Good morning. It’s Fortune reporter Alexandra Sternlicht, subbing in for Andrew.
This weekend Fanatics Fest took over the Javits Center in New York City. It’s the IRL manifestation of $25 billion sports merchandiser Fanatics, founded by Michael Rubin in 2011 and licensee of most of the major U.S. leagues, from the NFL to the NCAA.
Despite the sweltering Manhattan heat, fans took to the 850,000 square foot venue to see limited edition collaborations and even mingle with Jay-Z. My take? If you’re looking for a sign that tech has given up on in-person meetings, this isn’t it.
The tech news you need to know, below. —Alexandra Sternlicht
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Can the U.S. build its own Shenzhen?
SoftBank chairman and CEO Masayoshi Son is maybe trying to make President Trump’s dreams come true.
The billionaire investor is hoping to work with TSMC, the world’s largest contract manufacturer of computer chips, to build a $1 trillion Arizona industrial complex to build robots and AI, per Bloomberg.
The idea is to return high-tech manufacturing to the U.S.
Son’s proposed tech complex is modeled after China’s manufacturing powerhouse Shenzhen, the Hong Kong-adjacent home to the headquarters of Huawei, Tencent, BYD, DJI, ZTE, and many others.
While Son has no official partners in this dream, he’s courting TSMC and Samsung as well as the Trump Administration.
The plan, still in early stages, has the potential to become a nationwide blueprint if successful. But there are hurdles—like, say—obtaining $1 trillion. —AS
Meta rolls out Oakley smart glasses
Meta is expanding its portfolio of popular smart glasses by releasing new models under the Oakley brand.
It’s a natural extension of Meta’s successful Ray-Ban smart glasses, which have sold millions of units since launch. (Both brands are part of Italian eyewear juggernaut EssilorLuxottica, which also owns Persol and Oliver Peoples.)
The glasses, based on Oakley’s HSTN frames, feature 3K video recording, water resistance, AI assistant capabilities, and double the battery life of earlier versions. (Meta claims “up to eight hours of typical use and up to 19 hours on standby.”)
The HSTN model—a limited edition—is priced at $499 and available for pre-order on July 11. The rest of the Meta Oakley collection is expected “later this summer” for $399 and up.
Still: It’s one thing to take photos with your eyes; it’s another to use Instagram via simulation.
Meta’s previously teased “Orion” AR glasses, which will probably have some social media browsing features, are expected for a 2027 release. —AS
xAI is apparently burning $1 billion per month
Elon Musk’s artificial intelligence company is reportedly spending $1 billion per month on its large language model.
The LLM is intended to compete with OpenAI’s ChatGPT and Anthropic’s Claude, per Bloomberg.
That sum is a pressing issue because xAI doesn’t yet generate that kind of revenue. Earlier this month, the company’s banker, Morgan Stanley, reported that xAI expects $1 billion in gross revenue by the end of this year; this latest report estimates the company’s 2025 revenues at $500 million.
xAI would hardly be the first modern AI company to spend first and prompt questions later. Virtually all of its rivals, from startups like OpenAI to giants like Meta, have forecast dizzying amounts of capital expenditures related to AI.
xAI hopes its long-term trajectory will solve its short-term cash crunch. The Bloomberg report added that xAI is discounting its debt for potential investors looking to get in on the ground-ish floor of Elon Musk’s AI product.
The big question: Is it smart to buy xAI bonds if the company is burning cash far faster than a Tesla goes from 0 to 60 mph? —AS
More tech
—Europe spends to keep up. The European Investment Bank will invest €70 billion to compete with China and the U.S. in AI, robotics, infrastructure.
—Foldable iPhones? Hide your wallet, because they may arrive next year with a “premium” price tag.
—OpenAI removes Jony Ive marketing materials. The deal’s still on; a court order over the name “io” is to blame.
—U.S. rule blocking state AI restrictions will remain in Trump’s proposed budget bill.
—Should Apple acquire Perplexity? Yes. No. (It’s complicated.)
—It’s called “botscaling,” and it’s all about maximizing revenue per tech employee.
—Texas approves public crypto reserve, joining Arizona and New Hampshire.
—Workday lawsuit proceeds. Judge allows case about algorithmic candidate screening and alleged age discrimination.
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