July 25th Newsletter

Tariff tensions return as Treasury Secretary Bessent calls for a full investigation into the Fed’s inflation response, intensifying Trump-era pressure on Chair Powell. Stellantis posted a $2.7B loss, hit by €300M in tariffs and restructuring, while AstraZeneca announced a $50B U.S. investment tied to potential 200% drug tariffs. Consumer sentiment rose to a five-month high in July as inflation fears eased, though expectations remain above pre-tariff levels. In tech, chip stocks jumped on AI optimism, but markets are overlooking risks from revived Trump-era tariffs on chips and electronics. Block shares rose 10% on news that it will join the S&P 500 on July 23, replacing Hess after the Chevron deal and boosting tech’s index weight. On the consumer side, NYC and NJ project a $3.3B boost from hosting the 2026 World Cup, with over 1.2 million visitors and 26,000 jobs expected. 

Top 5 AI Highlights

[1] 📜Unveiled on Wednesday, President Trump’s “Winning the Race: America’s AI Action Plan” lays out 90 federal actions to secure global dominance through three pillars: (1) supercharging private-sector innovation, (2) scaling energy and semiconductor infrastructure, and (3) spearheading international standards, while integrating deregulation, workforce upskilling, grid upgrades, secure data centers, and forceful export-control enforcement to outpace China’s ascent. More on AI.gov and the All-In Podcast

[2] 🐝Amazon has acquired Bee, a $49.99 wearable that uses always-on microphones and AI to transcribe, summarize, and contextualize your daily life. All employees join Amazon; terms undisclosed. Amazon promises stronger privacy and no sale of customer information. More from The Verge.

[3] ⚡OpenAI has partnered with Oracle to build 4.5 gigawatts of new U.S. data center capacity, powering Stargate—OpenAI’s AGI infrastructure play. This will bring Stargate’s total to over 5 GW, running 2M+ chips, and signals acceleration beyond the original $500B commitment announced at the White House. More from OpenAI.  

[4] 🚀Elon Musk’s xAI, fresh from a recent $10B equity-debt raise, is now working with Valor Equity to secure up to $12B more funding for Nvidia chips and a new supercomputing data center to train Grok. To fund the push, xAI pledged Grok’s IP as collateral and leaned on SpaceX to inject $2B. More from MSN.

[5] 🥇OpenAI and Google DeepMind stunned the AI research community by earning gold at the 2025 International Math Olympiad—each scoring 35 of 42 possible points—an unprecedented leap from GSM8K-to-AIME benchmarks and a striking proof that a general-purpose language model can craft multi-page proofs. Read more from X and X.

Founder’s Corner

• Our friends at Founder’s Box, an early-stage AI accelerator, is offering $150K in SAFE funding plus coaching on storytelling, investor pitches, and go-to-market plans. Applications for the Fall 2025 cohort close August 8. Learn more at thefounderbox.com 

Only ~50% or so of Series A companies end up raising Series B

What We Read This Week

• Walmart hires Instacart’s Daniel Danker to spearhead global AI strategy, reporting directly to CEO Doug McMillon—highlighting AI's rising strategic role in retail transformation and operational efficiency. (WSJ)

• Ambiq Micro, backed by Arm, plans to raise up to $85 million in a U.S. IPO, offering 3.4 million shares at $22–$25, targeting a $491 million fully diluted valuation. (BBG) 

• Peter Thiel-backed crypto exchange Bullish filed for NYSE IPO under “BLSH,” citing $1.25 trillion in total trading volume and aiming to boost adoption of stablecoins and blockchain tech. (CNBC)

• Billionaire Patrick Soon-Shiong plans to take the Los Angeles Times public within a year, aiming to "democratize" ownership and restore public trust in journalism, he said on The Daily Show. (BBG)

• Apple’s first foldable iPhone will launch in late 2026, mirroring Samsung’s book-style design and components, but with hinge and display refinements, marking a rare late, non-revolutionary market entry for Apple. (BBG) 

• Secondary deal volume hit a record $102B in H1 2025, outpacing most full-year totals. Continuation funds raised $25B, signaling robust demand and liquidity in private equity markets. (Pionline)

Q2 Earnings Highlights

• Alphabet beat Q2 expectations with EPS of $2.31 and revenue of $96.4B, driven by 32% Google Cloud growth and strong ad sales. CapEx surged to $85B, raising investor concerns despite solid margins. (Barron’s)

• Tesla missed earnings and revenue expectations, with sales down 12% YoY. Shares fell 9% on Thursday. Affordable model production begins in 2025. Regulatory credit revenue halved with U.S. sales pressured by tax credit expiry. (YF)

• Intel beat Q2 revenue estimates but posted a wider loss amid ongoing turnaround efforts. Most of its planned 15% workforce reduction is complete; shares slide amidst cost-cutting measures. (YF)

• GM Q2 profit drops 35% YoY as tariffs slash $1.1B; shares fall 7%. Deeper Q3 impact expected, but 2025 guidance held. EV sales surge; U.S. production to rise by 300K units by 2027. (WSJ)

• Capital One beats Q2 profit estimates with $5.48/share adjusted earnings and $10B net interest income, despite a $4.3B net loss tied to the Discover deal. Integration underway; shares up slightly post-earnings. (BBG)

AI M&A and Fundraising news (July 18 — July 24)

• Alix: AI-driven estate settlement platform, raised $29.63M

• Ashby: AI-powered talent platform for hiring teams, raised a $50M Series D

• Augmodo: AI-powered retail inventory badge system, raised $37.5M

• BrightAI: AI for industrial power system monitoring, raised a $51M Series A

• Composio: AI infrastructure for agent learning, raised a $29M Series A

• Confident Security: Encrypted AI infrastructure provider, raised a $4.2M Seed

• Cover Whale: Commercial auto insurtech for trucking, raised a $40M Series B

• Coverflow: AI tools for insurance claims/fraud detection, raised a $4.8M Seed

• Data Phleet: AI-powered compliance automation for utilities, raised a $0.60M Pre-Seed

• DebitMyData: Ethical AI for identity verification and monetization, raised a Seed

• Delve: Automates regulatory compliance with AI, raised a $32M Series A

• Diode Computers: AI-powered PCB design/manufacturing platform, raised $14.49M

• Elysian Insurance Services: AI-native commercial insurance TPA, raised $6M

• Empirical Security: AI to detect/block software vulnerabilities, raised a $12M Seed

• EvenBetter: AI-powered software for workplace equity, raised $0.31M

• GeologicAI: AI rock/core data capture tech, raised a $44M Series B

• GigaIO: Connects data center components for AI, raised a $21M Series B

• Greptile: AI to automate code review, raised a $30M Series A

• Gupshup: Business messaging unicorn from India, raised $60M

• Hyper: AI voice automation for 9-1-1 call centers, raised a $6.3M Seed

• Hypernatural: Generative AI video creation platform, raised a $6.8M Seed

• iCounter: AI platform to combat cyber risks, raised a $30M Series A

• Kiku: AI for frontline job applicant interviews, raised a $4.6M Seed

• Nexxa.ai: AI-native agents for heavy-industry engineering, raised a Pre-Seed

• One Biosciences: AI-driven cancer therapy developer, raised a $17.4M Series A

• Perplexity: AI-powered search and browser platform, raised at $18B valuation

• Poseidon AI: Decentralized AI training data platform, raised a $15M Seed

• Propel People: AI hiring platform for skilled trades, raised a $3M Seed

• Quandri: AI tools to automate insurance back-office, raised $12M

• Q.ANT: Energy-efficient photonic processors for AI, raised a €62M Series A

• Reka AI: Efficient LLM development startup, raised $110M

• Solomon AI: Tax automation AI agent for firms, raised $6.8M

• StrongestLayer: Email cybersecurity via AI threat detection, raised a $5.2M Seed

• Testaify: AI-powered QA test automation platform, raised $2.61M

• Vaudit: AI auditing platform for ad fraud detection, raised a $7.3M Seed

• Vultron: AI tools for federal contractors, raised $22M

• Xelix: AI AP automation connecting ERP systems, raised a $160M Series B