Morning Scan

SpaceX is posting profits and floating a merger with Tesla, and AI stocks are catching a tailwind from it. Ken Griffin calls the AI trade a bubble and keeps his shares. Gas rigs, data centers and a UN climate report with bad news round out the day.

$3.5T — The combined value being floated in Tesla-SpaceX merger talks, per Fortune. (Fortune)

Machines & Minds

Elon Musk's $3.5 trillion Tesla-SpaceX merger talks expose his power—and scant accountability

Independent directors at both companies have formed special committees, the standard step before a deal moves forward. (Fortune)

SpaceX Swings to a Profit, as A.I. Business Grows (paywall)

Starlink revenue more than doubled, though AI spending also rose sharply. (NYT)

Connected World

Trump suggests a community 'dividend' to defuse data center backlash

Local opposition to data centers has grown loud enough to reach the Oval Office, and the proposed fix is cash for neighbors. (Business Insider)

U.K. Approves Long-Stalled Jackdaw Gas Drilling Project in the North Sea (paywall)

It cuts reliance on imported energy, and environmental advocates say it breaks a pledge to cut emissions. (NYT)

Countries' climate plans point to 2.6°C as 1.5°C limit set to be breached: UN

Current pledges deliver at most a third of the cuts needed by 2035, which sits awkwardly beside the North Sea news above. (Eco-Business)

Connected World

PHP warns it plans to release 2 emergency patches imminently

Fixes for unusually severe vulnerabilities are landing, and web admins should patch immediately. (Ars Technica)

OpenEvidence says nearly two-thirds of ~1M US physicians use its AI search engine (paywall)

A source says it is on track for $400M-$500M in 2026 ad revenue, a large figure for a tool doctors use to look things up. (Financial Times)

Loop Capital Cuts Apple Rating Over iPhone Sales Outlook

Loop moved to Hold, saying Apple is unlikely to make up an estimated 13 million iPhone shortfall. (MacRumors)

Connected World

YouTube might be testing hiding the dislike button

Declining online may soon require a trip through a menu. (The Verge)