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SpaceX has an AI device prototype, and it sure sounds phone-ish
Elon Musk’s SpaceX has shown investors a prototype of a “handset-like” AI device,reports The Wall Street Journal. The prototype is reportedly sleeker and slimmer than an iPhone, making us wonder if it’s something between a small touchscreen phone and aRabbit R1. SpaceX reportedly showed the device to investors and stakeholders before it went public, and told them it’s at an early enough stage that the design could still change. Musk has denied the reporting, calling it “utterly false.” SpaceX, alongside sister company Tesla, does have the manufacturing expertise to pull off mass-producing a bunch of AI devices — not to mention access to the chips needed to power any on-device compute. SpaceX has also signaled that it’s keen to expand into wireless, with Starlink Mobile as a potential competitor to Verizon and AT&T. One analyst even went as far as to speculate thatT-Mobile or AT&Twould make fine acquisition targets for the rocket builder, though such a purchase would, undoubtedly, be pricey. It’s also not clear if SpaceX is just throwing spaghetti at the wall or if it will attempt to really mass-produce and market such a device. But one thing that seems clearer is that if OpenAI is doing it, Musk would, perhaps, want to try to do it better. As we know, OpenAI is working with Apple’s former chief design officer Jony Ive on an AI device that CEO Sam Altman has claimed will bemore peaceful than an iPhone. Reports from last autumn suggest the company has been struggling to get the details right, and OpenAI recently brought on another Apple executive to potentially help move things along. News dropped last week that Paul Meade, Apple’s VP in charge of the Vision Pro headset,has joined OpenAI’s hardware team. Like OpenAI, SpaceX’s prototype is reportedly designed to run on a proprietary operating system and integrate technology from xAI, Musk’s AI company that SpaceX acquired earlier this year. This would prevent these new devices from being trapped inside another company’s platforms (like Google’s Android). But the intent also appears to be to create something new, with native AI interfaces. That said, the graveyard is crowded with the unsuccessful launches of AI devices from companies like Humane and Rabbit. A company wanting to sell an AI device does not equate to consumers wanting to buy such a thing. Yet.
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Cloudflare’s new policy pushes AI companies to pay for publishers’ content
Cloudflare has just issued the AI industry a new deadline to separate the web crawlers used for traditional search purposes, like Google Search, from those used for AI agents and training. Starting on September 15, 2026, Cloudflare’s default settings will block “mixed-use” crawlers from any pages that host ads, the company announced on Wednesday. That means that the crawlers that blend search, agent use, and training will be blocked from crawling these sites by default, unless the site owner adjusts the settings otherwise. These changes to the defaults will apply to new Cloudflare customers, new sites set up by existing customers, and all existing free customers, the company says. The move could impact how AI model providers are able to access web content for training purposes and to help power their agentic services. Cloudflare points out that most website owners want their content to be discoverable via search and often through AI services as well, but they want protections against having their intellectual property given away for free. Cloudflare specifically calls out the “world’s largest search engine” (clearly a Google reference!) as having access to about “2x more information” than other AI companies because the search giant makes it difficult for customers to remain discoverable without being used for AI. Google has pushed back against this generalization in the past, noting that it provides a bot calledGoogle Extendedthat lets site owners opt out of having their content used for training and AI products and services like Gemini Apps and Vertex API. Its use doesn’t impact a site’s inclusion in Google Search. However, the tech giant’s flagship Googlebot crawls for Search, including AI features like AI Overviews and AI Mode. “Now that the majority of traffic on the Internet is non-human, we must go further and act faster so that a sustainable ecosystem can emerge,” said Cloudflare co-founder and CEO Matthew Prince in his announcement of the news, referring to the recent milestonewhere bots surpassed human traffic onlinefor the first time. That shift was not expected to occur until next year. “Cloudflare’s new tools and partnerships give website owners increased visibility and commercial opportunities and benefit AI companies that have bots with clear and transparent intent. We hope that our proposed default changes encourage mixed-use crawlers to separate out search from agent use and training,” Prince said. While Cloudflare offers a number of products to help userslaunch their own AI systems, the company has also released a range of tools to give publishers more control over their content in the AI era. In recent years, Cloudflarelaunched tools to combat AI bots, including amarketplace that lets websites charge AI bots for scraping, dubbed Pay Per Crawl. The latter is now also evolving into “Pay Per Use,” the company said, which will allow publishers to charge AI companies when their content creates value, not just when it’s fetched. The change could also help conserve publishers’ bandwidth and compute resources for AI model providers, as Cloudflare’s data suggested that over 50% of crawl traffic from AI crawlers is spent re-fetching unchanged pages. To put this into action, Cloudflare is initially working with two partners, Ceramic.ai and You.com. When a publisher opts in, they’re paid when their content appears in Ceramic’s AI search results or when You.com accesses a piece of their premium content. Other AI companies can customize this model for how they work, Cloudflare says.
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Ashton Kutcher leaving Sound Ventures to launch new VC firm with Morgan Beller
Ashton Kutcher is stepping away from Sound Ventures — the firm he co-founded with Guy Oseary 11 years ago — to start a separate VC fund, the Wall Street Journalreported. TechCrunch had separately heard that Kutcher was preparing to leave; the WSJ’s report confirms it and adds new detail on his plans with Beller. The actor and investor’s new firm is being co-founded with Morgan Beller — its name hasn’t been made public yet — who until recently was a general partner at seed-focused VC outfit NFX and previously co-led cryptocurrency project Libra at Meta. Beller also spent nearly three years as a partner at Andreessen Horowitz. Kutcher’s exit doesn’t appear to be a sign of trouble at Sound Ventures — investors more often leave firms that are underperforming, and that’s not the case here. The firm, which has backed companies like Brex and Gusto, was also an early investor in OpenAI, Anthropic, and Fei-Fei Li’s World Labs. The split is also notable for what it signals about where AI money is heading next: Sound built its reputation on concentrated, high-conviction bets in category-leading AI labs, while Kutcher’s new fund appears to be chasing the layer underneath those companies — the infrastructure and energy that power them. “He and his fund consistently make it onto [my] rankings of top unicorn investors. An interesting case!” Stanford finance professor Ilya Strebulaev, who tracks top-performing VCs,wrote on X. The actor hasknown OpenAI’s Sam Altmansince Altman founded Loopt — years before the launch of the ChatGPT maker. Kutcher’s departure was partly due to different views on which startup stages to target for investments, with Sound leaning toward backing companies that are already more established, rather than betting on very early-stage startups, according to WSJ. Kutcher and Beller are focused on making early-stage investments in AI infrastructure, energy, and deep tech startups — startups built around hard science and engineering breakthroughs rather than software alone. Despite leaving Sound Ventures, Kutcher will continue to serve as an advisor to the firm. Meanwhile, Oseary and Sound general partner Effie Epstein will advise Kutcher and Beller’s new firm.
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Anthropic Introduces Claude Sonnet 5 With Enhanced Agentic Capabilities; Confirms Return of Claude Mythos 5, Fable 5
Anthropic has released its latest Claude Sonnet 5 AI model. The new AI model is claimed to bring enhanced agentic capabilities compared to the Claude Sonnet 4.6 model. Moreover, the new AI model is claimed to offer agentic search capabilities at par with the Opus 4.8 model. Along with improved performance, the AI model focuses on cost efficiency. It is claimed to offer similar performance as more capable AI models at lower costs. Separately, the AI giant has announced that the US government has lifted export restrictions on its Claude Mythos 5 and Mythos-class Fable 5 AI models. This comes weeks after the company was asked to restrict the availability of the two AI models for foreign nationals.
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