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5 min read

Week 21, 2025

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highlights

1 / Developers Hit Hard: Funding AI with Their Jobs

  • Microsoft is cutting 6,000-7,000 jobs (3% of workforce), with developers making up over 40% of layoffs.
  • The irony is clear: companies are firing skilled engineers to fund AI development, while AI increasingly replaces coding work.
  • Amazon recently cut 100 device/service positions, and Meta eliminated 3,600 jobs earlier this year.

2 / AI Progress Stalling? Meta's Top Llama 4 Model Delayed

  • Meta's "Llama 4 Behemoth" is postponed until fall after failing internal performance tests.
  • Despite ambitious claims, it lags behind GPT-4o in reasoning, math, and conversation accuracy while showing more hallucinations.
  • The industry faces a shared dilemma: performance improvements bring increased hallucinations.
  • OpenAI's GPT-5 and Anthropic's Claude 3.5 Opus are similarly delayed, with one NYU professor noting "extremely minimal" progress across all labs.
  • Companies are now prioritizing data quality over quantity, with OpenAI partnering with News Corp and Reddit while Anthropic focuses on academic content.

3 / Big Tech Won't Give Up China Despite US Warnings

  • Apple's plan to use Alibaba's AI instead of ChatGPT in Chinese iPhones has sparked US government alarm.
  • Officials worry this could boost China's AI capabilities and have been grilling Apple executives for months about the partnership details.
  • The Trump administration is considering banning US-China AI company deals entirely.
  • Nvidia is also defying US pressure by opening a Shanghai R&D center.
  • The company says it will focus on local compliance tech while keeping core designs out of China.
  • CEO Huang argues that abandoning China would just let Huawei take over.
  • Both companies are walking a tightrope between lucrative Chinese markets and US security concerns.

4 / Big Tech Follows Palantir into Defense Market

  • Silicon Valley is abandoning its anti-war roots for defense dollars.
  • Palantir's 345% stock surge last year, outpacing traditional defense contractors like Lockheed Martin, has prompted Meta, Microsoft, and OpenAI to chase the Pentagon's $850 billion annual budget.
  • Meta is hiring Pentagon veterans to sell VR and AI tech while offering its Llama model to defense partners.
  • OpenAI dropped its military-use ban earlier this year, and Microsoft openly provides AI services to the Israeli military.
  • Despite weaponization concerns, the military AI race is accelerating under the logic that countries need matching AI capabilities just to defend themselves.

5 / Coinbase Hacked Days Before S&P 500 Entry

  • Coinbase suffered a major data breach just before joining the S&P 500 on May 19.
  • Hackers bribed overseas contractor employees to access internal systems, stealing names, addresses, social security numbers, bank details, and transaction records.
  • The attackers demanded $20 million to stop releasing data, but CEO Brian Armstrong refused and instead offered the same amount as a bounty for their capture.
  • Recovery costs could hit $400 million.
  • Though under 1% of users were affected, wealthy customers were included, raising kidnapping concerns.
  • Shares dropped 7.2% initially but bounced back 9% the next day.

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more

ai - product

  • OpenAI introduced GPT-4.1 to ChatGPT and unveiled "Codex," a coding agent that converts natural language into code in 12+ programming languages. Recently acquired Windsurf also released its first coding model series "SWE-1."
  • Microsoft enhanced AI coding in Visual Studio Code but shut down its Bing Search API, suggesting users switch to Azure AI Agent features instead.
  • Google released the Gemini Nano API, added GitHub integration to Gemini, and expanded it to smartwatches, TVs, and vehicles.
  • Google also unveiled "AlphaEvolve," an AI agent that designs and improves math and science algorithms autonomously, already being used internally for TPU development.
  • Google replaced its "I'm Feeling Lucky" button with an "AI Mode" option.
  • Grok sparked controversy with responses about "white genocide". The chatbot later questioned Holocaust victim numbers, which the company blamed on programming errors.

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ai - business

  • Apple is developing its new Siri in Zurich after previous failures caused by hybrid development approaches that tried to merge separately developed components.
  • Apple is also researching non-English LLMs to address AI's English bias, participating in studies on how AI thinks in "English-centric" ways.
  • OpenAI pledges to release AI safety test results more regularly.
  • Tencent hired Microsoft's entire China AI research team.
  • Google launched the "AI Futures Fund" to nurture AI startups and announced Google One subscriptions hit 150 million users, crediting AI features for the growth.

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chips / cloud

  • Nvidia announced plans to build a new headquarters in Taiwan featuring R&D facilities and semiconductor design capabilities, effectively making it an official Asian headquarters.
  • Jensen Huang denied allegations of circumventing China export restrictions while revealing plans to supply 18,000 AI chips to Saudi Arabia.
  • OpenAI is in talks to expand its "Stargate" project to the UAE, discussing construction of the world's largest AI data center in Abu Dhabi.
  • TSMC is building a record 9 factories this year and raising wafer prices by 10% in 2025.
  • Nvidia also released open AI infrastructure technology, launched faster AI chip connectivity solutions, and entered investment negotiations with quantum computing company PsiQuantum.

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robotics

  • Tesla released videos of its Optimus robot performing ballet, tap dance, and hip-hop moves. Elon Musk noted "this isn't its final form yet."
  • The company also registered the Optimus trademark in China ahead of market entry.

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commerce

  • Amazon is reducing UPS deliveries in favor of more cost-effective FedEx contracts, though not completely replacing UPS.
  • The company also pre-ordered 100,000 "Slate" electric pickups from Jeff Bezos-backed startup Slate Auto.

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social media

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content / entertainment

  • Amazon is developing AI-powered pause ads that analyze the program and scene being watched to automatically generate relevant advertisements.
  • YouTube unveiled new AI-based advertising options, including "Peak Point" placements that position ads during emotionally intense moments.
  • Apple partnered with Universal Music to launch "Sound Therapy," an audio wellness collection designed to promote quality sleep.
  • Minecraft officially ended support for VR and mixed reality platforms.

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device / hardware

  • Apple revealed brain-controlled iPhone functionality using brain-computer interface (BCI) technology, directly challenging Neuralink's territory.
  • The iPhone 17 Air faces criticism over small battery capacity, sacrificing practical usage for ultra-slim design. Apple is also developing a fully glass iPhone by 2027.
  • Microsoft quietly discontinued the Surface Laptop Studio 2 with no successor planned, abandoning experimental form factors to focus on core lineup.
  • Meta launched Ray-Ban smart glasses in India with real-time translation and AI support, starting at 29,990 rupees (about $353).

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app / platform

  • Apple put Fortnite's App Store return on hold as Epic Games protested the decision.
  • Apple Pay and Card services experienced hour-long outages across the US.
  • Google strengthened Factory Reset Protection (FRP) to completely prevent stolen smartphone reuse.

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ev / autonomous

  • Baidu is entering European autonomous vehicle markets, preparing Apollo Go robotaxi services in Switzerland and Turkey after operating in major Chinese cities like Beijing, Guangzhou, and Wuhan.
  • Apple launched next-generation "CarPlay Ultra" with Aston Martin as the first adopter.
  • Tesla lost its US electric pickup leadership to Ford's F-150 Lightning, which surpassed the Cybertruck in sales.
  • Waymo recalled 1,200 robotaxis following collision incidents.

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energy / environment

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crypto / blockchain

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regulation

  • Trump demanded Apple halt India production.
  • Microsoft surrendered to EU antitrust pressure, proposing to separate Teams from Office 365.
  • Tesla restricted shareholder lawsuits by requiring 3% ownership stakes to file suits.

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etc

  • Microsoft's Build 2025 starts May 19.
  • Google I/O begins May 20.
  • Google changed its logo for the first time in 10 years, replacing the 4-color split design with gradients.
  • Jeff Bezos plans a luxury wedding in Venice next month.

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