Fri. 04/11 – Why COULDN’T Apple Make An iPhone In The US?

Apr 11, 2025 17m

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Europe says it could tax social media ads if the tariff wars get really nasty. Why COULDN’T Apple make an iPhone in the US as President Trump wants? Is OpenAI cutting corners on safety in order to stay ahead in the AI race? And as always, the Weekend Longreads Suggestions.

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Links:

EU could tax Big Tech if Trump trade talks fail, says von der Leyen (Financial Times)
Why Trump’s Dream of Made-in-the-USA iPhones Isn’t Going to Happen (Bloomberg)
OpenAI updates ChatGPT to reference your past chats (TechCrunch)
OpenAI slashes AI model safety testing time (Financial Times)
Mira Murati doubled the fundraising target for her new AI startup to $2 billion. It could be the largest seed round in history. (Business Insider)

Weekend Longreads Suggestions:

12 Graphs That Explain the State of AI in 2025 (IEEE Spectrum)
Generative AI is learning to spy for the US military (MIT Technology Review)
How Apple Fumbled Siri’s AI Makeover (The Information)

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AI-Generated Summary

European Tech Taxation Concerns

In a move that could escalate the ongoing trade tensions, European Commission President Ursula von der Leyen indicated that the EU might impose taxes on digital advertising revenues from major tech companies like Meta and Google. This contingency relies heavily on the outcome of trade talks with the U.S., particularly with President Trump’s administration. The potential taxation could mark a shift in how digital services are treated under international trade rules, echoing previous actions taken against TikTok.

Challenges in U.S. iPhone Production

The likelihood of Apple shifting iPhone production back to the U.S. remains low, primarily due to a lack of manufacturing infrastructure, labor shortages, and a limited supply chain ecosystem. Experts note that even significant automation developments would still face challenges due to the rapid pace of product development and the complexity of assembly processes required for iPhones. The transition to India for manufacturing appears to be the new focus for Apple as they seek to reduce their reliance on China.

OpenAI's Safety Concerns

OpenAI announced a new memory feature for ChatGPT, which will enhance user interactions by referencing past conversations. However, this rollout excludes users in the UK and EU due to regulatory constraints. Furthermore, reports suggest that OpenAI is under increasing pressure to release new models, leading to faster evaluations of safety which may compromise regulatory obligations and user safety. This has raised serious concerns among former employees about the adequacy of testing and the potential risks involved.

Investor Interest in AI Startups

Mira Murati, former CTO of OpenAI, is leading a new AI startup called Thinking Machines Lab, aiming to raise upwards of $2 billion, reflecting the heightened interest and investment in generative AI technologies. The excitement hinges on the limited expertise available in the AI field and the expensive nature of developing viable AI models, positioning Thinking Machines as a noteworthy contender in the industry, despite lacking a product.

Weekend Longreads Suggestions

This week's Longreads include articles on the evolving state of AI for 2025 from IEEE Spectrum, an exploration of generative AI's military applications, and a deep dive into Apple's struggles with Siri's AI improvements. These readings provide insights into how AI technologies are shaping various industries and the challenges organizations face in leveraging these advancements.