Just when it seems everyone is on the AI bandwagon, some have let it pass them by, and they’re reaping the rewards. Such is the story of the popular iPad design app Procreate, which became the face of anti-AI sentiment and a favorite among creatives yesterday when it came out against generative AI, vowing never to use the technology in its products.

In a viral video posted on X, Procreate CEO James Cuda said, “I really f*cking hate generative AI.” While investors might dismiss that sentiment as cuckoo, it reflects the views of many in creative industries who have had to reckon with whether using AI is worth the ire it may draw from its users.

• Adobe, which seems to introduce a new generative AI feature every time a child breaks a crayon, did some damage control in June after a terms of service update seemed to convey that it would train its AI models on users’ creations. It clarified that it does not, but the platform still lost brownie points with customers.
• Meanwhile, platforms that emphatically refute the use of AI are gaining popularity, according to Rolling Stone.

AI may not be the golden buzzword Wall Street thinks it is

Over the last few years, many companies have rushed to find a way to use AI, the mere mention of which has been enough to boost investors’ outlook on an earnings call. But as the technology’s proliferation begets more mistakes and problems, people are becoming wary, and some companies are taking the hint.

No thanks. The publishing platform Medium banned the use of AI in its partner program. And some brands are becoming strict in their contracts with ad agencies to block any use of generative AI, fearing a mishap that could draw backlash, according to Ad Age. Beauty brand Dove even publicly pledged earlier this year not to use AI in its advertisements.

Bottom line: Companies want to be where the people are, and the people are not all behind AI. A recent study from the Journal of Hospitality Marketing & Management found people were less likely to buy a product described as using AI, reflecting a growing distrust of the technology.—CC

Monogram (Nasdaq: MGRM), known for their autonomous robotic surgical systems, completed a crowdfunded public offering and Nasdaq listing last year. What’s next?

They just filed for FDA approval to market and commercialize their patented AI joint replacement tech. By the year 2027, 50% of knee replacement surgeries will be robotic—up from 12% today.

Now, Monogram’s offering a new chance for investors: the opportunity to invest in preferred stock with an 8% dividend yield (in cash or kind). Their common stock traded as high as $2.75 in the past week, but the unlisted preferred stock (which is convertible into one share of common) is available for $2.25/share.

Monogram currently plans to close the Series D Preferred offering on September 12, 2024.

🫏 Biden passed the torch at the DNC. Much like Snoop Dogg with the Olympic cauldron, President Joe Biden handed the metaphorical torch over to Kamala Harris on the first night of the Democratic National Convention, praising his VP and saying “democracy must be preserved” in a speech at an event where he was once expected to become the party’s candidate. Other featured speakers included Hillary Clinton, the party’s first woman at the top of the ticket, Alexandria Ocasio-Cortez, and First Lady Jill Biden. In addition to bringing party delegates to Chicago, the event attracted thousands of protesters who oppose the war in Gaza and the US’ role in it.

British tech mogul among the missing after yacht sinks. UK tech entrepreneur Mike Lynch and his daughter were among the six people missing after bad weather sank a 184-foot luxury yacht named the Bayesian off the coast of Sicily. Lynch, who founded the software company Autonomy, had been involved in legal struggles since Hewlett-Packard bought the company for $11 billion in 2011, and was recently acquitted of fraud. Twenty-two people were on board the yacht, and 15 people, including Lynch’s wife, were rescued by the Italian Coast Guard. One person was confirmed dead as of last night.

Carl Icahn to pay SEC $2 million over loan hiding claims. The Securities and Exchange Commission alleges that the activist investor failed to disclose that he pledged his own Icahn Enterprises stock as collateral for billions of dollars worth of margin loans. Investors are allowed to do this, but it creates risk, so they have to disclose it to others, and the SEC says he started doing it in 2018 but didn’t reveal it until 2022. Without admitting or denying anything, Icahn personally agreed to pay $500,000 and his company will pay $1.5 million in fines to end the agency’s probe into the matter.

One of 7-Eleven’s competitors wants it so badly that it would grab the steering wheel on a road trip. In the largest-ever attempted foreign takeover of a Japanese company, 7-Eleven’s parent company is reviewing an offer from a top Canadian retailer looking to expand its convenience store empire, Japan’s Nikkei newspaper reported yesterday.

It’s a “friendly, non-binding proposal,” said Canada’s Couche-Tard, which operates Circle K and Ingo. Its offer is the most expensive cross-border acquisition attempt of 2024. 7-Eleven parent Seven & i Holdings was valued at $31 billion before the announcement, which added another ~$7 billion to the Japanese company’s market cap yesterday.

If Seven & i says yes…not only would they complete the enemies-to-lovers arc, but they’d also create a hyper-fluorescent kingdom of 100,000 convenience stores worldwide. Couche-Tard only has ~16,700 storefronts compared with 85,000+ under the Seven & i umbrella, but the Canadian propositioner is worth more. It’s gobbled up businesses in recent years while Seven & i expanded globally but severed its less-profitable arms.

Will the deal happen? Analysts aren’t holding their breath. Plus, regulators might not be thrilled to see the two largest convenience chain operators in North America get together.

Still…between Mars and Kellanova’s $36 billion deal last week and a three-year high for M&As in July, it’s been a hot deal summer.—ML

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Trainspotters might soon see fewer cubic meters of Québec maple syrup rolling into the US as a looming work stoppage at Canada’s two biggest freight railways threatens to scuttle supply chains across North America.

Employees at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) won’t clock in starting Thursday unless the companies ink a last-minute labor deal with the Teamsters. The union is engaged in protracted negotiations on behalf of 9,000+ rail professionals over pay and other workplace issues.

Trade derailment

A simultaneous shuttering of rail giants responsible for moving $732 million worth of products daily won’t just be a Canada problem.

• The two companies carry millions of tons of freight across Canada’s southern border, including key exports like potash, grains, timber, coal, and cars.
• Canada exported $38 million worth of farm products by rail in the first half of the year, per the US Department of Agriculture.

In preparation for the work stoppage, CPCK is halting all shipments over the border starting today, and CN has been turning away Canada-bound freight at US ports.

Truckers to the rescue (sort of): Eighteen-wheelers could pick up some of the cargo slack, but experts say that they can’t take on the full tonnage handled by rail.—SK

Bad news for dorm-room denizens with big dreams: Startup bankruptcies in the US rose 60% over the past year, as companies burn through the cash VCs were happy to throw around before interest rates started rising in 2022. Morgan Stanley analysts explained that an unusually big number of companies raised an abnormally large amount of money in 2021 and 2022, and now many of those seemingly high-flying startups are crashing down to Earth. While that may sound like it’s only a problem for wannabe CEOs whose goal in life is to be able to wear a hoodie to work every day, the Financial Times notes that VC-backed companies employ ~4 million people in the US—so the financial pain is likely to be felt throughout the economy if they keep going under.