Scale & Strategy
This is Scale & Strategy, the ‘bifocal glasses’ of business newsletters (we bring everything into focus).
Here’s what we got for you today:
- Elon vs. Sam just went DEFCON 1
- SpaceX nails Starship’s 10th test flight, deploys satellites after past failures
- Cracker Barrel Brings Back Old Logo After Backlash
Elon vs. Sam just went DEFCON 1
Elon Musk’s AI startup xAI is suing OpenAI and Apple, accusing them of teaming up to choke out competition.
The Texas lawsuit claims the two pulled off “a conspiracy to monopolize” both smartphones and AI chatbots.
The flashpoint? Apple’s 2024 deal with OpenAI, which baked ChatGPT into iPhones and Macs. Musk says the partnership “locks up markets,” hands OpenAI an unfair edge, and he wants the deal scrapped—plus billions in damages.
Here’s the breakdown:
- xAI alleges Apple + OpenAI struck an unlawful deal limiting AI competition.
- Musk wants the Apple–OpenAI integration undone and is seeking billions.
- OpenAI’s chasing a $500B valuation—enough to make it the world’s most valuable private company.
Who runs AI now?
OpenAI brushed off the claims as part of Musk’s “ongoing pattern of harassment.” Apple hasn’t said a word.
The feud has history: Musk left OpenAI in 2018 after failing to wrest control, and the beef’s been simmering ever since.
Meanwhile, OpenAI’s half-trillion target would leapfrog Musk’s own SpaceX (valued at $350B).
Not the billionaire breakup tour entering season three.
SpaceX nails Starship’s 10th test flight, deploys satellites after past failures
After a string of fiery setbacks, Elon Musk’s SpaceX finally pulled off a clean Starship test mission.
The 403-foot-tall rocket lifted off from South Texas on Tuesday at 7:30 p.m. ET, flew into space, and successfully deployed a set of dummy Starlink satellites before braving the brutal heat of re-entry and splashing down in the Indian Ocean.
This was Starship’s 10th launch since testing began in 2023—and a crucial rebound after earlier flights ended in explosions and aborted missions. Musk is betting big on the rocket, which SpaceX envisions as a fully reusable workhorse to carry satellites, scientific payloads, and eventually astronauts.
Stress test mode
Tuesday’s flight was designed as a trial run to push Starship’s systems. Engineers deliberately removed sections of its heat shield to gather data on how the vehicle holds up during re-entry. The mission came after delays earlier in the week, caused first by a liquid-oxygen leak in ground infrastructure and then by poor weather.
Why it matters
Musk’s long-term goal is for Starship’s booster and spacecraft to operate like airplanes—fully and rapidly reusable, unlike traditional rockets. SpaceX has already set the bar for reusability with its Falcon 9 fleet, but scaling that success to Starship is a bigger challenge.
Deadlines ahead
SpaceX is racing both its own ambitions and NASA’s timelines. Musk has floated launching an uncrewed Starship to Mars as soon as next year, though he admits the target will be difficult to hit. And in 2027, NASA expects a lander version of Starship to be ready for its Artemis mission, returning astronauts to the moon.
Cracker Barrel Brings Back Old Logo After Backlash
New “streamlined” look sparked a culture-war storm
Cracker Barrel is scrapping its short-lived rebrand and returning to its longtime “Old Timer” logo after a wave of criticism from customers and online commentators.
“We said we would listen, and we have. Our new logo is going away and our ‘Old Timer’ will remain,” the company announced Tuesday. Shares jumped more than 9% in after-hours trading.
The reversal comes just a day after Cracker Barrel had apologized for poor communication around the change but insisted it was sticking with the new design. That logo—unveiled last week—dropped the iconic image of “Uncle Herschel,” the man in overalls leaning on a barrel, in favor of a simplified wordmark.
Culture-war flashpoint
The rebrand quickly became a lightning rod. Some accused the company of abandoning tradition for a sterile look, while conservative activists framed it as part of a broader rejection of the chain’s Southern heritage. Former President Donald Trump weighed in Tuesday morning, urging Cracker Barrel to restore its old logo. Hours later, he congratulated the company on doing exactly that.
Activist Robby Starbuck called the reversal “a win,” while others dismissed the uproar, saying the logo looked bland but ultimately didn’t affect their dining decisions. A YouGov survey found 29% of Americans said the rebrand made them less likely to eat at Cracker Barrel, while 59% said it didn’t matter.
Bigger changes still underway
The logo was only one piece of a broader overhaul under CEO Julie Felss Masino, who took the helm in 2023. She has been revamping menus, remodeling restaurants, and toning down the chain’s famously cluttered décor in a bid to appeal to younger customers. The refresh had been showing signs of success, with four straight quarters of same-store sales growth as of June.
But after last week’s backlash—shares dropped more than 12%—the company is choosing to lean back on nostalgia, at least for its brand identity.
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