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Good morning readers. Happy Friday…and happy National Doughnut Day. Celebrated since 1938, this sweet holiday was started by the Salvation Army’s “Donut Lassies” who boosted soldier morale in WWI by frying up doughnuts. Now, chains like Dunkin’ and Krispy Kreme honor this tradition with tasty deals (while supplies last). Treat yourself to a sweet start to June—because who can resist a free doughnut?

Let’s jump into today’s storylines.

In today’s digest:

• The company taking the art world by storm

• Headline Hustle: Humane (the company behind the AI pin) is looking for a buyer, the NFL is in a multi-billion dollar antitrust lawsuit over its Sunday Ticket package, European Central Bank follows with a rate cut of its own

• Elon Musk threatens to leave Tesla

• Pulse Points: What’s Trending

TECH

Artists clash with AI, Cara cashes in

If you thought the mass exodus from MySpace in the late 2000s was dramatic, the current shift of artists from Meta to Cara might just be the sequel we didn’t know we needed. In a digital age where every click can fuel a corporate giant, artists are voting with their downloads, propelling Cara—an anti-AI platform—to staggering new heights in the App Store.

A platform’s rise amidst AI controversy

Meta has long been the go-to platform for artists to showcase their creations and attract clientele. But its recent push to use public posts to train its generative AI systems—with no opt-out for users outside Europe—has sparked a massive exodus.

Enter Jingna Zhang, Cara’s founder and an advocate for artists’ rights. Zhang articulated the tipping point for many: “When AI is constantly in your face, and opting out becomes a hurdle, it’s only natural that the annoyance transforms into outright defiance.”

Cara promises a sanctuary for artists that other companies can’t.

• The platform combines the visual appeal of Instagram with the connectivity of Twitter, tailored specifically for the creative community. It also ensures that the artwork shared does not end up as training material for AI models.

• This commitment has resonated deeply, with user numbers ballooning from 40,000 to 650,000 in just a week, a clear indicator of the community’s eagerness for a platform that aligns with their values.

Looking ahead…as Cara's popularity surges, so does the scrutiny and the operational challenges. With a staggering 1525% increase in users and a web hosting bill of $96,280 (in just one week), the company faces their toughest challenge yet. But with a groundswell of support from the artist community, Cara seems to be more than a platform—it's a movement. "Building a product is a bit like making art. Not everyone will love it, but for those who share your vision, it becomes a masterpiece."

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IN THE KNOW

Headline Hustle

🫴 Humane, the startup behind the AI pin, is looking for a buyer. Humane, the AI hardware startup founded by ex-Apple designers, is seeking a buyer after the lukewarm debut of its AI Pin, according to a source. The company is in talks with HP and other firms, including telecom companies, and has hired Tidal Partners for advice. Priced at $699 with a $24 monthly data subscription, the AI Pin received poor reviews, being called “untrustworthy” and “not very useful.” Despite raising over $200 million, Humane is reportedly behind its initial targets.

🏈 The NFL is facing a multi-billion dollar antitrust suit. A class action lawsuit challenging the NFL's Sunday Ticket package, with opening arguments set for Thursday, could impact TV rights deals and team revenues. Filed in 2015, the suit claims the NFL forces fans to pay more by restricting "out-of-market" games to the Sunday Ticket package. Plaintiffs seek billions in damages, potentially tripled under antitrust law. Witnesses may include NFL Commissioner Roger Goodell and team owners.

🇪🇺 European Central Bank cuts rates for first time since 2019. The European Central Bank (ECB) cut interest rates by a quarter point to 3.75%, marking its first rate reduction in nearly five years and diverging from the Federal Reserve's policy. The move, driven by confidence that inflation is nearing the ECB’s 2% target, aims to provide relief to households and businesses. ECB President Christine Lagarde indicated further cuts could follow, depending on economic data. This decision contrasts with the Fed, which is not expected to cut rates soon.

BUSINESS

Elon Musk threatens to leave Tesla if he doesn’t get his $56 billion comp package

"Go big or go home" seems to be the mantra at Tesla, where the stakes are sky-high in the latest shareholder showdown over Elon Musk's $56 billion compensation package. Set against the backdrop of a legal scuffle and a controversial first vote, Tesla’s board chair, Robyn Denholm, is rallying the troops. Her message? Seal the deal with Musk, or watch him innovate elsewhere.

As Tesla approaches a pivotal moment on June 13th, the electric car giant's shareholders face a déjà vu decision over Musk’s colossal compensation package. Initially invalidated by a Delaware judge for its flawed approval process, this re-vote not only tests Tesla's governance but also the resolve of its investors.

Denholm’s recent letter to shareholders is a clear play to align them with Musk’s ambitious goals, emphasizing that conventional rewards don't apply to an unconventional CEO. She argues that a visionary like Musk, who’s eyeing revolutionary advances in AI and self-driving technology, requires an unparalleled incentive to stay on board and drive Tesla’s future forward.

Big picture: As the clock ticks down to the shareholder meeting, the tension is palpable. Musk has hinted at drastic measures if the compensation is not approved, including potentially spinning off Tesla’s AI division.

SNIPPETS

Pulse Points

• GameStop surged over 47%, yesterday, closing at $46.55 per share, with a session high of $47.50. The stock has more than doubled this week.

• Hallie Biden, widow of President Joe Biden’s late son Beau, testified in federal court Thursday that she became a drug user after Hunter Biden introduced her to crack cocaine.

• Boeing's Starliner mission successfully docked with the International Space Station after overcoming issues that arose overnight and Thursday during the journey.

• Starbucks announced it is partnering with Grubhub to boost sales after a difficult quarter, with most beverages and food available for delivery starting in June.

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