It began because no one can agree on what to do about Kimi, a free, open-source model that Chinese AI company Moonshot launched last week. It appears to rival the intelligence of models from OpenAI and Anthropic, which are very much not free. 

Every time a new smart, free model from China gets released, US companies see less reason to fork out money for models from Anthropic or OpenAI. That’s creating economic and political problems for the president—and dividing the top AI strategists in his orbit. 

Read the full story on why no one can agree what to do about Kimi.

—James O’Donnell

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The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 Anthropic’s record $1.5 billion copyright settlement has been approved
The plaintiffs said Anthropic used pirated works to train Claude. (Reuters $)
+ And won the largest known copyright payout in history. (Engadget)
+ Yet many authors and creators still don’t view it as a win. (TechCrunch)
+ But AI copyright anxiety could limit creativity. (MIT Technology Review)
 
2 The Trump administration is weighing a ban on Chinese AI models
The launch of Kimi K3 has revived calls for restrictions. (Axios)
+ But officials are divided on the proposals. (Fast Company)
+ China’s bet on open-source is paying off. (MIT Technology Review)
 
3 China is mulling tighter export controls on AI models and chips
It wants to stop the West from acquiring its tech and startups. (FT $)
+ Beijing has held talks with tech firms about potential restrictions. (Reuters $)
 
4 Trump’s AI safety head has resigned after just three months
Chris Fall had led CAISI, the federal AI Safety Institute, since April. (Axios)
+ No reason was given for his exit. (CNBC)
 
5 Google is working on a new chip to run Gemini models more efficiently 
The chip, called “Frozen V2,” may be deployed in 2028. (Information $)
+ Alphabet stock popped on the report. (CNBC)

6 New Orleans police have explored arming drones with weapons
A draft drone manual paves the way for weaponised quadcopters. (404 Media)
+ Shoplifters could soon be chased by drones. (MIT Technology Review)
 
7 The EU has handed AliExpress a record fine over unsafe product sales
The €550 million fine is the largest-ever under the Digital Services Act. (BBC)
+ Alibaba has vowed to appeal the fine. (SCMP)

8 Election advice from AI chatbots is “inaccurate and unreliable”
That’s the conclusion from tests in Hungary earlier this year. (Guardian)

9 Red light therapy is showing promise for healing and healthy aging
Better skin and reduced vision loss are also on the cards. (Economist $)

10 Neill Blomkamp’s new horror clip is all AI-generated—and it sucks
The acclaimed director wants to make “a full feature in this format.” (Gizmodo)