The evening briefing.
Today across AI and tech: SpaceX makes a $60B acquisition, Apple's email privacy changes, and Snap unveils new AR glasses.
AI Investment & Valuation. The AI sector continues to see significant capital movement, with SpaceX acquiring AI coding agent Cursor for $60 billion, highlighting a push into developer tools. This move follows a surge in SpaceX's valuation, which briefly surpassed Amazon's. Meanwhile, OpenAI is reportedly experiencing rapid growth, though its losses are also increasing, indicating the high cost of frontier AI development.
AI Hardware & Infrastructure. The foundational components for AI are also expanding, as Coherent broke ground on an expanded Texas facility to scale optical components for AI systems. AMD is addressing potential RAM shortages with its acquisition of Mext, leveraging AI for flash-based memory expansion. Intel has also begun production of its most advanced 18A-P chip, potentially eyeing a deal with Apple, while Qualcomm is heavily investing in chips for post-smartphone AR wearable devices.
AI Policy & Ethics. Regulatory and ethical considerations for AI are gaining traction, with the US Department of Justice intervening to support Elon Musk's xAI in an NAACP air pollution lawsuit, citing national security. In the UK, Google DeepMind is partnering with the government to use AI for accelerating housing planning decisions. Separately, a Berlin court ruled that Google's AI Overviews are merely a new search format, not original content, impacting content liability discussions.
AI Agent & Platform Evolution. AI agent capabilities are evolving, with Microsoft reportedly considering China's DeepSeek V4 as a cheaper model option for Copilot Cowork and shifting to usage-based billing. Anthropic temporarily paused token-based billing for its Claude Agent SDK after planned changes would have significantly increased costs for power users. Databricks is also working to unify transactional and analytical databases, aiming to rebuild the data stack for AI agents.
SpaceX acquires AI coding agent Cursor for $60 billion
SpaceX has acquired Anysphere, Inc., the maker of the AI coding agent Cursor, for $60 billion. This acquisition is expected to help SpaceX expand its developer offerings and gain access to Cursor’s developer workflow and user analytics.
Coherent breaks ground on expanded Texas facility, scaling AI’s optical backbone
Coherent has broken ground on an expanded manufacturing building in Sherman, Texas, to produce lasers and optical components essential for AI systems. The company operates the world’s first 6-inch indium phosphide manufacturing facility.
AMD's Mext buy shows how AI could solve the RAM shortage it created
AMD's latest acquisition of Mext aims to use AI to expand flash-based memory, potentially addressing the RAM shortage exacerbated by AI demands. This move puts an AI spin on memory expansion solutions.
Apple plans to change its Hide My Email privacy feature, potentially making it less effective
Apple will soon move anonymously generated email addresses used by its Hide My Email privacy feature to a different domain. This change could reduce the effectiveness of the privacy tool for users.
Snap unveils $2,195 AR glasses as CEO Evan Spiegel bets on post-smartphone future
Snap is launching its first AR glasses, priced at $2,195, targeting the broader public rather than just developers. CEO Evan Spiegel is positioning these glasses as a key step towards a post-smartphone computing future.
Microsoft mulls China’s DeepSeek for Copilot, possibly to Trump’s chagrin
Microsoft is reportedly considering integrating China's DeepSeek V4 into its Copilot Cowork service as a potentially cheaper model option. This decision could face scrutiny given geopolitical tensions.
Unlocking UK house-building with AI-accelerated planning
The UK government is partnering with Google DeepMind to develop an AI-powered prototype aimed at accelerating housing planning decisions. This initiative seeks to streamline the house-building process.
DOJ assists Musk's xAI in NAACP air pollution suit, asks court to toss case
The US Department of Justice has asked a Mississippi federal court to dismiss a lawsuit filed by the NAACP against Elon Musk's xAI. The DOJ cited national security concerns related to xAI's Grok as a reason for intervention.
Anthropic "pauses" token-based billing for its Claude Agent SDK
Anthropic has paused its planned token-based billing for the Claude Agent SDK, which would have significantly increased costs for power users. The company is re-evaluating its pricing strategy for the service.
Intel begins production of most-advanced chip, inching closer to possible Apple deal
Intel has started production of its 18A-P, its most advanced chip node, potentially positioning itself for a future deal with Apple. This marks a significant step in Intel's foundry ambitions.
Around a fifth of Steam Next Fest demos have a generative AI disclosure
Approximately 20% of the demos featured in Steam Next Fest include a disclosure about the use of generative AI. This indicates a growing trend in the gaming industry to be transparent about AI content creation.
Databricks wants to merge the two databases every company runs
Databricks is working to unify the transactional and analytical databases that businesses typically run separately. This initiative aims to create a more integrated data stack, particularly for AI agents.
Qualcomm wants to be the chip inside whatever replaces your smartphone, and it just announced two products toward that end
Qualcomm CEO Cristiano Amon announced the company is developing over 40 different AI wearable devices, including smart jewelry and camera-equipped earbuds. This aggressive strategy signals Qualcomm's bet on a future beyond smartphones.
AI and brain-computer interface allow speechless ALS patient to work a full-time job
A UC Davis research team has developed a machine learning-powered method that translates brain activity into sentences with 92% accuracy, enabling a speechless ALS patient to work full-time. This breakthrough combines existing hardware with advanced AI for significant patient impact.