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Applied AI·July 25, 2026·1 min read

Midjourney announces surprise purchase of popular horoscope app Co-Star

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An image model company buying a horoscope app is a bet that AI-native entertainment and identity products — not just tools — will be a major distribution and monetization surface. If you’re building in consumer AI, treat belief, ritual, and daily habit as core product primitives, not edge cases.

Applied AI

Sources: OpenAI and Anthropic quietly lobby Washington regulators to restrict open-source AI models, even as Sam Altman publicly says he supports open source AI

If leading labs are privately pushing to constrain open-source while others push the opposite, the regulatory battlefield is about who owns the margin stack as models commoditize. Operators should assume policy risk around open models will rise and start modeling dual-track strategies: one that leans on open ecosystems, and one that assumes tighter controls and licensing.