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Welcome to The AI Report — the #1 AI newsletter for business leaders.
One more thing before we get into it: next Tuesday, we're launching the AI Executive's Pass. If you've been paying separately for Notion, Make, Intercom, and tools like that, this is worth a look. $14,000+ in value for $199/year. Get the launch reminder here.
You don’t need to be technical. Just informed.
• 1. 💻 Get rid of your personal data from Google with Incogni
• 2. ⚡️ SpaceX rents AI to Anthropic
• 3. 💼 Your Business Briefing
• 4. 🔌 Power your chatbots and agents with Brave
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin
Are you ready to launch AI transformation for your company?
TOGETHER WITH INCOGNI
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Latest in AI
SpaceX rents AI to Anthropic
🚨 Our Report
Three months after calling Anthropic "evil" and "misanthropic" on X, Elon Musk has leased the AI lab access to Colossus 1, SpaceX's 220,000-GPU supercomputer in Memphis, in a deal analysts estimate will generate $3 billion to $4 billion in annual revenue for SpaceX.
🔓 Key Points
The agreement comes weeks before SpaceX's IPO, which targets a $1.75 trillion to $2 trillion valuation. Analysts say positioning SpaceX as a cloud competitor to AWS gives the prospect of a marquee AI customer.
Musk claims SpaceX can "reclaim the compute" if Anthropic's AI "harms humanity," though the clause wasn't in the press release and may not be in the formal contract.
Gene Munster of Deepwater Asset Management put the odds of the arrangement surviving two years at 80%. The other 20% is a bet on Musk's history of changing his mind.
🔐 Relevance
The arrangement reshapes AI infrastructure dynamics for enterprise leaders. One of three frontier AI labs now operates on compute controlled by a competitor's CEO, giving Musk unusual control in the AI race. SpaceX's move into cloud infrastructure could also reshape pricing and availability for AI workloads.
The AI Report Podcast
The Formula Charlie Hills Uses to Go Viral on Any Platform | LinkedIn, Instagram Content Strategy
The AI Executive's Pass drops May 12
Here's the honest pitch: most business leaders are already subscribed to 4-6 AI tools they found separately, at full price, with no coordination between them. The AI Executive's Pass is the fix.
One $199/year membership. $14,000+ in tools and resources built for executives actually implementing AI — not just reading about it.
What's inside: Notion, beehiiv, ListKit, Make.com, Paperform, Intercom, a private GPT training session, and a LinkedIn growth consult.
It opens Tuesday. Add it to your calendar now so you're first in line.
THE BUSINESS BRIEFING: HR & TALENT (powered by Upscaile)
Harmons Grocery (family-owned grocer, 20+ locations) was losing weeks deploying frontline training across distributed teams. Their desktop-based LMS couldn't keep pace with product rollouts or reach kitchen staff consistently. They migrated to eduMe's mobile-first platform with Dayforce integration for instant content distribution by role and location.
Tool used: eduMe -- mobile training platform with AI content creation and multi-language translation.
Result: 20% higher completion rates than benchmark. 88% positive learner sentiment. Content launch time dropped from weeks to days.
The lesson: Training adoption comes from embedded access, not better content alone. Harmons distributed lessons through Dayforce, SMS, and shift huddles—meeting associates where they already worked.
Steal this: Review where your team checks messages daily (Slack, HRIS, text). Deliver next week's training through that channel instead of email or LMS login.
TOGETHER WITH BRAVE
🔌 The most powerful Web search for AI
Stop hallucinations. Power your chatbots and agents with real-time data from the Brave Search API:
Visit the Brave Search API product page.
Select a plan.
Make your first call.
Specialized endpoints: Web search, LLM Context, and more
Independent: 40-billion page index, no Google scraping
Affordable: $5 per 1,000 calls, $5 in free monthly credits
Any project: RAG pipelines, Claude MCP, OpenClaw and more
THE POLICY CORNER
The Department of Justice filed an injunction pausing Colorado's AI Accountability Act, which was set to require algorithmic impact assessments and developer liability disclosures starting June 30, 2026. The law would have applied to any AI system used in "consequential decisions" (hiring, housing, credit, healthcare) affecting Colorado residents. DOJ argues it creates conflicting compliance burdens across states and interferes with federal authority over interstate commerce.
Deadline: Law frozen pending court ruling. No compliance deadline active.
Risk: If you built compliance infrastructure for Colorado's requirements, it may become irrelevant. More states may face federal pushback if they pass AI rules. Regulatory uncertainty now extends indefinitely.
Your move: Freeze Colorado-specific AI compliance spend until the case resolves. Monitor the docket — if DOJ wins, expect federal preemption to kill state-by-state AI regulation. If Colorado wins, expect 12+ states to pass similar laws within 18 months.
AI News
🔍 Nearly half of large enterprises lack visibility into employee AI use: 47% don't know what tools staff are deploying, while 65% report "shadow AI" challenges, creating cybersecurity and governance blind spots. FULL STORY
🏢 ServiceNow launches real-time data foundation for enterprise AI: New Context Engine and Autonomous Data Analytics unify fragmented systems with semantic layer integrating CMDB, workflow data, and third-party sources, addressing the data silos holding back autonomous agents. FULL STORY
🎧 Apple's camera-equipped AirPods enter early production testing: Prototypes with low-resolution visual sensors for Siri queries (cooking guidance, directions) now in design validation, with longer stems and cloud-indicator LED. FULL STORY
💰 Anthropic's pre-IPO valuation hits $1.2T on secondary markets: Tokenized shares on Jupiter Prestocks and private platforms like Forge Global now imply valuation above OpenAI's $880B for first time, up 900% since October on on-chain venues. FULL STORY
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The Money: Enterprise AI shifts from models to plumbing
The biggest AI checks this week didn't chase flashy foundation models, they funded the unglamorous infrastructure solving breakage at scale. Two rounds totaling $260M went to companies automating what most enterprises still do manually: migrating ancient codebases and modernizing legacy ERP systems. As AI moves from proof-of-concept to production, investors are betting the real margin expansion comes from fixing decades-old technical debt.
Deals to know:
Blitzy (Series B, $200M at $1.4B valuation) -- Autonomous software development platform claims 5x engineering velocity for Global 2000 clients including State Street. Investors: Northzone, PSG, Battery Ventures, Jump Capital
Tessera Labs (Series A, $60M) -- Multi-agent platform pre-trained on thousands of ERP transformation scenarios. Early adopters cut migration timelines from years to weeks. Investors: Andreessen Horowitz, Foundation Capital, Myriad Venture Partners
Signal: Smart money backing picks-and-shovels plays over model innovation. Enterprises will pay premium multiples for AI that de-risks migration projects and cuts transformation costs in half.
Thoughts on today's edition?Hit me up on LinkedIn, I read every message. |  |
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