As the rest of the stock market continued its earnings party, it peeked back at Nvidia, like a 20-year-and-11-month-old kid holding a beer in view of their dad at the BBQ looking for approval. At first glance, Nvidia beat most of Wall Street’s expectations in revenue and profits, but there were also red flags that made investors antsy about a possible AI spending slowdown and pushed the chipmaker’s stock down ~3% in after-hours trading.

With everyone looking to Nvidia—which supplies key parts for AI companies—as a litmus test for the health of the entire AI industry, the company reported solid growth and rising sales, with net income up 59%. But following explosive growth that propelled the company to a $4 trillion value, Nvidia offered a tepid revenue forecast.

And investors looking for cracks in the world’s most valuable company’s facade also noticed:

Data centers missed the mark. Nvidia’s data center division’s sales rose 56% compared to the same period last year. But with $41.1 billion in sales, Nvidia just missed analyst estimates of $41.3 billion. Still, its data center unit is, alone, larger than any other chipmaker in the game and accounts for roughly 88% of the company’s total sales.

H20 was dry. Questions linger over Nvidia’s ability to corner the Chinese market, and it didn’t sell its any of the lower-powered H20 chips it designed for China there last quarter, following the Trump administration’s tightening of export restrictions. One exec said during Nvidia’s earnings call that between $2 billion and $5 billion of H20 chips could be shipped to China if geopolitical tensions settle down. But semiconductors have become a key bargaining chip in the trade war with China.

Big picture: AI spending is a major force in the economy, with companies expected to spend $375 billion globally on AI infrastructure (like data centers) this year, according to UBS. That investment is expected to reach $500 billion by 2026. But some analysts worry that Nvidia’s tapering earnings don’t just represent the company’s skyrocketing growth normalizing, but instead are the first sign that AI spending could be slowing.—MM

Two children killed in Minneapolis school shooting. Another 17 people were injured, 14 of them children, and the shooter was also dead after he shot through the windows during Mass at Annunciation Catholic School, authorities said yesterday. Two of the injured children were in critical condition but are expected to survive. The academic year for the school, which includes preschool through eighth grade, began on Monday. Authorities said they did not yet know the motive of the shooter, reportedly a former student of the school who was transgender, but FBI director Kash Patel said the shooting was being investigated as domestic terrorism and as a hate crime against Catholics.

Trump’s 50% tariff on India kicked in. India’s exports to the US will now get hit with a steep import tax, after President Trump doubled the 25% tariff he initially imposed on Indian goods to punish the country for buying Russian oil amid the war in Ukraine. The heightened tariff, which took effect yesterday, is putting a strain on US-India relations and could be a big blow to India since the US is its biggest export destination. It shipped about $87.3 billion worth of goods to the US last year. However, some major exports are exempt for now, including smartphones—which is good news for Apple as it’s been shifting manufacturing there in an effort to decrease its reliance on China.

⚕️ The FDA approved updated Covid vaccines—but only for some people. The regulator signed off on this year’s version of the shots; however, it revoked the broad authorization for the vaccines, placing new limits on who is eligible to get them. The approval is for those at higher risk of severe illness, including people over age 65 or those who have an underlying health condition. All others will now need to get approval from a doctor to get the jab. The change comes after Health and Human Services Secretary Robert F. Kennedy Jr. often criticized vaccines, especially those that use mRNA. It could impact who can access the shots and whether insurance companies will cover them.—AR

The maker of ChatGPT said in a blog post on Tuesday that it’s “working to improve” its safeguards, which can become “less reliable in long interactions,” after a wrongful death lawsuit was filed against OpenAI and CEO Sam Altman earlier that day.

California residents Matt and Maria Raine, whose son died by suicide in April, sued the people behind ChatGPT after discovering months’ worth of conversations in which the chatbot appears to have encouraged their 16-year-old’s suicidal ideation and dissuaded him from seeking outside help, the New York Times reported.

In the blog post, which didn’t explicitly mention the lawsuit, OpenAI said:

• ChatGPT is supposed to respond to messages about self-harm with real-world resources. But “as the back-and-forth grows…it might eventually offer an answer that goes against our safeguards,” which the company is “working to prevent.”
• It’s planning to add parental controls “soon” for ChatGPT accounts belonging to minors.

Zoom out: While the AI industry has been keen on chatbots as companions and therapists, there is mounting evidence of possible psychological danger. In two similar cases over the past year, a 14-year-old and a 29-year-old also confided in other chatbots before taking their lives. This week, the American Psychiatric Association said ChatGPT, Google’s Gemini, and Anthropic’s Claude all need “further refinement” in their responses to messages about self-harm.—ML

If you or someone you know needs help, call or text 988 to reach the Suicide and Crisis Lifeline, or visit 988lifeline.org. Click here for resources outside of the US.

For a second day in a row, Travis Kelce announced a life-changing partnership. The future husband of Taylor Swift is the latest celebrity to collaborate with American Eagle on a clothing campaign as the denim wars rage on.

Unlike the “Sydney Sweeney Has Great Jeans” ad that AE had to pretend wasn’t a genes pun denied had anything to do with genes, the brand probably won’t experience eugenics-related blowback from linking up with Tru Kolors, the clothing line of America’s Gym Teacher. AE’s stock jumped ~8.5% yesterday, although it’s still down ~20% for the year.

Denim isn’t the focus with AE x Tru Kolors, though. It’s more about sporty-wear, like cricket sweaters, beanies, and utility cargo pants, aka dressing like Travis Kelce. But it’s still a focus for AE…and its competitors. After the Sweeney controversy, Gap and Lucky Brand dropped their own jeans-related ad blitzes that got attention both for their teamups with Katseye and Addison Rae, respectively, and their lack of anything that could be construed as commentary on genetics.

Bottom line: AE is trying to attract the Back-To-School Dollar, but its marketing efforts with Sweeney may have been too far outside the box to help, according to Marketing Dive. With back-to-school spending expected to remain flat year over year, parents are focusing more on value and familiarity, and it’s hard to find anyone more familiar to millennial parents and younger generations than Tayvis.—DL

The girls of Huntrix are so talented that they not only slay monsters, they also slay the charts. KPop Demon Hunters is now the most-viewed movie on Netflix ever, having racked up 236 million views since its June release. That pushed the Ryan Reynolds and Dwayne Johnson vehicle Red Notice out of the No. 1 slot it had held for more than three years in Netflix’s all-time rankings for English-language films. And that’s not the only place the unstoppable animated girl group is dominating:

• The sing-along version of the film released in theaters won the box office over the weekend, with The Hollywood Reporter estimating that it took in as much as $18 million.
• And the film’s songs are certified hits. Billboard said the soundtrack is the first one ever to generate four simultaneous top 10 hits on its Hot 100 list in the chart’s 67-year history.

Netflix is keen to keep things golden: The streaming giant and the film’s producer, Sony Pictures, are in talks about making a sequel, per THR.—AR

Brew Mini: Today’s Mini is called “Turntable,” but don’t let that confuse you—just think of it as a Brew gamesception. Play it here, if you can wrap your mind around it.

Three Headlines and a Lie

Three of these headlines are real and one is faker than 75% of the businesses run by the Real Housewives. Can you spot the odd one out?

1. Eric Adams advisor Winnie Greco handed a CITY reporter cash stuffed in a bag of potato chips
2. The call of a native frog is heard again in Southern California thanks to help from Mexico and AI
3. An 83-year-old pizza tycoon fights to save 3,500 Domino’s
4. The brides willing to travel to Italy for controversial fish bones