Good Morning! President Trump signed an executive order opening the door for 401(k)s to invest in private equity and crypto. He also called for Intel’s CEO to resign over China ties and nominated tariff proponent Stephen Miran for a Fed seat.

OpenAI rolled out GPT-5, with Sam Altman touting it as “PhD-level intelligence for everyone.” Elon Musk wasn’t impressed, claiming his Grok-4 model is superior. Firefly Aerospace soared 34% in its upsized Nasdaq debut, hitting a ~$8.5 billion valuation.

Plus: How Tim Cook appeased Trump over the push for a U.S.-made iPhone, carried interest reaches Abu Dhabi’s sovereign wealth funds, how AI could change seed-stage VC math, and five ways to escape survival mode at work.

There is still a limited allocation for early investors in Mode Mobile’s pre-IPO raise. Learn more here.

SQUEEZ OF THE DAY

Bonus Season at OpenAI

OpenAI has had a busy 24 hours getting GPT-5 up and running, and employees just got another reason to celebrate. The company is reportedly awarding $1.5 million retention bonuses to every staff member, paid out over the next two years. The incentive applies to existing employees and even new hires, effectively guaranteeing that anyone who stays will become a millionaire.

Yet, in this hypercompetitive AI talent war, that might not be enough.

Meta has been aggressively courting engineers from OpenAI, Anthropic, and Google, offering compensation packages in the billion-dollar range for the industry’s top minds.

The most striking example is Meta CEO Mark Zuckerberg offering Andrew Tulloch, cofounder of Thinking Machines Lab and a former OpenAI engineer, a staggering $1.5 billion compensation package over six years. Tulloch declined the offer.

What is not in dispute is the scarcity of talent. Estimates suggest there are only a few thousand engineers globally with the skills to build and advance foundational AI models, a capacity so rare that companies are throwing unimaginable sums just to secure a few minds.

Current AI systems remain “narrow,” tailored for specific tasks, but the industry’s real finish line is artificial general intelligence (AGI), AI that can match or surpass human capability across most domains. Whoever reaches AGI first will shape the future of technology and possibly the economy.

Takeaway: Companies love to say their greatest asset is their people. In the AI arms race, where a handful of engineers are driving trillions in value, that is especially true. With OpenAI targeting a $500 billion valuation, even turning every employee into a millionaire might not be enough to keep rivals at bay.

HEADLINES

Top Reads

• Trump to supercharge private equity with 401(k) order (Axios) 

• Bitcoin, crypto stocks rally as Trump signs order on 401(k)s (YF)

• Trump demands resignation of Intel CEO over China ties (CNBC)

• OpenAI GPT-5 is here, company unveils PhD-level expert (Fox)

• Musk jabs OpenAI, says Grok-4 Heavy ‘smarter 2 weeks ago’ than GPT-5 (Fox)

• Space upstart Firefly raises $868 million in its IPO (Axios)

• Trump nominates Stephen Miran to Federal Reserve Board (YF)

• Iress confirms talks for potential bid from Blackstone, Thoma Bravo (YF)

• Abu Dhabi wealth funds face pressure to offer carried interest awards (BB)

• How Tim Cook convinced Trump to drop made-in-USA iPhone for now (CNBC)

• SoftBank’s Vision Fund posts best performance in 4 years (CNBC)

• Flamino estate luxury exec left Hermes for farm, now $50M business (CNBC)

• Brookfield steps up bet on AI mania (FT)

• The venture capital money machine is spinning again (FT)

• AI could change seed-stage VC math (Axios)

• Blackstone kicks in $1 billion to create F&G reinsurance pool (BB)

• Duolingo stock soars, then takes a hit from OpenAI (YF)

• The next jobs downturn could mean an AI-induced purge of millions of workers (Axios)

PRESENTED BY MODE MOBILE

Investors are Watching This Fast-Growing Tech Company

It’s not Nvidia, but it is one of the fastest-growing software companies in the country. Mode Mobile ranked #1 on Deloitte’s 2023 Fast 500, reporting over 32,000% revenue growth driven by its flagship EarnPhone platform, which has helped users earn or save more than $325 million to date.

Recent distribution partnerships with Walmart and Best Buy suggest the next phase of scale is already underway. Mode’s model is simple: turn everyday smartphones into income-generating tools; much like how Uber unlocked earnings from underused vehicles.

Mode has been cleared for its Nasdaq ticker ($MODE) and is currently offering shares in a pre-IPO raise at $0.30. The round is nearing capacity, with limited allocation remaining for early investors.

CAPITAL PULSE

Markets Rundown

Market Update

• U.S. stocks finished mixed, with the Nasdaq slightly higher while the S&P 500 and Dow closed modestly lower.

• The U.S. officially implemented its August 1 global tariff rates, but granted exemptions for firms like Apple that commit to U.S. manufacturing.

• 10-year Treasury yield held near 4.24%, down sharply from late July highs on softer labor data and rising Fed cut expectations.

• Q2 productivity rose 2.4% annualized, above the 2.0% forecast, signaling efficiency gains despite slower hiring.

Economic Data Highlights

• 100% tariffs on semiconductor imports announced, with exemptions for firms pledging U.S. manufacturing investment (Apple, Samsung, TSMC among those spared).

• Pharma tariffs in the 150%–250% range are possible, though exemptions may apply.

• Average U.S. tariff rate now 18.3%, up from 2.3%, potentially adding goods inflation pressure—though exemptions ease worst-case fears.

• Markets remain optimistic that trade damage will be contained.

Reported Earnings

• Datadog (DDOG) topped expectations, with strong cloud demand and improved profitability.

• Pinterest (PINS) beat on EPS and revenue, supported by ad growth and higher user engagement.

• Twilio (TWLO) beat revenue forecasts but offered cautious guidance.

Earnings Today

• Tempus AI (TEM) – Watch for updates on AI-driven diagnostics adoption and health data partnerships.

• FuboTV (FUBO) – Key focus on subscriber growth and path toward profitability.

• Under Armour (UA) – Investors watching inventory trends, margins, and international growth.

Movers & Shakers

• (+) Dutch Bros ($BROS) +22% after the drive-thru coffee chain reported strong revenue.

• (+) Celsius ($CELH) +17% because the energy drink company announced an 84% increase in revenue last quarter.

• (–) Crocs ($CROX) -29% after the shoemaker delivered forward guidance that sent investors running for the exits.

Private Dealmaking

• Strand Therapeutics, an mRNA therapeutics developer, raised $153 million

• Freman Spogli acquired Philz Coffee for $145 million

• Decart, a GenAI research lab, raised $100 million

• Chai Discovery, an AI drug discovery startup, raised $70 million

• VelaVigo, a developer of biospecific antibodies and ADCs, raised $60 million

• Teramount, an optical connectivity company, raised $50 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

The Optimist

Description:
An illuminating biography of Sam Altman, the visionary—and sometimes controversial—leader behind OpenAI and the ChatGPT revolution. Keach Hagey artfully traces Altman’s trajectory from a precocious youth and failed startup founder to the helm of AI’s most powerful engine. Through exclusive interviews and sharp reporting, the book explores the tension between altruistic ambition and commercial pressure in the race toward artificial general intelligence. It’s a portrait of a man shaping the future—and a sector grappling with how to govern its own creations.

Rating:
Amazon 4.3 / 5
Goodreads 4.0 / 5

Book Length: 384 pages

Ideal For:
Readers fascinated by AI’s impact, startup culture, leadership under fire, and the complex ethics of technological power.

“An exemplary blend of biography, financial technology reportage, and futurology.” — Kirkus

DAILY VISUAL

Nvidia vs AMD

Want more? Visualize the markets with Carbon Finance

HIRING

Now Hiring: Private Equity / IB Pros

Mosaic is growing fast and redefining how the world’s top investment firms evaluate, model, and execute deals.

They’re looking for private equity or investment banking professionals to join their team and help shape the future of deal-making.

The role:

• Own relationships with leading investment firms

• Guide teams through onboarding, Investment Committee support, and long-term expansion

• Use your finance expertise to help clients bridge Mosaic’s platform with legacy Excel workflows

• Influence product direction by working directly with top-tier investors

This is a unique role at the intersection of private equity and product; a chance to build smarter, faster deal infrastructure for the future.

DAILY ACUMEN

Variant Perception

Everyone sees the same headlines. Edge comes from seeing them differently—and acting before consensus catches up.

It’s not about reflexive contrarianism. It’s about asking: What must be true for the market’s view to hold—and where is that wrong? 

The answer often hides in a footnote, an overlooked KPI, or a second-order effect nobody’s modeling.

Careers, products, relationships—same rule. Underwrite reality, not reputation.

Formula:

1. Dissect the story into measurable drivers.

2. Spot the off-index variable that actually moves the outcome.

3. Time the recognition so you’re right when it matters.

The goal isn’t to be different. It’s to be differently correct—and ready when the world is forced to agree.

ENLIGHTENMENT

Short Squeez Picks

• 5 ways to escape survival mode and reduce stress at work

• 5 financial mistakes to save more money

• Why just being yourself is bad advice

• The best management tips on communicating like a leader

• A few pieces of very bad advice

MEME-A-PALOOZA

Memes of the Day

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