📊 MARKET PULSE
Surge AI Preps Massive $1B Round, Sets Sights on $15B+ Valuation Amid Scale AI Exodus
Surge AI, bootstrapped and profitable, has quietly outpaced its rival, reporting over $1 billion in revenue last year (vs. Scale AI’s $870 million). Now, under founder Edwin Chen’s leadership, Surge is preparing its first capital raise—up to $1 billion—targeting a valuation north of $15 billion.
Why this matters: Surge’s timing is strategic. With Scale AI losing key clients like Google and OpenAI in the wake of Meta’s minority stake and AI data concerns, Surge is positioned as the new trusted high‑quality data-labeling provider. The round includes both primary and secondary capital, offering employee liquidity and fueling growth. → Continue reading here.
🧐 X Tests AI-Generated Fact-Checks in Community Notes
X is piloting a feature allowing AI chatbots to write Community Notes, which provide context on misleading posts. AI-generated notes will be vetted like human ones, but risks remain around accuracy, hallucinations, and overload on reviewers. X aims for AI-human collaboration, but it’s unclear if the model will help or harm trust online.
⛔ Cloudflare Blocks AI Bots, Demands Permission First
Cloudflare now blocks AI crawlers like GPTBot by default, flipping the opt-out model on its head. AI firms must now request access and may have to pay under Cloudflare's new “Pay Per Crawl” system. This move protects creators and slows unchecked data scraping. With 20% of the web behind it, Cloudflare just changed the game.
📰 ChatGPT Sends More News Traffic—But Not Enough
ChatGPT referrals to news sites jumped 25x in 2025, but they haven’t offset steep declines from Google’s AI Overviews, which now drive 69% of news searches without clicks. Organic traffic has fallen sharply, and while outlets like Reuters and Business Insider benefit from AI, most publishers face shrinking audiences and mounting financial pressure.
📈 Trump Bill Boosts Chipmaker Tax Credits to 35%
Trump’s new “big beautiful bill” raises U.S. tax credits for chipmakers from 25% to 35%, aiming to accelerate domestic semiconductor manufacturing. Eligible firms like Intel and TSMC must expand U.S. capacity by 2026. The credits build on the 2022 CHIPS Act, but Trump’s approach favors tariffs over grants. The bill still needs House approval to become law.
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🚀 AI ADVANCEMENT
AI Is Outpacing Sci-Fi: Neal Stephenson’s ‘Primer’ Looks Less Like Fantasy, More Like 2025
What once sounded like speculative fiction is now edging toward reality: Rizwan Virk traces how today’s AI—from voice-cloned Darth Vader in “Fortnite” to wearable devices that record and coach users—echoes Neal Stephenson’s vision of the “Young Lady’s Illustrated Primer” in The Diamond Age. That fictional AI offered real-time emotional, educational, and behavioral guidance to a child; now, wearable assistants, AI tutors, and generative avatars suggest the tech is catching up.
But Stephenson also warned of mass social engineering through such tools. As AI becomes more personal and pervasive, the real challenge may be not just what it teaches, but whose values it imparts—and whether we still learn to think for ourselves. → Read the full article here.
⚖️ COPYRIGHT
Why AI Can Quote Eminem and You Can’t: A Copyright Double Standard
Author Alexander Hurst spotlights a growing copyright paradox: while writers like him are barred from quoting even a single song lyric in a book without paying steep licensing fees, AI giants face far fewer restrictions. Recent U.S. court rulings have allowed companies like Meta and Anthropic to use copyrighted lyrics and texts to train language models under “fair use,” even generating new content that mimics artists like Eminem or The National.
Hurst argues this legal loophole favors corporate power over creative rights, enabling AI tools to profit from human expression without compensating the creators. If AI is disrupting everything else, he says, it’s time it disrupted copyright law too—for the artists’ sake. → Read the full article here.
🛰️ NEWS
What Else is Happening
🚨 AI Bill Could Backfire on U.S.: Critics say Trump’s new AI bill, meant to boost innovation, may actually help China lead in AGI — raising fears of a global tech power shift.
💰 Lovable Eyes $150M to Double Valuation: Sweden’s no-code AI startup Lovable is raising $150M at nearly $2B valuation, aiming to empower non-coders and cement EU’s AI boom.
💼 AI Now Helps Decide Who Gets Fired: 65% of managers use AI for HR calls — including raises, promotions, and layoffs — often without training, sparking fears of bias and legal backlash.
🖌️ AI Designs Paint That Cools Buildings: Scientists used AI to create reflective paints that cut surface temps by up to 20°C—slashing AC use and reshaping materials science in a warming world.
🏷️ Perplexity Debuts $200/Month Max Plan: The AI search startup’s premium tier offers early feature access and top model use, aiming to boost revenue amid rising competition from Google and OpenAI.
⚛️ SCIENCE
Mayo Clinic’s AI Can Spot 9 Dementia Types From a Single Brain Scan
A new AI tool from Mayo Clinic, dubbed StateViewer, can detect nine types of dementia—including Alzheimer’s—with 88% accuracy using a standard FDG-PET brain scan. Trained on over 3,600 scans, it analyzes glucose usage patterns to distinguish between conditions like frontotemporal dementia and Lewy body dementia, cutting diagnosis time in half and tripling accuracy.
Developed by neurologist Dr. David Jones and AI engineer Dr. Leland Barnard, StateViewer transforms complex brain data into visual maps any clinician can use—bringing top-tier diagnostic support to more patients, faster. → Read the full paper here.
📽️ VIDEO
Factory CEO on the Future of Software, Humans Vs Agents, SaaS, and More!
Matt interviews Factory CEO Matan Grinberg on how AI agents will transform coding—turning 10-person teams into superpowered software armies. Get the full scoop! 👇
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That’s a Wrap!
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