The Download: Chinese AI divides the White House, and a record copyright payout
Quick Answer
The launch of China's free AI model Kimi by Moonshot has intensified divisions among Trump advisers, with concerns over its impact on U.S.
Quick Take
AI companies like OpenAI and Anthropic. Meanwhile, Anthropic has secured a record $1.5 billion copyright settlement, raising ongoing debates about AI copyright and creativity.
Key Points
- Kimi's launch threatens U.S. AI companies' market share and political stability.
- Anthropic's $1.5 billion copyright settlement is the largest in history.
- Debates on AI copyright are raising concerns about limiting creativity.
- Trump administration is considering a ban on Chinese AI models.
- China is tightening export controls on AI technology and chips.
DeepSignal Analysis
What happened
The launch of Kimi, a free AI model by China's Moonshot, has sparked intense debate among Trump advisers regarding its implications for U.S. AI firms like OpenAI and Anthropic. Concurrently, Anthropic has achieved a record $1.5 billion copyright settlement, which has raised questions about the future of AI copyright and creativity.
Key evidence
- Kimi, an open-source AI model from Moonshot, was launched last week and is perceived as a competitor to models from OpenAI and Anthropic.
- Anthropic has secured a $1.5 billion copyright settlement, marking the largest known payout in copyright history, although many creators do not see it as a victory.
- The Trump administration is considering a ban on Chinese AI models, but there is significant division among officials regarding this proposal.
Why it matters
The emergence of Kimi could disrupt the U.S. AI market by providing a free alternative to costly models from established companies, potentially affecting their revenue and innovation strategies. The record copyright settlement for Anthropic highlights ongoing tensions in the AI sector regarding intellectual property rights and the balance between innovation and protection for creators.
📖 Reader Mode
~4 min readThis is today's edition of The Download, our weekday newsletter that provides a daily dose of what's going on in the world of technology.
China’s AI models have Trump’s AI world at war with itself
Last weekend, several current and former advisers to President Donald Trump on AI publicly lobbed insults at the country’s leading AI companies. David Sacks branded Anthropic’s models “lobotomized” and “woke.” Emil Michael, a top Pentagon official, called OpenAI’s new head of strategic futures a “supreme village idiot.”
It began because no one can agree on what to do about Kimi, a free, open-source model that Chinese AI company Moonshot launched last week. It appears to rival the intelligence of models from OpenAI and Anthropic, which are very much not free.
Every time a new smart, free model from China gets released, US companies see less reason to fork out money for models from Anthropic or OpenAI. That’s creating economic and political problems for the president—and dividing the top AI strategists in his orbit.
Read the full story on why no one can agree what to do about Kimi.
—James O'Donnell
The must-reads
I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.
1 Anthropic's record $1.5 billion copyright settlement has been approved
The plaintiffs said Anthropic used pirated works to train Claude. (Reuters $)
+ And won the largest known copyright payout in history. (Engadget)
+ Yet many authors and creators still don’t view it as a win. (TechCrunch)
+ But AI copyright anxiety could limit creativity. (MIT Technology Review)
2 The Trump administration is weighing a ban on Chinese AI models
The launch of Kimi K3 has revived calls for restrictions. (Axios)
+ But officials are divided on the proposals. (Fast Company)
+ China’s bet on open-source is paying off. (MIT Technology Review)
3 China is mulling tighter export controls on AI models and chips
It wants to stop the West from acquiring its tech and startups. (FT $)
+ Beijing has held talks with tech firms about potential restrictions. (Reuters $)
4 Trump’s AI safety head has resigned after just three months
Chris Fall had led CAISI, the federal AI Safety Institute, since April. (Axios)
+ No reason was given for his exit. (CNBC)
5 Google is working on a new chip to run Gemini models more efficiently
The chip, called “Frozen V2,” may be deployed in 2028. (Information $)
+ Alphabet stock popped on the report. (CNBC)
6 New Orleans police have explored arming drones with weapons
A draft drone manual paves the way for weaponised quadcopters. (404 Media)
+ Shoplifters could soon be chased by drones. (MIT Technology Review)
7 The EU has handed AliExpress a record fine over unsafe product sales
The €550 million fine is the largest-ever under the Digital Services Act. (BBC)
+ Alibaba has vowed to appeal the fine. (SCMP)
8 Election advice from AI chatbots is “inaccurate and unreliable”
That’s the conclusion from tests in Hungary earlier this year. (Guardian)
9 Red light therapy is showing promise for healing and healthy aging
Better skin and reduced vision loss are also on the cards. (Economist $)
10 Neill Blomkamp’s new horror clip is all AI-generated—and it sucks
The acclaimed director wants to make “a full feature in this format.” (Gizmodo)
Quote of the day
“This would be a terribly self-defeating form of intervention if it were to happen.”
—Tech investor Chamath Palihapitiya slams plans to restrict Chinese AI models in a post on X.
One More Thing
AKILAH TOWNSEND
Inside Chicago’s surveillance panopticon
Early on the morning of September 2, 2024, four people were shot and killed on a westbound train in Chicago. Police swiftly activated a digital dragnet—a surveillance network that connects thousands of cameras across the city—and arrested the suspect just 90 minutes later.
Law enforcement and security advocates say this vast monitoring system protects public safety and works well. But activists and many residents say it's a surveillance panopticon that creates a chilling effect on behavior and violates guarantees of privacy and free speech.
Go inside the surveillance network that’s dividing Chicago.
—Rod McCullom
We can still have nice things
A place for comfort, fun, and distraction to brighten up your day. (Got any ideas? Drop me a line.)
+ NASA has shared a stunning timelapse video of the Psyche spacecraft's view of Mars.
+ This comparison of American and European Urbanism shows good city design is a choice.
+ Musician Luca Stricagnoli recently performed a marvellous acoustic guitar medley of Prodigy songs.
+ Two Australian paddleboarders saved a stranded wallaby after it was swept out to sea—and caught the whole rescue on video.
— Originally published at technologyreview.com
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