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AXIOS (Joann Muller) - Tesla's push into AI and robotics is proving costly

Tesla's massive investments in humanoid robots , self-driving cars and AI chips are hurting profits, but the company says it'll all pay off down the line. Why it matters: CEO Elon Musk indicated he's "never been more optimistic about the future," but acknowledged the investments could lead to uneven results. Zoom in: Tesla revenue jumped on record vehicle deliveries in the second quarter, but the company saw a significant dip in operating profit because of its heavy spending on R&D. - Tesla plans to spend more than $25 billion on capital investments this year, and that spending rate will grow over the the next two or three years, CFO Vaibhav Taneja told investors and analysts on a call late Wednesday. - Additionally, Tesla plans to…

AXIOS (Adriel Bettelheim) - How AI is supercharging drug development

Artificial intelligence is dramatically speeding up drug development — and a proprietary survey shows how it's priming a bigger automation push that's changing the trajectory of early stage pharma research. Why it matters: The TD Cowen survey of 80 biopharma leaders and insiders finds AI is compressing drug developers' preclinical costs and timelines by as much as 70%. - That's fueling demand for cutting-edge software, sequencing tools and computer models that will help churn out more experimental treatments in the next five years. The big picture: AI can't replace scientific intuition. But the way it can streamline the grueling R&D before human testing begins is making computer screens as important a feature of drug design as…

What are the primary threats to U.S. research efforts mentioned in the report?
China's biotech buildup threatens U.S. research efforts by offering cheaper labor and quick turnaround times, which are attracting billions in new investment.
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What is the current status of AI-discovered drugs regarding FDA approval?
AI has not yet discovered a drug that has won Food and Drug Administration (FDA) approval.
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What specific types of software are expected to see the strongest upside in demand by 2028?
Demand is expected to be strongest for advanced software that can simulate biological processes, predict how two drugs interfere with each other, or adjust dosages for pregnant women and newborns.
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How might the Trump administration's push to reduce animal testing in biomedical research influence pharmaceutical research methods?
It will likely pivot more work toward computational tools, 3D human tissue models, and other alternatives that predict the toxicity of a compound.
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What are the projected growth rates and spending increases for new drug development programs according to TD Cowen survey data?
New drug development programs could grow by more than 10% in the next three to five years, and the technology buying spree and lab spending could account for an additional $1 billion in incremental spending.
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According to a TD Cowen survey of 80 biopharma leaders and insiders, how is artificial intelligence affecting preclinical costs and timelines for drug developers?
AI is compressing preclinical costs and timelines by as much as 70%.
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AXIOS (Maria Curi) - Meet the official quietly leading Trump's science and tech push

Energy Department undersecretary Darío Gil is taking a long-term view of science and technology. Why it matters: While President Trump's second term has been marked by high-drama fights over AI policy, Gil's been working behind the scenes to strengthen U.S. competitiveness in science and tech. The big picture: A familiar pattern is unfolding in AI policy. - An AI lab comes out with a frighteningly powerful model, sending officials scrambling, and states advance AI laws — which spark congressional efforts to get a federal standard in place. - Gil is trying to spearhead a different approach where the federal government plays a larger role in shaping emerging technologies before crises emerge or competitors like China gain an…

AXIOS (Madison Mills) - OpenAI co-founder Andrej Karpathy joins Anthropic

Andrej Karpathy, one of the best-known AI researchers in the world and a founding member of OpenAI , announced Tuesday that he's joining rival AI lab Anthropic . Why it matters: The hire is a major coup for Anthropic in the high-stakes competition for elite AI talent — and another sign the company is emerging as a magnet for some of the industry's most respected technical minds. Driving the news: Karpathy will start this week on Anthropic's pre-training team, which is responsible for the massive training runs that give Claude its core knowledge and capabilities, according to Anthropic. - Karpathy will help launch a new team focused on using Claude itself to accelerate pretraining research — an increasingly important frontier as AI…