💭 The AI bubble will burst

Good morning. Sincere apologies for the very very late and short edition this morning.

We will make it up to you tomorrow - promise! 🫰 

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💭 Vinod Khosla: the AI bubble will burst

• 🛢️ India’s Russian oil dilemma

• Bite-sized summaries

  • ☮️ Trump claims credit for peace 

  • 🤖 AI‑Edited Raanjhanaa

• 🧑‍🍳 What else is cookin’?

ARTIFICIAL INTELLIGENCE

💭 Vinod Khosla: the AI bubble will burst

Silicon Valley VC legend Vinod Khosla has a hot take: yes, we’re in an AI bubble — and that’s great news.

In a conversation with Zerodha co-founder Nikhil Kamath, Khosla likened the current AI craze to the dot-com boom or the 1830s railroad mania. His point? Bubbles are where revolutions begin. “You can’t see the bubble by looking at internet traffic or miles of railroad,” he said. “It’s about real-world application, not hype.”

Khosla predicts that more than 80% of current AI investments will fail. But that’s not the problem — because just one or two breakthrough successes can generate more wealth than all the failures combined. For venture investors and scrappy entrepreneurs, that’s the game: one swing-for-the-fences win can pay for hundreds of strikeouts.

He also didn’t mince words on India’s traditional IT sector. Business process outsourcing and software services, as we know them, will "disappear." Not literally vanish, but transform radically. Legacy players are reacting with baby steps, he said, while the market demands bold leaps. “If someone offers the same IT service for one-fifth the cost using AI, who wouldn’t take that deal?” he asked.

The silver lining? Most of the real innovation won’t come from big tech. It’ll come from nimble startups and entrepreneurs willing to rethink everything.

The AI bubble may pop - but before it does, it might just mint the next generation of tech billionaires.

Read more: Economic Times

RUSSIA OIL

 🛢️ India’s Russian oil dilemma

India just hit pause - not on Russian oil, but on reacting to US pressure about it.

Despite US President Donald Trump slapping a 25% tariff on Indian goods (and threatening more), India hasn’t told its oil refiners to stop buying Russian crude. Officials say refiners are still free to buy from whoever they want, and so far, Russia’s discounted barrels are too good to pass up.

Here’s the context: Russian oil now accounts for about one-third of India’s imports. Buying it has saved India billions in foreign exchange, especially as inflation and energy demand climb. But the US isn’t thrilled. Trump publicly blasted India’s continued partnership with Moscow, both in energy and defense, and claimed he “heard” India was cutting off Russian oil. Not quite.

Behind the scenes, Indian refiners have been asked to explore backup plans, including sourcing more expensive oil from the Gulf, but it’s mostly just scenario planning. No formal pivot yet.

So what’s next? New Delhi is trying to walk a tightrope, keeping energy prices manageable, avoiding more US penalties, and preserving strategic ties with Russia. PM Modi and Putin remain on good terms.

The broader takeaway: India’s foreign policy is increasingly defined by energy pragmatism. Cutting off Russian crude isn’t just a geopolitical move, it would hit wallets back home. For now, India’s approach remains clear: keep all options open and don’t blink unless you have to.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

☮️ Trump claims credit for peace - Former U.S. President Donald Trump reiterated his claim first made on May 10, 2025 that he helped broker a “full and immediate” ceasefire between India and Pakistan by leveraging trade incentives. He has since repeated this assertion in media appearances and on social platforms, often claiming he resolved nearly one conflict per month globally using trade pressure, including disputes between Congo and Rwanda and Thailand and Cambodia. Trump’s administration even sought a Nobel Peace Prize, citing six ceasefires within six months. India, however, officially rejected any third‑party mediation, reiterating that its ceasefire with Pakistan was negotiated bilaterally without U.S. involvement.

🤖 AI‑Edited Raanjhanaa - Actor Dhanush has condemned the AI‑altered climax in the re‑release of Raanjhanaa (Tamil version Ambikapathy), calling it deeply disturbing and saying the revised ending “stripped the film of its very soul”. He emphasized this version featuring his character surviving was released despite his clear objections and is “not the film I committed to 12 years ago”. Director Aanand L Rai has also voiced outrage, describing the AI intervention as a “reckless takeover” and “betrayal” of the original work, noting that neither he nor the creative team were consulted. Industry figures such as Neeraj Pandey backed their stance, calling the changes “utterly disrespectful” and warning of troubling implications for artistic consent and storytelling integrity. The controversy has sparked debate about AI’s role in creative arts and demands for stronger regulations to safeguard filmmakers’ rights.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Construction of 5.3-km road connecting Dwarka Expressway to Manesar to begin soon.

• Steel industry has few players as most struggle to survive: Tata Steel MD TV Narendran.

• Pharma major Eli Lilly claims its weight loss drug reduces cardiovascular risks in Type 2 diabetes patients.