Wednesday, July 2, 2025

Scientific American. AI Arms Race. July 2025

 

AI Arms Race
Talk of an AI arms race is heating up with Meta CEO Mark Zuckerberg’s announcement that Meta will be consolidating its AI teams into its new Superintelligence Labs. This reorganization comes as Meta’s AI models have been falling behind those of competitors. Zuckerberg has been splashing out huge sums to lure star AI experts from rivals like OpenAI, DeepMind, and Anthropic. Though poached employees were rumored to have received $100-million signing bonuses, TechCrunch reported that no such bonuses were given, though the new hires did receive “hefty multimillion-dollar pay packages.” Meta even spent $14.3 billion for a large stake in data startup Scale AI to bring its CEO, Alexandr Wang, on board as Meta’s chief AI officer. 
 
Meta’s rivals aren’t standing still. OpenAI, Anthropic, and xAI have been raising fresh funding. In China, AI companies enjoy significant state backing, and Zhipu AI has been securing government AI contracts in numerous countries. The strategy, according to an OpenAI post, is to “lock Chinese systems and standards into emerging markets before U.S. or European rivals can, while showcasing a ‘responsible, transparent and audit-ready’ Chinese AI alternative.” The U.S. Commerce Department added firms like Zhipu and others to export blacklists, cutting off access to critical U.S. components for AI development. Meanwhile, the Pentagon is actively courting top U.S. AI firms to use frontier AI models to streamline military logistics, improve healthcare for service members and bolster cyber defense. Tech execs have even joined the ranks of a new Army Reserve unit called Detachment 201 (the “Executive Innovation Corps”), with officers from Meta, OpenAI and Palantir serving as reserve lieutenant colonels to lend their expertise to military AI projects. 
 
If this arms race talk is giving you flashbacks to the 1980s, then here’s a video from an AI-generated YouTube channel that features AI-generated 80s-style tunes along with AI-generated images that resemble a version of the 1980s somewhere else in the multiverse. Apparently, AI is also racing to take over YouTube
 
For the latest in tech, follow me on X, Instagram and Bluesky @denibechard.
 
Deni Ellis Béchard, Senior Reporter, Technology

 

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