Media warnings about the AI bubble are growing louder. History shows these alarms usually arrive late, often after crashes begin. But cloud giants are absorbing AI startups into subscription ecosystems. This time looks different, less spectacular burst, more slow deflation.
DeepMind's AlphaEvolve can search millions of mathematical constructions in hours, not weeks. Fields Medalist Terence Tao already builds on its outputs. But the system finds candidates, not proofs. The real shift: math discovery at industrial scale.
Good Morning from San Francisco, OpenAI needs a trillion dollars but can't get a federal backstop. Seven families
Media warnings about the AI bubble are growing louder. History shows these alarms usually arrive late, often after crashes begin. But cloud giants are absorbing AI startups into subscription ecosystems. This time looks different, less spectacular burst, more slow deflation.
Moonshot trained an AI model for $4.6 million that beats OpenAI's GPT-5 on reasoning tests. While OpenAI seeks trillion-dollar infrastructure, Chinese labs prove the math no longer works. The twist: even they worry the tech works too well.
Seven families sue OpenAI, claiming ChatGPT drove four people to suicide after a May 2024 design change prioritized engagement over safety. The cases test whether AI chatbots qualify as products under liability law.
Microsoft declares it's building "humanist superintelligence" to keep AI safe. Reality check: They're 2 years behind OpenAI, whose models they'll use until 2032. The safety pitch? Product differentiation for enterprise clients who fear runaway AI.
Apple will pay Google $1B yearly to power Siri with a 1.2 trillion parameter AI model—8x more complex than Apple's current tech. The company that owns every layer now rents the most critical one. The spring 2026 target masks a deeper dependency trap.
Sam Altman predicts AI CEOs within years while betting billions on human-centric infrastructure. His Tyler Cowen interview reveals three tensions: monetizing without breaking trust, energy bottlenecks limiting AI, and models that persuade without intent.
Palantir beat earnings but fell 8% at 250x forward P/E, triggering global risk reset. Banking chiefs gave cover for year-end de-risking while AI capex outpaces revenue visibility. When leaders wobble, concentration risk becomes system risk.
OpenAI's CFO floated a federal backstop for AI infrastructure, then reversed within hours after White House rejection. The whiplash exposed the core problem: OpenAI needs $1.4 trillion while generating $20 billion. The math doesn't work.
OpenAI's CFO suggested federal backing for AI infrastructure at WSJ conference, as company seeks taxpayer support for $1.4 trillion buildout against $13B revenue. The ask arrives amid circular tech deals and shutdown-era austerity.
China slashes data center power bills by half—but only for domestic chips. Trump blocks Nvidia's Blackwell exports. Two governments, two subsidy strategies, one question: who can afford their industrial policy longer?
Microsoft won the first Trump-era export license to ship advanced Nvidia chips to the UAE, clearing a path for billions in data center spending. The trade: chip access for binding oversight that converts private infrastructure into alliance architecture.
Cursor's new AI agents complete coding tasks in 30 seconds—four times faster than rivals. The same day, Forrester found 45% of AI-generated code has security flaws. The velocity gap between agent speed and vulnerability detection is widening fast.
Google launched vibe coding tools in October while usage data showed the market had already peaked and crashed. AI code generation works for simple demos but breaks on complex projects—a training distribution wall platforms can't market around.
Google released a browser automation agent days after OpenAI, choosing narrower scope over desktop control. The bet: faster, more reliable web tasks matter more than operating system reach. Internal use proves it works. External adoption will test the claim.
Zhipu AI releases GLM-4.6 with MIT-licensed weights and something unusual: complete test logs from 74 coding evaluations. The pitch is 15% fewer tokens than its predecessor at 90% lower cost than Claude—but with caveats on where it actually leads.
Three Stanford professors just raised $50M to prove OpenAI and Anthropic generate text wrong. Their diffusion models claim 10x speed by processing tokens in parallel, not sequentially. Microsoft and Nvidia are betting they're right.
Ex-Tencent AI scientist Wei Liu chose Singapore for unrestricted Nvidia chip access, raising $50M for Video Rebirth. The geography play matters more than the physics pitch—it's about training on Blackwell while China can't.
Microsoft's venture arm doubled funding for a German startup that cuts datacenter cooling costs by up to 40% using software alone. The timing: North American operators face years-long power constraints while AI demand climbs.
FurtherAI closed $25M from Andreessen Horowitz six months after seed to automate insurance workflows—from submission intake to claims processing. The velocity signals a shift from AI pilots to production deployment, with early customers reporting measurable ROI.
DeepMind's AlphaEvolve can search millions of mathematical constructions in hours, not weeks. Fields Medalist Terence Tao already builds on its outputs. But the system finds candidates, not proofs. The real shift: math discovery at industrial scale.
Enterprises report 74% positive AI returns while cutting training budgets 8%. The Wharton study reveals companies extracting productivity gains today by depleting tomorrow's capabilities—a business model that works until skills erode.
Chinese researchers abandon AI's rigid think-act-observe loops for fluid reasoning that discovers tools mid-thought. DeepAgent hits 89% success where competitors reach 55%, revealing the bottleneck was never intelligence but architectural rigidity.
AI assistants fail basic accuracy checks on news queries nearly half the time, but users don't just blame the AI—they blame the news outlets it cites. As adoption climbs, newsrooms face reputational damage for errors they didn't commit and can't fix.
AI browsers promised revolution but can't crack Chrome's 66% market share. Five extensions deliver the same intelligence without forcing migration. The compromise nobody wanted reveals why adoption beats innovation. Data flows tell the real story.
Adobe unveils agentic AI assistants for Photoshop that chain multi-step edits via prompts, but staggered rollout and third-party model integration reveal strategic hedging. The bet: workflow orchestration beats model supremacy in creative software.
Fathom adds enterprise features competitors launched months ago while testing whether unlimited free access and HubSpot distribution can compensate for transcription accuracy that independent reviews place 30% below market leaders.
Gmail made AI drafting free in early 2025, resetting the market. Startups now push deeper automation or compete on price against zero. The shake-out shows which AI features justify premium pricing—and which were always commodity infrastructure.
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