UK Strikes Strategic AI Deal with OpenAI, Meta Fights $1B VAT Case, and Fed Faces Unprecedented Scrutiny

22nd July, 2025

The UK government is betting big on artificial intelligence, unveiling a landmark partnership with ChatGPT maker OpenAI to deepen collaboration on national infrastructure and AI security. Meanwhile, Italy has launched a precedent-setting €1B VAT lawsuit against Meta, X, and LinkedIn — claiming free access to their platforms amounts to taxable transactions. And in Washington, Treasury Secretary Scott Bessent has called for an urgent investigation into the Federal Reserve’s independence and spending practices — raising fresh questions about Chair Jerome Powell’s leadership as the Fed faces scrutiny from all sides. All this and more in today’s Read It and Eat!

Major Headlines

• UK Signs £1B AI Infrastructure Deal with OpenAI to Cement Tech Superpower Status

  
  

• Britain has inked a landmark strategic partnership with OpenAI to deepen collaboration on AI safety and scale infrastructure, with plans to invest £1 billion into computing power and expand OpenAI’s London footprint. The move, part of the Labour government’s AI Opportunities Action Plan, aims to make the UK a global AI powerhouse, boosting productivity by up to £47 billion annually. OpenAI CEO Sam Altman praised the UK’s leadership, while ministers confirmed the partnership will explore applications in defense, education, and healthcare. Reuters

  
  

• Meta, X, and LinkedIn Face €1B+ EU-Wide Tax Risk in Italian VAT Dispute

  
  

• Meta, X (formerly Twitter), and LinkedIn are pushing back against a first-of-its-kind tax lawsuit from Italy’s Revenue Agency, which alleges that free user registrations in exchange for personal data amount to taxable transactions. The case, which seeks over €1B total  has now escalated into a judicial tax trial, with tech giants filing formal appeals in court. If successful, the Italian approach could reshape digital tax law across the EU. Meta said it “strongly disagrees” with the claim, while experts warn that airlines, publishers, and retailers could also be caught in future VAT interpretations tied to cookies and profiling.  Reuters

  
  

• Bessent Calls for Full Probe into Fed's $2.5 Billion HQ Renovation, Warns of Mission Creep

  
  

• U.S. Treasury Secretary Scott Bessent has urged a sweeping investigation into the Federal Reserve’s expanding role beyond monetary policy and specifically into its $2.5B headquarters renovation. In a pointed post on X, Bessent said the Fed’s independence is threatened by “mission creep” and criticized the lack of accountability around recent spending. He echoed former President Trump’s attacks on Fed Chair Jerome Powell, who authorized the renovation years earlier. Though Powell is protected from dismissal over policy disagreements, Bessent hinted that the public and legal scrutiny could escalate. Trump has reportedly considered replacing Powell should he return to office.

  Reuters

  
  

• ChatGPT Tops 2.5 Billion Prompts Daily, Doubling Usage Since December

  
  

• OpenAI says ChatGPT now receives 2.5 billion prompts per day, more than double the volume it reported in December. U.S. users account for 330 million daily queries. The rapid surge underscores the chatbot’s growing ubiquity in everything from education to enterprise search. For comparison, Google receives around 14–16 billion searches per day globally, according to digital marketing estimates — but ChatGPT’s rise signals real traction. Axios reports that OpenAI’s flagship tool is now used for tasks as varied as research, writing, coding, and customer support.  TechCrunch

  
  

• Delta Is Using AI to Predict the Max You’ll Pay for a Flight — and Charge You That

  
  

• Delta Air Lines is officially stepping into its AI villain arc. The airline is expanding its use of artificial intelligence to dynamically price flight tickets based on what it thinks you’re individually willing to pay. The technology, which Delta began testing last year on 1% of its ticket pricing, is now influencing 3% of fares — and the airline aims to push that to 20% by year-end. Delta president Glen Hauenstein didn’t mince words: “We will have a price that’s available on that flight, on that time, to you, the individual.” AI will now act as a “super analyst,” working 24/7 to optimize pricing down to the traveler and flight combination, using tools from travel tech partner Fetcherr (also used by Virgin Atlantic, WestJet, and others). While airlines have long varied pricing based on booking timing, browser type, or demand surges, Delta’s fully AI-driven approach marks a sharp escalation — with privacy concerns mounting. Critics, including Arizona Sen. Ruben Gallego, are already calling it “predatory pricing.” Consumer Watchdog’s Justin Kloczko took it further: “They’re trying to see into people’s heads… they are basically hacking our brains.” Delta insists the tech will be rolled out carefully, but internally, it’s thrilled with the early revenue results. The company described this shift as a “multiyear, multi-step process” to overhaul its entire pricing model — and it’s only just begun.  The Verge

  
  

Minor Headlines

• Elon Musk’s xAI to launch a child-safe chatbot named “Baby Grok” —  Bloomberg

  
  

• Subway hires ex-Burger King exec as new CEO — Reuters

  
  

• Costco to open 1,000-person tech hub in India — Reuters

  
  

• Lawmakers urge tech CEOs to address security risks of undersea cables — Reuters

  
  

• BP names CRH’s Albert Manifold as new chairman amid investor pressure — Reuters

  
  

• Trump calls judge in Harvard funding case “a total disaster” —  Financial Times

  
  

• Wise co-founder urges investors to block U.S. listing over voting rights row — Financial Times

  
  

• AI chip startup FuriosaAI lands major customer after walking away from Meta acquisition — TechCrunch

  
  

• Michael Saylor’s Strategy Owns 3% of Bitcoin in Circulation After Latest Purchase -- Yahoo Finance

  
  
  
  

  Gen Z Word of the Day:  Gorpcore

  
  

  Meaning: A fashion aesthetic that mixes utility and nature-inspired gear (think hiking jackets, cargo pants, trail shoes) — like stylish camping wear for everyday use. 

  
  

  Example: "He pulled up in full gorpcore: Patagonia jacket, hiking boots, and a vibe."