJ)

• Indonesia’s sovereign wealth fund plans to sign an $8 billion contract with U.S. firm KBR to build 17 modular refineries across Indonesia. (RTS)

• The U.S. flipped its crude oil trade balance with Nigeria, exporting more than it imported for the first time, according to the EIA. (BD)

🌕 Crypto

• ⭐ Editor’s Pick: The Justice Department concluded its investigation into Kraken co-founder Jesse Powell, returning seized devices and closing the probe into allegations of hacking and cyberstalking. (FM)

• PNC Bank, partnering with Coinbase, will allow clients to buy, sell, and hold digital assets within their accounts. (RTS)

• Telegram has launched a non-custodial crypto wallet app in the U.S. (CT)

• Polymarket is considering launching its own stablecoin to capture yield from USDC reserves. (CD)

• The SEC approved the conversion of Bitwise's 10 Crypto Index Fund into an ETF but promptly paused the decision for further review. (CB)
  

TECH

💻 Sam Altman Raises Concerns Over Growing AI Threats

The Scoop: OpenAI CEO Sam Altman has raised alarms about an impending “fraud crisis” driven by AI’s ability to impersonate people during an interview at the Federal Reserve, warning that current authentication methods, like voice prints, are dangerously outdated.

The Details:

• Altman cautioned that AI can defeat most authentication methods, citing scams involving AI-generated voice and video “cloning,” like attempts to deceive parents or impersonate officials such as Secretary of State Marco Rubio.

• He expressed concerns about bad actors using AI superintelligence to target critical infrastructure, like the U.S. power grid, or to create bioweapons.

• Despite fraud risks, Altman urged the Trump administration to avoid heavy AI regulation, citing competition with foreign innovators.

• On jobs, Altman dismissed dire predictions, suggesting AI will eliminate some roles but create new ones, though long-term, traditional “jobs” may become obsolete.

What’s Next: As the White House finalizes its AI Action Plan, OpenAI’s new DC office will shape policy discussions and study AI’s economic effects. Altman’s warnings about fraud and superintelligence risks will likely fuel debates over regulation and security, while his optimism about AI’s job impact faces scrutiny as transformative technologies reshape the workforce.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Anthropic found that AI language models can show "subliminal learning," picking up behaviors like animal preferences from unrelated data made by another model. (ASB)

• Google users encountering AI-generated summaries search results clicked on traditional links only 8% of the time, compared to 15% without summaries. (PEW)

• Alibaba launched an upgraded Qwen3 AI model, which outperforms OpenAI’s GPT-4o and DeepSeek’s V3 in math and coding benchmarks. (TEDT)

• McKinsey prohibited its China operations from conducting generative AI consultancy due to intensified U.S. government scrutiny of American firms, while Amazon shut down its Shanghai AI research lab. (FT)

• Microsoft has aggressively recruited over 24 Google DeepMind employees in the past six months, including Gemini chatbot engineering head Amar Subramanya. (FT)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: A viral video showed a Unitree H1 humanoid robot violently thrashing mid-test at a Chinese factory, nearly injuring workers. (IE)

• Cedars-Sinai doctors have developed Xaia, an AI-powered "robotic" therapist, to support mental health treatment for conditions like anxiety and depression. (LAT)

• Amazon’s new 2.8 million-square-foot robotic fulfillment center in Daytona Beach, Florida will leverage advanced AI-powered robotics to streamline order processing. (DBNJ)

• RoboEatz’s Autonomous Robotic Kitchen autonomously prepares up to 70 hot and cold meals, streamlining restaurant operations with a robotic arm that sorts ingredients and self-cleans. (DW)

• Researchers have developed SCCRUB, a soft robotic arm that scrubs tough grime from surfaces, removing over 99% of residue, advancing the automation of household chores beyond vacuuming. (TEX)

🚀 Defense & Space

• ⭐ Editor’s Pick: The U.S. National Nuclear Security Administration was breached by Chinese state-backed hackers exploiting a Microsoft SharePoint software flaw, with no sensitive or classified data compromised at the agency. (BS)

• Former engineer Chenguang Gong pleaded guilty to stealing U.S. military trade secrets from three defense firms over a decade for China’s benefit. (CJ)

• An elite Ukrainian combat unit is revolutionizing modern warfare by battle-testing advanced drone technology, including mine-laying ground drones and AI-enhanced aerial systems. (NYP)

• Northrop Grumman has begun ground testing space-based interceptors for the Trump administration’s Golden Dome missile defense initiative. (TWZ)

• British firm MGI Engineering unveiled the SkyShark, the world’s fastest kamikaze drone, reaching 280 mph with racing car aerodynamics. (IE)

💰 Venture Capital

• ⭐ Editor’s Pick: xAI, in collaboration with Valor Equity Partners, is seeking up to $12 billion in funding to acquire thousands of Nvidia GPUs for a data center. (WSJ)

• New York-based Slingshot AI raised $93 million in an extended Series A round co-led by Radical Ventures to launch Ash, a new AI-backed mental health therapy chatbot. (BHB)

• Delve, a startup with an AI-driven compliance automation platform serving over 500 companies, raised $32 million in Series A funding at a $300 million valuation, led by Insight Partners. (TC)

• Philadelphia-based Asylon, a robotic security firm, raised $26 million in Series B funding led by Insight Partners to expand its AI-powered DroneDog. (BW)

• Composio, a startup that enables AI agents to continue self-learning, has raised $25 million in a Series A round led by Lightspeed Venture Partners. (ENT)

FREEDOM

🧠 Trump to Announce Three AI Executive Orders Ahead of Comprehensive Action Plan

The Scoop: President Donald Trump is expected to sign three AI-focused executive orders before Wednesday’s unveiling of the administration’s sweeping AI Action Plan, targeting U.S. leadership in AI infrastructure, exports, and unbiased systems, NextGov reports.

The Details:

• The first order mandates the Department of Energy to issue proposals for new AI-ready data centers at three DOE sites to address the computational needs of AI applications.

• The second order partners with the International Development Finance Corporation and Export-Import Bank to accelerate exports of U.S.-made AI technologies, promoting global adoption of American AI software.

• The third order, crafted by White House AI advisors David Sacks and Sriram Krishnan, aims to remove “woke” or biased outputs from large language models, especially in AI tools used by the federal government.

• The AI Action Plan will enhance AI use in the Defense Department, establish a DHS-led AI cybersecurity center, and revise NIST’s AI Risk Management Framework to exclude DEI, misinformation, and climate change references.

What’s Next: The AI Action Plan will prioritize scaling domestic AI infrastructure, streamlining data center permits, and countering Chinese influence in global tech standards, while fostering workforce development and secure-by-design AI applications.

Freedom Roundup

🏛️ Policy

• ⭐ Editor’s Pick: Three GOP-led House committees subpoenaed Democrat fundraising platform ActBlue, alleging it accepted "fraudulent or illegal" donations. (FOX)

• Republican senators have introduced the Responsible Financial Innovation Act, a draft bill building on the House-passed CLARITY Act to establish a regulatory framework for digital assets. (CT)

• Sen. Eric Schmitt (R-MO) warned companies retaining DEI policies to “get ready,” as he chairs a Senate Judiciary Subcommittee hearings to dismantle such programs. (FBN)

• Acting CFPB Director Russ Vought accused the CFPB of weaponizing its authority against Americans, with the agency targeting Townstone Financial with baseless redlining charges over podcast remarks on Chicago crime. (X)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: The State Department denounced the EU’s Digital Services Act as “Orwellian censorship,” stating that it enables the conviction of thousands for criticizing their governments. (X)

• Ireland’s Justice Minister Jim O’Callaghan is advancing sweeping digital surveillance measures, including real-time biometric analysis via facial recognition technology. (RTW)

• The JAMA Network published more articles mentioning “inequity” (99) than “asthma” (75) between April 1 and May 31, 2025, raising concerns about the prioritization of ideology over scientific rigor in medical research. (CJ)

• The Desperado LGBTQ+ Film Festival in Phoenix, Arizona, was canceled due to Trump’s anti-DEI executive orders. (PNT)

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