Magnificent 7 Weekly Briefing

May 15, 2026

Apple and Tesla consider shifting chip production to Intel as Apple settles a major AI lawsuit and Tesla retires the Model S and Model X and more.

• Apple and Tesla are reportedly considering shifting some chip manufacturing from TSMC to Intel, potentially reducing their heavy reliance on the Taiwanese supplier. ¹²³⁴
• Apple reached a $250 million settlement to resolve claims it misled consumers regarding AI features on iPhones, with millions of eligible users expected to receive compensation. ⁵⁶⁷
• Tesla officially discontinued the Model S and Model X as of last weekend, marking a significant shift in its vehicle lineup as it prioritizes newer models like the Cybertruck and the Indian-market Model Y L. ⁸⁹¹⁰
• Apple released iOS 26.5 to address over 60 security flaws and introduce encrypted RCS messaging, though reports indicate current 'Liquid Glass' design elements may be scaled back in future updates. ^1112131415
• Multiple legal challenges are impacting the group, with Tesla facing an estimated $14.5 billion in legal exposure and Apple fighting antitrust and patent infringement suits across various jurisdictions. ^1617181920
• Internal friction surfaced at OpenAI regarding its partnership with Apple, as the AI startup reportedly considers legal action over how ChatGPT was integrated into Apple's ecosystem. ²¹²²²³
• Other notable developments include Amazon's launch of 30-minute grocery delivery, Nvidia's appointment of a new board member, and Foxconn confirming a cyberattack that compromised Apple and Nvidia files. ^24252627

Sources

1. Sources: Intel has begun testing production of “low-end/legacy iPhone, iPad, and Mac processors”; Apple thinks TSMC's resources will continue tilting toward AI Techmeme
2. Apple, Intel Reportedly Near Chip Deal That Could Reduce TSMC Reliance TechRepublic
3. Tesla Reportedly Moving The Production Of Its AI6.5 Chip From TSMC To Intel Under The Pressure And Insistence Of... Wccftech
4. Apple, Intel have reached preliminary chip-making deal, WSJ reports Reuters
5. Apple agrees to a £195M million settlement over claims of misleading AI features in iPhones. International Business Times
6. Apple Customers Could Get Money From $250M Settlement—Who's Eligible? Newsweek
7. iPhone owners may get $95 for features Apple never delivered TheStreet
8. The Tesla Model S and Model X Are Officially Dead As of This Past Weekend Road & Track
9. Tesla's Latest Recall Could Mean Wheels Flying Off the Cybertruck PCMag
10. Tesla Launches Long-wheelbase Model Y L in India Amid U.S. ADAS Milestone Indianweb2.com
11. iOS 26.5—Apple Just Gave iPhone Users 60 Reasons To Update Now Forbes
12. Apple to update software after major criticism of new look AOL
13. iOS 26.5 Is Now Available With 6 Cool New Features Yahoo Tech
14. iOS, macOS, and iPadOS 26.5 updates arrive with encrypted RCS messaging and more Ars Technica
15. Apple's Liquid Glass Design Backfired on Most Macs — Here's What's Changing Entrepreneur
16. Apple Drops Bid To Transfer Fintiv Suit Due To Albright Exit - Law360 Law360
17. The DOJ Is Demanding Apple And Google Identify Over 100,000 Users Of This Car App Forbes
18. Court grants Apple’s request to seek Samsung documents in DOJ antitrust case 9to5Mac
19. Tort Report: Tesla's Legal Exposure Seen As High As $14.5B - Law360 Law360
20. Apple Quashed Watch Room Competition, NJ Suit Alleges as Global Litigation Mounts | Law.com Law.com
21. Apple’s ChatGPT deal might be getting messy just as Gemini moves in Android Authority
22. OpenAI's Apple Partnership Sours The Information
23. OpenAI Considers Legal Action Against Apple in Strained Relationship The New York Times
24. Amazon collaborates with Fiserv on agentOS for banking AI Amazon
25. Foxconn confirms cyberattack hit some North American factories — hackers say they stole 8TB of data, including Apple and Nvidia files TechRadar
26. Amazon launches 30-minute grocery and essentials delivery Amazon
27. NVIDIA names Suzanne Nora Johnson to board Nvidia