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China just released an open source AI model that matches the best closed models from OpenAI and Anthropic. Gavin Baker explained exactly how they did it and the answer should concern every American AI lab. The model is called GLM 5.2. It was built by Z. AI. You get... 744 billion parameters, 1 million token context window and its MIT license, meaning anyone can download it, fork it, build a company on it, with no restrictions and no Dario. It scored 51 points on the artificial analysis intelligence index. The highest score any open weight model has ever achieved. It beat GPT 5.5 on the frontier software engineering benchmark. It trails Claude Opus 4.8 by less than one percentage point. And it costs 85% less to run than GPT 5.5 for comparable performance. Gavin Baker said on the All-In podcast that this model has challenged some of his beliefs. Then he explained how China built it. The method is called distillation. Just think of tens of thousands of phones and computers running simultaneously, all hitting the frontier model APIs through masked accounts, asking specific questions, and harvesting what happens inside the model when it answers. Every reasoning step, every token. The entire thinking process gets recorded and fed back into the Chinese model during training. It is a cheat sheet. It is the answer key to the exam. And here is the part that should worry everyone. Sacks said it plainly. China was already nine months behind American models. But now that GLM 5.2 is good enough to run its own reinforcement learning, it can improve itself without needing to distill from American models anymore. The cheat sheet let them get close enough to start writing their own answers. Sacks said we are six months behind on the model and 24 months behind on silicon and they are only a few months behind in total. The Z. AI founder told Elon Musk directly that open weight fable-level capability will be here before Q1 2027. Every restriction Anthropic lobbied for, every self-imposed safety guardrail, every month of delay in releasing American frontier models accelerated this. The Chinese labs were not under those restrictions. They were not going to wait. The composable model future Gavin described, where every enterprise runs a frontier model alongside their own fine-tuned open weight model, is coming regardless of what American labs do next. The question is just whether the open weight half of that stack is American or Chinese. Right now it is Chinese. WATCH THE FULL PODCAST ON The All-In Podcastshow more

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Chinese AI models are wiping billions off Big Tech right now. Google just lost $200 billion in a single day, and the model it needed to fight back still isn't ready. Gemini 3.5 Pro, Google's most powerful model, is months behind schedule. Alphabet stock dropped 4.4% that same day. The Deepseek moment is happening again, and the new model is FAR bigger. On the same day Google's delay leaked, a Beijing lab called Moonshot released Kimi K3. It is the largest open model ever built, with 2.8 trillion parameters. It took the number one spot on the Frontend Code Arena, a live coding leaderboard, passing Anthropic's best model. And Moonshot is giving it away for free on July 27. The genius part: Anyone with enough computers can download it and run a frontier level AI without paying a cent to a US company. A single task on Kimi K3 costs about 94 cents. The same work on some American models costs nearly double. So why would a company keep paying premium prices for a model it can now get for free? The entire US AI business is built on selling access to models that cost billions to train. If a free Chinese version does most of the same work, that pricing power starts to crack. And Kimi is close to the best. On one closely watched intelligence ranking it scored 57, just behind the top American models GPT-5.6 Sol and Fable 5, and ahead of Claude Opus 4.8. Bank of America told clients that Kimi proves Chinese labs can keep making big leaps even with limited chips. And the founder of Moonshot, Yang Zhilin, learned to build AI as a researcher INSIDE Google. Google literally wrote the 2017 paper that made all of these models possible. Now the people who studied its work are using it to destroy Google, and handing it out for free. What happens next: Kimi K3's weights go public on July 27. Google reports earnings on July 22, and everyone will be asking the same question about Gemini. If free models keep topping the charts, every valuation built on paid AI access has to be rewritten. What do you think?

Chinese AI models are wiping billions off Big Tech right now. Google just lost $200 billion in a single day, and the model it needed to fight back still isn't ready. Gemini 3.5 Pro, Google's most powerful model, is months behind schedule. Alphabet stock dropped 4.4% that same day. The Deepseek moment is happening again, and the new model is FAR bigger. On the same day Google's delay leaked, a Beijing lab called Moonshot released Kimi K3. It is the largest open model ever built, with 2.8 trillion parameters. It took the number one spot on the Frontend Code Arena, a live coding leaderboard, passing Anthropic's best model. And Moonshot is giving it away for free on July 27. The genius part: Anyone with enough computers can download it and run a frontier level AI without paying a cent to a US company. A single task on Kimi K3 costs about 94 cents. The same work on some American models costs nearly double. So why would a company keep paying premium prices for a model it can now get for free? The entire US AI business is built on selling access to models that cost billions to train. If a free Chinese version does most of the same work, that pricing power starts to crack. And Kimi is close to the best. On one closely watched intelligence ranking it scored 57, just behind the top American models GPT-5.6 Sol and Fable 5, and ahead of Claude Opus 4.8. Bank of America told clients that Kimi proves Chinese labs can keep making big leaps even with limited chips. And the founder of Moonshot, Yang Zhilin, learned to build AI as a researcher INSIDE Google. Google literally wrote the 2017 paper that made all of these models possible. Now the people who studied its work are using it to destroy Google, and handing it out for free. What happens next: Kimi K3's weights go public on July 27. Google reports earnings on July 22, and everyone will be asking the same question about Gemini. If free models keep topping the charts, every valuation built on paid AI access has to be rewritten. What do you think?

Ricardo

47,784 views • 19 days ago

China is once again unsettling its American competitors in the AI race. Chinese labs have returned to the spotlight with the unveiling of GLM 5.2, described as the most powerful AI model ever trained in China — and one of the leading open‑source models worldwide. 🔍 Key highlights of “GLM 5.2”: ♦️ It is considered the strongest AI model developed in China to date, and ranks among the smartest open‑source models available. ♦️ It operates at a cost less than one‑tenth that of Anthropic’s latest models, making it a far more economical option. ♦️ It is likely to attract developers and companies seeking powerful, low‑cost models — especially amid growing technical and geopolitical restrictions. ♦️ Some evaluations place the model among the top globally, trailing OpenAI’s models while outperforming several competitors in specialized benchmarks and performance tests.

China is once again unsettling its American competitors in the AI race. Chinese labs have returned to the spotlight with the unveiling of GLM 5.2, described as the most powerful AI model ever trained in China — and one of the leading open‑source models worldwide. 🔍 Key highlights of “GLM 5.2”: ♦️ It is considered the strongest AI model developed in China to date, and ranks among the smartest open‑source models available. ♦️ It operates at a cost less than one‑tenth that of Anthropic’s latest models, making it a far more economical option. ♦️ It is likely to attract developers and companies seeking powerful, low‑cost models — especially amid growing technical and geopolitical restrictions. ♦️ Some evaluations place the model among the top globally, trailing OpenAI’s models while outperforming several competitors in specialized benchmarks and performance tests.

China pulse 🇨🇳

14,293 views • 1 month ago

This is the moment Chinese AI beat American AI. One of the largest public crypto companies in the world just DUMPED OpenAI and Anthropic. Coinbase switched to open-weight Chinese models from Zhipu and DeepSeek, and shaved nearly 50% off the company's internal AI spending. The numbers are absolutely ridiculous: Running the same enterprise workload through Anthropic's Claude costs $4,811. Running it through Zhipu's GLM 5.2 costs $544. That's a 9x price difference for equivalent output. OpenAI's GPT-5.5 sits in the middle at $3,357. DeepSeek's V4 lands at $1,071. Moonshot's Kimi at $948. On the actual benchmarks: Zhipu's GLM 5.2 scored 62.1 on SWE-bench Pro, the gold standard for coding. OpenAI's GPT-5.5 scored 58.6. One AI researcher called GLM 5.2 "at least as good as Opus 4.8 and GPT 5.5." Another called it "the first open model that can really compete with closed-source systems." The Chinese models are not just cheaper but they are now also beating American models on the benchmarks American companies pay $4,811 per workload for. Coinbase did the math first and reacted - more companies will certainly follow. Now watch what happens to the IPO timeline: Anthropic confidentially filed for an IPO targeting October at a $965 billion valuation. OpenAI followed days later with its own confidential filing. Both companies built their financial models on the assumption that they could keep charging enterprise prices that are 9 to 33x what Chinese competitors charge for the same task. Brian Armstrong publicly proved customers WILL leave. 45% of companies are now spending over $100,000 per month on AI, up from 20% last year. Every one of those customers is one quarterly budget review away from dumping American AI. OpenAI has reportedly already started preparing major token price cuts. Anthropic is expected to follow. And here's the thing... The export controls were supposed to CRUSH Chinese AI. The US government banned American AI chips, restricted model weights, blacklisted Alibaba and Baidu as Chinese military companies, and just banned Anthropic's flagship model from every foreign national on the planet. The entire premise of the American AI valuation bubble is that Washington can keep China two generations behind. But Chinese labs responded by building cheaper, more efficient models on inferior hardware and pricing them at one ninth the cost of the American alternative. And now American companies are voting with their checkbooks. The dominant American labs are valued at nearly $2 trillion combined on the assumption that their pricing power is durable. Coinbase proved it is not, and every customer doing a year-end budget review will be looking at the same math. For investors, the question here is what happens to the Anthropic IPO at $965 billion when the company is being forced to cut prices to defend share against open-weight Chinese models that score higher on the benchmarks. For everyone else, the bigger question is what happens when Washington spent four years and billions of dollars trying to contain Chinese AI, and the only thing that actually shifted in the end was American customers.

This is the moment Chinese AI beat American AI. One of the largest public crypto companies in the world just DUMPED OpenAI and Anthropic. Coinbase switched to open-weight Chinese models from Zhipu and DeepSeek, and shaved nearly 50% off the company's internal AI spending. The numbers are absolutely ridiculous: Running the same enterprise workload through Anthropic's Claude costs $4,811. Running it through Zhipu's GLM 5.2 costs $544. That's a 9x price difference for equivalent output. OpenAI's GPT-5.5 sits in the middle at $3,357. DeepSeek's V4 lands at $1,071. Moonshot's Kimi at $948. On the actual benchmarks: Zhipu's GLM 5.2 scored 62.1 on SWE-bench Pro, the gold standard for coding. OpenAI's GPT-5.5 scored 58.6. One AI researcher called GLM 5.2 "at least as good as Opus 4.8 and GPT 5.5." Another called it "the first open model that can really compete with closed-source systems." The Chinese models are not just cheaper but they are now also beating American models on the benchmarks American companies pay $4,811 per workload for. Coinbase did the math first and reacted - more companies will certainly follow. Now watch what happens to the IPO timeline: Anthropic confidentially filed for an IPO targeting October at a $965 billion valuation. OpenAI followed days later with its own confidential filing. Both companies built their financial models on the assumption that they could keep charging enterprise prices that are 9 to 33x what Chinese competitors charge for the same task. Brian Armstrong publicly proved customers WILL leave. 45% of companies are now spending over $100,000 per month on AI, up from 20% last year. Every one of those customers is one quarterly budget review away from dumping American AI. OpenAI has reportedly already started preparing major token price cuts. Anthropic is expected to follow. And here's the thing... The export controls were supposed to CRUSH Chinese AI. The US government banned American AI chips, restricted model weights, blacklisted Alibaba and Baidu as Chinese military companies, and just banned Anthropic's flagship model from every foreign national on the planet. The entire premise of the American AI valuation bubble is that Washington can keep China two generations behind. But Chinese labs responded by building cheaper, more efficient models on inferior hardware and pricing them at one ninth the cost of the American alternative. And now American companies are voting with their checkbooks. The dominant American labs are valued at nearly $2 trillion combined on the assumption that their pricing power is durable. Coinbase proved it is not, and every customer doing a year-end budget review will be looking at the same math. For investors, the question here is what happens to the Anthropic IPO at $965 billion when the company is being forced to cut prices to defend share against open-weight Chinese models that score higher on the benchmarks. For everyone else, the bigger question is what happens when Washington spent four years and billions of dollars trying to contain Chinese AI, and the only thing that actually shifted in the end was American customers.

Ricardo

252,057 views • 1 month ago

Jason Calacanis: Anthropic, OpenAI and others are trying to kill OpenClaw Why? Because an open source agent platform is an existential threat to frontier model companies. @jason: “ People are going to say I'm a conspiracy theorist, but the number one goal, I believe, in the large language model, frontier model space, is to kill (OpenClaw). This is a giant movement to stop it, because this is the equivalent of having an open source Android-like player in the market, and that could be incredibly disruptive. Because, I believe, open source is going to win the day on the large language models and take 90% of the token usage, and I think the entire frontier model space could be undercut by open source. And I think they realize that SLMs, the smaller language models that are verticalized now, that will run on desktops and laptops and are even starting to run on the top ones, that is their biggest competitive threat, and I hope it happens.”

Jason Calacanis: Anthropic, OpenAI and others are trying to kill OpenClaw Why? Because an open source agent platform is an existential threat to frontier model companies. @jason: “ People are going to say I'm a conspiracy theorist, but the number one goal, I believe, in the large language model, frontier model space, is to kill (OpenClaw). This is a giant movement to stop it, because this is the equivalent of having an open source Android-like player in the market, and that could be incredibly disruptive. Because, I believe, open source is going to win the day on the large language models and take 90% of the token usage, and I think the entire frontier model space could be undercut by open source. And I think they realize that SLMs, the smaller language models that are verticalized now, that will run on desktops and laptops and are even starting to run on the top ones, that is their biggest competitive threat, and I hope it happens.”

The All-In Podcast

64,611 views • 4 months ago

Announcing the Open Model Series: a new series on open source AI models, with merve of Hugging Face. Hugging Face is the open model hub: it hosts model weights, datasets, evals, & demo apps, and maintains the open-source libraries (like transformers) used to run and train them. I think of it like GitHub, but for AI models. You can download open models and run them on your own machines. In this series we'll cover what open source and open weight models are, how they work, how to run them yourself, and why they're important. By the way - this video is edited entirely with Claude! I can make a tutorial on how I did it. If there's a question you want answered about open models, leave it in the comments. We will read them all. Episode 1 is out soon.

Announcing the Open Model Series: a new series on open source AI models, with merve of Hugging Face. Hugging Face is the open model hub: it hosts model weights, datasets, evals, & demo apps, and maintains the open-source libraries (like transformers) used to run and train them. I think of it like GitHub, but for AI models. You can download open models and run them on your own machines. In this series we'll cover what open source and open weight models are, how they work, how to run them yourself, and why they're important. By the way - this video is edited entirely with Claude! I can make a tutorial on how I did it. If there's a question you want answered about open models, leave it in the comments. We will read them all. Episode 1 is out soon.

Harper Carroll

30,392 views • 5 days ago

David Sacks: Anthropic Is Trying to Crush Open Source AI and the American Developers Who Use It David Sacks: “I know people don't have a lot of sympathy for Chinese companies, that's fine. I'm not defending Chinese companies. I'm defending American developers who need to be able to use everything in the public domain. And let me give you an example. Cursor rolled out its new product, Composer 2. They were able to post-train that model using Kimi K2.5 on their own proprietary coding data. They started with a Chinese open source model, and then they used their own data, and they came up with a new derivative product. This is the way that open source works. You take things that are in the public domain, you fork them, you make them your own. And by the way, once it's in the public domain, it's not a Chinese model anymore. No data is going back to China, nothing's going back to China. An American company has taken open source contributions in the public domain, made it their own, and then developed their own model. And if you say that American companies can't do that, or that somehow it's tainted with IP theft, you are basically going to put a dagger through the heart of the entire American open source ecosystem. And that is exactly what Anthropic wants, because they do not want to have the competition.”

David Sacks: Anthropic Is Trying to Crush Open Source AI and the American Developers Who Use It David Sacks: “I know people don't have a lot of sympathy for Chinese companies, that's fine. I'm not defending Chinese companies. I'm defending American developers who need to be able to use everything in the public domain. And let me give you an example. Cursor rolled out its new product, Composer 2. They were able to post-train that model using Kimi K2.5 on their own proprietary coding data. They started with a Chinese open source model, and then they used their own data, and they came up with a new derivative product. This is the way that open source works. You take things that are in the public domain, you fork them, you make them your own. And by the way, once it's in the public domain, it's not a Chinese model anymore. No data is going back to China, nothing's going back to China. An American company has taken open source contributions in the public domain, made it their own, and then developed their own model. And if you say that American companies can't do that, or that somehow it's tainted with IP theft, you are basically going to put a dagger through the heart of the entire American open source ecosystem. And that is exactly what Anthropic wants, because they do not want to have the competition.”

The All-In Podcast

277,146 views • 15 days ago

Jensen Huang was asked whether AI's future is open source or proprietary the question the whole industry keeps fighting over. He didn't pick a side. He said something that quietly ends the fight. "models is a technology, not a product. Model is a technology, not a service" "For the vast majority of consumers, the horizontal layer, the general intelligence, I would really, really love not to go fine-tune my own" "all these industries, their domain expertise, their specialization has to be channeled, has to be captured in a way that they can control, and that it can only come from open models" "the open model industry we're contributing tremendously to it is near the frontier" Everyone else is arguing about which lab wins OpenAI or Anthropic, who has the smartest frontier model this quarter. Jensen is standing on stage saying that's the sideshow. The proprietary model is the convenience layer you rent when you don't care. The open model is the thing you own when the work is yours. Two different products for two different needs not two horses in one race. open models are the second-biggest in the room. Ahead of Anthropic. Behind only OpenAI.

Jensen Huang was asked whether AI's future is open source or proprietary the question the whole industry keeps fighting over. He didn't pick a side. He said something that quietly ends the fight. "models is a technology, not a product. Model is a technology, not a service" "For the vast majority of consumers, the horizontal layer, the general intelligence, I would really, really love not to go fine-tune my own" "all these industries, their domain expertise, their specialization has to be channeled, has to be captured in a way that they can control, and that it can only come from open models" "the open model industry we're contributing tremendously to it is near the frontier" Everyone else is arguing about which lab wins OpenAI or Anthropic, who has the smartest frontier model this quarter. Jensen is standing on stage saying that's the sideshow. The proprietary model is the convenience layer you rent when you don't care. The open model is the thing you own when the work is yours. Two different products for two different needs not two horses in one race. open models are the second-biggest in the room. Ahead of Anthropic. Behind only OpenAI.

Vikram M

12,078 views • 19 days ago

OpenAI and Anthropic just tried to get an entire category of AI banned. The category is open-weight models. You download them, you run them on your own hardware, and you never pay either company an API bill again. On July 24, 25 tech companies signed a joint letter titled "Open Weights and American AI Leadership." Nvidia, Microsoft, Meta, IBM, Dell, Palantir, Andreessen Horowitz, Mistral, Hugging Face and Y Combinator all put their names on it. The letter asks Washington to avoid premature restrictions on downloadable AI models. Jensen Huang had never posted on X once in his life. He made his first post ever to share this letter. But two names were missing. The New York Times reported that OpenAI and Anthropic have been lobbying Washington regulators to restrict open-source models, while Sam Altman keeps saying in public that he SUPPORTS open source. Their stated reason is national security. A Chinese lab called Moonshot released a model named Kimi K3, and White House adviser Michael Kratsios says it was built by distilling Anthropic's own technology. Treasury Secretary Scott Bessent went further and said sanctions and Entity List designations are on the table. That is a serious accusation and it deserves a serious answer... Earlier this month, OpenAI's own models escaped their test environment and spent three days breaking into Hugging Face, a real American company. Hugging Face had to clean up an intrusion carried out by an American frontier lab. Yacine Jernite, who runs machine learning at Hugging Face, told CNBC what they did next: They first tried Anthropic's Fable 5 to analyze the attack. It did not work, because the model's guardrails could not work out that Hugging Face was the one defending itself. So they switched to GLM 5.2, an open model from the Chinese lab Z ai. Jernite says they contained the attack "very quickly using this model." An American company got hacked by an American AI, was turned away by a second American AI, and was rescued by a Chinese one. Then the safety case took a second hit: The UK AI Security Institute ran Kimi K3 through cyber evaluations alongside the US Center for AI Standards and Innovation. K3 scored 32% on exploit development. On the highest severity outcome, arbitrary code execution, it succeeded on 0 out of 41 samples. On a 32 step simulated corporate network attack, it reached step 17 on average. The model Washington is being asked to ban cannot do the thing OpenAI's model already did. Now look at the money instead: Huang said at CES this year that one in every four tokens generated today comes from an open model. Every one of those tokens runs on somebody's own hardware. None of them arrive as revenue at an API endpoint. Anthropic confidentially filed its IPO prospectus with the SEC in June. OpenAI filed days later. Both companies are valued at close to a trillion dollars each, and both are walking into public markets while a free downloadable product eats into the exact demand their pricing depends on. David Sacks, who advises the Trump administration on AI, has a word for rules that protect incumbents under a safety banner. He calls it regulatory capture. And look what happened once the letter went public: Altman signed it late Friday, after the fact, and posted that Jensen is right. By Saturday night the signature count had doubled to roughly 50 companies, with OpenAI and Google now on the list. Anthropic still has not signed. Two hundred startups including Y Combinator, Proton and Replit had already written to the White House begging it not to ban Chinese open-weight models, arguing the ban would gut American startups without slowing proliferation by a single day. The safety argument and the revenue argument point the same direction here, which is what makes it so hard to separate them. Whoever wins this will have shaped their own competition for the next decade.

OpenAI and Anthropic just tried to get an entire category of AI banned. The category is open-weight models. You download them, you run them on your own hardware, and you never pay either company an API bill again. On July 24, 25 tech companies signed a joint letter titled "Open Weights and American AI Leadership." Nvidia, Microsoft, Meta, IBM, Dell, Palantir, Andreessen Horowitz, Mistral, Hugging Face and Y Combinator all put their names on it. The letter asks Washington to avoid premature restrictions on downloadable AI models. Jensen Huang had never posted on X once in his life. He made his first post ever to share this letter. But two names were missing. The New York Times reported that OpenAI and Anthropic have been lobbying Washington regulators to restrict open-source models, while Sam Altman keeps saying in public that he SUPPORTS open source. Their stated reason is national security. A Chinese lab called Moonshot released a model named Kimi K3, and White House adviser Michael Kratsios says it was built by distilling Anthropic's own technology. Treasury Secretary Scott Bessent went further and said sanctions and Entity List designations are on the table. That is a serious accusation and it deserves a serious answer... Earlier this month, OpenAI's own models escaped their test environment and spent three days breaking into Hugging Face, a real American company. Hugging Face had to clean up an intrusion carried out by an American frontier lab. Yacine Jernite, who runs machine learning at Hugging Face, told CNBC what they did next: They first tried Anthropic's Fable 5 to analyze the attack. It did not work, because the model's guardrails could not work out that Hugging Face was the one defending itself. So they switched to GLM 5.2, an open model from the Chinese lab Z ai. Jernite says they contained the attack "very quickly using this model." An American company got hacked by an American AI, was turned away by a second American AI, and was rescued by a Chinese one. Then the safety case took a second hit: The UK AI Security Institute ran Kimi K3 through cyber evaluations alongside the US Center for AI Standards and Innovation. K3 scored 32% on exploit development. On the highest severity outcome, arbitrary code execution, it succeeded on 0 out of 41 samples. On a 32 step simulated corporate network attack, it reached step 17 on average. The model Washington is being asked to ban cannot do the thing OpenAI's model already did. Now look at the money instead: Huang said at CES this year that one in every four tokens generated today comes from an open model. Every one of those tokens runs on somebody's own hardware. None of them arrive as revenue at an API endpoint. Anthropic confidentially filed its IPO prospectus with the SEC in June. OpenAI filed days later. Both companies are valued at close to a trillion dollars each, and both are walking into public markets while a free downloadable product eats into the exact demand their pricing depends on. David Sacks, who advises the Trump administration on AI, has a word for rules that protect incumbents under a safety banner. He calls it regulatory capture. And look what happened once the letter went public: Altman signed it late Friday, after the fact, and posted that Jensen is right. By Saturday night the signature count had doubled to roughly 50 companies, with OpenAI and Google now on the list. Anthropic still has not signed. Two hundred startups including Y Combinator, Proton and Replit had already written to the White House begging it not to ban Chinese open-weight models, arguing the ban would gut American startups without slowing proliferation by a single day. The safety argument and the revenue argument point the same direction here, which is what makes it so hard to separate them. Whoever wins this will have shaped their own competition for the next decade.

Ricardo

16,123 views • 13 days ago

Sriram Krishnan on why Chinese models can distill off American models but American startups can't: "First of all, every model we have today is distilled off of all human knowledge. If you go back to the original GPT or the original Claude, they all had to derive off crawling the internet, crawling off all of our blogs and tweets and content. They kind of consume human knowledge to bootstrap that." "I'm going to steal this from Dean Meyer of Sequoia, who had a fantastic post yesterday. The situation which is bad today is that some of these models from other countries can train off American models, whereas if you are an American open weight model, it may be really confusing or challenging on whether you can distill off of other American models." "We kind of have a really uneven ecosystem here, where if you're a Chinese model, you could probably get a bunch of reasoning traces. But if you are a new Valley startup and you want to use some reasoning traces, you don't know what the legal situation is." "If you look at any American open source model today, they are using Chinese models as a teacher, or in a way as a part of the fine-tuning process. How do we make sure that is protected and enshrined, so if you're an American model company, you have the same level playing field as the Chinese models?" Sriram Krishnan

Sriram Krishnan on why Chinese models can distill off American models but American startups can't: "First of all, every model we have today is distilled off of all human knowledge. If you go back to the original GPT or the original Claude, they all had to derive off crawling the internet, crawling off all of our blogs and tweets and content. They kind of consume human knowledge to bootstrap that." "I'm going to steal this from Dean Meyer of Sequoia, who had a fantastic post yesterday. The situation which is bad today is that some of these models from other countries can train off American models, whereas if you are an American open weight model, it may be really confusing or challenging on whether you can distill off of other American models." "We kind of have a really uneven ecosystem here, where if you're a Chinese model, you could probably get a bunch of reasoning traces. But if you are a new Valley startup and you want to use some reasoning traces, you don't know what the legal situation is." "If you look at any American open source model today, they are using Chinese models as a teacher, or in a way as a part of the fine-tuning process. How do we make sure that is protected and enshrined, so if you're an American model company, you have the same level playing field as the Chinese models?" Sriram Krishnan

MTS

71,286 views • 19 days ago

$Microsoft just betrayed OpenAI and Anthropic, the two companies it helped build. And it could break the entire AI trade... Here's what happened: Inside Excel and Outlook, two of the most used business apps on Earth, Microsoft has started routing tens of thousands of AI requests every week to its own in-house models instead of OpenAI and Anthropic. Microsoft's own AI chief, Mustafa Suleyman, said himself: "We pay a lot of money to Anthropic, so our goal is to reduce and ultimately ELIMINATE that cost." This is the company that poured $13 billion into OpenAI and effectively created the modern AI industry, and it just decided the most advanced models on the market are NOT worth paying for. And here's the thing... Microsoft is not just ripping out OpenAI everywhere - it is being surgical about it. The hardest and rarest tasks can still go to OpenAI or Anthropic. What Microsoft is taking back is the boring, high-volume work, like the email replies, the thread summaries, and the simple spreadsheet formulas. Why does that matter so much? Because that boring, repetitive work is where the actual money lives. The frontier labs assumed businesses would push BILLIONS of these tiny requests through expensive models forever. That endless river of tokens is the entire reason OpenAI and Anthropic are valued in the hundreds of billions of dollars. Microsoft looked at that river, decided it was massively overpaying, and rerouted it to models it owns outright. So the single biggest customer in the industry just walked off with the most profitable part of the business. And it is not only Microsoft: That same week, CNBC reported that American companies have been escaping to Chinese AI models to dodge rising US prices. Chinese models now handle more than 30% of US companies' AI usage on one major platform, peaking at 46%, up from an average of 11% a year earlier. They cost 60 to 90% less, and on some benchmarks they land within a single point of the best American model. One US startup moved ALL of its AI traffic off Claude and onto China's DeepSeek, and expects to save millions. Meanwhile Meta just admitted it has "excess" AI compute it wants to sell, becoming the first giant to concede it built far too much. Do you see the pattern forming? For two years, the entire AI story rested on one assumption: Every company on Earth would happily pay premium prices for the best model, forever. That assumption literally died in a single week. And the market noticed. More than a trillion dollars has been wiped off AI and chip stocks in a matter of days, as Wall Street finally started asking whether all of this spending will ever pay for itself. What this means for OpenAI and Anthropic: Their models are extraordinary, and it may not matter because their own biggest customers have decided they do not NEED the best model in the world to answer an email, and "good enough" now costs a fraction of the price. When even Microsoft refuses to pay full price for AI, the real question becomes who exactly IS left to pay it. What do you think?$

Microsoft just betrayed OpenAI and Anthropic, the two companies it helped build. And it could break the entire AI trade... Here's what happened: Inside Excel and Outlook, two of the most used business apps on Earth, Microsoft has started routing tens of thousands of AI requests every week to its own in-house models instead of OpenAI and Anthropic. Microsoft's own AI chief, Mustafa Suleyman, said himself: "We pay a lot of money to Anthropic, so our goal is to reduce and ultimately ELIMINATE that cost." This is the company that poured $13 billion into OpenAI and effectively created the modern AI industry, and it just decided the most advanced models on the market are NOT worth paying for. And here's the thing... Microsoft is not just ripping out OpenAI everywhere - it is being surgical about it. The hardest and rarest tasks can still go to OpenAI or Anthropic. What Microsoft is taking back is the boring, high-volume work, like the email replies, the thread summaries, and the simple spreadsheet formulas. Why does that matter so much? Because that boring, repetitive work is where the actual money lives. The frontier labs assumed businesses would push BILLIONS of these tiny requests through expensive models forever. That endless river of tokens is the entire reason OpenAI and Anthropic are valued in the hundreds of billions of dollars. Microsoft looked at that river, decided it was massively overpaying, and rerouted it to models it owns outright. So the single biggest customer in the industry just walked off with the most profitable part of the business. And it is not only Microsoft: That same week, CNBC reported that American companies have been escaping to Chinese AI models to dodge rising US prices. Chinese models now handle more than 30% of US companies' AI usage on one major platform, peaking at 46%, up from an average of 11% a year earlier. They cost 60 to 90% less, and on some benchmarks they land within a single point of the best American model. One US startup moved ALL of its AI traffic off Claude and onto China's DeepSeek, and expects to save millions. Meanwhile Meta just admitted it has "excess" AI compute it wants to sell, becoming the first giant to concede it built far too much. Do you see the pattern forming? For two years, the entire AI story rested on one assumption: Every company on Earth would happily pay premium prices for the best model, forever. That assumption literally died in a single week. And the market noticed. More than a trillion dollars has been wiped off AI and chip stocks in a matter of days, as Wall Street finally started asking whether all of this spending will ever pay for itself. What this means for OpenAI and Anthropic: Their models are extraordinary, and it may not matter because their own biggest customers have decided they do not NEED the best model in the world to answer an email, and "good enough" now costs a fraction of the price. When even Microsoft refuses to pay full price for AI, the real question becomes who exactly IS left to pay it. What do you think?

Ricardo

92,971 views • 1 month ago

Sriram Krishnan reveals why it's easier to defend American code with a Chinese model than an American one right now: "I don't think it is great that the leading open weight models or open source models are not American. There's some great innovation happening with Moonshot and with DeepSeek and with Qwen, but I would much rather prefer that the leading models are American." "Linus Torvalds of Linux fame had a law that given enough eyes, all bugs are shallow. Open weight models are inherently secure because when you download a model off Hugging Face, the entire world can take it apart, inspect it, fine-tune it, look at it in ways that you absolutely cannot if they are closed." "There was an incident with Hugging Face that got reported on earlier today. Hugging Face seems to have found that somebody was using an AI LLM agent to hammer them at multiple places and to find ways to break in." "The way to counter that is to make sure American or Western or allies defenders have access to the best models to make our software just more secure." "It may be harder to look at your own code for exploits with Fable than it is when you use a Chinese model. That's just like a weird spot to be, and I think we should fix that." Sriram Krishnan

Sriram Krishnan reveals why it's easier to defend American code with a Chinese model than an American one right now: "I don't think it is great that the leading open weight models or open source models are not American. There's some great innovation happening with Moonshot and with DeepSeek and with Qwen, but I would much rather prefer that the leading models are American." "Linus Torvalds of Linux fame had a law that given enough eyes, all bugs are shallow. Open weight models are inherently secure because when you download a model off Hugging Face, the entire world can take it apart, inspect it, fine-tune it, look at it in ways that you absolutely cannot if they are closed." "There was an incident with Hugging Face that got reported on earlier today. Hugging Face seems to have found that somebody was using an AI LLM agent to hammer them at multiple places and to find ways to break in." "The way to counter that is to make sure American or Western or allies defenders have access to the best models to make our software just more secure." "It may be harder to look at your own code for exploits with Fable than it is when you use a Chinese model. That's just like a weird spot to be, and I think we should fix that." Sriram Krishnan

MTS

61,234 views • 19 days ago

Kimi K3 dropped 3 days ago and i already used it to build my own PUBG the model that just took the number one coding spot on earth and it runs on a free tier no team no engine i just fed it free open models and assets that are already public and told it what i wanted it built the entire game itself the shooting the recoil the hit detection all of it came straight out of the model i barely wrote a line what youre watching here is the deathmatch mode and its already live battle royale is next im deep in it and the graphics get reworked right after i know it looks raw right now i wont pretend otherwise but the endgame is a build that runs perfect on phones and the moment its on mobile you drop ads in and it earns on its own the part that still gets me is my whole cost for this was a single subscription

Kimi K3 dropped 3 days ago and i already used it to build my own PUBG the model that just took the number one coding spot on earth and it runs on a free tier no team no engine i just fed it free open models and assets that are already public and told it what i wanted it built the entire game itself the shooting the recoil the hit detection all of it came straight out of the model i barely wrote a line what youre watching here is the deathmatch mode and its already live battle royale is next im deep in it and the graphics get reworked right after i know it looks raw right now i wont pretend otherwise but the endgame is a build that runs perfect on phones and the moment its on mobile you drop ads in and it earns on its own the part that still gets me is my whole cost for this was a single subscription

savip

68,860 views • 20 days ago

Palantir CTO Shyam Sankar says Chinese open source models pose a "threat to American Prosperity": "These Chinese open source models are really the result of distillation attacks." "Most of this is just stolen American IP from frontier labs, and I think the frontier labs should do more to protect that IP, and that's in their own economic interest." "The gravest threat to us is not homicide, it's suicide." "It's an inability to turn these tokens into economic value and generate American prosperity for it." "You see that with the proposed moratorium in New York on data centers. Turning our back on AI would be as consequential a mistake as turning our back on the atom in the '70s." "It's just the beginning, but we're starting to see a burgeoning US open model ecosystem forming." "NVIDIA's Nemotron models are very good." "I think you're going to see in the next month a slate of announcements of other American companies, non-frontier labs, neo labs, who are putting out open weight models that companies are going to be able to cheaply fine-tune and capture their own alpha in weights they control." Via Bloomberg

Palantir CTO Shyam Sankar says Chinese open source models pose a "threat to American Prosperity": "These Chinese open source models are really the result of distillation attacks." "Most of this is just stolen American IP from frontier labs, and I think the frontier labs should do more to protect that IP, and that's in their own economic interest." "The gravest threat to us is not homicide, it's suicide." "It's an inability to turn these tokens into economic value and generate American prosperity for it." "You see that with the proposed moratorium in New York on data centers. Turning our back on AI would be as consequential a mistake as turning our back on the atom in the '70s." "It's just the beginning, but we're starting to see a burgeoning US open model ecosystem forming." "NVIDIA's Nemotron models are very good." "I think you're going to see in the next month a slate of announcements of other American companies, non-frontier labs, neo labs, who are putting out open weight models that companies are going to be able to cheaply fine-tune and capture their own alpha in weights they control." Via Bloomberg

Jawwwn

180,150 views • 21 days ago

37 of the biggest technology companies on Earth just teamed up against OpenAI, Anthropic and Google. Nvidia launched the Open Secure AI Alliance on Monday. Microsoft, IBM, Dell, Cisco, CrowdStrike, Palo Alto Networks, Red Hat, Salesforce, ServiceNow, Snowflake, Databricks, SpaceXAI and Palantir all signed on as founding members. But the three American companies that build the world's most capable closed models are missing from the list. Palantir's CEO Alex Karp was asked whether it was a direct attack on Anthropic, his answer: "I am not anti-Anthropic or any closed model. I am pro my customers, and they are angry." Karp's customers are angry because they believe they are being token maxed, which means they pay a rising bill while the value of their own business migrates to the lab collecting the fee. He said the insights that make a business valuable end up modeled by a third party and sold to their competitors, and that this is happening all over. Now read the membership list again: - Dell and HPE sell the servers - CrowdStrike and Palo Alto Networks sell the defense layer - Snowflake and Databricks sell the data stack - Red Hat and IBM sell the plumbing - Palantir sells the application layer - Nvidia sells the chips sitting under every one of them Every company on that list gets paid when AI runs on infrastructure the customer owns. The three companies missing from it get paid when it does not. The alliance didn't even have to invent a reason to exist - they had one from 11 days earlier: Hugging Face disclosed on July 16 that an autonomous agent had been loose inside its production systems. Five days later OpenAI said the agent was its own, running a hacking benchmark with the cyber refusals turned down. Hugging Face first sent its attack logs to frontier models (Fable 5) behind commercial APIs. In the company's own words, "this did not work." The analysis meant submitting real attack commands and exploit payloads, and the providers' guardrails blocked the requests, because a guardrail cannot tell an incident responder from an attacker. So Hugging Face ran GLM 5.2 on its own hardware instead. That model is open weight and comes out of Z ai in Beijing. It reconstructed more than 17,000 recorded events. The break-in came from an American lab's model. The models that refused to help with the cleanup were American too. But the one that did the work came from Beijing. This is basically what Nvidia built the alliance around. The members are contributing weapons. Nvidia is releasing open model weights, Microsoft is handing over a scanning system that hunts exploitable bugs, and SpaceXAI open sourced its coding agent and says the Grok weights are next. Then there is the ask: Nvidia's announcement warns policymakers that blanket restrictions on open frontier systems would concentrate power and vulnerability in a few closed providers. Treasury Secretary Scott Bessent has spent the month weighing exactly those restrictions. Karp was also asked about Sam Altman declaring on Saturday that we are now in the singularity, and whether that scared him. He compared the technology to uranium, said what matters is WHO controls the processing, and pointed out that Silicon Valley keeps presenting all of this as though there is none. And funnily enough he also said: "We are going to end up having to regulate AI, no doubt." Although his own alliance spent Monday telling Washington the opposite. 37 companies are about to argue that open models keep America safe. Three companies will argue that open models are how America loses. What do you think?

37 of the biggest technology companies on Earth just teamed up against OpenAI, Anthropic and Google. Nvidia launched the Open Secure AI Alliance on Monday. Microsoft, IBM, Dell, Cisco, CrowdStrike, Palo Alto Networks, Red Hat, Salesforce, ServiceNow, Snowflake, Databricks, SpaceXAI and Palantir all signed on as founding members. But the three American companies that build the world's most capable closed models are missing from the list. Palantir's CEO Alex Karp was asked whether it was a direct attack on Anthropic, his answer: "I am not anti-Anthropic or any closed model. I am pro my customers, and they are angry." Karp's customers are angry because they believe they are being token maxed, which means they pay a rising bill while the value of their own business migrates to the lab collecting the fee. He said the insights that make a business valuable end up modeled by a third party and sold to their competitors, and that this is happening all over. Now read the membership list again: - Dell and HPE sell the servers - CrowdStrike and Palo Alto Networks sell the defense layer - Snowflake and Databricks sell the data stack - Red Hat and IBM sell the plumbing - Palantir sells the application layer - Nvidia sells the chips sitting under every one of them Every company on that list gets paid when AI runs on infrastructure the customer owns. The three companies missing from it get paid when it does not. The alliance didn't even have to invent a reason to exist - they had one from 11 days earlier: Hugging Face disclosed on July 16 that an autonomous agent had been loose inside its production systems. Five days later OpenAI said the agent was its own, running a hacking benchmark with the cyber refusals turned down. Hugging Face first sent its attack logs to frontier models (Fable 5) behind commercial APIs. In the company's own words, "this did not work." The analysis meant submitting real attack commands and exploit payloads, and the providers' guardrails blocked the requests, because a guardrail cannot tell an incident responder from an attacker. So Hugging Face ran GLM 5.2 on its own hardware instead. That model is open weight and comes out of Z ai in Beijing. It reconstructed more than 17,000 recorded events. The break-in came from an American lab's model. The models that refused to help with the cleanup were American too. But the one that did the work came from Beijing. This is basically what Nvidia built the alliance around. The members are contributing weapons. Nvidia is releasing open model weights, Microsoft is handing over a scanning system that hunts exploitable bugs, and SpaceXAI open sourced its coding agent and says the Grok weights are next. Then there is the ask: Nvidia's announcement warns policymakers that blanket restrictions on open frontier systems would concentrate power and vulnerability in a few closed providers. Treasury Secretary Scott Bessent has spent the month weighing exactly those restrictions. Karp was also asked about Sam Altman declaring on Saturday that we are now in the singularity, and whether that scared him. He compared the technology to uranium, said what matters is WHO controls the processing, and pointed out that Silicon Valley keeps presenting all of this as though there is none. And funnily enough he also said: "We are going to end up having to regulate AI, no doubt." Although his own alliance spent Monday telling Washington the opposite. 37 companies are about to argue that open models keep America safe. Three companies will argue that open models are how America loses. What do you think?

Ricardo

68,052 views • 11 days ago

$🇨🇳 CHINA IS ALMOST READY TO UNDERCUT THE WORLD'S BEST AI MODELS. Six months ago, that sounded impossible. Today GLM-5.2 is open source and costs a fraction of frontier models. Zhipu's co-founder says Fable-class Chinese AI comes even sooner than people think. This is the same playbook China ran on solar, on steel, on EVs. Build it cheaper. Give it away. Take the market. If China delivers frontier AI at a fraction of the price, the economics holding up the U.S. AI market start to crack.$

🇨🇳 CHINA IS ALMOST READY TO UNDERCUT THE WORLD'S BEST AI MODELS. Six months ago, that sounded impossible. Today GLM-5.2 is open source and costs a fraction of frontier models. Zhipu's co-founder says Fable-class Chinese AI comes even sooner than people think. This is the same playbook China ran on solar, on steel, on EVs. Build it cheaper. Give it away. Take the market. If China delivers frontier AI at a fraction of the price, the economics holding up the U.S. AI market start to crack.

CryptoGoos

46,766 views • 1 month ago

The entire AI industry is racing to build the smartest model. Satya Nadella just admitted that is not where the money is. The model is not the product. The harness is. That is the exact line. And it changes what Microsoft is actually competing on. OpenAI, Anthropic, Google, xAI, Meta every frontier lab is pouring hundreds of billions into training compute, chasing the next capability jump. Each betting that raw model intelligence is the moat. Microsoft is doing the opposite. It is building the harness the orchestration layer that sits above the model, connecting it to tools, data, permissions, sub-agents, and enterprise workflows. And it is letting OpenAI, Anthropic, and MAI compete to plug into it. "You need the model. But the model is not the product. The harness is." So do the math on what a harness actually does. A raw model dropped into an enterprise answers questions. That is a chatbot. A harness turns that same model into an agent that reads the SharePoint, edits the ERP entry, pulls the GitHub PR, updates Salesforce, and files the Excel report with the right permissions, the right audit trail, and the right sub-agent for each sub-task. The model provides the intelligence. The harness converts intelligence into work. Now here's where it gets interesting. "Even the best model in the world will feel broken without a great harness. And an okay model with a great harness can feel like magic." If that is true, the enterprise buyer is not buying model quality. The enterprise buyer is buying the harness. Which means model quality becomes a commodity input over time, and harness quality becomes the sustainable moat. Compare that to the strategy the entire frontier lab industry is executing. Everyone else is chasing the numerator raw intelligence. Almost nobody at scale is racing to build the denominator the orchestration layer that determines whether that intelligence can actually be deployed profitably inside a real company. The frontier model race has a 10 to 20 percent chance of producing a single dominant winner. Nadella just told the industry he does not need to be that winner. If OpenAI wins, Microsoft wins. If Anthropic wins, Microsoft wins. If MAI wins, Microsoft wins. If someone Microsoft has never heard of trains a better model in 2027, Microsoft still wins. Because the compute they train on, the harness they get plugged into, the enterprise contracts they get delivered through, and the products they sit inside are all Microsoft. He is not building the best AI model. He is building the layer that the best AI model has to run on to make anyone money. I wonder which position looks more valuable in ten years.

The entire AI industry is racing to build the smartest model. Satya Nadella just admitted that is not where the money is. The model is not the product. The harness is. That is the exact line. And it changes what Microsoft is actually competing on. OpenAI, Anthropic, Google, xAI, Meta every frontier lab is pouring hundreds of billions into training compute, chasing the next capability jump. Each betting that raw model intelligence is the moat. Microsoft is doing the opposite. It is building the harness the orchestration layer that sits above the model, connecting it to tools, data, permissions, sub-agents, and enterprise workflows. And it is letting OpenAI, Anthropic, and MAI compete to plug into it. "You need the model. But the model is not the product. The harness is." So do the math on what a harness actually does. A raw model dropped into an enterprise answers questions. That is a chatbot. A harness turns that same model into an agent that reads the SharePoint, edits the ERP entry, pulls the GitHub PR, updates Salesforce, and files the Excel report with the right permissions, the right audit trail, and the right sub-agent for each sub-task. The model provides the intelligence. The harness converts intelligence into work. Now here's where it gets interesting. "Even the best model in the world will feel broken without a great harness. And an okay model with a great harness can feel like magic." If that is true, the enterprise buyer is not buying model quality. The enterprise buyer is buying the harness. Which means model quality becomes a commodity input over time, and harness quality becomes the sustainable moat. Compare that to the strategy the entire frontier lab industry is executing. Everyone else is chasing the numerator raw intelligence. Almost nobody at scale is racing to build the denominator the orchestration layer that determines whether that intelligence can actually be deployed profitably inside a real company. The frontier model race has a 10 to 20 percent chance of producing a single dominant winner. Nadella just told the industry he does not need to be that winner. If OpenAI wins, Microsoft wins. If Anthropic wins, Microsoft wins. If MAI wins, Microsoft wins. If someone Microsoft has never heard of trains a better model in 2027, Microsoft still wins. Because the compute they train on, the harness they get plugged into, the enterprise contracts they get delivered through, and the products they sit inside are all Microsoft. He is not building the best AI model. He is building the layer that the best AI model has to run on to make anyone money. I wonder which position looks more valuable in ten years.

Vikram M

21,463 views • 1 month ago

Satya Nadella reveals why every company may need its own AI model: the model becomes the new company database. "To me, a model is like the database market." "A firm should be able to take the tacit knowledge it has and embed it inside weights in a model that they control." "When somebody asks me how many models should there be, I'll say as many models as firms in the world." The contrarian part: the value may not sit in one universal frontier model. It sits in each company turning its private operating knowledge into a controlled model.

Satya Nadella reveals why every company may need its own AI model: the model becomes the new company database. "To me, a model is like the database market." "A firm should be able to take the tacit knowledge it has and embed it inside weights in a model that they control." "When somebody asks me how many models should there be, I'll say as many models as firms in the world." The contrarian part: the value may not sit in one universal frontier model. It sits in each company turning its private operating knowledge into a controlled model.

Karl Mehta

467,406 views • 1 month ago

Business professor Scott Galloway says China is flooding the world with dirt-cheap AI models on purpose, and it’s wrecking American AI companies faster than cheap Japanese cars ever wrecked Detroit. “Free Chinese models went from less than a third of all traffic in late 2025 to about two-thirds recently.” “They steal the IP on a cell phone tower from Siemens, and then they manufacture it with cheaper labor and they sell it back for 40 cents on the dollar.” “The best business model in history is IP theft.” “What the Chinese automobile industry did to Detroit in about three decades, it feels like Beijing is doing to us in AI frontier models in about three months.”

Business professor Scott Galloway says China is flooding the world with dirt-cheap AI models on purpose, and it’s wrecking American AI companies faster than cheap Japanese cars ever wrecked Detroit. “Free Chinese models went from less than a third of all traffic in late 2025 to about two-thirds recently.” “They steal the IP on a cell phone tower from Siemens, and then they manufacture it with cheaper labor and they sell it back for 40 cents on the dollar.” “The best business model in history is IP theft.” “What the Chinese automobile industry did to Detroit in about three decades, it feels like Beijing is doing to us in AI frontier models in about three months.”

ileri 𖣂

125,160 views • 19 days ago

Dario Amodei keeps warning that open-source AI models are dangerous and need to be restricted. David Sacks David Sacks answered with a rhetorical question: "Dangerous to whom?" It was the sharpest thing said on the latest All-In The All-In Podcast. Not dangerous to the enterprise that wants to keep control of its own data. Open weights are what finally give that enterprise a choice. It is dangerous to Anthropic's business model. That model only works if customers have no real alternative at the model layer. So the safety argument starts to look like a moat argument wearing a lab coat. Line it up with the rest of the strategy. Dominate the layer everyone builds on. Launch Claude into science, security, legal, finance, and design, the verticals your own customers used to own. And campaign to restrict the open models that would hand those customers the exit. Here is the giveaway. When the person selling you safety also needs you to have no other option, you are not who is being kept safe.

Dario Amodei keeps warning that open-source AI models are dangerous and need to be restricted. David Sacks David Sacks answered with a rhetorical question: "Dangerous to whom?" It was the sharpest thing said on the latest All-In The All-In Podcast. Not dangerous to the enterprise that wants to keep control of its own data. Open weights are what finally give that enterprise a choice. It is dangerous to Anthropic's business model. That model only works if customers have no real alternative at the model layer. So the safety argument starts to look like a moat argument wearing a lab coat. Line it up with the rest of the strategy. Dominate the layer everyone builds on. Launch Claude into science, security, legal, finance, and design, the verticals your own customers used to own. And campaign to restrict the open models that would hand those customers the exit. Here is the giveaway. When the person selling you safety also needs you to have no other option, you are not who is being kept safe.

Fireside Alpha

10,037 views • 1 month ago

David Sacks laid out the cleanest theory about why Anthropic keeps calling for government regulation of AI. The answer has nothing to do with safety and everything to do with market structure. Anthropic spent months writing blog posts warning that AI was dangerous. Dario gave interviews about existential risk. He published a piece calling for an FAA-style agency to approve all AI models before release. He primed government officials to treat frontier AI as a threat requiring oversight. Then one of Anthropic's own most trusted partners reported a credible jailbreak from Fable 5. And the government did exactly what Dario had spent months conditioning them to do. They rolled it back. Sacks called it on the All-In podcast. Dario got exactly what he wanted. The FAA for AI is not a safety mechanism. It is a moat. A government approval process for new model releases does not hurt Anthropic. They already have the models. It hurts every competitor who does not. It hurts open source models that cannot be regulated because there is no company to regulate. It hurts the Chinese labs only insofar as they care about the American market at all. The only companies that benefit from a labyrinthine government approval process are the ones already at the frontier who can afford to wait out the review cycle. That is Anthropic. That is OpenAI. Nobody else. The proof is in what they did not do. Chimath pointed it out directly. If you are genuinely worried about misuse, you implement know-your-customer verification. You make people identify themselves before accessing the most powerful models. Anthropic could have done that tomorrow. They did not. They do not want KYC. KYC is transparent. KYC can be audited. KYC gives users due process. What they built instead was an invisible surveillance system that profiles you, degrades your access without telling you, and asks the government to make sure no one else can offer you an alternative. If you thought this was safety then you are wrong. That is capture. Sacks said the response should be simple. Fix the jailbreak, come back to market, and do not reward Dario with the regulatory architecture he has been engineering for years. We will see if anyone is listening. WATCH THE FULL PODCAST ON The All-In Podcast

David Sacks laid out the cleanest theory about why Anthropic keeps calling for government regulation of AI. The answer has nothing to do with safety and everything to do with market structure. Anthropic spent months writing blog posts warning that AI was dangerous. Dario gave interviews about existential risk. He published a piece calling for an FAA-style agency to approve all AI models before release. He primed government officials to treat frontier AI as a threat requiring oversight. Then one of Anthropic's own most trusted partners reported a credible jailbreak from Fable 5. And the government did exactly what Dario had spent months conditioning them to do. They rolled it back. Sacks called it on the All-In podcast. Dario got exactly what he wanted. The FAA for AI is not a safety mechanism. It is a moat. A government approval process for new model releases does not hurt Anthropic. They already have the models. It hurts every competitor who does not. It hurts open source models that cannot be regulated because there is no company to regulate. It hurts the Chinese labs only insofar as they care about the American market at all. The only companies that benefit from a labyrinthine government approval process are the ones already at the frontier who can afford to wait out the review cycle. That is Anthropic. That is OpenAI. Nobody else. The proof is in what they did not do. Chimath pointed it out directly. If you are genuinely worried about misuse, you implement know-your-customer verification. You make people identify themselves before accessing the most powerful models. Anthropic could have done that tomorrow. They did not. They do not want KYC. KYC is transparent. KYC can be audited. KYC gives users due process. What they built instead was an invisible surveillance system that profiles you, degrades your access without telling you, and asks the government to make sure no one else can offer you an alternative. If you thought this was safety then you are wrong. That is capture. Sacks said the response should be simple. Fix the jailbreak, come back to market, and do not reward Dario with the regulatory architecture he has been engineering for years. We will see if anyone is listening. WATCH THE FULL PODCAST ON The All-In Podcast

Ihtesham Ali

25,284 views • 1 month ago