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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. Let’s dive in and stay curious.

• Is China going to win the AI race?

• AI Tools - AI Travel Planner

• Government Surveillance at its Best

• Amazon Sues Perplexity AI

• AI Guides - How to Learn AI in 2025 - A Roadmap for Beginners and Developers

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📰 AI News and Trends

• Customer Support AI Startup Decagon in Talks to Raise at $4 Billion Valuation

• Anthropic Projects $70 Billion in Revenue, $17 Billion in Cash Flow in 2028

• China has ordered new data centers that receive state funds to use only domestically produced artificial intelligence chips

• Apple plans to pay Google $1 billion a year for a 1.2 trillion-parameter AI model to help run its Siri voice assistant. The model will run on Apple’s own Private Cloud Compute servers, ensuring that user data remains secure.

• OpenAI CFO Suggests Government Guarantee for AI Financing

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• Jared Isaacman, the billionaire entrepreneur, has been nominated to lead NASA five months after his nomination was abruptly withdrawn for the job. Isaacman then donated $1 million to a MAGA political action committee, as well as giving to the Republican National Committee. And in September, he was back at the White House for a dinner of tech industry leaders.

• China’s leading flying taxi company plans to launch services from airports to local cities within three years.

• Russia Signals Potential Return to Nuclear Weapons Testing After Trump’s Call to Restart U.S. Tests, Raising Alarms Over a New Global Arms Race

• IBM will cut thousands of workers this quarter while it continues to shift the focus of its business to higher-growth software and services.

• TikTok is rolling out the red carpet for its inaugural TikTok Awards in the US.

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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 Perplexity’s new browser agent, Comet, secretly logs into Amazon accounts and buys items on users’ behalf, violating Amazon’s Terms of Service, which ban bots, data mining, and automated purchasing tools.

Amazon argues this “computer fraud” 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 “a bully tactic” 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 sheriff’s departments the ability to scan someone’s 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 certificates—leading 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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🧰 AI Tools of The Day

AI Travel Planner

• Layla.ai - A dedicated AI travel planner where you tell it your dates, budget, destinations, and it builds tailored itineraries for flights, hotels, and routing.

• Wonderplan - A free AI trip-planner that builds custom itineraries, handles route optimisation, and even allows offline access.

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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 “China is going to win the AI race,” citing Beijing’s aggressive subsidies for energy and AI infrastructure while the U.S. faces a patchwork of “50 new regulations” across different states. The remarks reflect growing frustration as the Trump administration continues restricting Nvidia’s 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 world’s 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 “nanoseconds behind America,” he warned that the U.S. must “race ahead” 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 America’s current lead in AI.

🧰 AI Guides

• How to Learn AI in 2025: A Roadmap for Beginners and Developers