AI Sector Daily Digest — July 11, 2026

1. Meta scraps Muse Image account-generation feature after privacy backlash

• Meta said Friday it is discontinuing an AI feature that let users generate images using public Instagram accounts, after criticism over privacy and automatic opt-in concerns. 1
• The feature was part of Muse Image, launched Tuesday as Meta Superintelligence Labs' first image-generation model and integrated into the Meta AI chatbot. 1
• SAG-AFTRA had urged members and other Instagram users to opt out; after Meta removed the feature, the union called the discontinuation "the responsible thing to do." 1

2. Apple sues OpenAI over alleged trade-secret theft

• Apple sued OpenAI and two former employees in federal court in Northern California, alleging trade-secret misappropriation tied to OpenAI's consumer-hardware plans. 2
• OpenAI denied interest in other companies' trade secrets, while Apple alleged one former engineer downloaded confidential hardware files and another used Apple supplier and internal industry information before leaving. 2
• The suit lands as OpenAI tries to move beyond software into AI devices, including through its $6.5 billion io Products acquisition last year. 2

3. U.S. eases AI-chip export controls for the UAE

• The U.S. loosened export controls on the United Arab Emirates, making it easier to export Nvidia AI chips, military equipment, commercial satellites and spacecraft. 3
• The UAE government and approved companies can now access advanced computing items license-free; Reuters named G42, Core42 and U.S. companies operating in the country among the beneficiaries. 3
• The Commerce Department also plans favorable review for chip and server applications from MGX, while Senator Elizabeth Warren criticized the move over diversion and national-security concerns. 3

4. Altera says AI and robotics demand are pulling it back to growth

• Altera, the programmable-chip maker spun out of Intel, is growing roughly 20% a year and more than doubling operating income as it prepares for an eventual public listing, CEO Raghib Hussain said. 4
• Hussain is positioning Altera's FPGAs beside GPUs for AI and robotics work, especially connectivity, data pre-processing and sensor fusion. 4
• Intel sold a 51% Altera stake to Silver Lake for $4.46 billion in a deal valuing the company at $8.75 billion; Intel still owns 49%. 4

5. SpaceX's AI revenue story is still mostly terrestrial compute

• SpaceX's Colossus compute deals with Anthropic, Alphabet's Google and Reflection AI are expected to generate more than $28 billion in annual revenue, far above its $3.2 billion in 2025 AI revenue, Reuters calculated. 5
• Colossus and Colossus II together provide roughly one gigawatt of AI compute capacity, and J.P. Morgan expects SpaceX terrestrial AI capacity to reach about nine gigawatts by 2029. 5
• Analysts still treat orbital data centers as a long-term bet: BofA called the viability unproven, while Altman Solon said any displacement of terrestrial data centers is likely more than 10 years away. 5