Trump Takes Musk, Cook, Thiel to Beijing, AI Security Officially on US-China Summit Agenda for the First Time. April CPI Hits 3.8%, Iran War's Economic Shockwave Spreads from India Lockdown to Japan Potato Chip Packaging.
1｜Trump Takes Musk, Cook to Beijing, AI Security a Formal Topic at US-China Summit for the First Time
Trump's May 14-15 China visit delegation includes Musk, Cook, Thiel, Boeing's Calhoun, a rare lineup. Summit agenda covers trade, Taiwan, Iran, AI in four main areas, with AI security dialogue framework entering bilateral summit level for the first time. Axios reports both countries have interests in preventing the weaponization of AI, but whether regulations can be established remains unknown.
Analysis from CFR and CSIS points to an asymmetric negotiation table: Stanford's annual AI report concludes that the performance gap between China and the US in AI models has substantially disappeared, with China's goal being to buy time to solidify its technological position. China may increase purchases of Boeing aircraft and US soybeans as symbolic concessions, but the core issue lies in the AI security dialogue itself. For Beijing, just sitting at the negotiating table is an achievement. On the surface, it's a trade summit, but underneath, it's the first formal recognition by the two AI superpowers of the need to establish a bilateral framework for AI security, and the battle for leadership of this framework is just beginning.
(Source: Fortune / Axios / CFR / CSIS / CNBC / Al Jazeera)
2｜April CPI Rises to 3.8%, Reaching a Three-Year High, Iran War's Economic Impact Wave Spreads from Oil Prices to Potato Chip Packaging
April CPI rose by 3.8% year-on-year, the highest since May 2023, with a 0.6% increase from the previous month. Gasoline prices surged by 28.4% year-on-year, and the energy component contributed over 40% to the CPI increase. This is not just a story of oil prices: India resumed the work-from-home order during the pandemic due to the rupture of its oil lifeline, and Japan's Calbee changed its potato chip packaging to black and white due to the supply chain disruption of ink raw materials. The costs of war are penetrating daily consumption through unexpected supply chain nodes.
The market has begun to price in the possibility of rate hikes, with the earliest rate cut postponement to December, and the risk of delay until 2027. The Fed's April meeting saw the most dissents since 1992, with Waller confirmed 51-45 as a governor, taking over as inflation picks up speed. What appears on the surface as a monthly inflation figure is actually the simultaneous tightening of three pressures: tariffs, war, and energy, with the central bank changing hands at its tightest policy juncture.
(Source: Fortune / CNBC / Axios / CoinDesk / US News / The Hill)
3｜Ultraman Appears in Court: Musk Wants 90% of OpenAI, Microsoft has Recouped $26 Billion
Ultraman testified in Musk's lawsuit against OpenAI, stating that Musk had requested "full control" over any for-profit entity, including 90% ownership. Musk's lawyer countered, "Are you completely trustworthy?". NPR reports that the contentious court hearing has escalated from a contract dispute to a "who owns the future of AGI" debate.
Emerging data in the same week has underscored this battle for control: Microsoft's early $13 billion investment has now brought in over $26 billion in revenue, a return of over 2x. Nadella described ousting Ultraman as "extremely amateur". Musk is seeking not just compensation, but the removal of Ultraman, with the trial outcome potentially impacting OpenAI's IPO prospects. While it appears to be a personal feud between two tech titans on the surface, at its core, the ownership of AGI control is being redefined in the courtroom.
(Source: Al Jazeera / Fortune / The Information / NPR / CNN / MIT Technology Review)
4｜CME Launches Hash Rate Futures, Google Plans to Send Data Center into Space, 50,000 Residents of Lake Tahoe Lose Power First
CME partners with Silicon Data to launch the world's first hash rate futures contract based on the H100 hourly leasing price index. Founded by former DRW trader Carmen Li, Silicon Data's contract allows AI developers to hedge against hash rate price fluctuations. AI infrastructure spending is projected to reach $700 billion by 2026, transforming hash rate from a technical resource to a financial asset.
Google's Project Suncatcher aims to equip solar-powered satellites with TPUs, with negotiations with SpaceX to launch a prototype in 2027. On the ground, the situation is less optimistic: NV Energy has notified the Lake Tahoe area that power will no longer be provided, shifting electricity to AI data centers, leaving nearly 50,000 residents without power. While surface-level expansion is observed in three dimensions of hash rate infrastructure, the underlying trends of financialization, space exploration, and displacement of resident energy sources by AI are occurring simultaneously.
(Source: FT / Bloomberg / TechCrunch / WSJ / Fortune / CME Group / CNBC)
5｜Anthropic's Four-Pronged Strategy: Pentagon Deploys Mythos While Publicly Denouncing
While the Pentagon identifies Anthropic as a supply chain risk, it is also deploying Mythos to patch network vulnerabilities. The CTO called Mythos "another national security moment," with even the NSA using it. On the same day, Anthropic released a legal industry AI toolkit and warned investors to stay away from 8 unauthorized secondary market trading platforms.
The Information reported that Anthropic is in talks to acquire a developer tool company used by both OpenAI and Google. Four threads connecting: defense, law, developer tools, and capital markets advancing simultaneously. On the surface, it's a multi-pronged expansion of an AI company; underneath, Anthropic is penetrating national security infrastructure using a "first lock you in, then talk compliance" approach. The Pentagon's contradictory stance itself is evidence of the strategy's effectiveness.
(Source: Reuters / Bloomberg / TechCrunch / The Information)
Also Worth Knowing ↓
The DHS seeks $7.5 million for R&D on ICE enforcement AI facial recognition smart glasses. At least 6 states' ICE agents are already using Meta Ray-Ban smart glasses for enforcement, and the DHS aims to develop a real-time facial recognition version in-house. AI enforcement tools are transitioning from borrowing consumer-grade hardware to customization.
(Source: Fortune)
Google's DeepMind subsidiary Isomorphic Labs raises $2.1 billion. Thrive Capital led the round with participation from Alphabet, Temasek, and the UK's Sovereign AI Fund. Powered by the AlphaFold-based AI drug design engine, clinical trials are set to begin by the end of 2026. AI in pharma is reaching the final mile from research papers to clinical trials.
(Source: Reuters / Bloomberg)
JPMorgan Chase applies to launch a tokenized fund, heating up Wall Street's tokenization race. Following BlackRock and Franklin Templeton, JPMorgan Chase has entered the fray. Traditional financial institutions' stance on blockchain asset management has shifted from wait-and-see to a race to the front.
(Source: CoinDesk)
Google unveils Googlebook, a notebook platform, as Android makes a comeback in the PC market. An AI-powered notebook platform based on Android, featuring AI capabilities like Magic Pointer, without replacing Chromebook. Google's AI storytelling has repackaged an attempt to bring Android to the desktop.
(Source: Bloomberg / Wired)
Lael Brainard to Succeed Powell at Fed as Inflation Hits Fresh High. Senate Confirms 51-45, with only Democratic Senator Feinstein voting in favor. Powell's term ends on May 15. NYT comments that Brainard "is arriving at a moment of error," while Warren accuses her of being Trump's "puppet." The new chair faces the Fed's deepest internal divisions since 1992. (Source: CoinDesk / CNBC / US News / The Hill)
US Electricity Prices Surge 61% Above Inflation as AEP Announces $2.6 Billion Stock Offering. Data center demand surges amid Iran conflict driving up energy costs. Power companies emerge as hidden beneficiaries and funding machines in the AI hashpower frenzy. (Source: Bloomberg)
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