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Welcome to The AI Report — the #1 AI newsletter for business leaders.
You don’t need to be technical. Just informed.
• 1. 📈 Access the most powerful predictive model with Kumo
• 2. ⚡️ Musk v. Altman heads to trial
• 3. 💼 Your Business Briefing
• 4. 💻 Get rid of your personal data from Google with Incogni
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin
Are you ready to launch AI transformation for your company?
TOGETHER WITH KUMO
Will this customer churn? Is this transaction fraud? Which ad should we display?
These are billion-dollar questions, and LLMs can't answer them because they treat numbers and relationships as tokens, not as graphs. That's why Coinbase, Reddit, Databricks, Expedia, and DoorDash use Kumo. KumoRFM-2 is the first foundation model to outperform PhD data scientists and supervised ML on enterprise data. No more 6-month pipelines. Just connect your data warehouse and ask questions in plain English, like ChatGPT, but for your business data.
Don’t take our word, take our customer Databricks’ word.
"Kumo.ai has transformed how we approach lead scoring at Databricks. Since deploying their platform, we've seen conversion rates from leads to opportunities improve from 1.2x to 6x, and we've doubled the volume of high-intent, quality leads entering our pipeline. The impact on our marketing performance has been substantial,”
Latest in AI
Musk v. Altman heads to trial
🚨 Our Report
Jury selection begins Monday in Oakland, California, as Elon Musk's lawsuit against Sam Altman and OpenAI heads to trial. The case centers on whether Altman broke the company's founding agreement by restructuring OpenAI from a nonprofit into a for-profit enterprise, and could reshape the future of one of the world's most valuable AI startups.
🔓 Key Points
Musk alleges Altman deceived him about the nonprofit structure to secure his $38M in funding, then "flipped the narrative" once the technology advanced. He's seeking $134B in damages and the removal of Altman and Brockman.
OpenAI counters that Musk agreed in 2017 to establishing a for-profit entity and is "motivated by jealousy" after walking away from the company in 2018. The startup maintains a dedicated webpage calling the lawsuit a "smear" campaign.
The trial is expected to last two to four weeks, with testimony from Musk, Altman, and possibly Microsoft CEO Satya Nadella. Unsealed documents have already revealed internal disputes and personal animosities between the tech billionaires.
🔐 Relevance
For enterprise leaders watching AI vendor stability, this case could complicate OpenAI's planned $1T IPO later this year. A ruling in Musk's favor might force changes to OpenAI's corporate structure or leadership, creating uncertainty for businesses that have integrated ChatGPT into their operations.
THE BUSINESS BRIEFING: SALES (powered by Upscaile)
Idomoo (enterprise video tech) was stuck in a manual grind. Sales Development Representative Delaney Beam spent 45–60 minutes crafting every single outreach sequence, obsessing over tone and personalization. The quality was high, but the volume was capped. She couldn't scale without sacrificing authenticity or burning out trying.
Tool used: Apollo AI Assistant -- builds hyper-personalized sequences by learning your pitch, tone, and style.
Result: 465% increase in email volume. 6% response rate maintained. First meeting booked within 24 hours. Sequence creation time dropped from 60 minutes to 10 minutes.
The lesson: Delaney fed Apollo her exact pitch framework, tone preferences, and a blacklist of buzzwords to avoid. The AI learned her style, not generic corporate speak.
Steal this: Pick your best-performing email sequence. Feed it to your AI tool with context on your target vertical and pain points. Let it draft three variations. Test them against your manual baseline this week.
TOGETHER WITH INCOGNI
Remove your personal data from Google search results
Your phone number, address, DOB, even your SSN can show up in a Google search. Marketers buy it, scammers exploit it, and in the worst cases, it ends up for sale on the dark web.
Incogni Unlimited helps you take control. Our privacy agents hunt down and remove your personal data from an unlimited number of sites. With automation across 420+ broker types—including People Search platforms and private databases—Incogni erases your information where others can’t reach.
Protect your identity before it’s too late. Use code AIREPORT for an exclusive 55% discount on unlimited removals.
THE POLICY CORNER
EU bans workplace emotion AI, €35M fines now enforceable
As of February 2, 2025, any AI system that infers employee emotions from biometric data (voice, facial expression, physiological signals) is prohibited across the European Union under Article 5(1)(f) of the EU AI Act. This applies to contact center voice analytics, video meeting engagement scoring, and wearables that detect stress or focus from heart rate or galvanic skin response. The ban covers providers (vendors) and deployers (employers) if the system touches EU-based employees, regardless of where the company is headquartered.
Deadline: In effect now. Full AI Act enforcement begins August 2026.
Your move: Audit any voice analytics, video engagement tools, or workforce wearables used in EU operations. Ask vendors in writing whether their product infers employee emotional state from biometric data and whether those features can be disabled at the tenant level if they can't answer clearly or won't provide written compliance documentation, flag for legal review immediately.
AI News
🔐 White House accuses China of "industrial-scale" AI theft: Anthropic confirmed 24K fake accounts harvested 16M Claude exchanges; new Stop AI Model Theft Act would classify distillation as espionage, targeting DeepSeek, Moonshot AI, and MiniMax. FULL STORY
🤖 AI agent traffic up 8x, now visible to marketers: HUMAN Security expanded Agentic Visibility into Adobe Experience Platform; automation now grows 8x faster than human traffic, with AI traffic to U.S. retail sites surging 269% YoY in March 2026. FULL STORY
📖 Anthropic publishes Claude Opus 4.7 system prompts: Full public release shows child safety updates, PowerPoint integration, Chrome browsing agents, and tone controls; only major lab publishing prompts, setting new transparency standard as regulators demand explainability. FULL STORY
💡 DeepSeek V4 shifts AI race toward efficiency: 1.6T-parameter Pro model with 1M-token context uses hybrid attention design to compress memory without losing reasoning; lower inference cost expands market for long-context agents, legal workflows, and enterprise copilots. FULL STORY
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The Money: Data center debt goes giga-scale
Infrastructure backers are writing checks big enough to power small cities. Two deals this week signal the market has moved past proof-of-concept. Institutions now treat AI infrastructure like roads and bridges: essential, predictable, and worthy of 15-year commitments.
Deals to know:
Applied Digital (Hyperscaler Lease, $7.5B over 15 years) -- 300 MW AI Factory campus in Dallas. Third hyperscale tenant secured; total contracted revenue now exceeds $23B. Financing: $300M senior secured bridge + $300M revolving credit from syndicate of banks.
Related Digital (Project Financing, $16B) -- 1 gigawatt Oracle AI campus in Michigan. Supports OpenAI training infrastructure. Investors: Blackstone (equity), PIMCO-managed accounts (long-term fixed-rate debt).
Signal: Power capacity is now the limiting factor. Investors betting the infrastructure bottleneck lasts through 2027 are backing multi-decade lease structures at utility-scale capacity.
Thoughts on today's edition?
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Until next time, Arturo and Liam.
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