The recent launch of Chinese AI model Kimi K3 has sparked a bitter divide within the White House. Advisers have publicly criticised leading AI firms, branding their models as 'lobotomized' and 'unintelligent'. The economic impact is palpable, with US companies facing the prospect of forking out less for paid services from Anthropic or OpenAI.

The copyright payout saga continues, with Anthropic securing a record $1.5 billion settlement over alleged pirated works. Yet, many creators see little in this as a victory and fear it could stifle future innovation. Meanwhile, the Trump administration grapples with calls to ban Chinese AI models, reflecting growing tensions around technology sovereignty.

As China tightens its grip on AI exports, there are whispers of stricter controls aimed at preventing Western tech companies from acquiring local innovations. This follows the resignation of a key US official in charge of AI safety and signals ongoing policy shifts in both camps over how to navigate this rapidly evolving landscape.