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What I learned after spending a week ICML, one of AI’s top research conferences, in Vancouver

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Welcome to Eye on AI! In this edition...Scale AI cuts 14% of workforce after Meta investment, hiring of founder Wang...OpenAI to take cut of ChatGPT shopping sales in hunt for revenues...Former top Google researchers have built a new kind of AI agent—and they think it could be a step toward superintelligence.

I am reporting Eye on AI this week from Vancouver, where I’ve been hanging out with thousands of PhD-level AI researchers at the International Conference for Machine Learning (ICML), one of the top annual gatherings for AI talent from elite universities, Big Tech labs and AI startups. 

I’ll be honest: It’s humbling to be here, surrounded by professors, postdocs, and industry researchers who casually drop references to mathematical proofs and thermodynamics metaphors into everyday conversation. There are thousands of posters, papers, and presentations—far too many to meaningfully absorb, even if I fed them all into ChatGPT. My brain feels like it’s running at max capacity as I try to make sense of talks titled “Controlling Underestimation Bias in Constrained Reinforcement Learning for Safe Exploration” and “Discrete Flow Matching for Graph Generation.”

Still, there’s something electric about being in the room where the future of AI is being debated, defined, and maybe even redirected. I’m a big believer in getting out of my comfort zone—and into a beginner’s mindset—especially in a space where today’s theories might become tomorrow’s technologies. As I wrap up my time at ICML, here’s what’s sticking with me: 

The AI talent wars are in full swing. Meta’s extraordinary, ongoing hiring spree, which has thrown tens and even hundreds of millions of dollars at elite AI researchers lured from OpenAI, Anthropic, Google DeepMind and others, is the talk of ICML. Some clearly see it as over-the-top, with one London-based researcher telling me it is creating “a bubble.” Others envision Meta as a dream gig—one Swedish PhD student, showing off an armful of swag from various exhibition hall booths, including a pair of blue IBM socks—said he could only hope to land an interview there one day. Either way, Big Tech had recruiters working overtime, with private after-hour events for candidates sprinkled out at venues near the Vancouver Convention Center. 

There’s no better place to ask questions. One of the best things about hanging out with really smart people is picking the brains of really smart people. It helps that AI researchers are typically incredibly kind about explaining their work to a curious journalist. In a vast expo hall filled with seemingly-endless rows of poster presentations, you never know when you’ll happen upon a well-known Stanford University professor perfectly happy to spend 20 minutes chatting about AI model behavior and ethical guardrails. How valuable are one-on-one meetings here? How about a machine learning pioneer waxing philosophically about the old days (which are only 10-15 years ago)? Or a former Google Brain researcher patiently explaining the ins and outs of Transformer models? Priceless. 

Scaling up reinforcement learning (RL) is all the rage. That’s not my line—it’s from former Tesla AI chief Andrej Karpathy on X—but RL was everywhere at ICML. (RL, or reinforcement learning, is a training method where Ai learns by trial and error, to maximize some reward. That could be points in a game, or the number of “thumbs up” grades an AI model’s outputs receive from a human evaluator.) Now, researchers are taking reinforcement learning techniques and pushing them to much larger scales to train or fine-tune today’s big language and multimodal models. With more data, more compute, and harder tasks, you (hopefully) get models that work to reason better, follow instructions more reliably, and behave more safely in messy, real-world, enterprise settings. 

Lots of researchers are ready to live their founder dream. There is the startlingly young duo out of Princeton building multimodal medical foundation models. The PhD-level intern at Waymo using Pokemon games to stress-test large language models and AI agents on strategy. The ex-Google and ex-OpenAI researchers aiming to leapfrog current AI tech. With VCs walking the halls during the day and offering open bar events at night, it was easy to view this research conference as partly a hotbed of current and potential founders. 

I’m ready to head back to New Jersey, with plenty of new story ideas and sources in tow. With that, here’s the rest of the AI news.

Sharon Goldman
sharon.goldman@fortune.com
@sharongoldman

AI IN THE NEWS

Scale AI cuts 14% of workforce after Meta investment, hiring of founder Wang. Just weeks after Meta invested $14.3 billion in Scale AI and hired founder Alexandr Wang, the AI startup is laying off 200 full-time employees—about 14% of its workforce, according to CNBC. In a memo to staff on Wednesday, interim CEO Jason Droege, who recently took over for Wang, said the company had scaled its generative AI efforts “too quickly” and had built up “excessive bureaucracy.” Despite the cuts, Droege emphasized that Scale remains well-funded and well-resourced. “These changes will make us more nimble—enabling us to react more quickly to shifts in the market and customer needs,” he wrote in the memo viewed by CNBC. “This structure will allow us to better serve the customers we have today and win back customers that have slowed down work with us.”

OpenAI to take cut of ChatGPT shopping sales in hunt for revenues. According to the Financial Times, OpenAI is planning to take a cut of product sales made directly through ChatGPT as it ramps up efforts to turn the chatbot into an ecommerce platform. Currently, ChatGPT surfaces product listings with links to external retailers. But according to multiple sources familiar with the plans, OpenAI now aims to integrate a full checkout system—allowing users to complete purchases within ChatGPT. Merchants who fulfill orders through this system would pay OpenAI a commission. The company also announced a partnership with Shopify in April as part of its broader push into AI-driven shopping.

Former top Google researchers have built a new kind of AI agent—and they think it could be a step toward superintelligence. Their startup, Reflection, just unveiled Asimov, an agent that learns how software is built not just by reading code, but by digesting everything around it: emails, Slack messages, documentation, and project updates. According to Wired, the goal is to create a more capable AI assistant—and to teach models how humans actually build things, one decision at a time.

FORTUNE ON AI

Elon Musk released xAI’s Grok 4 without any safety reports—despite calling AI more ‘dangerous than nukes’ – by Beatrice Nolan

Commentary: The companies laying off staff for AI today will regret it in five years – by Alexandra Ebert

Delta moves toward eliminating set prices in favor of AI that determines how much you personally will pay for a ticket – by Irina Ivanova

CEO of $14 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea – by Preston Fore

AI CALENDAR

July 22-23: Fortune Brainstorm AI Singapore. Apply to attend here.

July 26-28: World Artificial Intelligence Conference (WAIC), Shanghai. 

Sept. 8-10: Fortune Brainstorm Tech, Park City, Utah. Apply to attend here.

Oct. 6-10: World AI Week, Amsterdam

Dec. 2-7: NeurIPS, San Diego

Dec. 8-9: Fortune Brainstorm AI San Francisco. Apply to attend here.

EYE ON AI NUMBERS

75.6%

That’s how much startup funding surged in the first half of 2025, thanks to the continued AI boom, putting this year on track to become the second-strongest for venture capital investment in history. U.S. startups raised a total of $162.8 billion in the first six months of the year—the most since the record-setting first half of 2021, according to new data from PitchBook.

While that earlier surge was fueled by ultra-low interest rates during the COVID-19 era, this time it’s AI driving the momentum. Massive investments from Big Tech and AI-native firms have supercharged the market, even as many venture funds continue to struggle with fundraising. In just the past three months, startups brought in $69.9 billion.

Notable deals included OpenAI’s $40 billion round, Meta’s $14.3 billion stake in Scale AI, and billion-dollar-plus raises for Safe Superintelligence, Thinking Machines, Anduril, and Grammarly. AI accounted for 64.1% of total deal value and 35.6% of deal volume in the first half—clear evidence of where the money (and conviction) is flowing.

This is the online version of Eye on AI, Fortune’s weekly newsletter on how AI is shaping the future of business. Sign up for free.



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The $124 trillion Great Wealth Transfer is intensifying as inheritance jumps to a new record

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Nearly $300 billion was inherited this year as the Great Wealth Transfer picks up speed, showering family members with immense windfalls.

According to the latest UBS Billionaire Ambitions Report, 91 heirs inherited a record-high $297.8 billion in 2025, up 36% from a year ago despite fewer inheritors.

“These heirs are proof of a multi-year wealth transfer that’s intensifying,” Benjamin Cavalli, head of Strategic Clients & Global Connectivity at UBS Global Wealth Management, said in the report.

Western Europe led the way with 48 individuals inheriting $149.5 billion. That includes 15 members of two “German pharmaceutical families,” with the youngest just 19 years old and the oldest at 94.

Meanwhile, 18 heirs in North America got $86.5 billion, and 11 in South East Asia received $24.7 billion, UBS said.

This year’s wealth transfer lifted the number of multi-generational billionaires to 860, who have total assets of $4.7 trillion, up from 805 with $4.2 trillion in 2024.

Wealth management firm Cerulli Associates estimated last year that $124 trillion worldwide will be handed over through 2048, dubbing it the Great Wealth Transfer. More than half of that amount will come from high-net-worth and ultra-high-net-worth people.

Among billionaires, UBS expects they will likely transfer about $6.9 trillion by 2040, with at least $5.9 trillion of that being passed to children, either directly or indirectly.

While the Great Wealth Transfer appears to be accelerating, it may not turn into a sudden flood. Tim Gerend, CEO of financial planning giant Northwestern Mutual, told Fortune’s Amanda Gerut recently that it will unfold more gradually and with greater complexity

“I think the wealth transfer isn’t going to be just a big bang,” he said. “It’s not like, we just passed peak age 65 and now all the money is going to move.”

Of course, millennials and Gen Zers with rich relatives aren’t the only ones who sat to reap billions. More entrepreneurs also joined the ranks of the super rich.

In 2025, 196 self-made billionaires were newly minted with total wealth of $386.5 billion. That trails only the record year of 2021 and is up from last year, which saw 161 self-made individuals with assets of $305.6 billion.

But despite the hype over the AI boom and startups with astronomical valuations, some of the new U.S. billionaires come from a range of industries.

UBS highlighted Ben Lamm, cofounder of genetics and bioscience company Colossal; Michael Dorrell, cofounder and CEO of infrastructure investment firm Stonepeak; as well as Bob Pender and Mike Sabel, cofounders of LNG exporter Venture Global.

“A fresh generation of billionaires is steadily emerging,” UBS said. “In a highly uncertain time for geopolitics and economics, entrepreneurs are innovating at scale across a range of sectors and markets.”



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Apple rocked by executive departures, with chip chief at risk of leaving next

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Apple Inc., long the model of stability in Silicon Valley, is suddenly undergoing its biggest personnel shake-up in decades, with senior executives and key engineers both hitting the exits.

In just the past week, Apple’s heads of artificial intelligence and interface design stepped down. Then the company announced that its general counsel and head of governmental affairs were leaving as well. All four executives have reported directly to Chief Executive Officer Tim Cook, marking an exceptional level of turnover in Apple’s C-suite. 

And more changes are likely coming. Johny Srouji — senior vice president of hardware technologies and one of Apple’s most respected executives — recently told Cook that he is seriously considering leaving in the near future, according to people with knowledge of the matter. Srouji, the architect of Apple’s prized in-house chips effort, has informed colleagues that he intends to join another company if he ultimately departs.

At the same time, AI talent has been fleeing for tech rivals — with Meta Platforms Inc., OpenAI and a variety of startups poaching many of Apple’s engineers. That threatens to hamper the company’s efforts to catch up in artificial intelligence, an area where it’s struggled to make a mark. 

It all adds up to one of the most tumultuous stretches of Cook’s tenure. Though the CEO himself is unlikely to leave imminently, the company has to rebuild its ranks and figure out how to thrive in the AI era. 

Within the company, some of the departures are cause for deep concern — with Cook looking to stave off more with stronger compensation packages for key talent. In other cases, the exits just reflect the fact that veteran executives are nearing retirement age. Still, many of the shifts constitute a disconcerting brain drain.

While Cook maintains that Apple is working on the most innovative product lineup in its history — a slate that’s expected to include foldable iPhones and iPads, smart glasses, and robots — Apple hasn’t launched a successful new product category in a decade. That leaves it vulnerable to poaching from a range of nimbler rivals better equipped to develop the next generation of devices around AI.

A spokesperson for Cupertino, California-based Apple declined to comment.

The exit of Apple’s AI chief, John Giannandrea, followed a number of stumbles in generative AI. The company’s Apple Intelligence platform has suffered from delays and subpar features. And a highly touted overhaul to the Siri voice assistant is roughly a year and a half behind schedule. Moreover, the software will rely heavily on a partnership with Alphabet Inc.’s Google to fill the gaps in its capabilities.

Against that backdrop, Apple began phasing Giannandrea out of his role in March but is allowing him to remain until next spring.

Within Apple, employees have long expected Giannandrea to step aside — and some have expressed surprise that he’s sticking around as long as he is.

But parting ways with Giannandrea sooner would have been taken as public acknowledgment of a problem, people familiar with the situation said. 

Design veteran Alan Dye, meanwhile, is heading to Meta’s Reality Labs unit — a remarkable defection to one of Apple’s fiercest rivals.

Within a day of that news, Apple turned around and announced that it had poached one of Meta’s executives. Jennifer Newstead, chief legal officer at the social networking company, will become Apple’s general counsel. She helped oversee Meta’s successful antitrust battle with the US Federal Trade Commission — experience that’s likely to prove useful in Apple’s own legal fight with the Justice Department over alleged anticompetitive practices.

Read More: Apple Taps Meta Lawyer as General Counsel in Latest Shake-Up

Newstead is taking over for Kate Adams, who served eight years in the role and will retire in late 2026. Lisa Jackson, vice president for environment, policy and social initiatives, is retiring as well — and her duties will be divided up among other executives. 

Though the news of Adams’ departure was jarring — especially considering the number of Apple legal disputes currently on her plate — she’s had a fairly long tenure for a general counsel at the company.

Jackson, meanwhile, was widely expected to be leaving soon. The former Obama administration official has kept a lower profile during President Donald Trump’s second term, opting to dispatch deputies to handle discussions with the White House. Bloomberg News had previously reportedthat she was considering retirement.

These exits follow an even bigger departure. Jeff Williams, Cook’s longtime No. 2, retired last month after a decade as chief operating officer. Another veteran leader, Chief Financial Officer Luca Maestri, stepped into a smaller role at the start of 2025 and is likely to retire in the not-too-distant future.

The flurry of retirements reflects a demographic reality for Apple. Many of its most senior executives have been at the company for decades and are roughly the same age — either in their 60s or nearing it.

Cook turned 65 last month, fueling speculation that he would join the exodus. People close to the executive have said that he’s unlikely to leave soon, though succession planning has been underway for years. John Ternus, Apple’s 50-year-old hardware engineering chief, is considered by employees to be the frontrunner CEO candidate.

When Cook does step down, he’s likely to shift into the chairman job and maintain a high level of influence over the iPhone maker. That makes it unlikely that Apple will select an outsider as the next CEO, even as executives like Nest Labs founder Tony Fadell are being pushed as candidates by people outside the company. Though Fadell helped invent Apple’s iconic iPod, he left the tech giant 15 years ago on less-than-friendly terms. 

For now, Cook remains active at Apple and travels extensively on behalf of the company. However, the executive does have an unexplained tremor that causes his hands to shake from time to time — something that’s been discussed among Apple employees in recent months.

The shaking has been noticed by both executives and rank-and-file staff during meetings and large company gatherings, according to people familiar with the matter. But people close to Cook say he is healthy and refute rumors to the contrary that have circulated in Silicon Valley.

Read More: The Apple Insiders in the Running to Succeed Cook

A more imminent risk is the departure of Srouji, the chip chief. Cook has been working aggressively to retain him — an effort that included offering a substantial pay package and the potential of more responsibility down the road. One scenario floated internally by some executives involves elevating him into the role of chief technology officer. Such a job — overseeing a wide swath of both hardware engineering and silicon technologies — would potentially make him Apple’s second-most-powerful executive.

But that change would likely require Ternus to be promoted to CEO, a step the company may not be ready to take. And some within Apple have said that Srouji would prefer not to work under a different CEO, even with an expanded title.

If Srouji does depart, which isn’t yet a certainty, the company would likely tap one of his two top lieutenants — Zongjian Chen or Sribalan Santhanam — to replace him.

The recent shifts are already reshaping Apple’s power structure. More authority is now flowing to a quartet of executives: Ternus, services chief Eddy Cue, software head Craig Federighi and new COO Sabih Khan. Apple’s AI efforts have been redistributed across its leadership, with Federighi becoming the company’s de facto AI chief.

Ternus is also poised to take a starring role next year in the celebration of Apple’s 50th anniversary, further raising his profile. And he’s been given more responsibility over robotics and smart glasses — two areas seen as future growth drivers. 

Further reorganization is likely. Deirdre O’Brien, head of retail and human resources, has been with Apple for more than 35 years, while marketing chief Greg Joswiak has spent four decades at the company. Apple has elevated the key lieutenants under both executives, preparing for their eventual retirements.

At the same time, Apple is contending with a talent drain in its engineering ranks. This has become a serious concern for the executive team, and Apple’s human resources organization has been instructed to ramp up recruitment and retention efforts, people familiar with the situation said.

Robby Walker, who had overseen Siri and an initiative to build a ChatGPT-like search experience, left the company in October. His replacement, Ke Yang, departed after only weeks in the job, joining Meta’s new Superintelligence Labs.

To help fill the void left by Giannandrea, Apple hired Google and Microsoft Corp. alum Amar Subramanya as vice president of artificial intelligence. He’ll report to Federighi, the software chief.

But there’s been a broader collapse within Apple’s artificial intelligence organization, spurred by the departure of AI models chief Ruoming Pang. Pang, along with colleagues such as Tom Gunter and Frank Chu, went to Meta, which has used eye-popping compensation packages to lure talent.

Roughly a dozen other top AI researchers have left the organization, which is suffering from low morale. The company’s increasing use of external AI technology, such as Google’s Gemini, has been a particular concern for employees working on large language models.

Apple’s AI robotics software team has also seen widespread departures, including its leader Jian Zhang, who likewise joined Meta. That group is tasked with creating underlying technology for products such as a tabletop robot and a mobile bot.

The hardware team for the tabletop device, code-named J595, has been bleeding talent too — with some headed to OpenAI. Dye also was a key figure overseeing that product’s software design.

Read More: Apple’s AI Push to Hinge on Robots, Security, Lifelike Siri

The user interface organization has been hit as well, with several team members leaving between 2023 and this year. That attrition culminated in Dye’s exit, which stemmed partly from a desire to integrate AI more deeply into products and a feeling that Apple hasn’t been keeping pace in the area. Another top interface leader under Dye, Billy Sorrentino, also left for Meta.

The hardware side of the design group — the team responsible for the physical look and feel of Apple’s products — has been nearly wiped out over the last half-decade. Many staffers followed former design chief Jony Ive to his studio, LoveFrom, or went to other companies.

Longtime interface designer Stephen Lemay is now stepping in as Dye’s replacement. Cook is also taking on more responsibility for overseeing design, a role that had been held by Williams.

Ive, a visionary designer who helped create the iPhone, iPad and Apple Watch, is now working with OpenAI to develop a new generation of AI-enhanced devices. That company acquired Ive’s startup, io, for more than $6 billion to jump-start its hardware business — setting its sights on Apple’s territory.

Like Meta, OpenAI has become a key beneficiary of Apple’s talent flight. The San Francisco-based company has hired dozens of Apple engineers across a wide range of fields, including people working on the iPhone, Mac, camera technology, silicon design, audio, watches and the Vision Pro headset. 

In a previously unreported development, the AI company is hiring Apple’s Cheng Chen, a senior director in charge of display technologies. His purview included the optics that go into the Vision Pro headset. OpenAI recruited Tang Tan, one of Apple’s top hardware engineering executives, two years ago.

Read More: Apple’s Star Designer Who Introduced iPhone Air Leaves Company

And over the summer, the company lost the dean of Apple University, the internal program designed to preserve the company’s culture and practices after the passing of co-founder Steve Jobs. Richard Locke, who spent nearly three years at Apple, left to become dean of the Massachusetts Institute of Technology’s business school.



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Epstein grand jury documents from Florida can be released by DOJ, judge rules

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A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.

U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.

The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.

Friday’s court ruling dealt with the earliest known federal inquiry.

In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.

Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.

In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.

The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.

A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.

A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.

Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.

When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.

The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.

One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.

A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.

The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.

___

Sisak reported from New York.



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