July 18, 2026

Presented By

It’s time! If you thought human UFC fighters were tough, you should see the robots coming for their jobs. This week, during a humanoid robot fight night in China, one competitor nearly lost its head, but kept on swinging. Though it ultimately lost the bout (once its decapitation was complete), it was still able to hang its head high. Higher, actually.

—Molly Liebergall, Dave Lozo, Sam Klebanov, Matty Merritt, Holly Van Leuven, Abby Rubenstein

In today’s newsletter, we’ll look at:

China’s AI catching up to America’s
A lettuce recall
The UK’s soon-to-be prime minister

Markets

Nasdaq

25,520.24

-1.40%

S&P

7,457.69

-1.01%

Dow

52,146.42

-0.77%

10-Year

4.541%

-3.0 bps

Bitcoin

$64,047.18

+0.20%

Apple

$333.74

+0.14%

Data is provided by

*Stock data as of market close, cryptocurrency data as of 6:30pm ET. Here's what these numbers mean.

Markets: Stocks fell yesterday as China’s latest AI model spurred fears (more on that below), closing out a losing week due mostly to a big dip from chips—as semiconductors looked not-so-tasty to investors. The faltering chip sector meant Apple took the crown from Nvidia as the world’s most valuable company yesterday for the first time since April of last year, with its market value sitting at $4.88 trillion, while Nvidia’s dropped to $4.86 trillion.

IT’S RIGHT BEHIND YOU

China’s latest AI closes gap with US models (again)

Samuel Boivin/Getty Images

Kimmy from Full House 🤝 Kimi from China 🤝 barging right in. A Beijing-based artificial intelligence lab called Moonshot surprised Silicon Valley yesterday when it released Kimi K3, a new AI model that it says beats most US systems and costs less to use.

According to benchmarks provided by Moonshot:

Kimi outperforms all available AI models except for two—Anthropic’s Claude Fable 5 and OpenAI’s GPT-5.6 Sol—both of which came out in the last two months.
Kimi can store far more information than leading US models, boasting 2.8 trillion parameters (which are like an AI model’s brain cells) compared with an estimated 1.5 trillion for Claude Opus 4.8, released in May.

Price comparison: Moonshot will charge businesses $15 per million output tokens (a metric of AI usage), compared to costs of $30 for GPT-5.6 Sol and $50 for Claude Fable 5.

Threat Level Midnight: Kimi is also supposedly better at most coding and agentic tasks than other recently released versions of GPT and Claude, while still being cheaper. That’s especially threatening to OpenAI and Anthropic, because their models’ coding capabilities are major revenue drivers, and both companies are eyeing IPOs. Kimi’s birth announcement rattled markets in Taiwan, Japan, and the US, where the tech-heavy Nasdaq recorded its biggest dip of the week.

Déjà vu…

China’s DeepSeek similarly spooked Silicon Valley last year, when it released open-source AI that it claimed went toe-to-toe with US models and undercut their prices. Moonshot also plans to open-source Kimi later this month, meaning developers will be able to download and customize it.

Chinese President Xi Jinping applauded his country’s progress on low-cost AI yesterday and called for “a symphony of global cooperation,” panning the US for its efforts to restrict China’s access to AI technology.

But US companies claim China isn’t playing fair: Anthropic recently accused Chinese tech giant Alibaba (one of Moonshot’s investors) of attempting to extract Claude’s AI capabilities to train its own models, and OpenAI has made similar claims against DeepSeek.—ML

Reader poll

Have you used a Chinese AI model?

Yes, they’re cheaper.
No, I’m sticking with the one that’s American-made.
I just use whatever AI my company tells me to, so maybe.
I don’t use AI.

Sponsored By ZBiotics

Toast tonight, keep tomorrow

Summer plans love to say “just one drink,” then order a charcuterie board, three spritzes, and a mystery drink called the “house special.” ZBiotics Pre-Alcohol helps people socialize without having to surrender tomorrow’s plans.

Created by PhD microbiologists, it is a genetically engineered probiotic designed to break down acetaldehyde, an unwanted byproduct of alcohol in the gut. The game plan is simple: Drink it before the first beverage, enjoy the celebration, and give the next morning a fighting chance.

It is a must-have for weddings, barbecues, rooftop hangs, and any party where hydration becomes its own personality by 10pm.

Use code BREW for 15% off your first order. Your purchase is backed by a 100% money-back guarantee.

Tour de headlines

Getty Images

🥬 Lettuce grower recalls products potentially linked to parasite outbreak. Taylor Farms is yanking all of its iceberg lettuce grown in central Mexico from the US market, in an effort to curb the recent outbreak of the parasite cyclospora, which has sickened people in multiple states and caused all those alarming “explosive diarrhea” headlines. The recall comes after the CDC and FDA on Thursday linked cases in five Midwestern states to shredded lettuce supplied to Taco Bell. The fast-food chain has already voluntarily removed some items. Taylor Farms is one of the country’s largest produce growers, supplying not just Taco Bell, but also other restaurants and major grocers.

🚀 SpaceX has lost $1 trillion in value in a month. Although it hopes to one day colonize Mars, SpaceX is currently looking pretty earthbound to investors. Its stock fumbled yesterday following the decision to abort a Starship launch on Thursday. Last month, the Elon Musk-led company popped after pulling off the world’s largest IPO, but more recently, the stock has pulled back and traded below its IPO price. Per Bloomberg, its market value was $1.63 trillion yesterday, compared to $2.64 trillion on June 16, at the close of its third trading day. Short-sellers, meanwhile, have made ~$4 billion betting against it.

🇮🇷 The US and Iran traded strikes for a seventh day. It looks like President Trump meant it when he said the ceasefire was “over” amid tensions concerning the Strait of Hormuz, as both the US and Iran have been attacking ever since. This continued yesterday, with the US hitting targets including bridges and energy sites, and Iran striking the US’ Middle Eastern allies. The price of oil rose yesterday, with crossings through the strait hitting a three-week low, according to the Associated Press. Meanwhile, Iraq and Syria signed an agreement yesterday to rebuild an oil pipeline that could provide an alternative for moving oil that bypasses the strait, though experts said Iran would still pose a regional threat.—AR

KNOW BURNHAM

England’s incoming PM is getting down to business

Gareth Fuller/Getty Images

Andy Burnham will become England’s seventh prime minister in a decade on Monday—the type of job turnover usually reserved for head coaches of a dysfunctional NFL franchise. He is tasked with something his predecessors failed to accomplish: reigniting an economy that has stagnated since the country left the European Union a decade ago.

Installed as leader of the Labour Party yesterday, Burnham called the moment the “most significant change” in British politics in 40 years. He promised to unify his party and “beat Britain’s new right,” while remaining “pro-business.”

But some businesses may get more help than others. His introductory speech included the slogan: “Good growth in every British postcode.” Bloomberg reported that big businesses and banks based in London—where productivity has widely outpaced the rest of the country for decades—expect less favorable policies. And strategists close to Burnham told the New York Times that decentralization could be at the center of his still-unfinalized economic agenda.

Burnham may also push for other major reforms: He said yesterday that public ownership of essentials, like water and energy, that were privatized in the 1980s under Conservative Prime Minister Margaret Thatcher would reduce inflation, which sat at 2.8% in May, above the Bank of England’s goal of 2%.—DL

This week’s question

What’s a superstition you abide by even if you’re not superstitious?

Sam’s answer to get the juices flowing: “I never fail to take a quick seat right before leaving my home for a long trip, as prescribed by the Slavic pagan custom. While the traditional belief is that the practice safeguards your journey, I view it as a way to collect my thoughts and make sure I didn’t forget my passport.”

Submit your response here.

recs

Salad recipes with no lettuce, just in case.
The best photos from the World Cup (so far).
Add some books from this list of the 250 most influential ones in US history to your nightstand pile.
A beach towel that’ll make you feel like you’re at a luxury resort.**

Talent, innovation, and opportunities come together in New Jersey. The skilled workforce, access to global markets, and welcoming communities make it a place where businesses and families can thrive. Learn more.*

^{*A message from our sponsor. **This is a product recommendation from our writers. When you buy through this link, Morning Brew may earn a commission.}

Play

Brew Crossword: Your sample clue from our biggest puzzle of the week is “Babysitter’s nightmare.” Give it a go and play the Crossword here.

Open House

Welcome to Open House, the only newsletter section not willing to fully commit to a castle in the mountains. We’ll give you a few facts about a listing and you try to guess the price.

Zillow

Today’s property is in Golden, CO, a town situated just outside of Denver that oozes with small-town charm. Known to locals as “The Music House,” the home was built in 1940 and has a perfectly preserved turret (complete with a grand piano). Amenities include:

3 beds, 3 baths
Artistically textured walls
French doors that open to the patio

How much for the historic home?

Share the Brew

Share the Brew, watch your referral count climb, and unlock brag-worthy swag.

Your friends get smarter. You get rewarded. Win-win.

Your referral count: 0

Click to Share

Or copy & paste your referral link to others:
morningbrew.com/r/?kid=71df84e8

Answer

$1.3 million

Word of the Day

Today’s Word of the Day is: decapitation, meaning “the total separation of the head from the body.” Thanks to Jillian from Los Angeles for keeping a cool head and sending a suggestion. Submit another Word of the Day here.

✳︎ A Note From Frontieras

This is a paid advertisement for Frontieras’s Regulation A offering. Please read the offering circular at https://invest.frontieras.com/

Reservation of the ticker symbol is not a guarantee that we will be listed on the NASDAQ. Listing on the NASDAQ is subject to approvals.

Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.

Written by Abigail Rubenstein, Molly Liebergall, Dave Lozo, Matty Merritt, Sam Klebanov, and Holly Van Leuven

Was this email forwarded to you? Sign up here.

Get smarter in just 5 minutes

Tech & AI News: Tech Brew
Markets News: Brew Markets
Real Estate News: The Playbook
Money & Career: Bossy

Take The Brew to work

Interested in podcasts?

Check out ours here.

ADVERTISE//CAREERS//SHOP//FAQ

Update your email preferences or unsubscribe here.
View our privacy policy here.

Copyright © 2026 Morning Brew Inc. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011

☕️ Catching up