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Is the US losing its edge in science at a faster rate, while China’s open-source momentum and rapid semiconductor advances are quickly narrowing the AI gap with the U.S., putting its global tech dominance at risk? We discuss. Also, Apple is developing an AI engine, and Big Tech is turning into the new industrial empire. Let’s dive in and Stay Curious.

• Apple Is Developing a ChatGPT-Style AI Engine

• Is the U.S. Losing Its Edge in Science?

• 🧰 AI Tools

• 🧠 Learning Corner - CapEx

• Big Tech Is the New Industrial Empire

📰 AI News and Trends

• Anthropic cuts off OpenAI’s access to its Claude models

• Google paid $2.4B to license Windsurf’s tech and hire top talent. $1.2B went to investors and $1.2B for ~40 employees, mostly co-founders Varun Mohan and Douglas Chen.

• Mistral in talks with VC firms, MGX to raise funds at $10 billion valuation

• Google's most powerful AI model generates multiple solution approaches simultaneously before selecting the best answer.

• China’s open-source momentum and rapid semiconductor advances are quickly narrowing the AI gap with the U.S., putting its global tech dominance at risk.

• Meta explores AI video partnerships with Pika and Higgsfield

🌐 Other Tech news

• Reddit plans to unify its search interface as it looks to become a search engine

• The U.S. nuclear energy strategy aims to quadruple capacity by 2050, starting with 10 large reactors by 2030, while Small Modular Reactors (SMRs) are in early-stage development with over 120 designs in progress.

• YouTube channels are being sold and repurposed to spread scams and disinformation

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Apple Is Developing a ChatGPT-Style AI Engine

Apple has formed a new team, Answers, Knowledge, and Information, to develop a ChatGPT-style “answer engine” that pulls information from across the web. It could power a standalone app or enhance Siri, Safari, and more. Apple is hiring experts in search engine development, signaling a serious push into AI-powered search. This comes as Apple’s own AI updates to Siri face delays, and Google’s search dominance faces legal challenges.

Apple continues exploring a possible acquisition of Perplexity AI to strengthen its AI search capabilities. While no deal is confirmed, the move would reduce reliance on Google and accelerate Siri and Safari upgrades. CEO Tim Cook says Apple is ready to invest heavily in AI, including large acquisitions.

🧠 Learning Corner

CapEx (short for capital expenditures) refers to money spent by a company to acquire or upgrade physical assets, think data centers, servers, chip factories, and real estate.

• Company Earnings Reports (10-Qs and 10-Ks)

  • Where: SEC’s EDGAR Database

  • Look for the "Capital Expenditures" section in major companies like Microsoft, Amazon, Meta, or Google.

• YCharts or Koyfin - These platforms let you track CapEx by company over time, visualize trends, and compare tech giants.

• MacroMicro - Offers macroeconomic visuals and data including tech sector investments and CapEx as a share of GDP.

Is the U.S. Losing Its Edge in Science?

America’s dominance in global science is under threat, argues The Atlantic, as political interference, budget cuts, and hostility toward foreign researchers drive top talent away.

Once the world’s magnet for innovation, U.S. research institutions are now facing brain drain, with countries like China, Germany, and France actively recruiting disillusioned American scientists. Historian comparisons to past declines, like the Soviet Union and Nazi Germany, highlight the risk of ideology overtaking inquiry. While science will continue globally, the U.S. may lose its edge, shifting the center of discovery elsewhere.Share

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Big Tech Is the New Industrial Empire

Silicon Valley giants are shifting from “move fast and break things” to “move slow and build infrastructure.” Tech titans like Microsoft, Meta, Amazon, and Google are spending over $100B in capital expenditures, constructing data centers, chip networks, and energy systems, echoing the industrial empires of the past.

Capex on AI infrastructure now outpaces dot-com era telecom spending and is driving U.S. economic growth more than consumer spending. As AI scales, power consolidates in firms that can afford to own the stack, mirroring the dominance once held by railroads and steel barons.