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Rani Molla

People aren’t buying iPhones for the new features

Apple’s new iPhone 16 goes on pre-sale tomorrow and the company is hoping the integration of its AI, Apple Intelligence, will drive consumers to upgrade to the latest model. The problem is, people don’t really buy iPhones these days for new features.

Nearly three quarters of people buying iPhones do so because their old phone was obsolete — its battery life has shortened or it’s slowed down, for example — or because their old phone was broken, lost or stolen, according to data from Consumer Intelligence Research Partners (CIRP). Just 18% are people with a working phone who want to upgrade to get the newest features.

That’s potentially bad news for Apple, which has seen its iPhone sales — which account for more than half its revenue —flag in recent years. But it’s good news for consumers, whose phones last a lot longer than they used to. CIRP found that 34% of iPhone buyers had a previous phone that’s three years or older. A decade ago, that was around 6%.

Apple’s new buttons, like incremental changes to camera quality and battery life, are unlikely to change people’s habits. That said, integrating AI at the core of the new iPhone — if it’s done well and proves legitimately useful — could be a different story.

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Sora’s ghoulish reanimation of dead celebrities raises alarms

OpenAI’s video generation app Sora has spent its first two weeks at the top of the charts.

The startup’s fast-and-loose approach to enforcing intellectual property rights has seen the app flooded with videos of trademarked characters in all sorts of ugly scenarios.

But another area where Sora users have been pushing the limits of involves videos that re-animate dead celebrities.

And we’re not talking just JFK, MLK, and Einstein. Videos featuring more recently deceased figures such as Robin Williams (11 years ago), painter Bob Ross (30 years ago), Stephen Hawking (7 years ago), and even Queen Elizabeth II (3 years ago) have been generated. Some of the videos are racist and offensive, shocking the relatives of the figures.

OpenAI told the Washington Post that it is now allowing representatives of “recently deceased” celebrities and public figures to request that their likenesses be blocked from the service, though they did not give a precise timeframe for what they considered recent.

But another area where Sora users have been pushing the limits of involves videos that re-animate dead celebrities.

And we’re not talking just JFK, MLK, and Einstein. Videos featuring more recently deceased figures such as Robin Williams (11 years ago), painter Bob Ross (30 years ago), Stephen Hawking (7 years ago), and even Queen Elizabeth II (3 years ago) have been generated. Some of the videos are racist and offensive, shocking the relatives of the figures.

OpenAI told the Washington Post that it is now allowing representatives of “recently deceased” celebrities and public figures to request that their likenesses be blocked from the service, though they did not give a precise timeframe for what they considered recent.

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Tesla is selling unsold Cybertrucks to Elon Musk’s other companies

Sales of Tesla’s Cybertruck, once expected to reach hundreds of thousands per year, are currently in the low tens of thousands range and falling. Last quarter in the US, Tesla sold fewer than 5,400 of the “apocalypse-proof” vehicles, for a total of about 16,000 this year, Business Insider reports, citing Cox Automotive data.

That’s a 63% drop from the same quarter a year ago, even as Tesla as a whole notched its best quarterly sales ever, spurred by the expiration of the $7,500 federal EV tax credit.

With sales lagging, the company has dialed back production of the stainless steel behemoths, but there’s still been an excess.

Fortunately for Tesla, Electrek reports that CEO Elon Musk has other uses for Cybertrucks within his other companies, which often share resources and personnel. Tesla is delivering truckloads of the EV to both xAI (which Tesla shareholders will vote next month on whether to invest in) and SpaceX, where Cybertrucks are replacing internal combustion engine support fleets.

There’s a lot of chatter about “circular deals” in the billion-dollar pacts announced in the AI space on a weekly basis. But it doesn’t get much more circular than this, with production and buying activity kept within the Musk corporate family.

That’s a 63% drop from the same quarter a year ago, even as Tesla as a whole notched its best quarterly sales ever, spurred by the expiration of the $7,500 federal EV tax credit.

With sales lagging, the company has dialed back production of the stainless steel behemoths, but there’s still been an excess.

Fortunately for Tesla, Electrek reports that CEO Elon Musk has other uses for Cybertrucks within his other companies, which often share resources and personnel. Tesla is delivering truckloads of the EV to both xAI (which Tesla shareholders will vote next month on whether to invest in) and SpaceX, where Cybertrucks are replacing internal combustion engine support fleets.

There’s a lot of chatter about “circular deals” in the billion-dollar pacts announced in the AI space on a weekly basis. But it doesn’t get much more circular than this, with production and buying activity kept within the Musk corporate family.

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Tesla has begun selling the Model Y Standard in parts of Europe, where it has lots of cheaper competition

Days after rolling out “Standard” trim levels of its Model Y and Model 3 in the US, Tesla has started selling the Model Y Standard in some European countries. Standard Model Ys begin at about 40,000 euros, depending on the country, roughly 10,000 euros cheaper than the current Premium versions. In the US, Standard versions are about $5,000 cheaper than their souped-up peers. The model isn’t yet on sale in the UK or Ireland, where cars are driven on the left-hand side of the road.

While the Standard Teslas are cheaper, they pale in comparison to the many affordable EV options available in Europe, including those from China’s BYD, some of which start below 25,000 euros. CEO Elon Musk has called Europe the company’s “weakest market,” blaming the lack of approval for Tesla’s full self-driving technology for the shortfall.

Model 3 Standards don’t appear to be available yet in Europe.

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Jon Keegan

OpenAI commits up to $25 billion for 500-megawatt “Stargate Argentina” data center

OpenAI has reportedly signed a letter of intent to invest up to $25 billion on “Stargate Argentina,” a new 500-megawatt AI data center.

Reuters reports that the deal would involve tax incentives.

In a video announcing the project, OpenAI CEO Sam Altman said:

“Our vision for Stargate Argentina is to deliver a major boost to the country’s AI infrastructure, creating a foundation for new capabilities from smarter public services to tools that help small businesses compete globally.

OpenAI did not immediately respond to a request for comment.

You may remember the name “Stargate” from the megaproject that tech giants and the Trump administration announced earlier this year to build a huge number of data centers in the US. And you may remember Argentina as the nation the Trump administration is now bailing out with a $20 billion currency swap.

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