The afternoon briefing.
Deepseek slashes AI model prices, Europe races for petabit cables amid exploding AI demand, and Trump reverses course on AI safety reviews.
AI Model Economics. The competitive landscape for large language models intensified as Deepseek permanently reduced its V4-Pro model price by 75 percent, making it significantly cheaper than GPT-5.5. This aggressive pricing, particularly for output tokens, could put considerable pressure on Western AI providers and reshape the market for token-hungry agentic systems. Meanwhile, Anthropic's acquisition of Stainless, a startup specializing in SDK generation for AI companies, signals ongoing consolidation and strategic moves within the frontier AI sector.
AI Policy & Ethics. Regulatory scrutiny around AI continues, with former President Trump abruptly reversing course on a planned executive order that would have mandated government safety reviews for new AI models. This decision, despite public backlash and expert warnings, effectively gives big tech a green light for unchecked AI development. Concurrently, Microsoft appointed a new responsible tech lead, emphasizing the challenge of humanizing high-speed AI development while addressing ethical concerns. The Oura ring also reported receiving government demands for user data, highlighting broader privacy implications in the age of connected devices.
Frontier Hardware. Significant advancements in computing infrastructure were reported, including the launch of the world's first rack-mounted quantum computer by Equal1, designed for easier deployment in standard data center frames. This development, operating at extreme cryogenic temperatures, marks a step towards more accessible quantum computing. Europe is also accelerating efforts to deploy a petabit-class submarine cable before 2030, aiming to meet the exploding demand for data capacity driven by AI.
AI Applications & User Experience. AI is finding diverse applications, from enhancing fan engagement in sports, as seen with Ferrari's use of IBM's AI for F1 superfans, to scientific research like radar systems that can differentiate insect species. However, challenges persist in user interaction, with a bug in Google Search's AI Overviews treating certain search terms as commands. Furthermore, a survey revealed that nearly two-thirds of workers admit to exaggerating their AI skills, driven by job security fears, indicating a growing "AI confidence gap" in the workforce.
Deepseek makes 75% discount permanent, pricing output tokens 34x below GPT-5.5
Deepseek has made the 75 percent discount on its V4-Pro model permanent, pricing input tokens at $0.435 per million and output tokens over 34 times cheaper than GPT-5.5. This aggressive pricing strategy is expected to put pressure on Western AI providers, especially for token-hungry agentic systems.
World's first rack-mounted quantum computer runs at -459 degrees Fahrenheit
Equal1 has launched the world’s first rack-mounted quantum computer, designed to fit seamlessly into a standard Dell frame for easy deployment. This system operates at -459 degrees Fahrenheit and can be powered from a standard wall socket.
Europe races Meta and Japan to launch first Petabit-class submarine cable before 2030
Europe is accelerating its efforts to launch the first petabit-class submarine cable before 2030, driven by exploding AI demand. The IOEMA-1 project is advancing Northern European subsea cable development, competing with high-capacity systems explored by Japan and Meta.
Special phone and app features can help protect you from spyware
Apple, Meta, and Google offer special security modes designed to provide devices with more secure protection against targeted spyware attacks. These features aim to help users fight back against sophisticated hacking methods that no longer require clicking malicious links.
Ferrari is using IBM’s AI to create F1 superfans
IBM and Scuderia Ferrari HP are collaborating to redefine the fan experience in Formula 1 by using AI to create F1 superfans. This initiative aims to enhance engagement and personalize interactions for racing enthusiasts.
Nuclear startup Deep Fission says it’s going public, again, seeking $157 million
Nuclear startup Deep Fission is seeking an IPO that could raise $157 million, though investors may have questions about the company's story. This marks another attempt for the startup to go public.
z386: An Open-Source 80386 Built Around Original Microcode
A new project called z386 has created an open-source 80386 processor built around original microcode. This initiative offers a deep dive into the architecture of the classic CPU.
Oura says it gets government demands for user data
Oura, the maker of the popular smart ring, has stated that it receives government demands for user data. This raises questions about privacy and how personal health data collected by wearable devices is handled.
How big tech got its way on Trump’s AI executive order
Former President Trump abruptly backed out of signing an executive order that would have called for a government safety review of new AI models before their release. This reversal is seen as a green light for big tech's unchecked power in AI development.
Anthropic’s $300M Stainless deal lands hardest on OpenAI and Google
Anthropic has acquired Stainless, a New York startup known for generating SDKs for major AI companies, in a $300 million deal. This acquisition is expected to impact competitors like OpenAI and Google.
Microsoft’s new responsible tech lead on how to humanize high-speed AI development
Jenny Lay-Flurrie, head of Microsoft's Trusted Technology Group, has been appointed as the company's new responsible tech lead. Her role focuses on ensuring AI development is built and maintained ethically and responsibly.
Radar can tell the difference between insect species
Researchers have developed a radar system capable of differentiating between insect species, offering a cost-effective and non-invasive method to monitor pollinators. This technology could significantly aid in tracking vital insect populations.
Elon Musk has given up on solar power on Earth
Elon Musk's xAI has reportedly gone all-in on natural gas, while SpaceX focuses on orbital data centers, suggesting a shift away from his previous commitment to a "solar-electric economy" on Earth. This move raises questions about his long-term energy strategy.
Searching for 'disregard' or 'ignore' breaks AI Overviews in Google Search
A bug in Google Search's AI Overviews is causing the system to treat certain search terms, such as "disregard" or "ignore," as commands for the AI. This issue can lead to unexpected or broken search results.