Good morning. In today’s edition:

• 🔍 OpenAI unveils its latest model
• 🎂 The Sims turns 25
• ⏸️ Mexico and Canada tariffs paused

… and more.

Ready, Set, Go: Today’s news should be a ~3.89-minute read (1,036 words).

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“If you want to succeed, double your failure rate.”

–Thomas Watson (1874-1956)

OpenAI on Sunday unveiled Deep Research, a new AI agent that’s capable of conducting complex, multi-step online research into a variety of topics (a DeepSeek, if you will).

How it works: In response to a single query, Deep Research can search the web and analyze massive amounts of text, images, and PDFs to compile a detailed, fully cited report “at the level of a research analyst.” According to OpenAI, it “accomplishes in tens of minutes what would take a human many hours.”

• Deep Research is intended for professionals in finance, science, engineering, and similar disciplines – but it can also be used by consumers to analyze major purchases like cars and furniture, per OpenAI.
• It marks the second AI agent OpenAI has released this year, alongside Operator. Both models are available to subscribers of ChatGPT’s new $200/month Pro tier, with future plans to make them more widely available.

But…Deep Research is still subject to the same Achilles heel that affects all other AI models – sometimes, it just makes sh*t up. OpenAI says its latest tool has an infrequent tendency to hallucinate facts and present users with incorrect information, albeit at a “notably” lower rate than ChatGPT (based on internal testing).

📸 Big picture: Deep Research’s launch comes as OpenAI has committed to speeding up its AI product releases in response to the recent advances made by DeepSeek. OpenAI is also reconsidering its overall development approach and could switch to making its models open source like DeepSeek’s, meaning anyone could use them for free and alter their underlying code, CEO Sam Altman revealed on Friday – a somewhat ironic potential occurrence, given OpenAI is in the midst of transitioning away from a non-profit structure and to a for-profit one.

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The new Department of Government Efficiency (DOGE), led by Elon Musk, has officially kicked off its campaign to make significant changes to the federal government on an agency-by-agency basis.

Musk, who’s been named a special government employee, oversees a team of people at DOGE who have been dispersed throughout federal agencies to gather information and deliver edicts.

The Treasury Department is a major initial target. In recent days, DOGE officials have been granted access to a Treasury payment system that distributes trillions of dollars in entitlement benefits, grants, and tax refunds to Americans each year, according to multiple reports.

• DOGE’s goal is to review the overall efficiency of the Treasury’s system, sources said.
• The officials reportedly have “read only” access, and aren’t able to stop individual payments or make other changes.

Foreign aid is also in the spotlight. The US Agency for International Development (USAID) is receiving major scrutiny from Musk, who described the agency as “beyond repair” and said President Trump has agreed to let him shut it down (though some top Trump advisers disagree).

💬 The rumor mill: The Trump administration is currently weighing executive actions to dismantle the Education Department as part of DOGE’s campaign to shrink the federal government, per a new Wall Street Journal report.

On February 4, 2000, The Sims was released. It subsequently grew to become one of the best-selling videogame franchises of all time, boosted by bored millennials living out both benign and diabolical fantasies through the little digital characters.

But it wasn’t supposed to be a hit.

Dolls, on a screen

Game designer Will Wright was inspired to create a "virtual doll house" after losing his home during the Oakland firestorm of 1991 and subsequently rebuilding his life.

But when he pitched the idea to his bosses at Maxis, a videogame developer, they rejected it. Maxis was later bought by Electronic Arts (EA) – who was more receptive to the pitch. And it paid off.

• The franchise’s latest installment, The Sims 4, has been translated into 18 languages and played by 85 million people worldwide, per EA.
• In total, the franchise has sold ~200 million copies worldwide. For comparison: Madden, the annually released ultra-popular NFL game also made by EA, has sold ~130 million copies.

🎂 Humple Borpnah! In celebration of the birthday, EA is making The Sims and The Sims 2 available for purchase again. Watch the official release trailer here.

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BUSINESS & MARKETS

• 📉 US markets fell across the board (S&P: -0.8%; Dow: -0.3%; Nasdaq: -1.2%). | 🚫🌎 President Trump agreed to pause his new tariffs against Mexico and Canada – but not China – for at least 30 days after both countries pledged to address border security and drug trafficking. (From the Left | From the Center | From the Right)
• 📝 Palantir posted strong Q4 earnings and offered better-than-expected guidance; shares increased as much as 22% in after-hours trading.
• 📈 State Farm is seeking an emergency rate hike in California, averaging 22%, to offset its wildfire payouts; State Farm is the state's largest insurer.

SPORTS, MEDIA & ENTERTAINMENT

in partnership with The Knowledge

• 🏈 DE Myles Garrett, the reigning NFL Defensive Player of the Year, has reportedly requested a trade from the Cleveland Browns after eight seasons.
• 🏈 Chip Kelly is leaving his role as Ohio State’s offensive coordinator to accept the same position with the Oakland Raiders; Kelly will reportedly be the highest-paid coordinator in the NFL at $6 million/year.
• 🎭⚖️ Justin Baldoni launched a website featuring previously undisclosed texts and emails with Blake Lively and Ryan Reynolds as part of his ongoing lawsuit against the power couple.

*From our partners: 🧠🗞️ Smart news for busy minds… Straight to your inbox, The Knowledge serves up daily world events with wit and wisdom in 5 minutes flat. Join 140k+ subscribers enjoying free, fuss-free news.

SCIENCE, SPACE & EMERGING TECH

• 🦧 Bonobos can tell when they know information a human doesn’t, a sign that they can deduce the mental states of others to communicate and cooperate more effectively, per a new study.
• 🧠🥄 The average human brain contains 7 grams worth of microplastics – or the equivalent of one plastic disposable spoon, per new research.
• 🧑‍🚀🌱 Chinese astronauts demonstrated a new way of making rocket fuel and breathable oxygen in space using a first-of-its-kind process called “'artificial photosynthesis.”

MISCELLANEOUS

in partnership with Kanguro

• 🔥 Los Angeles fire officials say the deadly Eaton and Palisades wildfires are now 100% contained, about 3.5 weeks after the blazes began; the combined death toll stands at 29, with the causes of both fires still under investigation.
• ⚖️🏛️ A federal judge extended a temporary block on the Trump administration's spending freeze across the federal government.
• ✍️ Trump also signed an executive order directing the development of a US sovereign wealth fund that he says could buy TikTok.

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Good thing there’s not a long line around – Vanguard is in cutting mode. America’s second-largest financial advisory firm is trimming management fees for 87 of its investment funds, marking the largest such cuts in its nearly 50-year history, CEO Salim Ramji announced yesterday.

• The cuts mean Vanguard’s average asset-weighted fee is now just 0.07% for its $10+ trillion under management, compared with 0.44% for the rest of the industry.
• Vanguard says the fee cuts are expected to save investors in its mutual funds and ETFs – including pension funds, financial planners, hedge funds, 401(k) plans, and millions of individual investors – a combined ~$350 million this year, based on current asset levels.

In the know: Vanguard ETFs took in a near-record $305 billion of inflows last year, which helps explain Monday’s fee cuts. The firm’s unusual structure – the company is owned by its funds, which in turn are owned by Vanguard’s fund shareholders – means almost every gain is put towards lowering costs for investors, Bloomberg reports.

☝️ You’re looking at some of the winners from the 2024 Travel Photographer of the Year competition, which featured 20,000+ entries from over 150 countries.

🤔 Did You Know? Sea otters have natural pockets – aka loose pouches of skin underneath their arms, which the animals use to store food and their favorite rocks to crack open prey like mussels.

📰 Worth a Read: The Most Valuable Employee Paradox

🖱 Clickbait: Why Christopher Walken has never owned a cellphone

Here are five stats from this past week that made our team go “whoa.” Hopefully you will, too.

📅😨 The average American experiences the “Sunday scaries” 36 times/year, with the average time of onset felt at 3:54 pm.

🪙 Each penny cost the US Mint $0.0369 to produce and distribute last year, while each nickel cost $0.1378.

🏀 Roughly 1 in every 6 US men over 7 feet tall are currently playing in the NBA.

🌱 An estimated 83% of all plant life in Gaza was destroyed in the recent Israel-Hamas war (as of June 2024).

🎓💰 Brands spent $338 million on NIL deals with student athletes last year (primarily college students), up from $171 million in 2023, per Opendorse data.

Yesterday, we covered the first major tariffs of President Trump’s second administration.

❓ Our question to you: Do you agree with the Trump administration’s decision to impose tariffs on Mexico, Canada, and China?

• 👍 Yes: 13%
• 👎 No: 78%
• 🤷 Unsure/other: 9%

Click here to read some of the most thoughtful longform responses.

+Note on sample size: We received 3,260 votes and 335 longform responses.

💊 A groundbreaking new treatment for Type 1 diabetes just underwent its first human trial in Sweden and is showing positive results. It enables cells to avoid immune rejection and produce insulin without the typical use of immunosuppressants.

🖼️ The Manchester Art Gallery features a unique exhibition called Room To Breathe, a one-of-a-kind room featuring just three paintings. The gallery is part of the Mindful Museum Campaign and asks guests to mindfully spend at least 15 minutes with the art piece of their choice.

🌟 A year and a half ago, chef Robbie McCauley gave up his London career to open a quaint restaurant in a 200-year-old remote cottage on the Irish coast. Within months, the cottage earned a Michelin Star.

🩸 Trivia: What's the rarest blood type?

🐊 True or False? Alligators can live up to 100 years.

🤔 Riddle Me This: If you drop me, I'm sure to crack, but give me a smile, and I'll always smile back. What am I?

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🩸 Trivia: AB negative

🐊 T/F: False, they can live up to ~50 years

🤔 Riddle: A mirror