Techmeme Ride Home: Tuesday, June 24, 2025

Host: Brian McCullough
Episode Title: Is Microsoft Struggling To Sell Copilot?
Release Date: June 24, 2025

Brian McCullough delivers a comprehensive overview of the day’s most significant tech developments, ranging from advancements in virtual reality and logistics to the competitive landscape of AI in the enterprise sector. Below is a detailed summary of the key topics discussed in this episode.

1. Microsoft and Meta Launch the Meta Quest 3S Xbox Edition

Timestamp: [00:04]

Microsoft and Meta have collaborated to introduce the $399 Meta Quest 3S Xbox Edition, a premium bundle compared to the standard $299 Meta Quest 3S. This edition includes:

• 128GB Meta Quest 3S Headset (Xbox carbon black with velocity green accents)
• Two Meta Quest Controllers
• Pre-paired Xbox Bluetooth Controller
• Hololens-Style Meta Quest Elite Strap for enhanced comfort
• Three Months of Meta Horizon+
• Three Months of Xbox Game Pass Ultimate

Key Highlights:

• The Elite Strap offers significant comfort improvements with incremental adjustment capabilities.
• Enhanced inside-out tracking allows for more natural interactions, such as controlling windows with hand tracking while holding an Xbox controller.
• Integrated Xbox Cloud Gaming provides low-latency, high-quality gaming experiences, making it an attractive option for Xbox enthusiasts.

Brian McCullough notes, “The Meta Quest 3S experience is a huge step up from other headsets,” emphasizing the improved user experience over previous models.

2. Amazon Expands Same-Day Delivery to Rural Areas

Timestamp: [12:30]

Amazon is scaling its same-day and next-day delivery services to over 4,000 smaller U.S. towns by the end of 2026, targeting tens of millions of residents in rural and less-populated areas. Key points include:

• Product Categories: Focus on everyday essentials such as groceries, beauty products, household goods, and pet food.
• Subscription Benefits: Prime members receive unlimited free same-day delivery on orders over $25.
• Infrastructure Investment: Amazon has allocated $4 billion towards building new facilities, hiring delivery drivers, and transforming local delivery hubs into hybrid centers.
• Machine Learning Integration: Utilizes predictive analytics to stock popular and locally preferred items, ensuring faster delivery times.

Brian McCullough references The Verge, stating, “Over 90% of the top 50 items purchased for same-day delivery are everyday essentials,” highlighting Amazon’s strategic focus on essential goods to drive higher adoption rates in these communities.

3. Tesla’s Robo Taxis Under Scrutiny Amid Traffic Law Violations

Timestamp: [25:45]

Tesla’s Robo Taxis are facing investigations by the NHTSA due to reported incidents of traffic law violations, including:

• Opposite Lane Driving: Videos show Tesla’s Model Y entering opposite lanes and violating double yellow lines.
• Speeding Concerns: Instances where Tesla vehicles exceed posted speed limits, as noted by users on social media platforms like X (formerly Twitter).

A specific incident involved a Tesla Model Y hesitating at a left turn lane in Austin, then swerving into an opposite lane, prompting public concern and official investigations.

In contrast, Waymo has launched its Robo Taxis in Atlanta, operating exclusively through Uber's app within a 65 square mile area, including downtown Atlanta and specific neighborhoods like Buckhead and Capitol View. Waymo emphasizes:

• Operational Limits: Currently avoiding highways and airport routes.
• Fleet Management: Collaborates with avmo (formerly Moved Cars) for vehicle maintenance and operations.
• User Experience: Similar pricing to standard Uber services, with seamless integration through the Uber app.

Brian McCullough highlights the contrasting approaches of Tesla and Waymo, noting that while Tesla faces regulatory challenges, Waymo is cautiously expanding its autonomous fleet in controlled environments.

4. Privacy Concerns Escalate in the AI Era

Timestamp: [35:20]

As AI platforms like ChatGPT and Claude become more integrated into daily operations, privacy concerns are intensifying. Key issues discussed include:

• Data Exploitation: Potential for AI platforms to collect and sell sensitive user information to third parties and governments.
• Board Composition: ChatGPT’s association with former NSA directors raises questions about data handling and privacy.

Brian McCullough raises a critical point: “ChatGPT literally has the former director of the NSA sitting on their board right now,” underscoring fears about surveillance and data security in AI services.

5. Microsoft Faces Challenges Selling Copilot Amid ChatGPT Dominance

Timestamp: [42:10]

Microsoft is encountering difficulties in promoting its Copilot AI assistant to enterprise customers, who appear to prefer ChatGPT. Insights from Bloomberg reveal:

• User Preference: “OpenAI has done a tremendous job of making their product fun to use,” states Senior Vice President Sean Breach.
• Product Integration Lag: OpenAI’s frequent updates often take weeks to integrate into Microsoft’s software due to extensive testing for user experience and security.
• Market Dynamics: Many enterprise employees have already experienced ChatGPT personally, giving it a first-mover advantage.

Brian McCullough explains that Microsoft's traditional strengths—like their dominance in workplace software and established IT relationships—are being undermined by the rapid adoption and popularity of ChatGPT in business environments. This has led to a "showdown between OpenAI and Microsoft," with both companies striving to offer compelling AI assistants for office productivity.

6. Wall Street Leads in Enterprise AI Adoption

Timestamp: [58:50]

Financial institutions are at the forefront of adopting AI technologies to enhance productivity and streamline operations. Examples include:

• Goldman Sachs: Launched the GS AI Assistant, now used by approximately 10,000 employees, aiding in document summarization, content drafting, and data analysis.

  Internal memo reference: "The GSAI assistant will help Goldman employees in summarizing complex documents and drafting initial content to performing data analysis."

• Citigroup: Utilizes tools like CitiAssist for searching internal policies and Citi Stylus for document management.

• Morgan Stanley: Employs a chatbot to assist financial advisors in client interactions.

• Bank of America: Features Erica, a virtual assistant focusing on retail client transactions.

Brian McCullough notes, “Goldman joins a long list of big banks already leveraging the technology to shape their operations,” highlighting the strategic importance of AI in the financial sector.

7. Mira Moradi’s Thinking Machines Lab Secures $2 Billion Seed Round

Timestamp: [1:10:15]

Mira Moradi’s AI startup, Thinking Machines Lab (TML), has raised a groundbreaking $2 billion in seed funding, led by Andreessen Horowitz, marking the largest seed round ever recorded by Crunchbase.

Highlights:

• Valuation: TML is valued at $10 billion post-funding.
• Business Model: Focuses on Reinforcement Learning (RL) for business, customizing AI models based on specific business metrics like revenue and profit growth.
• Technology: Plans to utilize Nvidia-powered servers from Google Cloud and leverage open-source AI models, aiming for rapid development through techniques like model merging.
• Market Strategy: Targets enterprise sectors with industry-specific AI applications and hints at future consumer products, though details remain sparse.
• Acquisition Potential: TML’s technical prowess makes it a prime target for acquisition by major firms like Meta Platforms.

Brian McCullough emphasizes the significance of this funding round, stating, “It is by far the largest seed round in the Crunchbase data set,” and draws parallels to how DeepMind was acquired by Google for its talent and expertise.

Conclusion

In this episode of Techmeme Ride Home, Brian McCullough navigates through significant advancements and challenges in the tech landscape. From the launch of innovative VR headsets and Amazon’s logistical expansions to the competitive AI market dynamics and groundbreaking startup funding, the episode encapsulates the fast-paced evolution of technology and its pervasive impact across various industries.