Welcome to Tuesday’s Newsletter

In today’s scoop 🍨 

• 📱Perplexity & DT Announce AI Phone 

• 💰 TSMC’s $100B Investment

• 🚔 Silicon Smugglers Busted in Singapore 

• 3 Trending AI Tools

📱Perplexity & DT Announce AI Phone 

The smartphone market just got a fresh dose of AI ambition. Deutsche Telekom (DT) and Perplexity are teaming up to launch an "AI Phone"—a voice-first, app-free device that’s more personal assistant than just a regular phone.

🔍 The Details

• Launching in 2026, priced under $1,000.

• Runs Magenta AI, DT’s AI-powered assistant.

• Features Perplexity’s AI, capable of booking flights, sending messages, placing calls, and even doing your shopping.

• Includes integrations with Google Cloud AI, ElevenLabs, and Picsart.

• Initially launching in Europe before expanding.

🧠 The Smartest Phone Yet?

Think of it as an AI co-pilot that eliminates the app jungle—no more jumping between apps to book a ride, order food, or schedule a meeting. Just ask, and Magenta AI handles it.

Perplexity’s CEO, Aravind Srinivas, put it bluntly: "Perplexity is transitioning from just being an answer machine to an action machine."

📱 A Bold Move in a Tough Market

History hasn’t been kind to AI-first phones (remember the Amazon Fire Phone?). But with AI becoming an everyday necessity, this could be the first AI-powered device to actually stick.

Will DT and Perplexity change the way we interact with our devices? Or is this another ambitious AI experiment destined for the tech graveyard? Only time will tell.

💰 TSMC’s $100B Investment

Taiwan’s chip-making titan, TSMC, just went all-in on U.S. soil with a jaw-dropping $100 billion investment. Why? Well, it’s not just for the love of Arizona’s dry heat—it’s about securing a seat at the table in the high-stakes AI race and dodging incoming tariffs.

📈 The Breakdown

• 💻 Five new plants: TSMC is building three chip manufacturing facilities and two packaging sites in Arizona.

• 🪙 AI chips made in America: President Trump called the move a “matter of economic security.”

• 🏢 Job boom: Expect “many thousands” of high-paying gigs.

• 📉 $6.6B in subsidies: Courtesy of the CHIPS Act, Uncle Sam is giving TSMC a little thank you boost.

TSMC isn’t just throwing cash around—it’s also strategically responding to Trump’s threats of 25%+ tariffs on imported chips. With Apple and Nvidia relying on its semiconductors, keeping production on U.S. turf makes a lot of sense.

Meanwhile, Taiwan’s officials are downplaying fears that their biggest tech giant is “going American.” The reality? TSMC is spreading its bets, with ongoing expansions in Japan and Germany too.

💡 The Big Question:

Will this actually fix America’s chip supply problem? Or is this just another chapter in the ongoing chip war chess match? Either way, the world’s most powerful AI chips are about to have a new home address.

🚔 Silicon Smugglers Busted in Singapore 

Singapore just added "Nvidia chip smuggling" to its list of crime drama plotlines. Authorities have arrested three men for allegedly rerouting Nvidia-powered servers in a scheme that could be straight out of Money Heist: AI Edition.

The short version? Singaporean officials believe these guys misrepresented the destination of U.S.-manufactured servers packed with Nvidia's powerful AI chips. Instead of heading to Malaysia, as the paperwork claimed, the tech might have been funneled elsewhere (cough China cough).

💡 Here’s Why It Matters

• U.S. vs. China tech war: The U.S. has strict export controls on Nvidia’s AI chips, making them harder to reach Chinese AI firms. But where there's demand, there’s always a black market.

• Singapore’s role: Nvidia reported that Singapore accounted for 18% of its revenue in 2024, raising eyebrows given that only 2% of actual shipments went there. Translation? Singapore has become a middleman in the global AI arms race.

• Big money, big risks: The suspects worked for Aperia Cloud Services, an Nvidia partner in Southeast Asia. If convicted, they face up to 20 years in prison—which is a lot of time to think about whether those chips were worth it.

📉 The Fallout

Nvidia’s stock took a hit, tumbling 8% on Monday, dragging down Dell (-6%) and Supermicro (-11%) with it. Meanwhile, the AI chip race rages on, and authorities are scrambling to shut down illicit supply chains before the next workaround pops up.

🔎 Bottom Line

The AI boom is fueling a high-stakes game of digital smuggling, and Singapore’s crackdown is just the latest twist. With billions at stake, don’t expect the black market for AI chips to disappear anytime soon.

🔧3 Trending AI Tools

• 🛠️ MGX - Multi-agent AI dev team that mimics real software workflows, letting you collaborate with an AI team leader, product manager, and engineers to build websites, apps, analytics, and more.

• 💬 Teamble AI - Enhance employee feedback with AI-driven insights, fostering better learning and performance—seamlessly integrated with Slack and Microsoft Teams.

• 🎯 Crosshatch - API for real-time user context, enabling secure, hyper-personalized experiences by letting users bring their habits and preferences to your app with a tap.

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Until tomorrow—stay curious! 👋