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Turing Award Winner Richard Sutton Bets Against the LLM Race With New Research Lab
Reinforcement learning pioneer Richard Sutton left John Carmack's Keen Technologies to found Oak Lab, betting that AI needs to learn from real-time experience rather than scaling further on curated datasets. The move places him alongside Meta's former chief AI scientist Yann LeCun and DeepMind's David Silver in questioning whether the current LLM scaling race is actually the fastest path to genuine intelligence. Read more
Nebius Signs $1 Billion AI Compute Deal With Startup Reflection AI as Infrastructure Race Intensifies
Nebius agreed to sell more than $1 billion in AI computing power to open-source model developer Reflection AI through 2029, adding to a contracted backlog now worth roughly $50 billion. Despite the deal, Nebius shares faced pressure from short sellers worried that major customer Meta may be exploring building its own AI compute capacity. Read more
IBM's AI Warning Triggers Its Worst Trading Day in Company History
IBM shares plunged as much as 26% after CEO Arvind Krishna warned that clients are redirecting spending toward AI infrastructure at the expense of IBM's mainframe and software business, putting the 115-year-old company on track for its worst single-day decline ever. The warning sent shockwaves through the broader software sector, dragging down Salesforce, ServiceNow, and Microsoft. Read more
Over 200 Economists and Nobel Laureates Warn Governments Must Act Now on AI's Economic Impact
More than 200 economists and researchers, including 16 Nobel laureates, signed a letter warning AI could transform the global economy faster and more dramatically than the Industrial Revolution. Signatories included researchers from OpenAI, Anthropic, and Google, lending unusual weight to the call for deliberate policy action rather than leaving the transition to market forces alone. Read more
📢 The Signal Behind the Noise
Today's stories all point to the same uncomfortable truth surfacing across the AI industry right now. The technical foundation everyone is betting billions on has a credible dissenter in Richard Sutton. The infrastructure spending fueling the boom is now visibly cannibalizing other parts of the economy, as IBM's crash proved in real time. And the people building AI itself are now standing alongside economists to say the current path needs active management, not blind faith that markets will sort it out. None of this means the AI boom is ending. It means the conversation is shifting from "how fast can we build this" to "what happens to everything else while we do," and today, all four stories landed on the same day.
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