Spotify has struck a wide-ranging partnership with Peloton Interactive to bring more than 1,400 instructor-led classes onto its platform, marking a deliberate expansion into the global wellness market as it looks to reduce reliance on music and podcast revenues.

The integration will give Spotify Premium users access to Peloton’s catalogue of workouts, including strength training, yoga, Pilates, barre, and meditation — directly within the app. The content will sit alongside Spotify’s existing audio and video offerings, extending its role from passive listening to structured, habit-driven engagement.

The shift is rooted in user behavior. Spotify says more than 150 million fitness playlists are already active globally, while nearly 70% of its Premium subscribers report exercising monthly.

“Fitness is a natural extension of how people already use Spotify today — to get motivated, recover and reset,” a company spokesperson said.

What is changing is how that behavior is being monetized. Fitness content, unlike music streaming, is not bound by the same licensing economics that have historically constrained margins. It is also inherently repeatable, lending itself to subscription layering, premium tiers, and targeted advertising tied to user routines. In effect, Spotify is moving into a category where it can exercise greater control over pricing and content distribution.

The company is also extending its creator model into the fitness space. By working with instructors such as Yoga With Kassandra, Caitlin K’eli Yoga, Sweaty Studio, and Chloe Ting, Spotify is positioning fitness creators within the same ecosystem that has supported podcast growth. The aim is to build a marketplace where instructors can monetize audiences through subscriptions and engagement tools, while Spotify captures a share of that value.

For Peloton, the agreement indicates a structural pivot. Once defined by its connected fitness equipment, the company has been reorienting toward a content-led model as hardware sales stabilize. The Spotify partnership offers distribution at scale without the friction of hardware ownership or standalone app subscriptions.

“As we continue to forge a path deeper into wellness, our work with Spotify is just our latest move to expand our reach and capture new revenue streams through Peloton’s unmatched experience, content and instruction,” said chief commercial officer Dion Camp Sanders.

Chief executive Peter Stern underscored the reach advantage, noting: “Spotify provides a global stage for our instructors, in which they have now the ability to meet hundreds of millions of Spotify Premium subscribers.”

The commercial logic for both sides is tied to scale. Peloton gains access to a global audience without incurring the same customer acquisition costs associated with direct subscriptions. Spotify, in turn, strengthens user retention by embedding itself deeper into daily routines, from commuting and leisure to exercise and recovery.

The move also places Spotify more directly in competition with platforms that already blend content and wellness, including Apple’s fitness ecosystem and video-driven fitness communities on YouTube. Unlike those rivals, Spotify’s advantage lies in its recommendation engine and existing user base, which can be leveraged to surface fitness content with minimal friction.

But there are broader implications for the streaming model. For years, Spotify has faced pressure over margins due to high royalty payouts to music rights holders. Expanding into adjacent verticals, such as fitness, offers a pathway to diversify revenue while maintaining engagement within a single platform. It also comes as part of a wider industry trend where large technology platforms are evolving into multi-purpose ecosystems rather than single-category services.

Thus, the challenge for Peloton will be maintaining brand identity and pricing power as its content becomes more widely distributed. Greater reach can drive growth, but it also risks commoditizing premium offerings if not carefully managed.

Neither company disclosed financial terms, but the partnership signals a clear alignment of priorities: Spotify is building a broader digital environment anchored in daily habits, while Peloton is repositioning itself as a global fitness content provider rather than a hardware manufacturer.

The outcome is expected to rely largely on users’ attitudes. If users adopt structured workouts within a platform originally designed for entertainment, Spotify will convert the engagement into sustained revenue.

China’s top economic planner has ordered the reversal of a high-profile cross-border acquisition involving Meta and Singapore-based startup Manus, in a move that further marks Beijing’s expanding oversight of outbound technology transfers and foreign participation in sensitive sectors.

The directive from the National Development and Reform Commission (NDRC) requires both parties to unwind the transaction entirely, despite significant progress already made in integrating operations.

“The National Development and Reform Commission (NDRC) has made a decision to prohibit foreign investment in the Manus project in accordance with laws and regulations, and has required the parties involved to withdraw the acquisition transaction,” the agency said, offering no further explanation.

The absence of detailed reasoning has left analysts to interpret the decision within the broader context of China’s tightening regulatory posture. In recent years, authorities have moved to assert greater control over companies with domestic roots, particularly where intellectual property, engineering talent, and data capabilities are seen as strategically important.

The Manus deal appears to fall squarely within that framework. Although the company relocated its headquarters to Singapore in 2025, its origins in Beijing and the profile of its founding team have kept it within the orbit of Chinese regulatory scrutiny.

Founded in 2022 by Xiao Hong, Yichao Ji, and Tao Zhang, Manus quickly drew attention for its technical capabilities, prompting Meta to agree to an acquisition valued at between $2 billion and $3 billion late last year. The transaction was structured to facilitate a full exit from Chinese ownership, a model increasingly adopted by startups seeking to attract Western capital.

Yet the NDRC’s intervention suggests that such restructuring may no longer be sufficient. Authorities appear willing to look beyond corporate domicile and focus instead on origin, talent, and the potential strategic value of underlying technologies.

For Meta, the ruling complicates an acquisition that had already advanced operationally. Around 100 Manus employees had relocated to Singapore and were working from Meta’s offices, while founder Xiao Hong had taken on a senior role reporting to chief operating officer Javier Olivan. At the same time, reports indicate that Hong and chief scientist Yichao Ji are subject to restrictions preventing them from leaving mainland China, raising questions about the practical unwinding of the deal.

“The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,” a Meta spokesperson said, signaling that the company may seek to contest or negotiate aspects of the decision.

The case is seen as another example of a shift in how cross-border transactions are being assessed. Deals that once hinged on legal structure and jurisdiction are now increasingly subject to geopolitical considerations, with governments asserting authority over assets they consider nationally significant.

This dynamic is not confined to China. In the United States, lawmakers have intensified scrutiny of investments involving firms with Chinese links. Senator John Cornyn has raised concerns about funding connected to Manus, questioning whether American capital should support companies with ties to China, even after relocation.

The result is a narrowing pathway for international transactions. Companies attempting to bridge markets through relocation or restructuring are finding themselves caught between competing regulatory regimes, each imposing its own conditions and red lines.

Beyond the immediate impact on Meta and Manus, the decision carries wider implications for the technology sector. It signals that Beijing is prepared to intervene directly to prevent the transfer of expertise and intellectual property, even when companies have formally shifted their base of operations abroad.

Analysts warn that such interventions may also have a chilling effect on venture capital flows. This is because investors typically rely on predictable regulatory environments when backing cross-border deals. Increased uncertainty over approvals and the potential for retrospective intervention could lead to more cautious deployment of capital, particularly in sectors deemed sensitive.

At an operational level, the unwinding of the Manus acquisition presents a complex challenge. Questions remain over the status of employees already integrated into Meta’s workforce, the ownership and control of intellectual property, and the legal mechanisms required to reverse contractual arrangements spanning multiple jurisdictions.

For global technology companies, the episode lends credence to the fundamental reality that the landscape for international expansion is becoming more fragmented. Regulatory risk is no longer peripheral but central to deal-making, influencing not just where companies invest, but how they structure operations and manage talent.

In that environment, transactions of this nature are likely to face closer scrutiny, longer timelines, and a higher probability of disruption. The Manus case suggests that, increasingly, national considerations can override commercial agreements—reshaping the calculus for companies operating across borders.

OpenAI is moving beyond software and chat windows into the physical world, quietly laying the groundwork for its own smartphone designed from the ground up around AI agents rather than the familiar grid of downloadable apps, according to a detailed new analysis by veteran supply-chain forecaster Ming-Chi Kuo.

The project, still in early stages, would see OpenAI partner with MediaTek and Qualcomm to co-develop custom smartphone processors optimized for on-device AI inference. Luxshare Precision, one of Apple’s most trusted manufacturing hands, would handle co-design and volume production.

Kuo expects the full component list and specifications to be finalized by late 2026 or the first quarter of 2027, with mass production kicking off in 2028 — an aggressive but plausible timeline for a company that has never shipped a consumer device before.

OpenAI aims to sidestep the restrictions that have long frustrated AI developers by owning the hardware stack. Apple and Google tightly control which apps can access system-level data, sensors, and background processes. An OpenAI phone would change that equation entirely. AI agents could operate with unrestricted context, pulling from location, microphone, calendar, messages, and usage patterns in real time, to complete complex tasks proactively instead of waiting for users to open separate apps.

Kuo describes the device as a “continuous context engine,” blending small, efficient on-device models for quick, private responses with heavier cloud-based models for deeper reasoning. That hybrid approach mirrors how OpenAI already runs its most advanced systems and could give the phone an always-available intelligence that feels less like a gadget and more like a digital assistant that actually anticipates needs.

The move comes at a time when ChatGPT is on the verge of hitting a billion weekly users, giving OpenAI a massive installed base to convert into hardware customers. A daily-carry device would deepen engagement far beyond occasional queries on a laptop or phone screen, creating new revenue streams through premium hardware, subscriptions, and potentially even carrier partnerships.

This isn’t a solo crusade. At SXSW this year, Nothing CEO Carl Pei openly declared that “apps are going to disappear,” arguing the decade-old app-store model is outdated for an era of intelligent agents that can act across domains.

Similar thinking has surfaced among other AI-native startups, but OpenAI’s scale and cash reserves put it in a rare position to actually try building the hardware that proves the thesis.

The smartphone plan sits alongside an earlier hardware push. Earlier this year, Chief Global Affairs Officer Chris Lehane confirmed OpenAI remains on track to unveil its first physical product in the second half of 2026. Multiple reports have pointed to distinctive AI-powered earbuds, possibly developed with input from Jony Ive’s design team, as the likely debut device. Those wearables could serve as a lower-risk entry point, testing voice-first, always-listening AI before the heavier lift of a full phone.

Wall Street reacted immediately to Kuo’s note. Qualcomm shares jumped in premarket trading as investors bet the chipmaker could land meaningful new socket wins for its AI-optimized modems and processors. MediaTek and Luxshare stand to gain as well if the project scales, though both are accustomed to working with far more experienced handset makers.

Plenty of skepticism is warranted. History is littered with big-tech outsiders who stumbled into smartphones, just ask Amazon with its Fire Phone, or the countless failed attempts to crack Apple and Samsung’s duopoly. To succeed, OpenAI will have to master carrier certifications, global distribution, after-sales service, and the brutal economics of hardware margins while simultaneously navigating privacy regulations that will scrutinize constant context awareness.

Data collection on this scale could invite intense regulatory and consumer backlash, especially given OpenAI’s already high profile.

Yet the upside is tantalizing. In a world where AI capabilities are advancing faster than the platforms built to contain them, controlling the device could become OpenAI’s ultimate moat. It would turn the phone from a neutral carrier of other companies’ apps into a seamless extension of its intelligence layer — feeding richer training data back into future models while locking users into an ecosystem where ChatGPT, agents, and voice interfaces feel native rather than bolted on.

However, the company is currently still several years from putting metal and glass in consumers’ hands. But Kuo’s note adds real credibility to the idea that OpenAI is no longer satisfied playing inside someone else’s operating system. It wants to build the operating system and the phone that finally lets AI breathe freely. If it pulls it off, the ripple effects across the entire mobile industry could be profound.