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- AI race heats up, and Tim Cook is cooking
AI race heats up, and Tim Cook is cooking
Noel Moldvai
August 07, 2025
TL;DR. Apple is finally joining the AI race at full throttle, with CEO Tim Cook committing an extra $100B to U.S. infrastructure as the company tries to catch up. Meanwhile, OpenAI is eyeing a $500B valuation in a new share sale, and Tesla handed Elon Musk a $29B pay package to stay in the AI race.
Apple seeks pivot on AI as it pours additional $100B into US
Under pressure to prove it’s serious about AI, Apple is adding $100B to its U.S. investment plan, now totaling $600B. This includes AI server facilities in Texas and rare earth mineral operations across the country. The move helps Apple dodge looming chip tariffs and win favor with Trump’s White House, while also responding to growing criticism of its sluggish AI rollout and recent executive exits.
OpenAI in talks with investors about share sale at a $500B valuation
OpenAI is reportedly preparing a secondary share sale that would value the company at $500B, just months after closing a $300B round. The deal, likely led by Thrive Capital, would allow employees to cash out. It follows the release of two open-weight models and comes as ChatGPT nears 700M weekly users.
Tesla hands $29B comp package to Elon Musk amid ‘AI talent war’
Tesla has awarded Elon Musk a $29B stock package to secure his leadership as the AI race heats up. The deal guarantees 96M shares over two years, contingent on Musk staying in a senior role. It arrives as Musk threatens to shift focus to xAI and Tesla’s board scrambles to lock him in. Tesla is betting big on Musk being its AI edge.
Augment deep dive series: xAI
Replay session #3 of the Augment and Sacra deep-dive livestream series, where we unpacked Elon Musk’s xAI. From its technical edge to its bold ambitions to rival OpenAI and Anthropic in the AI arms race.
Quick Takes
Cheerio! Until next week.
-Noel