TL;DR

Grok-4 leak hints at new AI benchmarks; Foxconn revenue surges on AI servers; Microsoft exits Pakistan.

Highlights

• Leaked benchmarks indicate Grok-4 may achieve state-of-the-art scores in reasoning and coding tasks; results remain unverified 1.
• Foxconn Q2 revenue up 15.8% YoY, driven by AI server demand; warns of geopolitical and currency risks 5.
• Microsoft exits Pakistan as part of global restructuring, cutting 9,100 jobs and shifting to a cloud/partner-led model 8.
• Cursor faces user backlash after introducing a $200/month Ultra plan and limiting usage on its $20 Pro plan 13.
• Trump administration to impose 10–70% tariffs on up to 12 nations from August 1; partial deals with China, UK, Vietnam, but no resolution with EU/Japan 3.
• EU to establish emergency stockpiles of critical minerals and strategic goods amid supply chain risk concerns 4.
• EU-US trade talks stall ahead of tariff pause expiry; EU prepares for possible retaliatory measures 10.
• South Korea approves $23.3B stimulus budget to offset trade headwinds and boost tech, EV adoption 7.
• BRICS summit in Rio emphasizes need for global AI governance standards and common currency; Brazil prioritizes AI regulation 6.
• OpenAI CEO Sam Altman criticizes Democrats' shift away from techno-capitalism, signals political realignment among tech leaders 12.
• Xbox executive faces criticism for suggesting laid-off staff use AI chatbots for career support amid Microsoft layoffs 15.
• Turkey demonstrates integration of AI-enabled drones and naval platforms, highlighting advances in autonomous defense systems 11.

Commentary

Grok-4’s leaked benchmark scores—if confirmed—would signal further advances in AI model reasoning and coding, raising the competitive bar for both general and specialized AI deployments 1. This comes as hardware demand remains strong: Foxconn’s record quarter, led by AI server orders, reinforces the centrality of AI infrastructure to global electronics supply chains 5. However, Foxconn’s caution on geopolitical and currency volatility echoes broader concerns, as the US moves to impose sweeping tariffs and the EU scrambles to secure critical mineral stockpiles to safeguard tech manufacturing 34.

On the enterprise side, Microsoft ’s exit from Pakistan and ongoing layoffs reflect a sharpened focus on cloud and AI-driven models, but also highlight the operational risks and workforce impacts of rapid restructuring 8. The negative reaction to an Xbox executive’s AI-centric layoff advice underscores the sensitivity around automation and job displacement in the sector 15. Similarly, Cursor’s move to restrict usage and raise prices has triggered user backlash, illustrating ongoing challenges in balancing AI SaaS pricing models with customer expectations and the realities of API cost structures 13.

Geopolitical and regulatory pressures are mounting. The Trump administration’s new tariffs and unresolved EU-US trade talks threaten to disrupt hardware and component flows, while South Korea’s stimulus aims to cushion its tech sector from external shocks 3107. The BRICS summit’s focus on global AI governance standards signals that emerging economies want greater influence over AI regulation, which could lead to more fragmented or multipolar standards 6. Meanwhile, Turkey’s demonstration of integrated AI-enabled defense systems points to accelerating adoption of autonomous and networked technologies in military contexts 11.

Political dynamics are shifting as well. OpenAI CEO Sam Altman’s public criticism of the Democrats’ stance on technology policy, combined with Elon Musk’s third-party overtures, suggests that AI governance and innovation policy may become more prominent issues in upcoming elections and regulatory debates 12. AI professionals should closely monitor regulatory developments, supply chain risks, and the evolving economics of AI infrastructure and SaaS offerings.