Axios

Fewer Americans are reading books, but here's the plot twist: The bookstore is still staging a comeback.

Why it matters: Once left for dead in the wake of Amazon's rise and the death of Borders, Barnes & Noble and independent booksellers have pulled off a stunning turnaround, opening new stores and reporting higher sales.

For 20 minutes on CNBC Wednesday, Palantir CEO Alex Karp unloaded on frontier AI labs, arguing they've become so obsessed with building ever-more-powerful models that they're failing their biggest enterprise customers.

The big picture: Karp put his finger on a trend: U.S. companies are increasingly turning to cheaper Chinese AI models just as the Trump administration is blocking access to some of the best American AI tools — a double whammy for domestic AI labs.

AI and semiconductor shares hit a major air pocket again Wednesday, after logging a record-breaking Q2 rally.

Why it matters: Semiconductor shares have been leading the market higher recently, as the momentum behind the Magnificent 7 has faltered.

• But if chip stocks continue to retreat, it could mean trouble for markets more broadly.

Medicare is launching a pilot program that tests whether health tech companies — including those that heavily rely on AI — can lower medical costs while improving care.

Why it matters: We've discussed why many experts think AI will actually increase health care costs in the near term in part by generating more health care and making spending levels even more unsustainable.

The Federal Trade Commission is now under stronger presidential control — with no more opportunity for partisan dissent — following the Supreme Court's decision that President Trump can fire its members.

Why it matters: Any realistic chance the agency in charge of consumer protection, kids' online safety, tech competition and fighting deceptive and unfair practices will have any Democrats during this administration is effectively gone.

Need something to put on after the fireworks? These new streaming picks range from sci-fi and mystery to sharks.

"Silo" — Season 3 available Friday on Apple TV

Anthropic's Fable 5 model came back online for users on Wednesday, after the Trump administration lifted an export control late Tuesday.

Why it matters: It's the most powerful publicly available AI tool — so capable that the U.S. government decided Anthropic had to add further safety measures in order to make it broadly available.

Meta shares soared nearly 9% Wednesday on a report that the company is wading into the business of selling cloud computing services and access to AI models.

Why it matters: The booming AI economy has triggered insatiable demand for data processing power, enriching the likes of Amazon, Google and Microsoft.

Amazon's greenhouse gas emissions rose sharply last year as the company raced to expand AI infrastructure.

Why it matters: Amazon's annual environmental report, released a day after Google's report unveiled similar increases, adds to mounting evidence that AI growth is making it harder for tech giants to maintain climate ambition.

Sandeep Bhanote, global head and GM of GrowthX at DXC, joined Axios publisher Nicholas Johnston for a View from the Top conversation. The two discussed today's banking landscape, DXC's new platform, DXC CoreIgnite, and how AI will continue to impact the banking industry in the future.