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Hey there,

We've got some huge AI news today.

Alibaba just released a monster AI model to compete with OpenAI. Anthropic is writing massive checks for copyright violations. And OpenAI's spending projections are absolutely mind-blowing.

Let me break it all down for you.

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Alibaba just launched Qwen-3-Max-Preview, its first model with over 1 trillion parameters, joining OpenAI and Google in the trillion-parameter club. The model outperformed Alibaba's previous best from July on internal tests and beats DeepSeek V3.1, Anthropic's Claude Opus 4, and MoonShot AI's Kimi K2 on five benchmarks. Released on Alibaba's cloud platform and OpenRouter, this text-only model represents a major escalation in the Chinese AI race, though OpenAI's GPT-4.5 still leads with an estimated 5 to 7 trillion parameters.

Anthropic agreed to pay $1.5 billion to settle a class action lawsuit after downloading millions of pirated books from shadow libraries to train Claude. The company will pay roughly $3,000 per book for about 500,000 works and must destroy all illegally obtained datasets. This landmark settlement is the largest copyright recovery in US history, though the judge ruled that training AI on copyrighted material itself constitutes fair use. The payout comes just after Anthropic raised $13 billion at a $183 billion valuation.

OpenAI told investors it now expects to burn through $115 billion by 2029, up $80 billion from previous projections. The company will spend over $8 billion this year alone, jumping to $17 billion in 2026, $35 billion in 2027, and $45 billion in 2028. To control these massive cloud server costs, OpenAI is developing its own data center chips and facilities. CEO Sam Altman has told employees the company might be the most capital intensive startup ever created.

Google just made accessing its AI Mode easier by redirecting google.com/ai directly to the Search AI Mode experience. The shorter URL replaces the previous google.com/aimode, making it more memorable for users across desktop and mobile. In the Android and iOS apps, AI Mode now appears as a prominent button underneath the Search field. This move signals Google's push to make AI-powered search more accessible as it competes with ChatGPT and other conversational AI interfaces.

Koah secured $5 million in seed funding led by Forerunner to introduce ads into AI apps, targeting the long tail of chatbot developers. The startup already serves ads in apps like Luzia and DeepAI, achieving 7.5% clickthrough rates and helping partners earn $10,000 in their first month. CEO Nic Baird argues that subscription models don't work for users in developing markets who face the same inference costs, making ads essential for AI apps to achieve global profitability without VC funding.

Dutch chip equipment giant ASML is investing 1.3 billion euros ($1.5 billion) to become the largest shareholder in French AI startup Mistral AI. The investment values Mistral at 10 billion euros pre-money, making it Europe's most valuable AI company. ASML will get a board seat as part of the deal, tying together two European tech leaders in a push for AI sovereignty. The move helps Europe reduce reliance on US and Chinese AI models while giving ASML access to AI capabilities for improving its lithography tools.

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Stay tuned for more updates, and have a fantastic day!

Cheers,
Zephyr