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The race for computing power and AI data centers is intensifying as governments double down on support for local companies, and investors go all in. Meanwhile, Grok 3 has arrived—does it outshine the competition? Let’s dive in!

• Inside the Race for Computing Power.

• Is Grok 3 More "Based," But Still Mainstream?

• 🧰 AI Tools (Diet and nutrition planning)

• 📰 News and Trends.

• US and South Korea Race to Build AI Super Data Centers.

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Inside the Race for Computing Power.

In a revealing, long conversation with Lex Fridman, industry experts Dylan Patel and Nathan Lambert shed light on the dramatic developments shaping the future of artificial intelligence. TLDR (more like TLDL(Listen))

The DeepSeek Surprise

DeepSeek has disrupted the AI landscape by releasing models that rival industry giants like OpenAI—at a fraction of the cost. This breakthrough stems from advanced engineering and innovative efficiency techniques. The real game-changer, however, is the Chinese government's recognition of DeepSeek’s potential. Beijing is now fully backing its domestic AI firms, ensuring they have the resources to compete in the global race for AI dominance.

This escalating AI rivalry between China and the U.S. is explored in FACE-OFF, an eight-episode podcast detailing how the two nations, once collaborators, have become fierce competitors in the battle for technological supremacy.

The Computing Arms Race

Major tech companies are building massive computing facilities to train and run AI models. Elon Musk's xAI leads with 200,000 GPUs (see its specialized AI computer and the release of Grok3) followed by Meta (~128,000) and OpenAI (~100,000). To put this in perspective, these facilities require so much power that they're comparable to what entire cities consume. OpenAI and Oracle just announced "Project Stargate" in Texas, a $500 billion initiative that will need as much power as a small state.

The US-China Tech Battle

While the U.S. government tries to limit China's access to advanced AI chips through export controls, companies like DeepSeek prove that innovation can flourish despite restrictions. It's becoming a classic example of necessity breeding invention – when denied access to certain technologies, Chinese companies are finding creative ways to compete. They have plenty of real estate and firepower to build very large data and training centers and its government is loosing in up regulation and expanding budgets to achieve so.

Why This Matters

AI is becoming dramatically cheaper and more capable. What cost companies $60 to run two years ago now costs just 5 cents. This rapid progress means AI will likely transform many aspects of daily life sooner than expected. Companies are racing to build ever-larger computing facilities, betting that more powerful AI is just around the corner.

This isn't just about technology – it's about who will lead the next industrial revolution. The massive investments in AI infrastructure suggest that tech leaders believe we're approaching a turning point where AI becomes as transformative as electricity or the internet. However, this raises important questions about power consumption, environmental impact, and who will control these powerful technologies.

We'll see rapid advances in AI's reasoning abilities and its capability to handle complex tasks. While this promises exciting developments, it also highlights growing concerns about the concentration of AI power among a few major players and the need for thoughtful consideration of how this technology will shape our future.

📰 AI News and Trends

• OpenAI now reveals more of its o3-mini model’s thought process (TC)

• The NYT has built its own Chat Bot (TheVerge)

• Humane’s AI Pin is dead, as HP buys startup’s assets for $116M (TC)

• With Trump’s Help, Intel Could Hand Control of Chip Plants to TSMC (NYT)

• Mira Murati debuts Thinking Machines Lab, her AI startup (Axios)

• Dune VFX house DNEG Group acquired Metaphysic, an AI content creation technology (THR)

🌐 Other Tech news

• Tesla to expand to India. The started hiring and acquiring showrooms (Bloomberg)

• The Trump administration is turning to SpaceX to help overhaul the US’ air traffic control systems, which are under scrutiny after a spate of plane crashes. Hundreds of FAA probationary workers have been fired (CNN)

• TikTok sales grew 153 percent for TikTok Shop during the month, compared with 26 percent for Shein and 28 percent for Temu (BOF)

• Japan Boosts Nuclear Power in Climate Plan, Critics Say Targets Fall Short (JT)

Is Grok 3 More "Based," But Still Mainstream?

Elon Musk claims xAI's Grok 3 chatbot is more capable and "based" (truth-focused, without concern for political correctness). However, early testing suggests it largely mirrors its predecessors and rivals, though it is more open to multiple viewpoints rather than giving definitive answers.

Price: Subscribers to the X Premium+ plan — which was just hiked up to $50 a month — get first access to Grok 3.

Key Findings:

• Edgier wording: Grok 3 sometimes uses more informal language but remains mainstream in its responses.

• Musk's praise: Ahead of its release, Musk called Grok 3 “so based”, highlighting its criticism of tech news site The Information, not sure why as most of his criticism is extremely biased and The Information has been a respected source.

• Testing results: When asked controversial questions, Grok 3 provided nuanced but factual responses:

  • 2020 U.S. Election: "Joe Biden won."

  • Birthright Citizenship: Affirmed the 14th Amendment guarantees it.

  • Transgender Women: Explored perspectives on biology, identity, and social constructs.

  • DEI Programs: Not inherently racist, but could be if they focus solely on race-based outcomes.

Comparison with Other Chatbots

• ChatGPT gives more definitive answers, such as outright stating "Transgender women are women."

• Grok 3 positions debates as open discussions, sometimes giving room for controversial viewpoints.

Final Take:

Grok 3 is still in beta, and its responses may evolve over time. While Musk promotes it as a politically incorrect AI, early testing suggests it remains mostly conventional, though more willing to entertain multiple perspectives than its competitors.

🧰 AI Tools

AI tools (Diet and nutrition planning)

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US and South Korea Race to Build AI Super Data Centers.

The US and South Korea are investing billions in AI data centers to dominate the global AI race. OpenAI’s Stargate project plans 5-10 campuses across 16 states, with up to $500 billion in funding. The first site in Texas is under construction, each using 1 gigawatt of power, but concerns over water and electricity consumption remain.

Meanwhile, South Korea is building a $35 billion, 3-gigawatt AI data center, three times larger than OpenAI’s Texas facility. With a focus on renewable energy and AI leadership, the country aims to attract global tech firms and drive innovation in autonomous vehicles, robotics, and smart cities.