The Comunicano for Friday June 20th 2025
Fixit Friday
The Andy Analysis:
The AI Arms Race: Why Today's Strategic Moves Will Define Tomorrow's Winners
The AI revolution isn't coming – it's already here, reshaping industries with breathtaking speed and scale. I'm watching companies make billion-dollar bets while others quietly outperform the giants without a single investor dollar. This isn't just technological evolution – it's a fundamental restructuring of competitive advantage.
What strikes me most is the sheer audacity of the investments. SoftBank's proposed $1 trillion manufacturing complex isn't just ambitious – it's nation-building. Dubbed "Project Crystal Land," this Arizona-based partnership with TSMC aims to create America's answer to Shenzhen. The geopolitical implications are as significant as the technological ones.
But massive capital deployment isn't the only path to AI dominance.
Consider Surge AI – a company most people have never heard of – generating over $1 billion in sales last year without venture backing. They've outperformed Scale AI's $870 million despite Meta's recent $14.3 billion investment for just 49% of that company. This isn't supposed to happen in the conventional startup playbook.
The talent wars are equally revealing. Meta's aggressive pursuit of Safe Superintelligence (founded by OpenAI's Ilya Sutskever) and their advanced talks to acquire Nat Friedman and Daniel Gross's venture fund show how desperately companies are fighting for the minds that will shape AI's future. Mark Zuckerberg clearly believes the right people are worth almost any price.
Meanwhile, the regulatory landscape is becoming its own battleground. Big Tech's push for a 10-year moratorium on state-level AI regulation reveals how high the stakes have become. The argument that regulation could cede leadership to China masks a deeper reality: these companies want maximum freedom to deploy AI without interference.
What's most telling, though, are the practical applications showing real ROI today.
Taco Bell's 8% sales increase from AI-powered management coaching and drive-thru voice technology isn't speculative – it's measurable business improvement happening right now. When fast food chains are seeing meaningful revenue lifts from AI implementation, we've crossed from hype to reality.
The creator economy's 91% AI adoption rate tells a similar story. This isn't experimental anymore – it's essential infrastructure for digital content creation.
Even traditional enterprise sales models are being transformed. Microsoft's consolidation of previously separate sales teams reflects how AI is changing customer relationship management fundamentals. The days of specialized sales roles may be numbered as AI enables more integrated approaches.
The implications for business leaders are clear. Companies making strategic AI investments now, whether in infrastructure, talent, applications, or organizational structure, are positioning themselves for long-term advantage. This isn't about preparing for some distant future. It's about responding to competitive realities already reshaping markets today.
The AI revolution won't wait for the hesitant. The question isn't whether to engage, but how quickly you can transform. Want to know more? Keep reading—The Comunicano!!!
Andy Abramson
SoftBank's $1 Trillion AI Manufacturing Complex (investing.com)
The Big Move: SoftBank CEO Masayoshi Son is planning to partner with Taiwan Semiconductor Manufacturing Co (TSMC) and the Trump administration to build a massive $1 trillion industrial AI complex in Arizona. Dubbed "Project Crystal Land," this manufacturing hub aims to rival China's Shenzhen as a global AI production center and bring high-end tech manufacturing back to the US. Read more here
Surge AI Outperforms Scale AI Without Any Investors (The Information)
The Upset: Surge AI, a relatively unknown data labeling company, generated over $1 billion in sales last year—more than Scale AI's $870 million—while remaining profitable and bootstrapped. Read more here
Meta's AI Talent Acquisition Spree Continues (CNBC)
The Moves: Meta attempted to acquire Safe Superintelligence but was rebuffed. Now Meta is in advanced talks to hire AI investors Nat Friedman and Daniel Gross. Read more here
Big Tech Pushes for 10-Year AI Regulation Ban (Daily Montanan)
The Proposal: Major US tech companies are lobbying for a 10-year moratorium preventing any US state from enforcing AI regulations that could slow innovation. Read more here
Creator Economy Embraces AI at 91% Adoption Rate (TLDR)
The Shift: 91% of creators now use AI, primarily for creative inspiration and faster workflows. Read more here
Microsoft Plans Major Sales Reorganization with AI Focus
The Changes: Microsoft is cutting thousands of sales jobs while consolidating previously separate "Core," "Data and AI," and "Innovation" sales teams. Read more here
Why Companies Are Already All In on AI After Arriving Late to Everything Else (Wall Street Journal)—Corporate America is racing into artificial intelligence to avoid repeating its failures to capitalize early on past tech waves like the internet, smartphones, and cloud computing. According to McKinsey, 88 percent of companies are now in active AI transformation. PepsiCo offers a case in point—using machine learning across logistics, maintenance, and R&D while deploying Salesforce-powered generative AI for customer service and order processing. Despite only five percent having fully transformed any function, the fear of missing the next wave has made AI a boardroom imperative, outweighing lingering challenges around data quality, context, and control.
More of The Andy Analysis
This is Panic Fueled Buy In: Past missteps now drive urgency, with AI seen as a must win frontier.
It’s Now Data Driven Demands: Firms insist on ROI tracking to ensure AI delivers real financial impact.
People and Process Overhaul: AI is shifting job roles from repetitive execution to strategic advising.
Risks Are No Longer Deal Breakers: Technical hurdles like poor memory and security gaps are acknowledged, but no longer stopping adoption. Read more here
AI Watch
OpenAI Pricing Shake Up (The Wall Street Journal)—OpenAI is overhauling ChatGPT Enterprise’s pricing, moving from a fixed price model to a credit-based system. Businesses can now buy credits to access advanced tools and features, with 10 to 20 percent discounted rates for multi-year deals and bundled services. While pricing remains private, OpenAI’s annual recurring revenue hit 10 billion dollars in June 2025. The shift prompted by intensifying competition may also strain relations with Microsoft, which could be undercut by OpenAI’s new structure. Read more here
AI Ethics Debate Good vs Evil Switch (AISecret.us)—A new report from AISecret.us explores OpenAI’s emerging concern over a good and evil switch in AI, highlighting how models can be toggled between creative helpful tasks and potentially harmful outputs. The analysis frames this as a fundamental ethical dilemma: strong alignment techniques may guard against misuse, but adversarial actors could flip AI behavior. The piece argues for robust safeguards, transparent audit trails, and multistakeholder controls to prevent abuse while fostering innovation. Read more here
Social Watch
Trial Exposes Flaws in Australia’s Proposed Under 16 Social Media Ban (The Guardian)—Australia’s test of an AI-based age verification system—designed to enforce a social media ban for users under 16—has uncovered major flaws. The facial and voice recognition tools often misidentify users and raise privacy concerns by collecting excessive personal data. Even technology vendors admit the tools are not guaranteed to work. Officials are exploring alternatives, including linking age checks to digital wallets or IDs. While challenges remain, regulators insist it’s possible to keep minors off social platforms responsibly. Read more here
Robot Watch
Nvidia and Foxconn to Deploy Humanoid Robots in Houston (Reuters)—Nvidia and Foxconn are finalizing plans to use humanoid robots at a new factory in Houston that will produce Nvidia’s GB300 AI servers. The robots—some two legged, others with wheels—are being trained for factory floor tasks like cable routing and chassis assembly. This marks the first time humanoid robots will be used to manufacture Nvidia hardware. The move reflects a strategic leap in automation and could start as early as 2026. Read more here
TikTok Watch
Trump Delays TikTok Ban for Third Time (AP News)—President Trump has signed a third executive order delaying enforcement of a U.S. TikTok ban until September 17, 2025. The decision, meant to buy time for potential ownership changes, comes despite a Supreme Court ruling upholding the original ban over national security risks. The legal justification for the pause remains vague, and critics argue it leaves users and tech firms in uncertainty. TikTok, with 170 million U.S. users, welcomed the extension, as talks with possible buyers continue. Read more here
X Watch
X’s Super App Push (MSN/FT)—Elon Musk’s X is gearing up to offer investment and trading services within the platform, part of a pivot toward a super app akin to China’s WeChat. CEO Linda Yaccarino previewed X Money, a digital wallet set to debut in the US with Visa, along with plans for peer to peer payments, debit credit cards, and creator tipping. This suite aims to handle users’ entire financial lives, though it introduces new regulatory and compliance risks. Read more here
Cybersecurity Watch
Iran Hijacking Home Security Cameras to Spy Within Israel (Financial Post)—Iranian cyber teams are infiltrating internet-connected home security cameras across Israel to gather live footage on missile strike zones and civilian movements. The Israel National Cyber Directorate has urged users to disable cameras or change factory settings to prevent further breaches. These attacks mirror tactics seen in Ukraine and Gaza, where adversaries exploited cheap surveillance devices to aid military operations. Alarmingly, as many as 66,000 Israeli cameras still use default passwords, giving hackers easy access to sensitive visuals that could support missile accuracy or troop tracking. Read more here
Crypto Watch
Why Bhutan Went All In on Crypto for Its Tourism Sector (Skift)—Bhutan has launched a national crypto payment system for tourism—"One Wallet, One Journey"—in partnership with Binance Pay and DK Bank. Tourists can now use over 100 cryptocurrencies to pay for flights, visas, hotels, food, and even souvenirs, with payments converted instantly into local currency. This aligns with Bhutan’s high value, low volume tourism policy and its broader Gross National Happiness strategy. The system promotes financial inclusion, letting even rural vendors accept payments via QR codes, while leveraging Bhutan’s hydro-powered Bitcoin reserves to support the economy and reduce reliance on cash. Read more here
Coke Watch
20 Coke Freestyle Exclusive Flavors, Ranked (The Takeout)—The Takeout ranks the 20 boldest exclusive drink mixes from Coke’s Freestyle machines. While sugary misses like Fanta Fruit Punch land low, gems like Coca Cola Peach and Coca Cola Orange Cream shine with unique dessert-like tones. The top spot goes to Barq’s Root Beer Vanilla—praised for its nostalgic, smooth draft taste. Freestyle’s touchscreen setup allows fans to blend custom drinks from over 100 options, pushing boundaries beyond store shelves. This list helps decode the best bets the next time you step up to a Freestyle machine. Read more here
