OpenAI Bags Pentagon Billions, But Zyn Is Smoking the Markets

17th June 2025

AI is funding the future of war, nicotine pouches are fueling stock market highs, and the Trump family just dropped a $499 gold smartphone. Also in today’s read: Daniel Ek is now in the drone wars, and Sam Altman compares ChatGPT queries to oven seconds. Meanwhile, Reddit, Instagram, and Threads are all tweaking their AI and content strategies. All this and more in today’s read-and-eat.

Major Headline

• OpenAI lands $200M Pentagon deal to build war-ready AI

  
  

• The U.S. Department of Defense has awarded OpenAI a $200 million contract to help build advanced AI tools that will be used in national security and military operations. According to the Pentagon, OpenAI will develop “prototype frontier AI capabilities” aimed at solving critical challenges in both warfighting and enterprise systems. The project is expected to be completed by July 2026, with most of the work centered in Washington, D.C. This marks one of the largest direct defense deals involving a commercial AI company and comes at a time when OpenAI is rapidly expanding its enterprise footprint. Just last week, the company revealed that its annualized revenue run rate had reached $10 billion, and it’s currently raising a new round of funding at a reported $300 billion valuation, led by Japan’s SoftBank. OpenAI's involvement with the U.S. military also reignites debates around the ethics of AI in warfare, especially given the White House’s recent push to encourage competition in AI while exempting national security applications from regulatory constraints. Reuters 

  
  

• Trump family launches “Trump Mobile” with $499 smartphone

  
  

• Donald Trump’s family business is rolling out a new mobile phone service—Trump Mobile—with a $499 “sleek, gold” smartphone and bundled services that include telemedicine, roadside assistance, and international texting. Announced at Trump Tower, the service is priced at $47.45 per month—a symbolic nod to Trump’s position as the 45th and now 47th U.S. president. The phones will reportedly operate on the infrastructure of major U.S. wireless networks. While the Trumps declined to name the phone manufacturer or financial backers, Eric Trump hinted in a podcast that initial devices may not be made in the U.S., but expressed hope that manufacturing could eventually be brought onshore. Critics say the venture raises fresh ethical concerns, as income from the deal could directly benefit the president despite his business interests being in a trust managed by his children. The move adds to a growing list of Trump-branded ventures leveraging the former president’s political brand for commercial gains. Financial Times 

  
  

• Altman says a ChatGPT query equals 1 second of oven energy

  
  

• A single ChatGPT query burns about 0.34 watt-hours of electricity—roughly the energy an oven uses in just over a second—according to OpenAI CEO Sam Altman. In a blog post this week, Altman broke down the environmental footprint of AI queries, which also consume about 0.000085 gallons of water each (one-fifteenth of a teaspoon). Altman used the data to make a bigger argument: that “the cost of intelligence should eventually converge to the cost of electricity.” While AI’s carbon footprint is drawing increasing scrutiny, OpenAI is positioning itself as energy-efficient relative to its massive output. Still, as adoption scales into billions of daily queries, questions around sustainability aren’t going away. Yahoo Finance

  
  

• Zyn boom pushes Philip Morris to record high, with more growth coming

  
  

• Philip Morris is thriving off America’s nicotine pouch obsession. Its smoke-free product Zyn, acquired through its 2022 purchase of Swedish Match, has seen explosive demand—so much so that convenience stores like Casey’s and Murphy USA are redesigning shelf space to keep up. Shipment volumes skyrocketed from 132 million cans in Q1 2024 to 202 million in Q1 2025, but even that wasn’t enough to meet demand. The company says shortages will ease by Q3 2025. Zyn’s popularity isn’t just a trend—it’s fueling long-term growth. “They’ve been capacity constrained because they were growing so rapidly,” said Needham’s Gerald Pascarelli. The FDA recently authorized 20 Zyn variants for marketing under adult-targeted regulations, which should help solidify its market position. Smoke-free products now account for 42% of Philip Morris’ total net revenue, which also includes IQOS heated tobacco and Veev e-vapor. Wall Street sees more upside ahead. Yahoo Finance 

Minor Headline

• Google scales AI fraud-detection and cybersecurity in India – TechCrunch

  
  

• Reddit rolls out AI ad tools to help brands mine user discussions – Reuters

  
  

• Global central banks plan gold stockpile boost, dollar cuts – Financial Times 

  
  

• Warner Bros slashes Zaslav’s pay after shareholder revolt – Financial Times

  
  

• Senate SALT cap debate threatens Trump’s tax bill – CNBC

  
  

• Instagram mass bans spark backlash over rogue AI moderation –  TechCrunch 

  
  

• Spotify’s Daniel Ek leads €600M raise for drone AI startup Helsing – Financial Times

  
  

• NASA budget cuts would ‘decimate American science,’ says expert - Morningbrew

Gen Z Word of the Day: Bussin’

Meaning: Something extremely good or delicious.

Example: “This AI-generated playlist is actually bussin’.”