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AI Leaders Urge U.S. to Boost Exports and Infrastructure to Stay Ahead of China

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Top executives from OpenAI, Microsoft, and AMD warned U.S. lawmakers on Thursday that the country risks losing its lead in artificial intelligence to China unless it expands infrastructure, loosens AI chip export restrictions, and strengthens workforce training. Their testimony before the U.S. Senate Commerce Committee, chaired by Senator Ted Cruz, emphasized the urgent need for pro-growth AI policies to counter China’s rapid advancements.

The call to action follows China’s DeepSeek AI breakthrough last year and Huawei’s rollout of advanced AI chips, both of which have shaken Washington’s confidence in maintaining AI dominance.

“The number-one factor that will define whether the U.S. or China wins this race is whose technology is most broadly adopted in the rest of the world,” said Brad Smith, President of Microsoft. He added that Microsoft has banned internal use of DeepSeek due to data privacy and propaganda concerns.
“The lesson from Huawei and 5G is that whoever gets there first will be difficult to supplant.”

Key Takeaways from the Senate Hearing:

  • OpenAI CEO Sam Altman emphasized the need for massive infrastructure investment, including data centers and power generation, to fuel AI’s growth.

  • AMD CEO Lisa Su highlighted the importance of maintaining competitiveness in AI chip design while also ensuring export flexibility.

  • Smith called for broader AI education, R&D funding, and skilled labor development, including more electricians for AI facilities.

The tech industry is pushing back against Biden-era AI export rules that aimed to limit China’s access to powerful AI chips. In response, the Trump administration is preparing to rescind those curbs and replace them with a new framework — a move praised by Cruz, Altman, and Su during the session.

“The Biden administration’s misguided midnight AI diffusion rule on chips and model weights would have crippled American tech companies’ ability to sell AI to the world,” Cruz said.

China’s DeepSeek, based in Hangzhou, made waves by launching a powerful, cost-effective AI model competitive with OpenAI and Meta — a move that intensified pressure on U.S. lawmakers to act quickly.

Meanwhile, Huawei is preparing to mass-ship advanced AI chips to Chinese customers despite ongoing U.S. trade restrictions.

With national security, economic leadership, and technological supremacy at stake, AI executives stressed that global market penetration—not just technical capability—will determine who wins the AI race.

Zhipu AI Launches Free AI Agent, Heats Up China’s Tech Race

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Chinese AI startup Zhipu AI has unveiled a free-to-use AI agent named AutoGLM Rumination, further intensifying the fast-growing artificial intelligence competition within China’s tech industry. The announcement was made by CEO Zhang Peng during a launch event in Beijing on Monday.

AutoGLM Rumination is capable of executing complex tasks such as deep research, web browsing, travel planning, and writing research reports. It is powered by Zhipu’s proprietary models — the reasoning model GLM-Z1-Air and the foundation model GLM-4-Air-0414. According to the company, GLM-Z1-Air rivals DeepSeek’s R1 in output quality but operates up to eight times faster, while demanding significantly less computing power — just one-thirtieth of the resources.

AI agents like AutoGLM are designed to autonomously perform tasks and make decisions, and their popularity is rapidly rising as firms strive to commercialize AI tools in practical, real-world settings. The move by Zhipu comes on the heels of Manus launching what it claimed was the world’s first general AI agent — albeit at a premium price of up to $199 per month. In contrast, Zhipu is offering its agent completely free via its official website and mobile app.

Founded in 2019 as a spinoff from a Tsinghua University laboratory, Zhipu AI has rapidly gained momentum and recognition. Its GLM series of large language models, particularly GLM4, are reported by the company to outperform OpenAI’s GPT-4 on several benchmarks.

This latest product launch is buoyed by a wave of government-backed support, with the company securing three rounds of funding in one month. The most recent came from the city of Chengdu, which invested 300 million yuan ($41.5 million) into Zhipu.

As the AI ecosystem in China accelerates, Zhipu’s free access model could prove disruptive — democratizing access to advanced AI tools while pushing other domestic rivals and global players to adjust their pricing and strategies.

Musk’s xAI Acquires X, Valuing Social Media Platform at $33 Billion

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Elon Musk’s artificial intelligence company, xAI, has acquired X (formerly Twitter) in a deal that values the social media platform at $33 billion. This acquisition also boosts the valuation of xAI to $80 billion, with plans to leverage the combined assets, including data, models, and computing resources, to enhance xAI’s chatbot, Grok.

Musk, who also leads Tesla and SpaceX, emphasized the synergy between xAI and X, stating that the futures of both companies are now intertwined. While the specifics of the deal, including leadership integration and potential regulatory scrutiny, remain unclear, it marks a significant consolidation of Musk’s companies under his leadership.

Saudi Arabian investor Prince Alwaleed bin Talal, a major stakeholder in both X and xAI, welcomed the deal, estimating that the value of his investments would reach between $4 billion and $5 billion. Despite Musk not seeking investor approval beforehand, sources indicate that the deal is viewed as part of Musk’s strategy to consolidate his influence and management at his companies.

xAI, which competes with major players like OpenAI and China’s DeepSeek, has been expanding rapidly, especially in AI infrastructure, with its supercomputer “Colossus” in Memphis touted as the largest in the world. The merger with X could provide xAI with more avenues for distributing its AI products, tapping into a real-time feed of user-generated data.