Welcome back!

Here’s the must-read news this morning: Congress’s next steps after Elon Musk criticized the Trump-backed "One Big Beautiful Bill Act," DOGE's budget reduction plans, Chinese AI startup Manus’s latest challenge to leading U.S. AI companies, and the FTC’s escalating antitrust probe into Media Matters for allegedly colluding to divert advertisers from X.

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

TECH

Chinese AI Startup Manus Launches Text-to-Video Service to Rival OpenAI

The Scoop: Chinese AI startup Manus unveils a text-to-video generation feature, allowing users to create video stories from text prompts in minutes, escalating competition with OpenAI, Google, and Tencent.

The Details:

• Manus’s AI, renowned for human-like task execution, now converts text into sequenced video narratives.

• The feature is currently exclusive to paid subscribers in an early access program, with plans to broaden availability later.

• Manus raised $75 million in a Benchmark Capital-led investment, now under U.S. Treasury review due to escalating U.S.-China AI tensions.

What’s Next: Manus’s text-to-video breakthrough is set to intensify the U.S.-China AI race, as American venture capital firms like Thrive Capital and Capital Group scout China’s AI ecosystem, despite navigating complex U.S. export controls, CFIUS oversight, and bilateral tech decoupling pressures.

Top Stories

🧠 AI

• ⭐ Editor’s Pick: Alibaba's Qwen models have outperformed Meta's Llama in multiple open-source AI benchmarks, marking a significant advancement in China's AI capabilities. (TI)

• Melbourne developer Sam Paeach alleges DeepSeek's R1-0528 model was trained on Gemini outputs, pointing to similar word and expression patterns as evidence. (X)

• Kuwait's sovereign wealth fund joins Microsoft, BlackRock, and MGX in the AI Infrastructure Partnership, targeting $30 billion in equity capital for advanced AI infrastructure, with potential growth to $100 billion including debt financing. (BW)

• Ex-Tesla exec’s startup, Heron Power Electronics, signs deals with Crusoe and Intersect Power to supply AI tech, tackling aging infrastructure and transformer shortages. (BBG)

• Luca Guadagnino will direct an OpenAI film about Sam Altman’s ousting and return, with Andrew Garfield, Monica Barbaro, and Yura Borisov eyed for roles. (THR)

• Tokyo University of Science's AI synapse, a self-powered, light-based device, matches human eye color recognition, enabling energy-efficient vision for smartphones, drones, and autonomous vehicles. (IE)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Nvidia’s next-gen AI chips will enter mass production at TSMC’s Arizona fab, with wafer output expected to rise from 15,000 to 24,000 monthly at peak capacity, before year-end. (FZ)

• The Wendelstein 7-X stellarator in Germany set a world record by sustaining a super-hot fusion plasma for eight minutes, a major step toward clean, limitless energy. (IE)

• YouTuber Styropyro built a 250-watt handheld laser, 50,000 times stronger than standard pointers, capable of melting metal and igniting wood instantly. (TB)

• Japanese company TechMagic is rolling out its I-Robo2 stir-fry robot to U.S. restaurants, eyeing UL certification in June 2025, as trials kick off. (NIK)

• Scientists at the University of Edinburgh developed soft, four-legged robots that walk directly from a new low-cost 3D printing system. (TI)

🚀 Defense & Space

• ⭐ Editor’s Pick: U.S. Air Force activates its first Sentinel missile base at Minot AFB, marking the start of a new nuclear era with the LGM-35A Sentinel ICBM. (IE)

• U.S. Army’s 2nd Mobile Brigade Combat Team, 25th Infantry Division tests 3D printers in the Pacific to repair parts and build drones, enhancing combat capabilities. (DS)

• SpaceX’s revenue is projected to be around $15.5 billion in 2025. (BBG)

• Palmer Luckey endorses Trump's Golden Dome missile defense and calls on lawmakers to develop a clear plan for advanced space-based military capabilities over the next 100 years. (FBN)

• Rocket Lab's Electron rocket successfully launched BlackSky's Gen-3 high-resolution imaging satellite into orbit, marking their seventh launch of the year. (SN)

📱 Industry & Deals

• ⭐ Editor’s Pick: Meta signs a 20-year agreement to buy approximately 1.1 gigawatts of nuclear energy from Constellation Energy, securing the full output of a single nuclear reactor at a facility in Illinois. (CNBC)

• Deel accuses Rippling of spying by having an employee impersonate a customer to access Deel's platform, escalating their ongoing legal dispute. (TC)

• Toyota Industries announces it has received a $33 billion offer to go private. (JT)

• Hims & Hers Health to acquire Zava, expanding telehealth to Ireland, France, Germany, and boosting customer base by ~50%. Financial terms undisclosed. (BW)

• Klarna is piloting a debit card, the Klarna Card, in the U.S., with plans to launch it in Europe later this year. (PYM)

• Radiant Nuclear's Kaleidos, the world's first mass-producible 1MW nuclear microreactor, is set for testing in 2026. (IE)

• TechCrunch ceases its European operations following its acquisition by private equity firm Regent, which deemed international startup coverage non-essential, according to a former staff member. (SIF)

💰 Venture Capital

• ⭐ Editor’s Pick: Thoma Bravo raised $34.4 billion across three buyout funds, including a $24.3 billion main fund and an $8.1 billion midsize software-focused fund, exceeding targets despite a private equity slowdown. (WSJ)

• Udemy, an AI-powered skills development platform, secured a $200 million revolving credit facility led by Citibank, MUFG, JPMorgan, and Morgan Stanley. (VCN)

• Impulse Space, a startup providing in-space transportation services, raised $300 million in a Series C funding round led by Founders Fund. (BBG)

• Speedata, a Tel Aviv-based chip startup competing with Nvidia, raises $44 million in Series B funding, led by existing investors Walden Catalyst Ventures, 83North, and Koch Disruptive Technologies. (TC)

• Axiom, an AI startup led by a Stanford math PhD, seeks funding at a $300 million valuation to create AI that uses math proofs to solve complex problems with certainty. (TI)

MARKETS

Elon Musk Blasts ‘Big, Beautiful Bill’: 'Disgusting Abomination'

The Scoop: Elon Musk blasted the Trump-backed "One Big Beautiful Bill Act," calling it a "disgusting abomination" that would significantly increase the federal deficit.

The Details:

• Musk condemned lawmakers who supported the bill, stating, "Shame on those who voted for it: you know you did wrong."

• He estimated a $2.5 trillion deficit increase, though the Congressional Budget Office projects $3.8 trillion over 10 years.

• Mike Johnson defended the bill, calling Musk’s criticism "terribly wrong."

• Senate Republicans are working on revisions to the House-passed bill amid ongoing discussions.

• Rand Paul opposes the bill due to its debt ceiling increase, while Ron Johnson seeks more spending cuts.

What’s Next: John Thune announced that Republicans will revise the bill to include additional tax cuts and savings, aiming to send it to Trump by July 4. Kevin Cramer downplayed Musk’s criticism, noting that while some senators agree with him, others see it as inconsequential, suggesting Musk’s stance may not significantly impact the bill’s progress.

Top Stories

🏦 Economy & Public Policy

• ⭐ Editor’s Pick: White House seeks $9.4 billion cuts to public broadcasting, NPR, and foreign aid, codifying DOGE's first reductions, with House vote planned next week. (X)

• U.S. job openings unexpectedly surged to nearly 7.4 million in April 2025, up 191,000 from March, reflecting a resilient labor market. (CNBC)

• Trump signs a proclamation raising tariffs to 50% for steel and aluminum imports, while keeping 25% tariffs on the UK. (WH)

• India challenges U.S. auto tariffs at WTO, signaling tough trade talks as both nations seek interim deal by July. (BBG)

📈 Stock Market

• ⭐ Editor’s Pick: Nvidia overtakes Microsoft to become the world's most valuable public company again since January, with its stock rising 3% to $141.40, boosting its market cap to $3.45 trillion. (CNBC)

• Robinhood soars 5.5% to $71.75, closing at a record high since its August 2021 IPO. (SH)

• Hewlett Packard reports Q2 EPS of $0.38, beating the $0.32 analyst estimate by $0.06, with revenue of $7.63 billion surpassing the $7.46 billion consensus. (INV)

• CrowdStrike reports Q2 EPS of $0.73, beating the $0.66 analyst estimate by $0.07, with revenue of $1.1B meeting the $1.1B consensus. (YF)

• Dollar General beat Q1 2025 earnings and revenue expectations with an EPS of $1.78 and revenue of $10.44 billion, raising its full-year outlook for net sales growth to 3.7%-4.7% and same-store sales to 1.5%-2.5%. (CNBC)

🏭 Industry & Deal

• JPMorgan Chase expands Marianne Lake's role, a potential successor to CEO Jamie Dimon, to oversee its overseas consumer banking and strategic growth office. (RTS)

• Walmart is cutting certain jobs in Florida in response to recent Supreme Court rulings on migrants' legal residency. (BBG)

• In 2025, for the first time in over 25 years, more U.S. office space will be converted or demolished (23.3 million square feet) than newly built (12.7 million square feet), reducing the total office space available. (CNBC)

💵 Currencies & Commodities

• ⭐ Editor’s Pick: Trump is expected to waive statutory requirements under the Defense Production Act to help increase domestic production of critical minerals and weapons. (RTS)

• China's stricter controls on critical mineral exports, such as rare earth alloys and magnets, raised urgent concerns, with global automakers warning of production delays and disruptions. (RTS)

• Venezuela’s oil exports remained steady at 779,000 barrels per day in May despite U.S. pressure, with China-bound shipments increasing to offset halted U.S.-authorized sales. (OP)

• U.S. dollar rose 0.9% to 144.00 yen and gained 0.6% as euro fell to $1.1371. (YF)

🌕 Crypto

• ⭐ Editor’s Pick: Donald Trump Jr. clarifies that The Trump Organization is not linked to the recently unveiled Trump-branded wallet and announces an official wallet launch soon through World Liberty Financial. (X)

• Pump.fun plans to raise $1 billion at a $4 billion valuation via token sale and will be sold to both public and private investors.(BW)

• Classover, a Nasdaq-listed online education platform, plans to purchase SOL, through a $500 million convertible notes agreement with Solana Growth Ventures LLC. (DC)

• Kraken launches a full-service prime brokerage for institutional crypto clients. (TB)

• MARA Holdings set a record by producing 950 Bitcoin in May 2025, a 35% increase from April, boosting its treasury to 49,179 BTC. (DC)

FREEDOM

Report: FTC Deepens Antitrust Probe Into Ad Groups for Alleged Demonetization-Censorship Collusion

The Scoop: The FTC is intensifying its antitrust investigation into Media Matters for America and potential allies, probing whether they unlawfully colluded to steer major advertisers like Apple, Disney, and IBM away from Elon Musk’s X platform, Reclaim The Net reports.

The Details:

• The FTC is examining if Media Matters coordinated with the World Federation of Advertisers to orchestrate a boycott of X following Musk’s 2022 acquisition.

• On May 20, Ad Fontes Media, a media analysis group, received an FTC request investigating “possible collusion” among advocacy organizations.

• Musk claims Media Matters fabricated a 2023 report that tied advertisements on X to antisemitic content, prompting Paramount to pull its ads.

• Media Matters refutes the allegations, accusing Musk of retaliatory lawsuits and defending its focus on brand safety.

What’s Next: The FTC is assessing whether groups targeting “misinformation” and “hate speech” formed alliances that violate the Sherman Act. Concurrently, Jim Jordan’s probe into Big Tech censorship, with subpoenas to firms like Alphabet and Meta, signals broader scrutiny of content moderation and influence campaigns, potentially intersecting with the X case.

Top Stories

🏛️ Economic Policy

• ⭐ Editor’s Pick: Trump administration proposes reversing Biden-era restrictions to expand oil and gas drilling in Alaska’s National Petroleum Reserve. (GD)

• A federal judge in Washington state has issued a temporary injunction halting the Trump administration's attempt to eliminate collective bargaining rights for TSA employees. (FBN)

• Trump nominates Laura Swett to replace Mark Christie as Federal Energy Regulatory Commission (FERC) head. (RTS)

💻 Business & Tech Policy

• ⭐ Editor’s Pick: Meta will challenge EU's Digital Markets Act, arguing Messenger and Marketplace shouldn't be classified as core platform services. (WSJ)

• Conservative groups are urging the DOJ to investigate Apple for alleged perjury, citing a pattern of resisting judicial oversight. (AXS)

• Trump administration plans to restructure the U.S. AI Safety Institute (AISI) into the Center for AI Standards and Innovation (CAISI). (FOR)

• The Heritage Foundation and American Conservative Values ETF sue Airbnb, alleging illegal exclusion of their 2025 shareholder proposals while including a liberal pension fund's similar proposal. (HF)

📚 Healthcare & Education Policy

• ⭐ Editor’s Pick: Former University of Michigan President Santa Ono, a supporter of gender ideology and DEI initiatives, was rejected for the presidency of the University of Florida. (CR)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Citigroup terminates its 2018 firearms policy, which restricted certain gun sales by clients, and prohibits debanking based on political affiliation, following the Parkland school shooting. (PR)

• Steve Bannon’s WarRoom podcast resumed on Spotify this week, nearly five years after the streaming platform banned it. (MED)

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