Artificial intelligence may not deliver on its promise of vast economic opportunity at a price that humanity is willing to pay
In March, Anthropic, the cutting-edge artificial intelligence business that gave us the chatbot Claude, published an analysis on the impact of AI on employment, to help us assess the claim that intelligent robots were about to redefine human existence, ending demand for human labor.
Last year in May, Anthropic’s co-founder, Dario Amodei, claimed AI could wipe out half of all entry-level jobs in one to five years. Last January, he told us AI would probably become a “general labor substitute for humans”. In June he said we risk “a world where the economic trade-off dial is stuck on the hypergrowth, hyper-inequality setting”.
Elon Musk’s SpaceX is many different things to many different people — but one thing that it definitely isn’t is a get-rich-quick scheme.
Since its debut on the public tickers back in early June, SpaceX shares have sunk from a high of over $225 to a dismal $110 today, as compounding failures and overvaluation fears take their toll. Overall, SpaceX is down nearly 30 percent compared to its opening stock price of $150 — and all those day-one rubes are now seeing red.
“Elon has ruined me,” one Redditor posted on r/WallStreetBets, along with a screenshot showing a loss of nearly $455,000 CAD on thousands of SpaceX shares. “He was supposed to take us to Mars and burn short sellers. Still holding 7300 shares. Please Elon fly again.”
On Musk’s X-formerly-Twitter, investor’s spirits, like his rockets, weren’t any higher.
Under a post showing off SpaceX’s Starship at sunset, dejected Musk acolytes moped about their fortunes, begging the company to get its act together.
“It sure would be cool if this stops crashing… 30 percent short interest and down 40 percent on the month,” one fanboy groused. “I believed in you and lost over 20k in a month. I really hope that it comes back.”
On Thursday, when SpaceX announced it was delaying the launch of Starship’s thirteenth test flight by a day, commenters were quick to point out that the update came just minutes after US stock markets closed. (The stock continued sinking the next day, falling more than another 3 percent by press time.)
“Sure,” said another user, “wait till market close to announce…lol…as if we didn’t know what the weather was going to do hrs in advance.”
With that major test now scheduled for Friday evening, it remains to be seen whether a successful test will be enough to win back investors. On the flipside, a high-profile failure now could severely compound the company’s woes, putting SpaceX even further from the $2 trillion valuation Musk has promised. Time will tell.
Tesla has closed the mysterious ~$2 billion acquisition of an AI hardware company that it first hinted at in April — and it did so, again, without naming the target or issuing a press release.
The deal was confirmed in a single passage buried in Tesla’s Q2 2026 10-Q filing, which for the first time attached a final price: $1.95 billion, paid entirely in Tesla stock and equity awards.
Last week, SpaceX’s enormous Starship rocket failed to ignite several of its engines, forcing the company to abort its first test launch since its IPO earlier this summer.
The scrub served as the perfect metaphor for the space company’s ongoing struggles to convince investors of CEO Elon Musk’s lofty ambitions — ambitions which have little to no chance of turning into a reality without Starship.
While the almost-trillionaire has promised that SpaceX will one day be worth “more than the rest of the Earth,” its prolonged decline on the stock market suggests otherwise. Instead of joining the AI race, SpaceX has resorted to selling compute to its competitors.
His EV maker Tesla, an early pioneer in the adoption of electric vehicles, has also been flailing. Vehicle sales have been plunging as customers are driven away by the richest man in the world’s tasteless behavior and erratic commentary. Even recent jumps in revenue were thwarted by major AI-related spending, causing Tesla’s share price to tank this week.
As a result of it all, Musk’s empire feels more like it’s coming down around him — making it a perfectly convenient moment for him to sit down with The Economist for an attempt at a clean slate. (Whether it landed we’ll leave to you to decide.)
In the interview, published Thursday, Musk lamented that he “got a little too involved in politics” and “got carried away, frankly,” by his efforts to systematically gut the government with the help of his so-called Department of Government Efficiency during the early days of the second Trump administration.
Perhaps worst of all to Musk, his disastrous stint as a “special employee” in Washington, DC, last year has made him staggeringly unpopular — possibly even one of the most hated men in America.
“And I got a lot of flack from this, for this obviously,” he conceded in the Economist interview.
Now that his empire is looking worse for wear, it’s no wonder Musk is looking for an opportunity to tell the public that he’s moved on from helping the Trump administration dismantle the government.
But whether he actually regrets his actions is unclear at best. During the interview, Musk showed “no sign of relinquishing the geopolitical bully pulpit,” per The Economist. He doubled down on accusing the media of wrongfully characterizing him as a racist, despite repeatedly making racist comments. He even argued that Europe’s far-right extremist leaders were simply misunderstood.
In an piece accompanying its interview, The Economist acknowledged it sees the centibillionaire’s political views as “plainly bigoted.”
Musk also promised that AI will make money irrelevant — an “age of amazing abundance,” he enthused — and that governments should simply “issue people checks.” Considering his actions at the helm of DOGE last year, it’s clear he sees little role for the government beyond that.
In interview, billionaire says instead of running ‘Doge’ he should’ve ‘worked on my companies’ and shares extreme predictions
Elon Musk has admitted he became too consumed by politics during his volatile alliance with Donald Trump and his brief appointment as the president’s financial axman, running the so-called “department of government efficiency” (Doge).
The world’s richest person, and briefly its first trillionaire after his SpaceX company floated on the New York stock exchange in June, made the confession in a wide-ranging interview with the Economist published on Thursday. He shared his positions on subjects from foreign wars to AI, and made a number of eye-opening predictions for the future.
Shares of Elon Musk’s embattled carmaker Tesla slid over 13 percent Thursday morning after posting dismal second quarter results the night before.
The stock is hovering at around $324 at the time of writing, down over 15 percent over the last five days and about 28 percent year to date.
The company missed Wall Street expectations, despite its core automotive segment generating just over $20 billion in revenue, up 23 percent from a year ago. However, the company’s gross profits dropped as operating expenses climbed far quicker than revenue, in large part thanks to AI-related capital expenses and other research and development — an intimately familiar refrain for the tech world in 2026.
In other words, investors are growing increasingly wary of Musk’s reinvention of his car business. The almost-trillionaire is trying to shift the company’s focus from selling cars to robotaxis, a humanoid robot called Optimus, and AI — a series of major undertakings that’re clearly weighing it down financially after multiple quarters of major losses.
Worse yet, Tesla’s woes are clearly having knock-on effects on his rocket company as well. SpaceX’s stock has had a bruising month since hitting an all-time high after going public in mid-June. An aborted Starship test launch and Musk’s dubious plan for orbital data centers have investors betting against the company in incredible numbers.
During Wednesday’s earnings call, the company claimed that production of its Optimus humanoid robot remains on track, but didn’t elaborate beyond promising that production is starting “soon.”
“This is going to be the hardest product to scale manufacturing that we’ve ever made at Tesla, because everything on the robot is new,” Musk said.
Tesla’s robotaxi service is also being rolled out to six major metropolitan areas across the country, but continues to lag far behind its key competitor, Alphabet’s Waymo.
Despite slightly more optimistic vehicle sales numbers, the company continues to burn through billions of dollars to keep all of those new plates spinning.
The elephant in the room during this week’s call was the long-rumored possibility of Musk merging Tesla and SpaceX — a doubling down on his portfolio that could set up some of the most unbelievable financial drama in economic history.
The mercurial entrepreneur didn’t rule out the possibility, saying that “we can’t talk about combining companies on an earnings call.”
“It’s got to be done with the appropriate process,” he added.
Tesla stock is down more than 12% today, wiping out over $140 billion in market value, after the automaker’s Q2 2026 earnings missed on profit and free cash flow turned negative.
The slide got worse during the earnings call, when Elon Musk repeated the same robotaxi and Optimus promises he’s been making for years.
New US petition demands review of plans from tech companies amid fears of environmental destruction
Space datacenters proposed by SpaceX, Jeff Bezos’s Blue Origin and others would release staggering levels of pollution that would probably alter the Earth’s atmosphere and be “catastrophic” for the planet, space industry experts and environmental groups warn in a new petition demanding a review of their impacts.
Tech companies have collectively proposed millions of “orbital datacenters” and are pressing forward with plans, which require Federal Communications Commission (FCC) approval. Among other issues, pollution from satellites and rockets burning up upon re-entry appears to be accumulating in the stratosphere at alarming levels. The spacecraft release black soot, rare metals, aluminum oxides and other pollutants with unknown effects.
Elon Musk was asked directly on Tesla’s Q2 2026 earnings call whether the company still plans to upgrade Hardware 3 (HW3) cars so they can run its latest “Full Self-Driving” software. His answer made one thing clear: Tesla still has no concrete plan.
Instead of committing to a fix, Musk floated a grab-bag of options and timelines — none of them firm — for the millions of vehicles Tesla sold with the promise that they had “all the hardware necessary” for self-driving.
Elon Musk hinted at a merger between Tesla and SpaceX on Tesla’s Q2 2026 earnings call, pointing to “more and more overlap” between the two companies he controls.
He stopped short of confirming anything, deferring to Tesla’s general counsel and “the appropriate process” — but the exchange is the closest Musk has come to addressing the merger speculation directly.
Tesla (TSLA) released its financial results and shareholders’ letter for the second quarter (Q2) 2026 after market close today. We are updating this post with all the details from the financial results, shareholders’ letter, and the conference call later tonight.
The earnings call with management is scheduled for 5:30 p.m. ET.
Shares of Elon Musk’s SpaceX are continuing their weeks-long decline, hitting a new all-time low of around $115 by Wednesday afternoon.
The scale of the accumulating losses since the company’s hotly-anticipated IPO last month is staggering. The company has wiped out over $1.1 trillion in market value since hitting an all-time high of $225 last month, and it’s possible that its decline is just getting started.
The rocket company has given investors little to grasp onto, apart from an ever-optimistic Musk claiming that it could one day be worth more than the entire Earth. On Thursday, the company was forced to scrub the launch of its Starship spacecraft because several engines failed to start — a perfect metaphor for the company’s recent stock market performance.
Looming in the background is the second quarter earnings call of Musk’s EV maker, Tesla, on Wednesday evening. The company has been burning through cash at an alarming rate despite seeing sales and revenues jump. Analysts are still keeping close tabs on the chance that Musk may fold Tesla into SpaceX, a merger of unprecedented proportions. Tesla will likely be facing plenty of questions about the possibility during this week’s earnings call.
“I think there’s over 80 percent chance that Tesla and SpaceX get together in 2027,” tech analyst and longtime Tesla bull Dan Ives said in a note. “It’s the logical move from a data engineering perspective and Musk ownership. It makes too much sense for it not to happen.”
The level of uncertainty is palpable. SpaceX is lining up its prototype Starship rocket for another launch attempt on Thursday. Roughly a week and a half later, the company is expected to release its second quarter financials, a major litmus test of where the company is headed. As Yahoo Finance notes, investors are interested in how much the rocket company will be spending on AI products and the growth of its Starlink internet satellite business.
What likely won’t change is the fact that the company’s lofty valuation remains largely disconnected from its ability to make any money. SpaceX lost almost $5 billion last year — and xAI, which was folded into the company when it took over X-formerly-Twitter, lost a further $6.4 billion.
Is it possible to not like a movie in a normal way? Can it simply not be “your thing” without being transposed onto some intangible, ever-raging culture war?
It certainly isn’t if you’re an anti-woke crusader like SpaceX CEO Elon Musk. Like a lot of very online right wingers who are suddenly qualified classicists, he’s very upset about the new Odyssey adaptation directed by Christopher Nolan.
Nolan, according to Musk, “desecrated Homer and groveled on his knees just to meet the woke rules required to win an Oscar.” That’s because his movie dares to do stuff like cast Black women and a trans man in prominent roles, making the director what Musk termed an “anti-White racist.” In other words, it’s supposedly not “historically accurate” — never mind the fact that the epic poem contains gods wandering the Earth and a Cyclops.
Thankfully, there’s a wonderful piece of technology called AI out there that’s perfect for realizing the juvenile aesthetic predilections of stunted creatives who want to wallow in an imagined idea of what the past was like.
“Before this year ends, Grok Imagine will make a full-length movie of The Odyssey that is historically accurate and true to the art of Homer,” Musk declared Tuesday, referring to his own AI video generator.
Musk’s post quoted, and implicitly endorsed, a three minute dialogue scene that another user generated with Grok Imagine, featuring a virtual cast that looks more Western European than Mediterranean. No comment from Musk on if this was sufficiently “historically accurate,” of course, despite previously accusing Nolan of having “total contempt for the Greek people” with his casting.
Before this year ends, Grok Imagine will make a full-length movie of The Odyssey that is historically accurate and true to the art of Homer https://t.co/bVHzUmY9WN
Someone should probably let Musk know that there’s already a fully AI-generated Odyssey adaptation coming out, but the creators behind that one seem to respect Nolan, so it probably won’t be anti-woke enough for his taste.
But maybe the perfect Odyssey film doesn’t have to be AI-generated, if it’s in the hands of the right director.
One Musk fanboy suggested that he should “give Mel Gibson $100 million” to create a “painstakingly historically accurate” adaptation. Musk replied, “I’m down.” (The last movie Gibson directed, “Flight Risk,” was ripped to shreds by both critics and audiences.)
Though for the past few months Musk has fought like a combatant in the Trojan War to drum up controversy over Nolan’s film, his efforts have failed spectacularly. It opened to $264 million globally and will probably make a billion dollars, if not more, by the end of its run. It’s gotten rave reviews from critics, and moviegoers seem to love it, too.
And is anyone surprised? Nolan is a beloved figure in Hollywood with legions of fans. Musk has his own army of devout followers, too, but the difference is that Musk is constantly miserable, alienating even some of his own followers with his extreme takes.
Nolan, whether you like his movies or not, is a showman that wants you to have a good time. Even Musk said Nolan was “awesome” a few years ago. Audiences will remember that they liked some of his other films and turn out for his new one. They probably won’t take notice Musk melting down about it online, even if each of his posts gets hundreds of thousands of likes on his platform he remolded to be his personal echo chamber.
As shares of Elon Musk’s SpaceX continue to dip, short sellers betting against the company are making an absolute fortune.
As Reuters reported last week, short sellers had already made a whopping $8.7 billion in profit — and that was when the company’s stock was trading around $135. Since then, shares have cratered, dipping all the way down to an all-time low of $118 by Wednesday.
As a result, even more short sellers are throwing themselves at the chance to bet against the company, as CNBC reports. According to estimates from financial software company S3 Partners, around 206 million shares are being shorted, just under a third of all publicly tradable shares. That’s up from around 185 million just last week and only 40 million shares one month ago.
“We continue to see short sellers adding exposure ahead of several key upcoming catalysts, including the company’s first earnings report as a public company and subsequent lock-up expirations,” S3 head of research Matthew Unterman told CNBC.
“The survival probability of firms who maintain a significant short position in SpaceX over time is very low,” he tweeted.
The almost-trillionaire also rehashed his belief that “SpaceX will be worth more than Earth if we achieve our goals,” stating without evidence that his extremely far-fetched prediction was “obviously true.”
But before it has any chance to take over the entire world, SpaceX has a lot to prove. The company confirmed this week that it will release its first quarterly earnings report on August 4, a major litmus test of where the company’s headed.
Chances are it won’t be pretty. SpaceX’s market capitalization of over $1.6 trillion — making it one of the most valuable companies in the world — has little to no bearing on its current business fundamentals. The company lost almost $5 billion last year. Musk’s xAI, which was folded into SpaceX earlier this year and renamed to SpaceXAI, similarly lost $6.4 billion.
To regain ground lost ground, Musk will have to convince investors of his lofty and untested goals of sending data centers into space and settling on the Moon with the help of SpaceX’s behemoth Starship spacecraft.
Those claims will be put to the test Thursday, when the company has scheduled another test of the mammoth rocket — and regardless of the outcome, we’re likely to see substantial stock movement in its wake.
The billionaire says the AI-generated film will stay true to Homer’s original, after repeatedly criticising Christopher Nolan’s blockbuster over its casting choices
Elon Musk has said his AI platform Grok Imagine will make a “historically accurate” adaptation of Homer’s Odyssey, after the success of Christopher Nolan’s blockbusting treatment which the SpaceX founder has regularly criticised over its casting.
In a post on X, Musk said: “Before this year ends, Grok Imagine will make a full-length movie of The Odyssey that is historically accurate and true to the art of Homer.” Musk also linked to a post containing a three-minute clip of footage that the user said had been generated from Grok Imagine, showing a scene between Odysseus and the nymph Calypso.
Tesla reports its second-quarter 2026 financial results tomorrow, July 22, after the market closes, with the earnings call to follow at 5:30 p.m. ET.
The setup is different this time. Tesla just posted its best-ever second quarter on deliveries, so now Wall Street wants to know whether all those cars actually made money.
Tesla switched on its “Robotaxi” service in Tampa and Orlando on Monday, adding two Florida cities to a driverless network that still runs on a couple dozen cars. The company’s @robotaxi account announced it in a four-word post: “Robotaxi now in Tampa & Orlando!”
The timing isn’t subtle. Tesla reports second-quarter earnings on Wednesday, and Robotaxi is the story Elon Musk keeps selling to investors. Two new city names the day before make for a nice slide. The fleet behind them tells a different story.
A Apple e o Google foram intimados por um procurador de San Francisco a remover aplicativos que gerem imagens de nudez não consensuais.
As notificações extrajudiciais foram enviadas pelo procurador David Chiu, que exigiu a remoção de 13 aplicativos de troca de rostos (face swap) os quais permitem que usuários criem imagens de nudez sem o consentimento das pessoas envolvidas, com o auxílio da inteligência artificial (IA). Ele solicitou ainda o rompimento das relações comerciais com os desenvolvedores desses apps.
Chiu comentou o conflito com esse segmento de apps e a problemática da relação desses aplicativos com grandes empresas de tecnologia:
Gerar imagens íntimas não consensuais é ilegal, prejudicial e completamente inaceitável. […] Essas empresas têm a responsabilidade de garantir que os aplicativos em suas plataformas não facilitem abuso sexual. […] O fato de algumas das maiores e mais consolidadas empresas de tecnologia do mundo estarem facilitando isso precisa acabar.
Pesquisadores das universidades de Cornell e Georgetown descobriram que, de 155 apps de criação de deepfakes, 70% deles permitiam gerar conteúdos com nudez sem quaisquer restrições — demonstrando que mesmo os apps que não são promovidos como tal não impedem práticas criminosas. Uma investigação da Tech Transparency Project (TTP) revelou números parecidos.
A Apple possui um histórico delicado com o tema: embora esses estudos apontem leniência com a existência desse tipo de ferramenta na App Store, a Maçã possui um rastro de combate a esse tipo de prática — ainda que sob pressão governamental —, a exemplo da ameaça de remoção do X em meio à polêmica com a geração de imagens de nudez com o auxílio do Grok.
Representando o Google, Dan Jackson afirmou que centenas desses aplicativos foram excluídos da loja do Android:
O Google Play não permite aplicativos que contenham conteúdo sexual, e tomamos continuamente medidas proativas para detectar e remover apps com conteúdo prejudicial. […] Quando recebemos denúncias, investigamos e agimos rapidamente, o que, nesses casos, incluiu suspender centenas de aplicativos que violavam nossas políticas e restringir termos de busca relacionados, como “nudify”, em nossa loja.
A Apple, por sua vez, optou por não comentar o caso.
After years of being engaged, it looks like SpaceX and the Pentagon are finally ready to send out save-the-dates.
On Friday, the Wall Street Journal reported that Elon Musk’s formerly-just-rockets company is now in talks with the Department of Defense over providing the military access to its data-center capacity for running AI models, tying the knot on their already close relationship.
People familiar with the matter told the newspaper that the arrangement could cost the Pentagon billions of dollars, but stressed the talks are ongoing and could fall apart.
Computing power is a precious commodity during this ever-raging AI boom, and SpaceX has it in spades. Musk has rapidly built data centers in Memphis, Tennessee and a lot of that capacity hasn’t been tapped into, with Bloomberg reporting that his AI startup xAI is only using 11 percent of its total computing power.
Selling this excess compute would help generate the company some much needed revenue, even if it directly benefits its rivals. SpaceX has struggled to be profitable, losing $5 billion last year. And xAI, which was folded into SpaceX before its IPO last month, burned through $6.4 billion over the same period. All the while, Musk has struggled to sell his Grok chatbot to businesses, as its capabilities lag behind leaders like Anthropic and ChatGPT.
Those collaborations have gotten way bigger in the past year. In May, it won a $2.29 billion Space Force contract to build a network of satellites that could function as a military internet service, connecting weapon systems across the globe. That same month, it was awarded an even larger $4.16 billion contract to provide the technology to build a system that can track missiles and aircraft from orbit.
To be clear, Musk’s companies are far from the only tech leaders to be getting in bed with the Pentagon. Amazon, Google, Microsoft and Oracle all have similar deals for providing cloud computing capacity to the military, as well as for providing their AI models, the WSJ noted.
But it’s a particularly hypocritical road to be going down for Musk. When Musk cut off Starlink satellite access to the Ukrainian forces in 2023, he reasoned that he didn’t want SpaceX to be “explicitly complicit in a major act of war and conflict escalation.” Fast forward to this June, when a Pentagon official bragged that the military used Grok to fire 2,000 missiles at Iran during Operation Epic Fury, sparking a war that killed thousands of civilians in the country.
Tesla shareholders have flooded the company’s Q2 2026 earnings Q&A portal with questions, and the most-upvoted ones tell a bleak story: retail investors are now demanding that Elon Musk explain why the company keeps missing its own short-term goals.
The tone has shifted from asking about Tesla’s grand vision to asking why almost none of it is showing up on schedule — on robotaxi, “Full Self-Driving,” and Optimus.
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