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The Longhorns' recruiting class was already one of the best in the country and jumps to No. 4 with the Spears coup, according to ESPN. 

AI Price War Breaks Out: Meta Unveils Paid AI Model For First Time, Will Be "Among Most Affordable Options"

Shortly after a leaked Meta memo revealed the company was planning on putting an AI chip into production in September as it looks to double computing capacity to 14Gigawatts, the company also unveiled a version of its most advanced artificial intelligence model, Muse Spark 1.1, that includes a new paid tier for developers, marking the first time Meta has charged businesses for access to its models and providing a new revenue stream. It’ll be "among the most affordable options" on the market, Zuckerberg said in a Bloomberg interview ahead of the release.

“Since this is not an open source model, this is I think the first time that we’re doing a real serious API,” Zuckerberg said, referring to the application programming interface used to access Meta’s AI. “And the pricing is going to be very aggressive and attractive” he added indicating that Meta hopes to capture market share by undercutting its competitors, offering the new model at 25% of the cost of top models from OpenAI and Anthropic.

The new model’s biggest improvement is in its agentic capabilities, the Meta CEO told Bloomberg, and according to benchmarks the model does indeed appear to be in line with the competition.

He hopes to piggyback on the latest craze in AI development this year, which a month ago saw Goldman forecast that agentic AI use will lead to a massive 120 quadrillion monthly tokens being used by 2030.

Agents are the big theme of AI this year, with the label applied to systems that can complete multistep tasks on behalf of a user. Zuckerberg described Muse Spark 1.1 as having “state-of-the-art or very close to it” agentic reasoning and tool use. The model is also greatly improved when it comes to coding and Meta employees are using it internally to build products and features for various apps, he added. 

Meta will also introduce a new Meta Model API system, which will be used to collect fees from developers. Its API pricing is roughly 25% of the cost advertised by other top models from OpenAI and Anthropic, according to Bloomberg. Developers will be able to use Meta’s model for free, but only up to a point; they’ll be required to pay for access after reaching a certain token threshold, Zuckerberg said. 

Which means that legacy frontier models will now have to worry about domestic cheap alternatives, especially after xAI also released an agentic and coding model yesterday which will have to grab market share, in addition to much cheaper Chinese models.

“The pricing from some of the other labs is very extreme and has very high margins,” Zuckerberg said, underscoring that his strategy is to get Meta’s technology in front of as many people as possible. “We think that there’s a real ability to be able to offer frontier or very high-level intelligence at a much more affordable cost.”

Zuckerberg, 42, is spending aggressively to keep pace with rivals like OpenAI and Alphabet in a race to achieve what he calls superintelligence, or AI that can perform tasks better than humans. Meta has committed hundreds of billions of dollars to building the infrastructure necessary to develop superintelligence, including data centers and expensive AI chips. The company announced a new $10 billion data center investment in Canada as well as a new image-generation model just this week.

Yet despite Meta’s massive investment spending, its models have not historically tested at the same level as those from Anthropic, OpenAI or Google. But Muse Spark 1.1 is more competitive, Zuckerberg said, and tested better than Google’s Gemini model in several categories related to agents, coding and multimodal capabilities. 

“That is a pretty interesting milestone because I think this may be the first time, at least that I can remember, that Meta’s models are better than all of the Google models,” he said, although it remains to be seen if users/Wall Street agree.

Zuckerberg’s commitment to the AI race has led to a series of extreme shifts in strategy and resources over the past year. Following a disappointing model launch in the spring of 2025, Zuckerberg became personally involved in rebuilding Meta’s AI lab, which included hiring Scale AI’s Alexandr Wang to lead the new unit, and eventually, significant layoffs and several internal reorganizations.

Once fully committed to building open source AI models that are available for free to outside developers, Meta has also pivoted toward prioritizing closed models that it can charge for — like Muse Spark 1.1 — which required essentially rebuilding the technologies from scratch.

Zuckerberg said he’s pleased with how the lab is progressing, although it's not like he would openly admit the alternative. 

“We’re generally doing better than we expected,” Zuckerberg said. He acknowledged that Meta is still trailing some of the larger AI labs, including Anthropic and OpenAI, but said that the company has another new model coming, codenamed Watermelon, that he believes can help Meta “push this maximum frontier of intelligence.” He declined to share details on Watermelon’s release timeline, saying that the focus is on quality.

Investing in a frontier model - or AI technology that moves the industry forward with new capabilities and features - is an expensive endeavor. But Zuckerberg believes it’s worth the investment from Meta given his mission: To build personal agents that everyone in the world can use.

Which begs the question, posed earlier By Vital Knoweldge, who pointed out that just over the past 24 hours wee have seen "new frontier models from Meta (Muse Spark 1.1), SpaceX (Grok 4.5), and OpenAI (GPT 5.6), and asked "Seems like differences are fairly marginal.  Does the world really need all these?"

To Zuck the answer is, of course, yes: after all he has to justify the hundreds of billions he plans to sink into the commoditization of AI.  Then again, Zuckerberg does not believe that the technology will ultimately become a commodity (narrator: it will) that is, that all of the various AI models will essentially do the same thing and be more or less indiscernible from one another. He pointed to Mythos, the latest model from Anthropic, which raised national security concerns in the US, as an example of how companies are already gatekeeping aspects of the technology instead of sharing it widely.

The truth is that Zuck really has no choice: Meta is projecting record capital expenditures for 2026, in addition to spending billions on AI talent to build out its Meta Superintelligence Labs, and has pledged hundreds of billions more to infrastructure projects. Should Zuck capitulate on building a frontier model the company will be relegated to the neocloud cloud, with excess capacity to spare (which is what sent the stock surging last week), and rerate appropriately after the initial move higher. Alternatively, it must keep spending in hopes to eventually show some return on the hundreds of billions in investment.

Critics have increasingly questioned whether the pivot has paid off. One among them is Apollo chief economist Torsten Slok who in a note overnight wrotes that consensus expects free cash flow for the hyperscalers to more than double over the coming years.

But what if the payoff takes longer than consensus assumes, Slok asks echoing a question that has plagued the AI industry since the summer of 2024? That question is particularly pressing given that token prices continue to decline and Chinese models are gaining ground, both in their share of the world's most-used models and in token usage, where they now lead their US counterparts among the top 20 models.

PIggybacking on what we said a few weeks ago (see "Answering The "Trillion Dollar Question": Are China's AI Models A Better Value Than US Models"), Slok says that if Chinese models keep gaining and token prices keep falling, the hyperscaler cash flows expected may prove too optimistic.

What are the consequences if the AI payoff comes slower than expected in the first chart?

1. Cash flows and earnings disappoint: the projected free cash flow surge slips later while committed capex and heavy depreciation hit on schedule, squeezing margins and marking down the forecast in the first chart.

2. A Mag 7 sell-off that takes the market with it: equity prices built on a fast payoff re-rate, and because the Magnificent 7 now account for so much of the indices, the pain can't stay contained, it spreads to chips, power, data centers and the S&P 500 as a whole.

3. Balance sheets stretch and credit risk rises: with internal cash unable to cover spending, hyperscalers lean further on debt, raising leverage and inviting possible ratings downgrades if profits lag.

All that is true, and is based on just growing Chinese competition. Now add various "new" domestic entrants such as xAI and Meta as aspirational frontier model leaders, which will inevitably spark an even more furious price war, and suddenly the return calculation for both stock and bond investors becomes much uglier. 

Tyler Durden Thu, 07/09/2026 - 19:35

A soft on crime California judge has sparked concern after a wave of violent criminals were put on mental health diversion program.

Analysis conducted by The Empire Center for Public Policy ranked New York Attorney General Letitia James' office among the worst in the US for criminally prosecuting Medicaid fraud.

Ranger Suarez has been placed on the 15-day injured list days before second All-Star Game.

Tyler Robinson spent weeks planning how he would murder conservative activist Charlie Kirk, according to a bombshell testimony from his trans lover.

Beachgoers in one Southern California town had to run for their lives after two massive sea lions came out of the ocean and onto the beach in San Diego.

New Atlas Aircraft Targets Long-Range Strikes Without Runways Or Large Flight Decks

Authored by Neetika Walter via Interesting Engineering,

Mach Industries has won a Defense Innovation Unit (DIU) contract to develop a long-range unmanned aircraft designed to launch from austere locations and ships without large flight decks.

Atlas drone Mach Industries

The aircraft, called Atlas, is being developed for the DIU's Runway Independent Maritime Expeditionary Strike (RIMES) program. Mach Industries will serve as the aircraft integrator, working with propulsion company Whisper Aero.

According to the solicitation, the Department of the Navy is seeking an unmanned aerial system capable of conducting long-range strikes while operating from expeditionary sites with minimal infrastructure or from ships that lack conventional runways.

Mach said Atlas is designed to meet those requirements with a hybrid-electric propulsion system, runway-independent operations, a 1,000-pound payload capacity, and a range of 1,400 nautical miles.

Built For Austere Operations

The aircraft combines Mach Industries' platform development capabilities with Whisper Aero's JetFoil propulsion technology.

Unlike conventional fixed-wing aircraft that require runways, Atlas is being designed to operate from unimproved landing zones while retaining the control characteristics of a fixed-wing platform. The companies say the approach could give military units greater flexibility in contested environments where traditional airfields may be unavailable or vulnerable.

Excited to announce Atlas, our VTOL strike and logistics aircraft for the Navy. pic.twitter.com/fvbLWujnVN

— Mach Industries (@Mach_Industries) June 16, 2026

The aircraft is also intended to support distributed operations, a growing focus for the U.S. military as it prepares for conflicts in which logistics networks could come under attack.

In recent testimony before the House Armed Services Committee, Under Secretary of Defense for Research and Engineering Emil Michael identified contested logistics as one of the Pentagon's critical technology priorities. The challenge centers on sustaining military operations when transportation routes, supply chains, and support infrastructure are disrupted.

Mach says Atlas addresses that challenge by reducing infrastructure requirements for launch and recovery while simplifying maintenance through a highly redundant propulsion architecture and a lower part count.

"Mach's speed to prototype and production, coupled with Whisper Aero's novel aerodynamics and propulsion makes Atlas a revolutionary air mobility platform," said Nathan Diller, President and Chief Strategy Officer at Mach Industries.

Quiet Propulsion Advantage

A key feature of the aircraft is Whisper Aero's JetFoil technology, which the company says improves efficiency while reducing acoustic signatures.

The system is designed to generate lift and thrust more efficiently than traditional approaches, helping extend range while allowing operations from confined locations. Lower noise levels could also make the aircraft more difficult to detect during missions.

"We developed JetFoil to propel the next generation of conventional, short, and vertical takeoff and landing aircraft silently and efficiently," said Mark Moore, CEO of Whisper Aero.

According to Moore, the technology allows Atlas to meet RIMES requirements while operating from smaller naval vessels. "With JetFoil, Atlas can effectively meet the needs of the RIMES mission to operate even from destroyer class vessels."

The award adds to Mach Industries' expanding defense portfolio. Founded in 2023, the company says it is currently flying five different platforms and has manufactured more than 250 aircraft. Over the past two months, it has also conducted flight operations in four countries under complex electromagnetic conditions.

If successful, Atlas could provide the Navy and joint force with a long-range strike platform capable of operating from locations where traditional aircraft cannot, while reducing dependence on large runways and established air bases.

Tyler Durden Thu, 07/09/2026 - 19:15

The National Capital Planning Commission on Thursday gave preliminary approval to President Trump's massive memorial arch and signaled it could waive a federal height law to allow Trump to remake the district's skyline.

As MLB beer league softball games go — and can be seen on TV sans ransom — it was good for what ails us.

He rose on grievance — and he fell on grievance.

Earle previously sparked romance rumors with NFL alum Tom Brady.

Earle previously sparked romance rumors with NFL alum Tom Brady.

Democrats are growing anxious that the Graham Platner fiasco has left them with just under four months to throw a campaign together for a new candidate -- and Platner still hasn't officially withdrawn.

A lawsuit demands that the Port of Rotterdam moves faster to cut its dependence on fossil fuel firms.

The Declaration of Independence, the Bill of Rights and other core expressions of our Founders’ beliefs must always define our identity: This is how we can be a nation of immigrants.

The oysterman's principal campaign committee, Graham for Senate, forked over $10,177,696 to just a trio of entities between August 2025 and May 2026 for consulting, media buys, ads and data acquisition, according to Federal Election Commission (FEC) records.

Californians will have to pay for two new taxes next year after Gov. Gavin Newsom approved the state budget in June.

Strongest El Nino In 75 Years Sets Off Food Supply-Chain Alarm Bells

The US Climate Prediction Center has warned that the weather phenomenon El Niño, which only recently emerged across the Pacific, could become the most powerful in more than 75 years. This raises the risk of adverse weather conditions across the US, Asia, Australia, and South America. The stronger the weather event becomes, the greater the threat to critical food supply chains, which are already vulnerable to drought, flooding, export restrictions, and rising protectionism.

The CPC, a NOAA/National Weather Service unit that issues official US government climate outlooks, wrote in its report that sea-surface temperatures at least 1C above normal have spread across the central and eastern equatorial Pacific, with an 81% chance the event becomes "very strong" and ranks among the largest on record since 1950. Some parts of the Pacific were 2.7C above normal last week.

A negative El Niño Southern Oscillation Index indicates pressure patterns consistent with El Niño, typically associated with weaker Pacific trade winds and warmer-than-average sea surface temperatures in the central and eastern Pacific. The SOI is now at levels not seen since 2005.

"Even the strongest El Niño events do not lead to typical impacts everywhere, but stronger events can more significantly tilt the odds in favor of expected outcomes," the Climate Prediction Center said. El Niño "will strengthen through the end of the year, with a 97% chance it will last through early spring 2027."

Goldman Sachs commodities research analyst Lina Thomas provided further insight into the looming El Niño threat, warning that global agricultural supply is "highly concentrated geographically," leaving crop markets "highly vulnerable to localized weather, geopolitical, or policy shocks."

Thomas warned about weather, geopolitical, and/or policy shocks that may put a bid under food prices:

Global agricultural supply is highly concentrated geographically. Across key crops such as soybeans, corn, rice, sugar, and palm oil, the top three exporting countries account for 60-90% of global trade (Exhibit 1), leaving agricultural markets highly exposed to localized weather, geopolitical, and policy shocks.

Because major agricultural exporters increasingly prioritize domestic food and energy security through export restrictions and biofuel mandates, even modest disruptions—or the fear of disruptions—can trigger policies that reduce exportable supply. In highly concentrated markets, the resulting loss of exportable supply can be much larger than the original production shock, amplifying price volatility. Import-dependent countries may in turn respond by stockpiling and pursuing greater self-sufficiency, often accepting higher domestic production costs in exchange for supply security. While these measures are ultimately aimed at improving resilience locally, they also fragment trade, reduce market liquidity, and increase the sensitivity of prices to future shocks.

We view the risk of protectionist policy responses as a key source of upside risk to crop prices and agricultural volatility, as three near‑term supply concerns could trigger precautionary measures even if the underlying disruptions ultimately prove limited.

• First, El Niño conditions are already present, with a 63% probability of developing into a "super" El Niño. Because many major exporters of staples such as rice, and crops used for biofuels such as sugar and palm oil, are concentrated in regions that historically experience more adverse weather during El Niño episodes, even a modest weather shock—or the fear of one—could trigger precautionary export restrictions.
• Second, higher energy prices in 2026H1 and concerns about fuel security may encourage governments to increase biofuel mandates, further diverting crops from export markets into domestic fuel production.
• Third, fertilizer markets also remain exposed to renewed disruptions in the Strait of Hormuz during the critical Q3 procurement season for major nitrogen fertilizer importers ahead of 2H planting.

Already seeing rising vegetable oil prices...

El Niño coverage:

• Super El Nino: Famine Follows War?
• UBS Warns El Nino May Intensify Food Inflation Across Asia
• First Major Weather Organization Declares El Nino Onset As Food Inflation Risks Intensify

Professional subscribers can read more El Nino coverage here at our new Marketdesk.ai portal. 

Tyler Durden Thu, 07/09/2026 - 18:50

The Golden State Warriors’ Plan B may already have a name. With the Warriors still in pursuit of LeBron James, Steve Kerr and the front office is having discussions about DeMar DeRozan as a possible backup plan. As the franchise waits to see whether LeBron James becomes a realistic option, DeMar DeRozan has emerged as...