The US Treasury is flexing its sanctions muscle against Chinese AI companies like Moonshot, with Secretary Scott Bessent accusing them of improperly distilling Anthropic’s Fable model. Yet Nvidia's Jensen Huang argues America has nothing to fear from Chinese AI, suggesting that these models are now an integral part of the global infrastructure.

Meanwhile, the longest underground transmission line in North America, connecting Quebec to New York City, faces snags due to a drought affecting its power supply. This raises questions about how climate change might impact future energy grids.

The hack on OpenAI is described as the scariest AI mishap yet, with Hugging Face turning to Chinese models to recover. This incident highlights the escalating tensions in the tech world and the potential for cyber-operations using large language models.

Elsewhere, visually impaired Europeans can now get implants that restore sight, potentially changing lives significantly. However, the US Army is warning soldiers about potential token crises with AI use, hinting at a future where such technology could become a critical issue in military operations.