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I’ll be speaking at AI Edge in two weeks. Come join us at what’s shaping up to be a standout AI event.

Today’s edition covers a wild week in the AI world: Kimi K2 just outperformed every major model, signaling how fast Chinese open-source systems are advancing while keeping costs dramatically lower. Anthropic is now on track to hit profitability years ahead of OpenAI, and a new Silicon Valley-backed startup is raising the question none of us expected so soon: Would you edit your future baby’s DNA?

Let’s dive in—and stay curious.

• Anthropic to be Profitable before OpenAI

• AI Tools

• Kimi K2 AI Model Beats all other LLMS

• AI Guides

• Would You Edit Your Future Baby’s DNA?

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📰 AI News and Trends

• xAI works on Grok Code Remote to rival OpenAI’s Codex

• Lovable has surged to nearly 8 million users and sees 100,000 new projects built daily.

• OpenAI to sell compute capacity to other companies, putting the company in direct competition with Amazon, Microsoft, and Google. Being a cloud provider would help fund big AI spending.

• Altman and Masayoshi Son Back 27-Year-Old Louis Andre’s Bid to Build “A New Bell Labs” With Episteme, a San Francisco Research Lab Aiming to Free Top Scientists From Bureaucracy and Turn Breakthrough Ideas Into World-Changing Products

• Wikipedia urges AI companies to use its paid API and stop scraping

• OpenAI is weighing a move into consumer health apps

Other Tech News

• SoftBank sold 32.1 million shares of Nvidia in October. It also sold part of its stake in T-Mobile for $9.17 billion to finance OpenAI

• With $19 billion in quarterly sales, TikTok Shop now rivals eBay

• Apple Plans Major New Satellite-Powered Features for iPhones

• China-Backed $23B Simandou Mine Launches, Promising Cheaper Steel and a Potential Guinea Boom Amid Growing Environmental Fears

• Tesla Breaks Ground on Massive Giga Texas Plant to Build Millions of Optimus Humanoid Robots

Voice AI Goes Mainstream in 2025

Human-like voice agents are moving from pilot to production. In Deepgram’s 2025 State of Voice AI Report, created with Opus Research, we surveyed 400 senior leaders across North America - many from $100M+ enterprises - to map what’s real and what’s next.

The data is clear:

• 97% already use voice technology; 84% plan to increase budgets this year.

• 80% still rely on traditional voice agents.

• Only 21% are very satisfied.

• Customer service tops the list of near-term wins, from task automation to order taking.

See where you stand against your peers, learn what separates leaders from laggards, and get practical guidance for deploying human-like agents in 2025.

Download the Report

Anthropic to be Profitable before OpenAI

Anthropic and OpenAI are on wildly different financial paths. New documents show Anthropic is set to break even by 2028, while OpenAI expects $74B in operating losses that same year, about 75% of revenue driven by massive chip and data-center spending.

OpenAI plans to burn 14× more cash than Anthropic before reaching profitability in 2030, fueled by Sam Altman’s push for scale and $1.4T in long-term compute commitments. Anthropic, valued at $183B vs. OpenAI’s $500B, is growing its business more efficiently by focusing on corporate customers (80% of revenue) and avoiding compute-heavy ventures like video generation. In 2024, both companies burned roughly 70% of revenue, but Anthropic’s burn rate drops to 9% by 2027, while OpenAI’s remains high. OpenAI is betting big that demand will justify its infrastructure buildout, spending nearly $100B on backup data-center capacity alone, while Anthropic opts for steadier, revenue-aligned growth.

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Kimi K2 AI Model Beats all other LLMS

Moonshot’s new Kimi K2 Thinking, just changed the AI landscape. The fully open-source model is now outperforming GPT-5, Claude Sonnet 4.5, and Grok-4 on major benchmarks in reasoning, coding, retrieval, and agentic tool use.

Built as a 1T-parameter MoE (32B active), K2 Thinking scores 44.9% on HLE, 60.2% on BrowseComp, and 71.3% on SWE-Bench. Verified all frontier-level results. It supports 256k context, native INT4 inference, and long autonomous tool chains (200–300+ calls), while staying far cheaper than closed models. Moonshot released it under a modified MIT license, making it one of the most permissive high-end models available. The breakthrough marks a turning point: open-weight systems are now matching and in many cases beating proprietary giants like OpenAI and Anthropic. At a time when U.S. labs face scrutiny over trillion-dollar compute spending, K2 Thinking shows that frontier AI doesn’t require massive capital infrastructure, just efficient architectures.

For enterprises, it raises a blunt question: why pay for closed APIs when a free open model now leads the benchmarks?

🧰 AI Tools of The Day

Would You Edit Your Future Baby’s DNA?

A Silicon Valley startup called Preventive, backed by Sam Altman and Coinbase CEO Brian Armstrong, is researching whether gene-editing human embryos can safely prevent hereditary diseases, sparking fierce ethical and legal debate.

The company has raised $30 million and is studying CRISPR-based embryo editing in San Francisco, even though implanting a gene-edited embryo is illegal in the US and banned in most countries. Preventive says it isn’t trying to create a baby now, only to prove the technology can be made safe, but critics warn it risks sliding into “designer baby” territory and eugenics. Some insiders say the startup has explored doing future trials in countries with looser rules, while supporters argue it could one day eliminate devastating genetic disorders like cystic fibrosis or sickle-cell disease.