The evening briefing.
Today across AI and tech: Google commits billions for AI compute, Florida sues OpenAI, and new battery tech promises sustainable power.
AI Compute & Capital. Google has committed to a massive deal, agreeing to pay SpaceX $920 million per month for compute capacity at xAI data centers, highlighting the intense demand for AI infrastructure. This comes as Meta and Alphabet are also reportedly seeking tens of billions in fresh capital to fund their own ambitious AI initiatives. Meanwhile, the S&P 500 has rejected SpaceX's entry, also blocking access for other unprofitable AI firms like OpenAI and Anthropic, indicating a cautious stance from traditional markets. The industry is also exploring model routing as a strategy to optimize AI spending, which could impact the revenue streams of major model providers.
AI Policy & Ethics. OpenAI and its CEO Sam Altman are facing a lawsuit from Florida, which treats ChatGPT as a defective product and a public nuisance, raising significant legal questions for the chatbot industry. Separately, the Trump administration is reportedly discussing a possible government stake in OpenAI, signaling potential federal involvement in frontier AI development. Ethical concerns around AI deployment continue to surface, with one report urging caution after a humanoid robot accidentally kicked a child, prompting calls for stricter safety protocols before widespread adoption.
Cybersecurity & Privacy. Microsoft has once again faced a security compromise, leading to the shutdown of Azure Function GitHub Actions, underscoring ongoing vulnerabilities in cloud infrastructure. IBM is also under scrutiny, with a former cyber executive turned whistleblower accusing the company of covering up multiple data breaches from the mid-2010s. In other news, a data breach exposed 2.6 million DentaQuest accounts, while a popular speaker model was found to be hackable over the air, capable of infecting connected devices. OpenAI has responded to security threats by rolling out a new Lockdown Mode to protect against prompt injection attacks.
Hardware Innovation & Startups. Breakthroughs in sustainable energy include the development of
Google to pay SpaceX $920 million a month for compute capacity at xAI data centers
Ahead of a planned IPO, SpaceX inked a deal to rent compute capacity to Google for $920 million per month for 32 months. A Google representative described the deal as a result of unexpected demand for its recently launched AI products.
Meta's stock sinks on report company could raise tens of billions of dollars to fund AI push
Meta shares dropped after the Financial Times reported the company could potentially raise tens of billions of dollars in a stock offering. This move aims to help fund the company's aggressive AI push.
Alphabet is seeking fresh capital as stock's 4-week losing streak tests investor appetite
Alphabet expects capital expenditures to reach up to $190 billion this year, double last year's spending. The company is turning to investors to help fund its expansion in AI data centers.
Trump administration, OpenAI discussing possible government stake in the AI startup
OpenAI CEO Sam Altman first shared the idea of a government stake with the Trump administration in 2025. This discussion highlights potential federal involvement in the leading AI startup.
Florida's lawsuit against OpenAI and CEO Altman treats ChatGPT as a defective product and public nuisance
Florida is the first US state to sue OpenAI and CEO Sam Altman personally over risks to minors, missing age checks, and inadequate safety investment. The 83-page complaint treats ChatGPT as a product subject to liability and threatens billions in penalties.
Microsoft Compromised Again. Shuts Down Azure Function GitHub Actions
Microsoft has been compromised again, leading to the shutdown of Azure Function GitHub Actions. This incident highlights ongoing security challenges within major cloud platforms.
Former cyber executive turned whistleblower accuses IBM of covering up several data breaches
IBM and two of its subsidiary companies were allegedly breached during the mid-2010s. A lawsuit filed by a former cybersecurity executive accuses IBM of not disclosing and actively covering up these incidents.
Highly reviewed speaker can be hacked over the air to infect connected devices
A highly reviewed speaker, the Sound Blaster Katana V2X, can be hacked over the air to infect connected devices. The seller does not consider this behavior a vulnerability.
Inside the "disappearing battery" revolution — how forest-powered supercapacitors could keep wireless sensors running for years
Swedish startup Ligna Energy’s S-Power supercapacitors use forest-derived materials to replace unsustainable batteries in IoT sensors. This innovation could keep wireless sensors running for years with minimal environmental impact.
GM’s electric future depends on a new battery — and this facility
GM aims to slash EV prices by deploying new battery technology up to a year earlier than planned. A new facility is key to making this advanced battery production a reality.
Ex-Google CEO is key to Ukraine's most formidable drone weapon to date - $5000 Hornet can carry 5Kg of explosives
Eric Schmidt, former Google chief executive, drives drone projects behind Ukraine’s Hornet, a $5000 drone capable of carrying 5kg of explosives on a 200km one-way trip. This shifts warfare toward low-cost swarm strike economics.
Founders share VC horror stories, and some are naming names
A massive viral conversation sharing VC horror stories has taken place this week on X. Some founders are publicly naming names, detailing weird and infuriating experiences.
The most interesting startups right now want to get you off your phone
While AI fundraising continues to break records, some founders are building startups focused on bringing people together through in-person games and social experiences. This trend includes companies like Board, which just raised money for its efforts to encourage offline interaction.
Researchers used AI and known genetic codes to develop a ‘fundamentally new’ vaccine
Researchers have utilized AI and known genetic codes to develop a fundamentally new vaccine, marking a significant shift in pandemic preparedness. The team hopes this AI-driven method could accelerate vaccine development for entire families of viruses.