đIs China going to win the AI race?
Jensen Huang thinks so... Plus: Government Surveillance at its Best
Hi Team, China has been dominating headlines with major government energy subsidies for its AI companies, rapid progress from Tencent and Tsinghua University on new LLMs, and a surge in R&D spending to accelerate its AI capabilities. Now, Nvidia CEO Jensen Huang is warning that China is on track to win the AI race. Do you agree? Meanwhile, in the U.S., DHS is rolling out facial-recognition apps for local law enforcement, Perplexity is facing another high-profile lawsuit, and Apple is reportedly paying Google $1B to power the next generation of Siri. A lot is shifting fast. Letâs dive in and stay curious.
Is China going to win the AI race?
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Government Surveillance at its Best
Amazon Sues Perplexity AI
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Amazon Sues Perplexity AI
Amazon just filed a major lawsuit against Perplexity AI, and it could shape the future of AI shopping agents. The retailer claims Perplexityâs new browser agent, Comet, secretly logs into Amazon accounts and buys items on usersâ behalf, violating Amazonâs Terms of Service, which ban bots, data mining, and automated purchasing tools.
Amazon argues this âcomputer fraudâ creates privacy risks and degrades the shopping experience. The lawsuit comes after months of warnings, including a cease-and-desist letter in November 2024 and another this year, which Perplexity allegedly ignored. Perplexity, now valued at $20 billion, calls the lawsuit âa bully tacticâ and says users should be able to choose whichever AI agent they want to shop with. But in reality, Amazon may only want its own shopping agents to be used on their site.
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Government Surveillance at its Best
DHS has released a new facial-recognition app called Mobile Identify, giving local police and sheriffâs departments the ability to scan someoneâs face to check their immigration status. The app is tied to the 287(g) program, which already involves more than 550 agencies across 34 states, and directs officers to contact ICE if the scan flags a potential match.
Privacy groups warn this is a major expansion of government surveillance. ICE already uses a similar tool, Mobile Fortify, which pulls from 200+ million images and can override documents like birth certificatesâleading to U.S. citizens being detained. Critics say putting this technology in the hands of local police with a history of profiling will further erode civil liberties. DHS has offered few details on how the new app works or what databases it accesses.
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Is China going to win the AI race?
Nvidia CEO Jensen Huang issued his strongest warning yet that the U.S. is at risk of losing the global AI race to China. Speaking to the Financial Times, Huang said âChina is going to win the AI race,â citing Beijingâs aggressive subsidies for energy and AI infrastructure while the U.S. faces a patchwork of â50 new regulationsâ across different states. The remarks reflect growing frustration as the Trump administration continues restricting Nvidiaâs most advanced chip sales to China, even though the Chinese market represents a $50 billion opportunity for the company.
Huang emphasized that China now produces roughly 50% of the worldâs AI researchers and a large share of leading open-source AI models, making it a critical ecosystem for innovation. While he later clarified that China is ânanoseconds behind America,â he warned that the U.S. must ârace aheadâ by expanding energy capacity and attracting global developers. The comments come as policymakers debate whether to tighten regulations or accelerate data-center expansion to maintain Americaâs current lead in AI.
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