Good morning, AI enthusiast.

Elon Musk’s xAI is taking on two of tech's biggest giants, filing a new antitrust lawsuit against Apple and OpenAI. The suit alleges their partnership to integrate ChatGPT directly into iOS creates an illegal monopoly that chokes out competing AI models.

The legal battle raises a critical question about the future of the industry: can a platform with billions of users form an exclusive partnership with a leading AI model without unfairly stifling competition? The outcome could set a massive precedent for the entire AI arms race.

In today’s AI recap:

• How to generate a fully-automated podcast (watch here)

• Elon Musk’s Apple and OpenAI lawsuit

• NVIDIA's new robotics brain

• AI’s new $100M SuperPAC

Musk Sues Apple and OpenAI

The Recap: Elon Musk's xAI has filed an antitrust lawsuit against Apple and OpenAI. The suit alleges their partnership to integrate ChatGPT into iOS creates an illegal monopoly that stifles competition from other AI companies.

Unpacked:

• The lawsuit frames the deal as two monopolists joining forces to maintain dominance in their respective markets.

• xAI claims the deep integration gives OpenAI an unfair advantage by providing access to billions of user prompts from iPhones, which helps improve its models faster than rivals can.

• Musk also alleges that Apple's App Store actively deprioritizes competing AI chatbots, making it nearly impossible for apps like Grok to gain top rankings.

Bottom line: This legal challenge could determine how AI models are integrated into major tech platforms in the future. The outcome will set a significant precedent for competition and innovation in the AI arms race.

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NVIDIA's New Robotics Brain

The Recap: NVIDIA just announced the general availability of Jetson Thor, a new robotics computer that acts as a powerful onboard brain for physical AI. This release allows complex AI models to run directly on robots, enabling real-time decision-making in the physical world.

Unpacked:

• The performance jump is significant, offering 7.5x more AI compute than its predecessor, Jetson Orin.

• Top robotics companies are already on board, with Agility Robotics integrating it into its Digit humanoid and Boston Dynamics using it for Atlas.

• It is designed to run large transformer and vision-language models directly on the device, reducing cloud dependency for complex reasoning tasks.

Bottom line: Jetson Thor pushes powerful AI processing from the cloud directly to the edge, fundamentally changing what robots can do. This shift accelerates the arrival of autonomous systems that can safely and effectively navigate unstructured human environments.

AI Training

I Built a Local News Podcast for Any City with AI (n8n + ElevenLabs)

The Recap: In this video, I'm going to show you how to build a podcast fully researched, written, and narrated by AI. We're going to use Firecrawl to scrape local news stories happening in the Austin area, and then we're going to take all those news stories, write a script using AI, and finally use ElevenLabs' new v3 model to generate a final audio file of the local podcast.

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AI's $100M Political Play

The Recap: A coalition of top AI companies and investors, including Andreessen Horowitz and OpenAI's Greg Brockman, has launched a $100 million SuperPAC to influence U.S. tech policy and elect pro-innovation candidates.

Unpacked:

• The new group, named Leading the Future, is also backed by notable figures like investor Ron Conway and AI startup Perplexity.

• Its strategy mirrors the playbook used by crypto-funded PACs, which successfully spent hundreds of millions to influence the 2024 elections.

• The PAC's primary mission is to advance policies that accelerate AI development while pushing back against regulations that could cede America's leadership to China.

Bottom line: This move signals a major shift, taking the AI regulation debate from conference rooms to high-stakes campaign trails. The industry is no longer waiting for rules to be written for it; it's investing heavily to help write them itself.

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The AI Profit Paradox

The Recap: Despite enterprises investing over $30 billion in generative AI, a new MIT report reveals that 95% of organizations are seeing zero financial return on their initiatives.

Unpacked:

• This profit drought is shaking executive confidence, with a recent survey showing the number of CEOs who are “very confident” in their AI strategy has fallen from 82% last year to just 49% today.

• The trend is having real-world consequences, with some early adopters already reversing course, like the Commonwealth Bank of Australia asking employees to return to call centers after AI failed to deliver.

• History suggests this may be part of a predictable “J-curve,” where transformative technologies cause short-term disruptions before unlocking long-term productivity gains, similar to the initial rollouts of computers and electricity.

Bottom line: The current AI profit slump is separating the hype from tangible applications that deliver measurable value. Future success will likely depend less on generic, off-the-shelf tools and more on highly customized systems that target specific workflow processes.

The Shortlist

Aehr received additional orders for six of its Sonoma packaged part burn-in systems from a major hyperscaler to test custom AI processors.

Cloudflare built a new AI prompt protection feature within its DLP product to secure sensitive data entered into tools like ChatGPT, Gemini, and Claude.

YouTube confirmed it is experimenting with machine learning to "enhance the clarity" of some Shorts videos after creators noticed their content was being altered without permission.

Guess featured a fully AI-generated model in a recent Vogue ad, sparking debate among fashion models about job displacement and the rise of digital clones.

Signing off,

David, Lucas, Mitchell — The Recap editorial team