Tech
Blurred lines: "Photoshopped" is about to get a whole new meaning

Blurred lines: "Photoshopped" is about to get a whole new meaning

Wings and lassos

Adobe is the latest company to jump on the AI bandwagon, announcing last week that it's integrating the technology into its editing software Photoshop. The new tool will work similarly to other generative AI technologies, such as Midjourney and DALL-E, allowing users to quickly create, extend or edit images with simple prompts. Examples demonstrated included replacing a cowboy's lasso with strands of spaghetti, adding wings to a jumping dog, and more mundane edits like extending images or replacing backgrounds.

Integrating AI into its products makes a lot of sense for Adobe — the company’s share price is up 14% since the news — turning what could have been an existential threat into another feature of its flagship design software. Those tools will also have to stay fresh. Adobe’s business is now overwhelmingly subscriptions, rather than one-off sales, a shift that means more predictable revenue for Adobe, but also pressure to keep delivering product updates in a fast-moving industry. Last year the company splurged $20bn buying startup Figma (a deal that’s still being held up by UK regulators), this time the company seems more comfortable building its latest features in house.

Can’t trust your eyes

With Photoshop embracing AI, discussions will intensify about the risks posed by AI-generated fake images, like one of the Pentagon from last week. Interestingly, Adobe is including a free tool that will encode AI generated images with invisible digital signatures to separate the organic from the algorithmic. The company hasn't addressed concerns around job losses quite so convincingly, however — merely describing the tool as a “co-pilot” rather than a replacement for human designers.

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Jon Keegan

Judge blocks Pentagon’s move to blacklist Anthropic

A federal judge in Northern California has granted a preliminary injunction blocking the Pentagon from labeling Anthropic as a national security supply chain risk.

The ruling temporarily prevents the Defense Department from restricting the AI company’s access to federal contracts amid a dispute over its refusal to allow certain military and surveillance uses of its technology. The designation could also have shifted lucrative government work toward competitors, including OpenAI.

Earlier this month, Anthropic, the company behind Claude, sued 17 federal agencies and their heads, alleging the government exceeded its statutory authority.

tech
Rani Molla

Report: SpaceX’s record IPO may grant preferential access to retail investors and Tesla shareholders

SpaceX’s impending IPO could raise $40 billion to $80 billion and rank as the largest ever — as well as one of the most unconventional.

The Wall Street Journal reports several ways CEO Elon Musk is considering breaking with IPO norms:

  • Investors in his other companies, including Tesla, could receive preferential access to shares.

  • Individual investors may get a third or more of the allocation, far above the typical ~10% mark.

  • Instead of a traditional road show, Musk wants investors to visit SpaceX facilities in person.

  • Investors in his other companies, including Tesla, could receive preferential access to shares.

  • Individual investors may get a third or more of the allocation, far above the typical ~10% mark.

  • Instead of a traditional road show, Musk wants investors to visit SpaceX facilities in person.

tech
Rani Molla

Tesla released estimates for Q1 deliveries and they’re lower than analysts expected

Ahead of first-quarter earnings next month, Tesla released its own company-compiled Wall Street consensus estimate for deliveries: 365,645 vehicles. While that’s lower than the 382,000 FactSet consensus estimate, it represents a nearly 9% jump from Q1 2025, when Tesla sold 336,681 vehicles.

Tesla started releasing its own consensus estimates to the public — not just institutional investors — for the first time in Q4 2025. The move was seen as a way to temper investor expectations, as other estimates were too high. Last quarter, Tesla’s compilation was closer to actual numbers, which fell 16% year over year.

The market-implied odds from event contracts suggest 64% of traders think Tesla’s Q1 deliveries will be more than 350,000, 44% think it will be higher than 360,000, and just 21% have it at higher than 370,000.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.