Morning Scan

Apple suing OpenAI, Shein heading for a Hong Kong IPO, Europe moving to ban kids from social media, and Uber lobbying to slow autonomous vehicle deployment — the big platforms are all playing defense, each on a different front. Incumbents are trying to control timelines they can no longer set.

$40B+ — Shein's target valuation for its Hong Kong IPO, set for as early as Q3, after Beijing finally gave the green light following the failed U.S. attempt in 2024. (Wall Street Journal)

Connected World

Apple Sues OpenAI, Apple's Real Problem

One employee, one trade secrets claim — but Ben Thompson's read is that this is less litigation strategy and more institutional frustration looking for an outlet. (Stratechery)

Apple's Lawsuit Against OpenAI Makes Serious Claims. Will They Matter?

Apple rarely litigates, and when it does it's usually against a direct competitor already eating its lunch, which says something about how threatened it feels here. (Big Technology)

States Prepare Lawsuit to Block Paramount's Merger With Warner Bros. (paywall)

State AGs are reportedly ready to file as soon as this week on the $111B deal, adding a second front to an already complicated regulatory path. (NYT)

Uber Lobbied for a "Phased Transition" to AVs

Internal docs show Uber pushing regulators for a slower AV rollout, which advantages a platform over pure-play robotaxi developers. (Wired)

Connected World

Europe Takes Step Toward Possible Social Media Ban for Children (paywall)

The European Commission is now considering bloc-wide restrictions after a new report. Von der Leyen confirmed the proposal is coming, further than the bloc has gotten before. (NYT)

Shein Targets $40B+ Valuation After China Nod for Hong Kong IPO (paywall)

After the U.S. window closed, Shein pivoted east. Beijing's blessing for a Hong Kong listing signals the company's regulatory rehabilitation in China is complete. (WSJ)

OpenAI, Meta, and SpaceXAI Compete on Cost to Pressure Anthropic (paywall)

Enterprise buyers are scrutinizing AI spend more carefully, and Anthropic's premium positioning looks exposed as cheaper models close the quality gap. (Bloomberg)

“Frontier AI capabilities should stay as open and widely accessible as possible.” — Tang Jie, founder of Z.ai, via Bloomberg

Connected World

Apple Already Taping Out M7 With Major NPU Upgrades, M7 Ultra to Support 1.5TB RAM (paywall)

The M6 era reportedly lasts about six months before Apple's silicon roadmap accelerates again. The Apple Car's ghost turns out to have been funding the next generation of Mac chips. (Bloomberg)

TSMC Plans Two More Advanced Chip Packaging Plants, $9.35B+ in Annual Output

Four plants in Chiayi means TSMC is aggressively building out packaging capacity at home, even as it expands globally. The supply chain is moving to America less cleanly than the headlines suggest. (Reuters)

South Korea Flags a Record $530B Budget, Paid for by the AI Chip Boom

Samsung and SK Hynix's AI memory revenues are now large enough to meaningfully move a G20 nation's fiscal position. That's a different kind of chip story. (The Next Web)

Connected World

Games Done Quick Was 'Excited' to Work With Saudi-Owned SNK for About Three Hours Before Pulling the Deal

Speed-running applies to sponsorship decisions too — the charity organization reversed course on the SNK deal faster than most any% runs. (Aftermath)