Good morning. It's Monday, July 6, and we're covering why AI is moving beyond language models, how NVIDIA is fueling the AI infrastructure race, and why Meta says powerful AI agents are taking longer than expected.

Plus: a prompt to help you prepare for your next meeting.

Meta's AI agent progress falls short of executives' expectations despite a major company overhaul. CEO Mark Zuckerberg tells employees the restructuring, including job cuts and AI team reassignments, has yet to deliver the anticipated gains. Meta cut about 10% of its workforce and plans to spend up to $145 billion on AI infrastructure this year. Zuckerberg says more meaningful AI benefits could emerge within three to six months.

Anthropic is stepping up enforcement after Chinese firms reportedly find ways to access Claude despite existing restrictions. The company is increasing efforts to detect unauthorized use through overseas subsidiaries, VPNs, and cloud services that bypass its terms. The Financial Times says companies including Ant Financial and ByteDance used such methods, while Anthropic now monitors signals like device time zones and relay services to block access.

The Trump administration signals it will avoid creating a dedicated U.S. AI regulator despite recent policy activity. Outgoing tech adviser Sriram Krishnan says President Donald Trump favors a light-touch approach, even as the administration issues AI frameworks and encourages voluntary model reviews. The National Policy Framework emphasizes federal preemption over new agencies, underscoring continued skepticism toward expanding AI oversight.

AI's memory boom is driving up RAM costs, which could make upcoming MacBooks and iPads significantly more expensive.

AI pioneer Yann LeCun argues that today's large language models (LLMs), including ChatGPT, Claude, and Gemini, are powerful but fundamentally limited because they lack an understanding of the physical world. His Paris-based startup, AMI Labs, is developing a new approach called Joint Embedding Predictive Architecture (JEPA), backed by more than $1 billion in seed funding from investors including NVIDIA and Jeff Bezos' investment fund, with plans to begin industrial deployments in 2027.

Researchers such as Ingmar Posner believe the next wave of AI will come from "world models" that can reason about cause and effect, predict outcomes, and interact safely with real-world environments—capabilities seen as essential for robotics and more general-purpose artificial intelligence. → Read the full article here.

NVIDIA is expanding financial support for emerging "neocloud" providers—companies that rent AI computing infrastructure—as demand for AI chips continues to surge. The strategy includes revenue-sharing backstops that help smaller cloud operators secure financing, even as established providers such as Amazon Web Services, Google Cloud, Microsoft Azure, and CoreWeave rapidly expand capacity.

The move reflects NVIDIA's effort to sustain demand for its AI chips amid growing competition, but it also raises concerns that easy financing could fuel overbuilding and leave smaller startups vulnerable if AI infrastructure demand slows. The broader race underscores how access to compute has become one of the defining competitive battlegrounds in the AI industry. → Read the full article here. (Paywall)

Alexandr Wang told employees that Meta's next AI model, codenamed Watermelon, has matched the benchmark performance of OpenAI's GPT-5.5, according to people familiar with an internal town hall. Wang said the model is still in training and uses roughly ten times more computing power than Meta's current Muse Spark model, while highlighting upcoming improvements in coding and AI agent capabilities.

The claim has not been independently verified, and Meta has not publicly released benchmark results or commented on the comparison. If confirmed, it would signal that Meta's multibillion-dollar investments in AI talent, chips, and infrastructure are narrowing the performance gap with OpenAI, Google, and Anthropic. → Read the full article here.

India probes Tata iPhone leak: Investigation follows a breach exposing unreleased iPhone 18 Pro files, supplier lists and component details.

Google Dials Back AI: Google's 250th-anniversary ad imagines the Founders drafting the Declaration in Docs and Meet, but keeps Gemini in the margins.

Tesla caps AI spending: Employees face a $200 weekly AI limit unless approved, while Grok beta use remains exempt under the new policy.

Argentina proposes AI-run companies: Milei's bill would recognize AI-operated firms but still requires human oversight and accountability.

Alibaba, Tencent back Kling AI: Kuaishou raised $2.8 billion for its AI video unit at a $15 billion valuation, with Alibaba, Tencent and Baidu taking stakes.

Thanks for reading. See you next time!

— Matthew Berman, Nick Wentz & the Forward Future Team