President Trump is raising the idea of the U.S. government taking stakes in AI giants — not out of populism, but with a dealmaker's eye for profit, Axios' Dan Primack and Maria Curi write.

• Why it matters: Government equity in private companies — anathema to free-market capitalism and Republican dogma about "picking winners and losers" — is a signature of Trump's second term.

🖼️ The big picture: Companies like OpenAI and Anthropic may soon be worth trillions. So even small stakes could be meaningful to the federal government.

• For example, a 2% stake in a $3 trillion company works out to $60 billion.
• That gives the government a financial incentive to help these companies grow, which dovetails with Trump's existing laissez-faire AI policy.

Zoom in: Sen. Bernie Sanders (I-Vt.) and Trump share an instinct that the government should capture a piece of AI's windfall. But they would slice the pie very differently.

• Sanders proposes requiring top AI companies to pay a one-time 50% tax in stock, flowing into a sovereign wealth fund that distributes gains to the public.
• Trump is discussing voluntary equity stakes that would give the government a direct cut of AI companies. He told reporters aboard Air Force One on Friday he wants Americans to be partners "in this revolution."
• "As far as economics is concerned, we have certain things that aren't that far apart," Trump said of Sanders.

👀 Behind the scenes: Populists may sense the White House tide turning on AI, given the recent departure of AI czar David Sacks, and Saturday's announcement that deputy Sriram Krishnan will leave at the end of the month.

• Neither left over policy disagreements. Sacks' time as a special government employee was up, and he still advises the White House. Krishnan plans to launch an AI consulting group and will remain in Trump's orbit.
• Sacks has publicly cautioned against the government taking stakes in Big AI. But that's mostly because of his libertarian leanings and what it could mean with Democrats in power — not because he believes Trump has gone soft on accelerationism.

🔮 What's next: Trump said he plans to meet in the "very near future" with tech companies to discuss what a partnership with the government could look like.

• OpenAI and Anthropic have each floated versions of public wealth funds.

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The war between Israel and Iran resumed yesterday after Prime Minister Benjamin Netanyahu defied President Trump's request to stand down, with the two nations exchanging attacks — Israeli strikes on Tehran and Iranian missile launches toward Tel Aviv, Axios' Barak Ravid writes.

• Why it matters: The attacks last night and this morning are the most significant escalation since the April 8 ceasefire, and threaten to unravel the Trump administration's negotiations with Iran and draw the U.S. back into the war.

"Israel and Iran must immediately stop shooting," Trump wrote on Truth Social this morning.

• Israel first attacked Beirut, then Iran responded by launching a barrage of missiles toward Israel.

🔎 Behind the scenes: Trump told Netanyahu during a call to hold off because "we are close to doing something good in terms of a deal," a U.S. official told Barak.

• A U.S. defense official said the U.S. military wasn't involved in the Israeli strikes, which he described as "relatively limited."
• Iran had threatened to expand its attacks and target U.S. bases in the region if Israel retaliated.

Further exchanges of fire could unravel the negotiations between the U.S. and Iran and reignite the war.

• Keep reading.

OpenAI is preparing to transform ChatGPT into a "superapp" that prioritizes coding tools and agents — the biggest overhaul since the chatbot launched 3½ years ago, the Financial Times reports.

• Why it matters: OpenAI is betting its future on winning lucrative business customers, escalating an enterprise arms race with Anthropic.

The changes will highlight Codex, OpenAI's coding product, and "reflect a growing conviction within the company that the future of AI lies not in chatbots that answer questions but in agents that perform tasks for users," the FT writes.

• An OpenAI employee told the paper: "Chat is dead."

Keep reading (gift link).

Iran's soccer team arrives in Tijuana, Mexico, yesterday ahead of the World Cup, which kicks off Thursday.

• Iran's team moved its base camp from Arizona to Mexico at the last minute. It'll still play all three group-stage games in the U.S. (two in L.A. and one in Seattle).

⚽ The tournament's first match — Mexico vs. South Africa — is Thursday in Mexico City. The U.S. opening ceremony is Friday in L.A.

Reality TV star Spencer Pratt was overtaken by Nithya Raman — a democratic socialist city councilmember — for second place in the Los Angeles mayoral primary and a spot in November's runoff.

• The second-place finisher will face incumbent Mayor Karen Bass.

Pratt took an "early lead over Raman on election night, but Raman's numbers improved steadily as mail-in ballots were counted, leading political observers to begin predicting this weekend that she would eventually overtake Pratt," the Los Angeles Times writes.

• Raman leads Pratt — a registered Republican — by just over 3,100 votes with 83% of the vote counted, according to LA County Registrar-Recorder/County Clerk data.

Go deeper ... Live California results.

The wellness economy has entered its next phase, moving beyond fancy gym memberships, meditation apps and longevity doctors in what Vox dubbed the "burnout economy," Axios' Natalie Daher writes.

1. Sleep tourism is a billion-dollar business and growing. Hotels like Equinox in New York charge nearly $2,000 a night for sleep-optimized rooms.
2. Executive function coaches are the new career coaches. Burned-out workers are paying $100 to $300 a session to rebuild skills that can erode under prolonged pressure: planning, focus and task initiation.
3. The gym is the new social spot. Younger consumers have already ditched the bar, but they're shifting their social lives to fitness studios, Bloomberg reports.
4. The longevity market is widening: It's a luxury amenity. The Wall Street Journal reported that high-end apartment buildings are bundling in on-site body scans, genetic testing and a so-called "longevity cafe."

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Italian fashion house Prada unveiled the inner-layer garment set to be worn by NASA astronauts heading to the Moon.

• Why it matters: The brand is pushing to be the first major luxury player to make inroads in the space industry, Reuters reports.

The body-hugging suit, created in collaboration with Houston-based space infrastructure developer Axiom Space, features ventilation tubes knitted into the garment.

• The new product follows Prada's splashy foray into space fashion in 2024 with the unveiling of a spacesuit that is expected to be used for NASA's anticipated Artemis 4 Moon landing in 2028.

Go deeper ... More pics.

"The Claw" — the structure you see above for Ultimate Fighting Championship's made-for-TV UFC Freedom 250 spectacle, coming to the White House South Lawn this Sunday night — was built in Belgium, shipped to Philadelphia, then trucked to D.C., The Hollywood Reporter writes.

• UFC's parent company — TKO Group Holdings, led by CEO Ari Emanuel — says the event could cost more than $60 million and lose $30 million. But UFC and Paramount+, which is streaming the fight live, think it's worth it for the media exposure and ingratiation with President Trump.

🎥 Behind the scenes: UFC chief content officer Craig Borsari tells THR that producers made "laser measurements of the South Lawn … to create the biggest window possible and frame the White House in the background in all our wide shots throughout the night."

• UFC CEO Dana White said: "The three big problems … are rain, lightning and a ton of bugs." White recalled clusters of black gnats swarming guests at a Rose Garden dinner he attended: "So imagine this massive, powerful claw, and the lights that are going to come with it, you're going to have gnats, moths, maybe bats."

Watch the trailer.