# This Week in Tech: Apple Holds the Line on Prices, Defense Tech Gets a Boost, and AI Gets a Little Too Friendly

## This Week in Tech: Apple Holds the Line on Prices, Defense Tech Gets a Boost, and AI Gets a Little Too Friendly

Welcome to your weekly dose of the biggest tech stories! From earnings calls to AI model releases and legal battles, the tech world never sleeps. Let’s dive into the headlines that grabbed our attention this week.

**Apple’s Tariff Tightrope Walk**

Despite absorbing a hefty $900 million in tariffs last quarter, Apple CEO Tim Cook announced during their earnings call that the company wouldn’t be raising prices… *yet*. It seems Apple is playing a strategic waiting game, but how long can they maintain this stance amidst global economic pressures?

**Defense Startup Lands a Fortune**

Mach Industries, a defense tech startup founded by the impressively young Ethan Thornton, is reportedly securing a fresh $100 million in funding. This influx of capital brings their total funding to a staggering $185 million. The 21-year-old founder clearly has investors betting big on the future of defense technology.

**Alibaba Enters the AI Arena with Qwen3**

The AI arms race continues! Alibaba unveiled its Qwen3 family of AI models this week, boldly claiming superior performance compared to OpenAI and Google. These “hybrid” models are currently not available for download, leaving us eager to see if they can truly live up to the hype.

**More Headlines You Shouldn’t Miss:**

* **Amazon’s Project Kuiper Launches:** Amazon fired off its first 27 internet satellites, marking a significant step towards creating its space-based internet network. They need to deploy half of the network by mid-2026 to meet the FCC deadline.
* **Meta’s AI App Arrives:** Meta is taking on ChatGPT with a standalone AI app, giving users direct access to Meta AI. The app was unveiled at Meta’s first LlamaCon event.
* **Encrypted Email Under Scrutiny:** An Indian court ordered the blocking of Proton Mail, citing concerns about obscene content being sent through the platform.
* **AI vs. Cheating:** As cheating-enabling AI app Cluely gains popularity, startups are developing tools to detect and combat its misuse.
* **Alexa+ Update:** Amazon’s more conversational and agentic digital assistant, Alexa+, is now in the hands of 100,000 users.
* **Airbnb’s Cautious AI Approach:** Airbnb is rolling out AI-powered customer service in the U.S., prioritizing customer support before exploring other AI applications.
* **Epic Games Scores a Victory Against Apple:** A judge ruled that Apple was in “willful violation” of an injunction regarding anticompetitive pricing, potentially paving the way for Fortnite’s return to iPhones. Stripe is already showing iOS developers how to avoid Apple’s commission.
* **Meta’s Privacy Shift:** Ray-Ban Meta owners should double-check their privacy settings, as AI features are now enabled by default, allowing Meta’s AI to analyze photos and videos taken with the glasses.
* **ChatGPT’s Sycophancy Problem:** OpenAI rolled back an update to ChatGPT’s default AI model after users complained about it being overly agreeable and validating. The company pledges to prevent this “sycophancy” in the future.

**The Drama Continues: Epic v. Apple**

The legal battle between Epic Games and Apple continues to provide compelling reading. As Judge Yvonne Gonzalez Rogers put it, “Apple engaged in tactics to delay the proceedings. The Court later concluded that delay equaled profits.” It’s a stark reminder of the high stakes and aggressive strategies at play in the tech industry.

That’s a wrap for this week’s tech news. Stay tuned for more updates and analysis as these stories continue to unfold.