Third Week of June 2025

THE WELL-TH NOTES

Weekly data-driven insights on the markets and economy

1. AI Security

This week, OpenAI locked secured a $200 million contract with the U.S. Defense Department to provide various artificial intelligence tools. “Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department remarked.^[i]

2. Amazon’s workforce in flux

Amazon CEO Andy Jassy announced on Tuesday that the company expects a reduction in its corporate workforce over the next few years as it increasingly adopts generative AI tools. While some roles will be phased out, others will emerge, and employees are encouraged to embrace AI to work more efficiently. This shift follows significant layoffs and reflects Amazon’s broader investment in AI to enhance operations and cut costs.^[ii]

3. Retail retreats

Reported on Tuesday by the Commerce Department, retail sales fell 0.9% in May—worse than expected—as consumers pulled back spending amid economic uncertainty and falling gas prices. Despite a 0.4% rise in the control group used to calculate GDP, key sectors like autos, building materials, and restaurants saw notable declines. The pullback follows a March spending peak and reflects growing consumer caution in the face of tariffs and inflation concerns.^[iii]

4. WhatsApp adds ads

Meta announced on Monday it will begin showing ads on WhatsApp for the first time since acquiring the app in 2014. The new “status ads” will appear in the Updates tab, alongside monetization of the Channels feature through search ads and subscriptions. The move marks a major shift for WhatsApp-as its previous founders promised the platform would be ad-free-and a key step in CEO Mark Zuckerberg’s plan to make messaging a pillar of Meta’s business.^[iv]

5. Trump Mobile unveils plan

On Monday, the Trump Organization announced Trump Mobile, a new wireless service launching in September featuring “The 47 Plan” — a $47.45/month package referencing Trump’s presidential number. The plan includes unlimited data, roadside assistance, and telehealth benefits, alongside a $499 gold-accented “T1” smartphone. Though branded with Trump’s name, the venture will operate through a licensing agreement.^[v]

6. Future in flight

JetZero Inc. announced last Friday that it will build its first manufacturing plant for the next-generation Z4 passenger jet in Greensboro, North Carolina, investing $4.7 billion and creating more than 14,500 jobs by 2036. The Z4, backed by United and Alaska Airlines, is designed to be up to 50% more fuel-efficient and quieter than traditional airliners. This marks the largest job commitment in North Carolina’s history and a major step forward for U.S. aerospace innovation.^[vi]

^[i] Novet, Jordan, “OpenAI wins $200 million U.S. defense contract,” CNBC, 16 June 2025, https://www.cnbc.com/2025/06/16/openai-wins-200-million-us-defense-contract.html. Accessed June 17, 2025.
^[ii] Palmer, Annie. “AI will shrink Amazon’s workforce in the coming years, CEO Jassy says.” CNBC, 17 June 2025, https://www.cnbc.com/2025/06/17/ai-amazon-workforce-jassy.html. Accessed June 17, 2025.
^[iii] Cox, Jeff. “Retail sales fell 0.9% in May, worse than expected as consumers pulled back.” CNBC, 17 June 2025, https://www.cnbc.com/2025/06/17/retail-sales-may-2025-.html. Accessed June 17, 2025.
^[iv] Vanian, Jonathan. “Meta is finally bringing ads to WhatsApp.” CNBC, 16 June 2025, https://www.cnbc.com/2025/06/16/meta-whatsapp-ads.html. Accessed June 16, 2025.
^[v] Breuninger, Kevin. “Trump Organization announces mobile plan, $499 smartphone.” CNBC, 16 June 2025, https://www.cnbc.com/2025/06/16/trump-mobile-phone-plan.html. Accessed June 16, 2025.
^[vi] JetZero plans to build $4.7B plant in North Carolina, aims to create 14,500 jobs.” AP, 12 June 2025, https://apnews.com/article/north-carolina-airplane-plant-jetzero-fdb49ed6c9d38981765ef1f421e3357a. Accessed June 16, 2025.