On Monday, Nvidia stock dove 17 percent amid worries over the rise of Chinese AI company DeepSeek, whose R1 reasoning model stunned industry observers last week by challenging American AI supremacy with a low-cost, freely available AI model, and whose AI assistant app jumped to the top of the iPhone App Store's "Free Apps" category over the weekend, overtaking ChatGPT.

What’s the big deal about DeepSeek?

The drama started around January 20 when Chinese AI startup DeepSeek announced R1, a new simulated reasoning (SR) model that it claimed could match OpenAI's o1 in reasoning benchmarks. Like o1, R1 is trained to work through a simulated chain of thought process before providing an answer, which can potentially improve the accuracy or usefulness of the AI models' outputs for some types of questions posed by the user.

That first part wasn't too surprising since other AI companies like Google are hot on the heels of OpenAI with their own simulated reasoning models. In addition, OpenAI itself has announced an upcoming SR model (dubbed "o3") that can surpass o1 in performance.

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On Thursday, Anthropic announced Citations, a new API feature that helps Claude models avoid confabulations (also called hallucinations) by linking their responses directly to source documents. The feature lets developers add documents to Claude's context window, enabling the model to automatically cite specific passages it uses to generate answers.

"When Citations is enabled, the API processes user-provided source documents (PDF documents and plaintext files) by chunking them into sentences," Anthropic says. "These chunked sentences, along with user-provided context, are then passed to the model with the user's query."

The company describes several potential uses for Citations, including summarizing case files with source-linked key points, answering questions across financial documents with traced references, and powering support systems that cite specific product documentation.

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On Thursday, OpenAI released a research preview of "Operator," a web automation tool that uses a new AI model called Computer-Using Agent (CUA) to control a web browser through a visual interface. The system performs tasks by viewing and interacting with on-screen elements like buttons and text fields similar to how a human would.

Operator is available today for subscribers of the $200-per-month ChatGPT Pro plan at operator.chatgpt.com. The company plans to expand to Plus, Team, and Enterprise users later. OpenAI intends to integrate these capabilities directly into ChatGPT and later release CUA through its API for developers.

Operator watches on-screen content in its virtual environment while it uses an internal browser and executes tasks through simulated keyboard and mouse inputs. The Computer-Using Agent processes screenshots of its browser interface to understand the browser's state and then makes decisions about clicking, typing, and scrolling based on its observations.

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On Tuesday, Anthropic CEO Dario Amodei predicted that AI models may surpass human capabilities "in almost everything" within two to three years, according to a Wall Street Journal interview at the World Economic Forum in Davos, Switzerland.

Speaking at Journal House in Davos, Amodei said, "I don't know exactly when it'll come, I don't know if it'll be 2027. I think it's plausible it could be longer than that. I don't think it will be a whole bunch longer than that when AI systems are better than humans at almost everything. Better than almost all humans at almost everything. And then eventually better than all humans at everything, even robotics."

Amodei co-founded Anthropic in 2021 with his sister, Daniela Amodei, and five other former OpenAI employees. Not long after, Anthropic emerged as a strong technological competitor to OpenAI's AI products (such as GPT-4 and ChatGPT). Most recently, its Claude 3.5 Sonnet model has remained highly regarded among some AI users and highly ranked among AI benchmarks.

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On Tuesday, OpenAI, SoftBank, Oracle, and MGX announced plans to form Stargate, a new company that will invest $500 billion in AI computing infrastructure across the United States over four years. The announcement came during a White House meeting with President Donald Trump, who called it the "largest AI infrastructure project in history."

However, the origins of the Stargate project extend back to 2024, prior to Trump beginning his second term in office, and skeptics have begun to take aim at the numbers announced.

OpenAI says the goal of Stargate is to kickstart building more data centers to expand computing capacity for current and future AI projects, including OpenAI's goal of "AGI," which the company defines as a highly autonomous AI system that "outperforms humans at most economically valuable work."

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On Monday, Chinese AI lab DeepSeek released its new R1 model family under an open MIT license, with its largest version containing 671 billion parameters. The company claims the model performs at levels comparable to OpenAI's o1 simulated reasoning (SR) model on several math and coding benchmarks.

Alongside the release of the main DeepSeek-R1-Zero and DeepSeek-R1 models, DeepSeek published six smaller "DeepSeek-R1-Distill" versions ranging from 1.5 billion to 70 billion parameters. These distilled models are based on existing open source architectures like Qwen and Llama, trained using data generated from the full R1 model. The smallest version can run on a laptop, while the full model requires far more substantial computing resources.

The releases immediately caught the attention of the AI community because most existing open-weights models—which can often be run and fine-tuned on local hardware—have lagged behind proprietary models like OpenAI's o1 in so-called reasoning benchmarks. Having these capabilities available in an MIT-licensed model that anyone can study, modify, or use commercially potentially marks a shift in what's possible with publicly available AI models.

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On Monday, the US government announced a new round of regulations on global AI chip exports, dividing the world into roughly three tiers of access. The rules create quotas for about 120 countries and allow unrestricted access for 18 close US allies while maintaining existing bans on China, Russia, Iran, and North Korea.

AI-accelerating GPU chips, like those manufactured by Nvidia, currently serve as the backbone for a wide variety of AI model deployments, such as chatbots like ChatGPT, AI video generators, self-driving cars, weapons targeting systems, and much more. The Biden administration fears that those chips could be used to undermine US national security.

According to the White House, "In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses."

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While worrying about AI takeover might seem like a modern idea that sprung from War Games or The Terminator, it turns out that a similar concern about machine dominance dates back to the time of the American Civil War, albeit from an English sheep farmer living in New Zealand. Theoretically, Abraham Lincoln could have read about AI takeover during his lifetime.

On June 13, 1863, a letter published in The Press newspaper of Christchurch warned about the potential dangers of mechanical evolution and called for the destruction of machines, foreshadowing the development of what we now call artificial intelligence—and the backlash against it from people who fear it may threaten humanity with extinction. It presented what may be the first published argument for stopping technological progress to prevent machines from dominating humanity.

Titled "Darwin among the Machines," the letter recently popped up again on social media thanks to Peter Wildeford of the Institute for AI Policy and Strategy. The author of the letter, Samuel Butler, submitted it under the pseudonym Cellarius, but later came to publicly embrace his position. The letter drew direct parallels between Charles Darwin's theory of evolution and the rapid development of machinery, suggesting that machines could evolve consciousness and eventually supplant humans as Earth's dominant species.

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On Wednesday, the World Economic Forum (WEF) released its Future of Jobs Report 2025, with CNN immediately highlighting the finding that 40 percent of companies plan workforce reductions due to AI automation. But the report's broader analysis paints a far more nuanced picture than CNN's headline suggests: It finds that AI could create 170 million new jobs globally while eliminating 92 million positions, resulting in a net increase of 78 million jobs by 2030.

"Half of employers plan to re-orient their business in response to AI," writes the WEF in the report. "Two-thirds plan to hire talent with specific AI skills, while 40% anticipate reducing their workforce where AI can automate tasks."

The survey collected data from 1,000 companies that employ 14 million workers globally. The WEF conducts its employment analysis every two years to help policymakers, business leaders, and workers make decisions about hiring trends.

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Just when you thought you had seen every possible Doom mod, two game developers released a free browser game that reimagines the first level of 1993's Doom as an art gallery, replacing demons with paintings and shotguns with wine glasses.

Doom: The Gallery Experience, created by Filippo Meozzi and Liam Stone, transforms the iconic E1M1 level into a virtual museum space where players guide a glasses-wearing Doomguy through halls of fine art as classical music plays in the background. The game links each displayed artwork to its corresponding page on the Metropolitan Museum of Art's website.

"In this experience, you will be able to walk around and appreciate some fine art while sipping some wine and enjoying the complimentary hors d’oeuvres," write the developers on the game's itch.io page, "in the beautifully renovated and re-imagined E1M1 of id Software's DOOM (1993)."

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On Monday, Nvidia announced Project DIGITS, a small desktop computer aimed at researchers, data scientists, and students who want to experiment with AI models—such as chatbots like ChatGPT and image generators—at home. The $3,000 device, which contains Nvidia's new GB10 Grace Blackwell Superchip, debuted at CES 2025 in Las Vegas. It will launch in May and can operate as a standalone PC or connect to a Windows or Mac machine.

At CES on Monday, Nvidia CEO Jensen Huang described the new system as "a cloud computing platform that sits on your desk." The company also designed Project DIGITS as a bridge between desktop development and cloud deployment. Developers can create and test AI applications locally on Project DIGITS, then move them to cloud services or data centers that use similar Nvidia hardware.

The GB10 chip inside the Project DIGITS computer combines an Nvidia Blackwell GPU with a 20-core Grace CPU based on Arm architecture. Nvidia developed the chip in partnership with MediaTek, and it connects to 128GB of memory and up to 4TB of storage inside the Project DIGITS enclosure.

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On Sunday, OpenAI CEO Sam Altman offered two eye-catching predictions about the near-future of artificial intelligence. In a post titled "Reflections" on his personal blog, Altman wrote, "We are now confident we know how to build AGI as we have traditionally understood it." He added, "We believe that, in 2025, we may see the first AI agents 'join the workforce' and materially change the output of companies."

Both statements are notable coming from Altman, who has served as the leader of OpenAI during the rise of mainstream generative AI products such as ChatGPT. AI agents are the latest marketing trend in AI, allowing AI models to take action on a user's behalf. However, critics of the company and Altman immediately took aim at the statements on social media.

"We are now confident that we can spin bullshit at unprecedented levels, and get away with it," wrote frequent OpenAI critic Gary Marcus in response to Altman's post. "So we now aspire to aim beyond that, to hype in purest sense of that word. We love our products, but we are here for the glorious next rounds of funding. With infinite funding, we can control the universe."

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It's been a wild year in tech thanks to the intersection between humans and artificial intelligence. 2024 brought a parade of AI oddities, mishaps, and wacky moments that inspired odd behavior from both machines and man. From AI-generated rat genitals to search engines telling people to eat rocks, this year proved that AI has been having a weird impact on the world.

Why the weirdness? If we had to guess, it may be due to the novelty of it all. Generative AI and applications built upon Transformer-based AI models are still so new that people are throwing everything at the wall to see what sticks. People have been struggling to grasp both the implications and potential applications of the new technology. Riding along with the hype, different types of AI that may end up being ill-advised, such as automated military targeting systems, have also been introduced.

It's worth mentioning that aside from crazy news, we saw fewer weird AI advances in 2024 as well. For example, Claude 3.5 Sonnet launched in June held off the competition as a top model for most of the year, while OpenAI's o1 used runtime compute to expand GPT-4o's capabilities with simulated reasoning. Advanced Voice Mode and NotebookLM also emerged as novel applications of AI tech, and the year saw the rise of more capable music synthesis models and also better AI video generators, including several from China.

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Over the past 12 business days, OpenAI has announced a new product or demoed an AI feature every weekday, calling the PR event "12 days of OpenAI." We've covered some of the major announcements, but we thought a look at each announcement might be useful for people seeking a comprehensive look at each day's developments.

The timing and rapid pace of these announcements—particularly in light of Google's competing releases—illustrates the intensifying competition in AI development. What might normally have been spread across months was compressed into just 12 business days, giving users and developers a lot to process as they head into 2025.

Humorously, we asked ChatGPT what it thought about the whole series of announcements, and it was skeptical that the event even took place. "The rapid-fire announcements over 12 days seem plausible," wrote ChatGPT-4o, "But might strain credibility without a clearer explanation of how OpenAI managed such an intense release schedule, especially given the complexity of the features."

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On Friday, during Day 12 of its "12 days of OpenAI," OpenAI CEO Sam Altman announced its latest AI "reasoning" models, o3 and o3-mini, which build upon the o1 models launched earlier this year. The company is not releasing them yet but will make these models available for public safety testing and research access today.

The models use what OpenAI calls "private chain of thought," where the model pauses to examine its internal dialog and plan ahead before responding, which you might call "simulated reasoning" (SR)—a form of AI that goes beyond basic large language models (LLMs).

The company named the model family "o3" instead of "o2" to avoid potential trademark conflicts with British telecom provider O2, according to The Information. During Friday's livestream, Altman acknowledged his company's naming foibles, saying, "In the grand tradition of OpenAI being really, truly bad at names, it'll be called o3."

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On Wednesday, Elevation Lab announced TimeCapsule, a new $20 battery case purported to extend Apple AirTag battery life from one year to 10 years. The product replaces the standard CR2032 coin cell battery in the Bluetooth-based location tracker with two AA batteries to provide extended power capacity.

The TimeCapsule case requires users to remove their AirTag's original back plate and battery, then place the Apple device onto contact points inside the waterproof enclosure. The company recommends using Energizer Ultimate Lithium AA batteries, which it claims provide 14 times more power capacity than the stock coin cell battery configuration.

The CNC-machined aluminum case is aimed at users who place AirTags in vehicles, boats, or other applications where regular battery changes prove impractical. The company sells the TimeCapsule through its website and Amazon.

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Over the past month, we've seen a rapid cadence of notable AI-related announcements and releases from both Google and OpenAI, and it's been making the AI community's head spin. It has also poured fuel on the fire of the OpenAI-Google rivalry, an accelerating game of one-upmanship taking place unusually close to the Christmas holiday.

"How are people surviving with the firehose of AI updates that are coming out," wrote one user on X last Friday, which is still a hotbed of AI-related conversation. "in the last <24 hours we got gemini flash 2.0 and chatGPT with screenshare, deep research, pika 2, sora, chatGPT projects, anthropic clio, wtf it never ends."

Rumors travel quickly in the AI world, and people in the AI industry had been expecting OpenAI to ship some major products in December. Once OpenAI announced "12 days of OpenAI" earlier this month, Google jumped into gear and seemingly decided to try to one-up its rival on several counts. So far, the strategy appears to be working, but it's coming at the cost of the rest of the world being able to absorb the implications of the new releases.

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It's been a really busy month for Google as it apparently endeavors to outshine OpenAI with a blitz of AI releases. On Thursday, Google dropped its latest party trick: Gemini 2.0 Flash Thinking Experimental, which is a new AI model that uses runtime "reasoning" techniques similar to OpenAI's o1 to achieve "deeper thinking" on problems fed into it.

The experimental model builds on Google's newly released Gemini 2.0 Flash and runs on its AI Studio platform, but early tests conducted by TechCrunch reporter Kyle Wiggers reveal accuracy issues with some basic tasks, such as incorrectly counting that the word "strawberry" contains two R's.

These so-called reasoning models differ from standard AI models by incorporating feedback loops of self-checking mechanisms, similar to techniques we first saw in early 2023 with hobbyist projects like "Baby AGI." The process requires more computing time, often adding extra seconds or minutes to response times. Companies have turned to reasoning models as traditional scaling methods at training time have been showing diminishing returns.

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On Thursday, a large group of university and private industry researchers unveiled Genesis, a new open source computer simulation system that lets robots practice tasks in simulated reality 430,000 times faster than in the real world. Researchers can also use an AI agent to generate 3D physics simulations from text prompts.

The accelerated simulation means a neural network for piloting robots can spend the virtual equivalent of decades learning to pick up objects, walk, or manipulate tools during just hours of real computer time.

"One hour of compute time gives a robot 10 years of training experience. That's how Neo was able to learn martial arts in a blink of an eye in the Matrix Dojo," wrote Genesis paper co-author Jim Fan on X, who says he played a "minor part" in the research. Fan has previously worked on several robotics simulation projects for Nvidia.

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The AI-generated video scene has been hopping this year (or twirling wildly, as the case may be). This past week alone we've seen releases or announcements of OpenAI's Sora, Pika AI's Pika 2, Google's Veo 2, and Minimax's video-01-live. It's frankly hard to keep up, and even tougher to test them all. But recently, we put a new open-weights AI video synthesis model, Tencent's HunyuanVideo, to the test—and it's surprisingly capable for being a "free" model.

Unlike the aforementioned models, HunyuanVideo's neural network weights are openly distributed, which means they can be run locally under the right circumstances (people have already demonstrated it on a consumer 24 GB VRAM GPU) and it can be fine-tuned or used with LoRAs to teach it new concepts.

Notably, a few Chinese companies have been at the forefront of AI video for most of this year, and some experts speculate that the reason is less reticence to train on copyrighted materials, use images and names of famous celebrities, and incorporate some uncensored video sources. As we saw with Stable Diffusion 3's mangled release, including nudity or pornography in training data may allow these models achieve better results by providing more information about human bodies. HunyuanVideo notably allows uncensored outputs, so unlike the commercial video models out there, it can generate videos of anatomically realistic, nude humans.

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