SpaceX's AI Prototype Smartphone | Rewire News Daily

SpaceX Reportedly Showed Investors a Thinner AI Phone Prototype than iPhone Predecessor, Musk Denies. Meta Set to Sell Idle AI Compute Capacity, CoreWeave and Nebius Plummeted Over 10% the Same Day.

1｜SpaceX Showed Investors a Thinner AI Phone Prototype than iPhone, Musk Denies

According to an exclusive report by The Wall Street Journal, SpaceX showcased a "phone-like" AI device prototype to select investors before its record-breaking IPO in June. The device is thinner than an iPhone, equipped with a Qualcomm Snapdragon chip, and runs on an operating system based on xAI technology. SpaceX acquired xAI earlier this year through a stock swap, with Grok now integrated into the SpaceX ecosystem. Musk responded on Twitter, calling the report "completely false" and did not provide further details.

SpaceX has just concluded the largest IPO in history, raising around $75 billion with a valuation of $1.77 trillion. From rockets to satellite internet, and now to AI large models and consumer electronics, the company is building a vertical chain from space infrastructure to end consumers. Even if the device does not hit the market, its existence sends a signal: post-IPO SpaceX is no longer just a space company.

(Source: Wall Street Journal / Reuters / TechCrunch / The Verge)

2｜Meta Plans to Sell Idle AI Compute Capacity, CoreWeave and Nebius Plunge on the Same Day

According to Bloomberg, Meta is working on establishing a cloud infrastructure business and plans to sell idle AI computing power to external clients. Meta is still discussing whether to offer only raw compute power or also open up model hosting. After the news was revealed, Meta's stock price surged over 10%, GPU cloud company CoreWeave fell by 10.8%, and Nebius dropped by 12.4%.

The largest buyers of AI infrastructure are turning into sellers. Meta has invested billions of dollars in compute power over the past two years but finds they have built too much and are now offloading excess capacity. On the same day, Oracle warned that AI data center spending "may not pay off." When the biggest spenders start questioning the return on investment, the supply-demand assumption for AI infrastructure begins to loosen.

(Source: Bloomberg / Reuters / TechCrunch / CNBC)

3｜Europe Reshapes Competitive Landscape Through Regulation: Binance Cut Off, Google to Pay Klarna Nearly $2 Billion

According to The Wall Street Journal, Binance has cut off access for European users after regulatory concerns about financial crime were raised. Concurrently, the EU's crypto market regulatory framework, MiCA, has been fully enforced, putting pressure on several offshore exchanges to comply. CoinDesk reports that Europe is further tightening restrictions on offshore platforms. In the tech sector, a Swedish court has ruled that Google must compensate Klarna's PriceRunner with $1.97 billion for antitrust damages, stemming from a 2017 EU Commission decision that Google systematically favored its own shopping service. Google has stated it will appeal.

Europe may not excel at building tech platforms, but it excels at deciding who can operate here. The events of Binance being cut off, MiCA enforcement, and Google's nearly $2 billion payout all point in the same direction. Regulatory power has become Europe's industrial policy.

(Source: Wall Street Journal / CoinDesk / Financial Times / Finextra)

4｜Bending Spoons Debuts on Nasdaq with $18.4 Billion Valuation, Profiting from Acquiring Old Brands

Italian company Bending Spoons has completed its IPO on Nasdaq at a price of $29 per share (above the guided range of $26-28), valuing the company at $18.4 billion, up from the previous $11 billion. The stock rose 38% on its first day to close at $40.09. The company raised $1.68 billion by issuing approximately 58 million shares.

Bending Spoons' business model revolves around acquiring struggling internet brands. AOL, Vimeo, Evernote, WeTransfer, Eventbrite – all have been acquired, redundant teams laid off, costs minimized, profits extracted from cash flow, and then the next acquisition. This is an anti-innovation model. In an industry obsessed with building new things, Europe's largest tech IPO of the year relies on buying old stuff and cutting costs.

(Source: Reuters / TechCrunch / Financial Times / The Economist)

5｜Together AI Raises $800 Million at $8.3 Billion Valuation, AI Infrastructure Capital Continues to Pour In

AI cloud computing company Together AI has completed an $800 million Series C funding round, valuing the company at $8.3 billion, a doubling from 16 months ago. The round was led by Aramco Ventures, a subsidiary of Saudi Aramco, with participation from Vista Equity, General Catalyst, NVIDIA, and others. The company reported an annualized order volume surpassing $1.15 billion and has secured over 500 megawatts of computing power. Customers include Cursor, Cognition, and Decagon, among other AI application companies.

Meta started selling idle computing power on the same day, while Oracle warned that data center investments "may never pay off." New entrants securing an $8.3 billion valuation are expanding, while existing giants are adjusting their expectations. The supply and demand assumptions of AI infrastructure are diverging, with the right or wrong bet depending on whether AI's actual consumption can catch up with the pace of development.

(Source: Reuters / BusinessWire / TechCrunch)

Also Worth Knowing ↓

Robinhood Chain, a public blockchain, has launched its mainnet, enabling 24/7 tokenized stock trading in over 120 countries. Built on the Arbitrum-based Ethereum Layer 2 network, it has also introduced decentralized lending and a USDG stablecoin with an annual yield of around 7%. Tokenized stock trading is currently not available to U.S. users. Traditional brokerages are beginning to build their own crypto infrastructure.

South Korea's June export growth hits the highest rate since 1978, led by AI chips. According to data from the South Korean Ministry of Trade, Industry and Energy, a surge in memory chip exports has driven overall exports. The macroeconomic impact of AI is now transitioning from stock market valuations to tangible trade data.

Palantir CEO Karp publicly criticizes OpenAI and Anthropic's token pricing models, stating they are "completely wrong." Karp believes that pricing based on tokens commoditizes AI into a service, whereas Palantir's value lies in customized deployments. Internal industry disagreements over business models in the AI sector are now expanding from the technological layer to the revenue structure.

Cloudflare has requested AI companies to separate their web crawlers for search and training by September 15, or else they will default to blocking them on publisher websites. The window for AI companies to freely scrape publisher content is closing, and a redistribution of content pricing power has begun. (Source: TechCrunch)

According to Bloomberg, the technology and financial industries are losing about 28,000 jobs per month due to AI. The CEO of Palo Alto Networks referred to it as a "Darwinian moment," stating that 90% of employees in large companies lack AI skills. The impact of AI on the labor market has entered a quantifiable stage. (Source: Bloomberg / Fortune)

Fed Chair Warsh has stated that AI has a "profound effect" on monetary policy, and inflation risks have decreased. As per Axios, the heads of the ECB, Bank of England, and Bank of Canada reached a rare consensus on "reducing forward guidance" at the Sintra forum. Global central banks are beginning to rewrite their monetary policy frameworks. (Source: CNBC / Axios)

Venice AI has achieved a unicorn valuation with a $65 million Series A funding round, is already profitable, and has an annual revenue of over $70 million. The founder is former ShapeShift CEO Erik Voorhees. This privacy-focused AI platform proves that not all AI startups are burning cash. (Source: TechCrunch)

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