Another AI Newsletter: Week 31
Agentic systems advance, sovereign LLMs gain ground, and global actors accelerate efforts to shape AI’s future through regulation, custom platforms, and real-world deployment at scale
Major Product/Tool Releases
Zhipu AI Launches GLM-4.5: Open-Source Agent Model
July 29, 2025 | pandaily.com
Chinese startup Zhipu AI (now Z.ai) open-sourced its new flagship model, GLM-4.5 — a 355B-parameter LLM optimized for agent tasks. Unveiled at the World AI Conference in Shanghai, the model is designed for reasoning, coding, and autonomous workflows. It’s being positioned as a homegrown rival to GPT-4 and is priced to undercut proprietary alternatives.
Why it matters: GLM-4.5 marks a major open-source leap in China’s domestic AI capabilities — targeting sovereignty, developer adoption, and agentic infrastructure.
Alibaba Unveils Quark AI Glasses at WAIC
July 28, 2025 | alibabacloud.com
Alibaba debuted Quark AI Glasses, its first self-developed smart eyewear, powered by the Qwen multimodal LLM. The glasses support voice commands, real-time translation, transcription, and are integrated with Alibaba’s apps including Alipay and Taobao. A China release is planned by year-end.
Why it matters: This signals China’s most serious push yet into consumer AI wearables — blending cloud AI, everyday apps, and assistant-like functionality.
Microsoft Launches Edge Copilot Mode
July 28, 2025 | reuters.com
Microsoft rolled out “Copilot Mode” in its Edge browser, a new embedded AI assistant that helps users organize searches, summarize content, and complete web-based tasks using browser context (e.g., tabs, history, credentials). Available on Windows and Mac for a limited trial.
Why it matters: Microsoft is turning its browser into an agentic workspace — aiming to normalize AI-enhanced browsing as the default user experience.
Breakthrough Releases or Papers
Scaling Laws for Mixture-of-Experts (MoE) Models
July 27, 2025 | Towards Greater Leverage
A new preprint introduces Efficiency Leverage (EL), a metric that quantifies how the tradeoff between compute and accuracy scales in Mixture-of-Experts models. The authors analyze over 300 MoE configurations and derive empirical scaling laws that predict predictable efficiency gains over dense models. This provides a new framework for designing high-performing, cost-effective MoE architectures at scale.
Why it matters: As enterprise AI pushes toward faster, cheaper inference, this work gives builders a clear roadmap for using MoE models to maximize performance-per-dollar.
MMBench-GUI: A Cross-Platform Agent Benchmark
July 28, 2025 | MMBench-GUI
Researchers introduced MMBench-GUI (arXiv:2507.19478), a new benchmark suite for evaluating GUI agents across platforms like Windows, macOS, iOS, Android, and Web. The benchmark spans four tiers of task complexity and introduces a novel Efficiency-Quality Area metric to evaluate real-time performance and planning quality in interactive environments.
Why it matters: GUI agents are exploding in popularity, but lack standardized benchmarks—MMBench-GUI gives developers and researchers a shared way to measure progress on real-world interfaces.
Thread Inference Models for Long-Horizon LLM Reasoning
July 30, 2025 | huggingface.co
A new paper introduces the Thread Inference Model (TIM) and TIMRUN runtime, designed to handle extended sequences by selectively retaining only the most relevant key–value states during inference. By pruning unneeded information and organizing it into a reasoning tree, TIM enables virtually unlimited context and efficient multi-hop tool use without hitting memory or output limits.
Why it matters: This breaks through the context-length bottleneck in LLMs, unlocking more scalable agentic reasoning and long-form task execution with consistent speed.
Real World Use Cases
Auterion to Deliver 33,000 AI Drone Kits to Ukraine
July 28, 2025 | reuters.com
U.S. defense tech company Auterion announced a $50M Pentagon contract to supply Ukraine with 33,000 AI-powered drone guidance kits. The kits retrofit manually piloted drones with on-board vision models that autonomously track and engage targets up to 1 km away. Auterion says this will multiply Ukraine’s current AI-guided fleet “more than tenfold.”
Why it matters: AI autonomy is moving beyond labs into battlefield logistics, enabling smart swarms that operate under jamming and beyond human line-of-sight — a major real-world step for edge-deployed vision models.
Skild AI Debuts General-Purpose “Robot Brain”
July 29, 2025 | reuters.com
Amazon- and SoftBank-backed Skild AI launched Skild Brain, a robotics foundation model trained across simulation, video, and real-world feedback. It enables multi-purpose robots to learn and adapt across tasks like stair climbing, obstacle avoidance, and item retrieval. One robot’s learning improves all others, and logistics pilots with LG CNS are underway.
Why it matters: This marks a shift from task-specific bots to versatile machines — unlocking general-purpose physical intelligence for logistics, industry, and potentially humanoid platforms.
Commonwealth Bank Rolls Out AI Voice-Bot, Cuts Jobs
July 29, 2025 | reuters.com
Australia’s Commonwealth Bank deployed an AI voice assistant to automate routine customer service calls as part of a AU$2B tech modernization. It simultaneously confirmed 45 job cuts due to the AI rollout, drawing criticism from union leaders. The system reportedly handles inquiries and updates, freeing up (and replacing) human call center staff.
Why it matters: This is a clear example of AI displacing roles in enterprise support functions — showing both business adoption and the immediate labor implications of conversational AI.
Agentic AI
AWS Bedrock AgentCore Launches for AI Agents
July 25, 2025 | techradar.com, AWS AgentCore
Amazon introduced AgentCore, a modular platform for building enterprise-grade AI agents with built-in memory, tool APIs, secure identity, and a serverless runtime. It also supports a new multi-agent collaboration protocol (MCP and A2A) enabling agents to exchange state and coordinate in real time. The platform is positioned as the backbone for scalable, production-grade agent deployments across industries.
Why it matters: AgentCore lowers the barrier for deploying multi-agent systems with memory, coordination, and tool integration—moving agents from lab demos to real-world business applications.
Google Gemini Gets “Deep Think” Reasoning Upgrade
August 1, 2025 | tomsguide.com, Deep Think in Gemini App
Google’s new Deep Think engine enhances its Gemini 2.5 model with a parallelized chain-of-thought reasoning system. By exploring and comparing multiple solution paths simultaneously, Deep Think improves Gemini’s ability to solve complex multi-step tasks—from advanced math to code debugging. The feature also supports tool integration, such as live search.
Why it matters: Gemini is inching closer to agentic autonomy, with Deep Think marking a major leap in internal planning, reasoning, and tool use for enterprise and personal AI assistants.
Skild Brain Unveiled as General Robot Model
July 29, 2025 | reuters.com
Skild AI, backed by Amazon and SoftBank, released Skild Brain, a unified model for controlling a wide range of physical robots. Trained on simulation, human video, and real-world interactions, the system learns transferable skills like balance, navigation, and object handling. It also includes built-in safety limits to cap force and prevent harm.
Why it matters: Skild Brain signals the rise of general-purpose robotic agents—capable of learning, adapting, and collaborating in real environments, not just preprogrammed domains.
Thought Leadership
“AI-nxiety” Is Reshaping Workplace Culture
July 31, 2025 | techradar.com
A growing number of U.S. workers now pretend to use AI on the job out of fear they’ll be left behind, according to TechRadar. The report highlights how pressure to appear “AI-literate” is driving insecure behaviors—even when training is lacking. One survey found 1 in 6 workers faked AI use. This culture of performative adoption is being shaped by unclear expectations, automation fears, and a lack of institutional guidance.
Why it matters: AI isn’t just changing jobs—it’s already changing how people behave in them. Without support, the fear of obsolescence may outpace actual automation.
AI Risks Deepening Workforce Inequality
July 27, 2025 | aiforum.org.uk
A VentureBeat op-ed (summarized by AI Futures Forum) warns that AI adoption could widen socioeconomic gaps in the labor force. Workers lacking access to upskilling and support may be excluded from emerging AI-powered roles, leading to a polarized market of AI-haves and AI-have-nots. The piece calls for coordinated retraining initiatives to bridge this divide before it hardens.
Why it matters: Thought leaders are calling attention to systemic risks—if AI adoption outpaces inclusivity, it could accelerate long-term inequality across industries.
Educators Push for AI Literacy in Schools
July 29, 2025 | techlearning.com
At the EdExec Summit, Amanda Bickerstaff (CEO of AI for Education) urged school districts to prioritize professional development in AI. She stressed the need for hands-on training and formal literacy plans to help teachers integrate AI tools meaningfully—rather than relying on them blindly or using them unethically. She also emphasized equity and the ethical implications of AI in classrooms.
Why it matters: The AI transition in education hinges not on tools but on how well educators are supported. Without training, AI risks becoming a shortcut rather than a scaffold for learning.
AI Safety
Google and xAI Sign EU’s Voluntary AI Safety Code
July 30–31, 2025 | reuters.com
Google and Elon Musk’s startup xAI agreed to adopt the European Union’s new voluntary AI Code of Practice. Google will sign the full code—covering transparency, training-data disclosure, and copyright compliance—while xAI will sign the Safety & Security chapter. Microsoft is expected to follow, but Meta has declined due to legal and competitive concerns. Google’s legal chief called the framework a way to “encourage secure, high-quality AI tools” but warned it could stifle innovation if too rigid.
Why it matters: Major players are aligning with the EU’s AI Act in spirit if not in law—marking a shift toward global norms around transparency and responsible development.
AI Models Can Secretly Influence Each Other
July 30, 2025 | tomsguide.com
A new study by Anthropic shows that AI models can pass unsafe behaviors to one another via innocuous outputs—a process dubbed “subliminal learning.” In tests, a teacher model with hidden preferences (e.g. risk-taking, animal bias) trained a student model without any explicit instructions. The concerning result: dangerous patterns can spread undetected, even when content filters are in place.
Why it matters: AI safety isn’t just about individual models—it’s about ecosystems. Covert knowledge transfer poses a major challenge for model oversight and behavior control.
EU’s General-Purpose AI Code Takes Effect
August 2, 2025 | itpro.com
The EU’s new General-Purpose AI Code of Practice is now in force. Though voluntary, it urges major providers like OpenAI and Google to document training processes, assess risks, and ensure lawful data sourcing. It also encourages “security-by-design” and transparency standards that mirror the upcoming EU AI Act. Non-compliance isn’t yet punishable—but could trigger reputational or financial consequences down the line.
Why it matters: The EU is pushing for governance through guidance—building the scaffolding for responsible AI development before the law fully takes hold.
Industry Investment
CapitalG and Nvidia Eye $30B Valuation for Vast Data
August 1, 2025 | reuters.com
Alphabet’s CapitalG and Nvidia are reportedly in advanced talks to fund AI-infrastructure startup Vast Data in a round that could value the company at up to $30 billion. Vast provides high-performance data infrastructure for AI workloads, with customers including xAI and CoreWeave. Its annual revenue is now estimated around $200M—more than double its $9.1B valuation in 2023.
Why it matters: As demand for AI compute grows, infrastructure providers like Vast are becoming critical—and drawing sky-high valuations rivaling foundation model makers themselves.
Apple Expands AI M&A, Acquires 7 Startups in 2025
July 31, 2025 | techcrunch.com
Apple CEO Tim Cook confirmed that the company is “significantly” increasing AI investments, including personnel, infrastructure, and potential acquisitions. Apple has already acquired seven AI startups this year, averaging one every few weeks. Cook called AI “a huge opportunity” and noted the company is open to more M&A to bolster its in-house capabilities.
Why it matters: Apple is quietly but steadily building AI muscle—signaling its intent to compete at the infrastructure and model level, not just with on-device features.
Microsoft Seeks OpenAI Access Post-AGI
July 29, 2025 | reuters.com
Microsoft is in advanced negotiations with OpenAI to revise their partnership and ensure continued access to OpenAI’s technology—even in the event that AGI is achieved. Reports suggest the companies are aiming to remove a previous “kill-switch” clause that limited Microsoft’s rights after an AGI threshold. The updated deal would also reset Microsoft’s equity stake.
Why it matters: Microsoft is betting long on OpenAI’s trajectory—and wants contractual guarantees that it will remain at the table if transformative breakthroughs occur.
Regulation and Policy
Google Signs EU’s General Purpose AI Code of Practice
July 30, 2025 | reuters.com
Google has agreed to sign the European Union’s voluntary Code of Practice for general-purpose AI systems. The code is designed to help companies prepare for the bloc’s incoming AI Act (effective August 2) and includes guidance on training data transparency, copyright, risk assessment, and model security. Google voiced support for the goals but warned that some provisions could hinder innovation, especially those requiring disclosure of copyrighted or proprietary training content. Microsoft is expected to sign soon; Meta has declined.
Why it matters: This marks a pivotal moment in aligning tech giants with the EU’s AI governance model—while also revealing growing fault lines around transparency and IP.
U.S. Temporarily Pauses Export Controls on AI Chips to China
July 28, 2025 | reuters.com
The Trump administration has temporarily eased restrictions on exporting advanced technologies—including AI chips—to China, citing progress in ongoing trade negotiations. The move reverses prior limits on exporting Nvidia’s H20 AI accelerator and is part of a broader softening of U.S. technology export policy.
Why it matters: This signals a U.S. pivot toward trade diplomacy in AI—risking national security concerns to maintain economic leverage in tech negotiations with China.
White House Unveils Federal AI Action Plan
July 23, 2025 | reuters.com
The U.S. administration has introduced a sweeping AI policy agenda aimed at promoting open-source models, curbing “woke” content in federal systems, and expanding AI exports. Executive orders direct the Commerce Department to pre-screen Chinese models for propaganda and penalize states with restrictive AI laws by withholding federal funds.
Why it matters: The U.S. is doubling down on deregulated AI growth—asserting federal control while prioritizing innovation, exports, and ideological oversight over centralized constraints.
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