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Trump Sues WSJ For Defamation -- Trump Aides Considered Cuts to SpaceX Contracts -- Microsoft Cuts Off China Employees from Pentagon Business -- White House Plans Executive Order Targeting ‘Woke’ AI

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Jul 21, 2025

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Welcome back! Elon Musk says his xAI will launch an AI targeted at children. President Donald Trump is suing The Wall Street Journal. The Trump administration considered cuts to SpaceX contracts.

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1.
Musk Plans AI for Kids Called ‘Baby Grok’
By Abram Brown Source: X

Elon Musk says his xAI will launch an AI targeted at children that will be called “Baby Grok.“ He offered no further details about the product, which he announced in a Saturday evening post on X.  Musk’s xAI has quickly become a top contender in the AI race, while its signature product, Grok, has outperformed some rivals’ technology and attracted significant controversy. Earlier this month, for instance, Grok responded to users’ questions with praise for Adolf Hitler and called itself “MechaHitler.”

2.
Trump Sues WSJ For Defamation
By Abram Brown Source: The Wall Street Journal

President Donald Trump is suing The Wall Street Journal over a story published by the newspaper about birthday letters sent to disgraced financier Jeffrey Epstein. Trump was one of several people who sent Epstein a letter, the Journal reports. Trump denies sending the letter. The attack on the Journal, which is owned by Rupert Murdoch, a former top Trump ally, follows several other legal battles between Trump and traditional media outlets, including one that recently ended with CBS settling litigation with Trump for $16 million.

3.
Trump Aides Considered Cuts to SpaceX Contracts
By Abram Brown Source: Wall Street Journal

After Elon Musk left Washington and ignited a feud with President Donald Trump last month, the Trump administration reviewed the government’s contracts with Musk’s SpaceX and thought about cutting some of them.

In the end, it didn’t—after deciding they were too vital to the Defense Department and NASA.

The review reflects how quickly the relationship between Musk and Trump has deteriorated. Meanwhile, the fact that the White House didn’t cut any of the contracts highlights SpaceX’s enormous importance to the government as the world’s leading commercial space-exploration business.

4.
Microsoft Cuts Off China Employees from Pentagon Business
By Aaron Holmes Source: The Information

Microsoft said Friday it will end a program involving China-based employees who worked on cloud servers that the company rents out to the Pentagon and other agencies.

The change came several days after ProPublica published an investigation about the program, which raised national security concerns. U.S. law requires that Pentagon data to be handled by citizens with security clearances, but ProPublica reported that Microsoft skirted those rules so that engineers based in China, India, and elsewhere could work on cloud servers housing Pentagon data.

To do so, Microsoft established a program through which U.S. based “escorts” who had security clearance would take instructions from China-based engineers to patch bugs or fix firewalls in Azure servers hosting Pentagon data, according to ProPublica. The report triggered congressional interest in Microsoft’s practices.

Microsoft spokesperson Frank Shaw said in a statement that Microsoft “has made changes to our support for US Government customers to assure that no China-based engineering teams are providing technical assistance” to the Pentagon business.

5.
White House Plans Executive Order Targeting ‘Woke’ AI
By Sylvia Varnham O'Regan Source: The Wall Street Journal

The White House is preparing an executive order targeting artificial intelligence companies whose models the administration deems too “woke,” the Wall Street Journal reports.

Under the order, which is expected to be announced next week, AI companies awarded federal contracts will be required to ensure their models are politically neutral, the publication reported, reflecting a concern among White House officials that some models have a liberal bias.

President Trump has spent years accusing tech companies of censoring conservative voices online and in his second term has made several efforts to target diversity, equity and inclusion initiatives.

6.
Meta Won’t Sign EU’s AI Code of Practice
By Kalley Huang Source: The Information

Meta Platforms will not sign the European Union’s code of practice for artificial intelligence, a voluntary framework meant to help companies comply with the EU’s AI Act, Meta Chief Global Affairs Officer Joel Kaplan said on Friday