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🤝 Russia-China AI Alliance Against Sanctions

Alibaba Cuts AI Model Prices by 85%?

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Plus: Alibaba Cuts AI Model Prices by 85%?

Read time: 5 minutes

President Vladimir Putin has directed Russia's government and Sberbank, the country's largest bank, to strengthen ties with China in artificial intelligence. Could this alliance challenge the dominance of the USA and withstand Western sanctions?

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AI INSIGHTS

🤖 Avoiding Value Decay in Digital Transformation

avoiding-value-decay-in-digital-transformation

The report stresses that generative AI is at the heart of the next wave of innovation. But it’s not just about deploying flashy tech - it’s about transforming how businesses operate, scale, and create value.

Key takeaways:

  • Deloitte found that 55% of organizations avoid certain generative AI projects because of data-related challenges like poor governance or lack of metadata.

  • Instead of relying solely on massive models trained on the internet, companies are exploring more focused approaches:

    → Small Language Models: Purpose-built for specific industries.

    → AI Agents: Systems that don’t just process information but take action, creating autonomous workflows.

  • If AI is the engine, data is the fuel. And we’re hitting a limit. As Deloitte’s experts put it: “Data is the fossil fuel of AI, and we’ve reached Peak Data.”

  • Organizations are scrambling to improve their data capabilities, with many turning to: Cloud collaborations, data security upgrades, and governance frameworks.

Why it matters: We’re at the cusp of a new era. AI isn’t just evolving - it’s changing the rules of the game. What does this mean for you? Now’s the time to think big about how AI can drive value in your world. And as Deloitte’s report suggests, it’s not just about adopting the latest tools - it’s about rethinking how you build, manage, and grow in the age of intelligent machines.

TODAY IN AI

AI HIGHLIGHTS

💼 Google CEO Sundar Pichai spoke to employees during a strategy meeting, explaining that in 2025, the company will prioritize expanding its Gemini AI assistant for everyday users, saying “the stakes are high” for the new year.

💾 ByteDance plans to spend $7B in 2025 on Nvidia AI chips via overseas cloud services, bypassing U.S. export restrictions, and boosting its global AI operations.

🤝 Putin told Russia’s government and Sberbank to work with China on AI projects, hoping to beat Western sanctions and grow technology together.

💡 Silicon Valley pushed an optimistic AI vision, overshadowing fears of catastrophic risks. Despite AI safety efforts, tech leaders and lobbyists succeeded in weakening regulations, focusing on innovation instead.

⬇️ In 2024, AI had a busy year with many launches and successes, but its unpredictability led to top AI flops and missteps, despite its successes, it also has significant shortcomings.

🔄 Genspark just launched Mixture-of-Agents (MoA), a new AI system for Microsoft. It’s smarter, faster, and brings better results for businesses.

DAILY AI FUNDRAISING

KoBold Metals raised $537 million in funding, valuing the company at $2.96 billion. Backed by Bill Gates, the company uses AI to explore minerals like copper, lithium, and nickel for the energy transition.

AI SOURCES FROM AI FIRE

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NEW EMPOWERED AI TOOLS

  1. 💡 FirstVersion is rebuilding the early versions of great products using AI.

  2. 🤖 Debate AI is a platform that provides AI-powered tools for students, professionals, and debate enthusiasts.

  3. 🎧 Wrapped.dev creates a Spotify Wrapped-style summary for GitHub repositories using AI.

  4. 🎓 Edexia is an AI teaching assistant for grading papers

  5. 🖼️ Graficto creates powerful, smart infographics and visuals without any design skills.

AI QUICK HITS

  1. 🤖 Carnegie Mellon and Apple Launched ARMOR for Smarter Robot Navigation (Link)

  2. 🗳️ Lightchain AI Launches DAO Voting to Revolutionize Decentralized AI (Link)

  3. 💻 Hugging Face Releases Smolagents to Build Powerful AI Agents (Link)

  4. 💥 Alibaba Cuts Large Language Model Prices by 85% (Link)

  5. ⚖️ Elon Musk Gains New Backers in OpenAI Lawsuit Battle (Link)

AI CHART

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Countries are at vastly different stages of readiness to embrace AI. A dashboard tracking AI preparedness shows a clear divide in how nations are leveraging AI's benefits and tackling its risks.

Here’s where it gets concerning: AI has the potential to worsen inequality. Policymakers need to act fast to ensure the benefits are shared widely, not concentrated among a few.

Why It Matters

AI isn’t just about fancy algorithms. It’s reshaping economies and opportunities. Some key takeaways:

  • AI Integration: In advanced economies, 30% of jobs could benefit from AI. Workers who adapt may see higher productivity and better pay, while others risk falling behind.

  • Age Divide: Younger workers might adapt more easily, while older ones could face challenges.

What Needs to Happen Next

For policymakers, the steps are clear:

  • Advanced Economies: Expand social safety nets, invest in worker training, and prioritize AI innovation while strengthening regulations to manage risks.

  • Emerging Markets: Focus on building digital infrastructure and equipping workers with digital skills to lay a foundation for AI adoption.

The big takeaway? AI offers incredible potential but also comes with significant risks. Without thoughtful planning, it could widen inequalities. With the right policies, it can unlock opportunities for all.

What happens next will depend on how well nations prepare for this AI-driven future. Stay tuned—there’s a lot more to come in this space.

AI CHEAT SHEET

AI JOBS

  • Figure: AI Engineer, Large Scale TrainingNew (Link)

  • City and County of San Francisco: PRINCIPAL ARTIFICIAL INTELLIGENCE AI ENGINEER 1044 Department of Technology (Link)

  • Chewy: Software Engineer III (AI/ML) (Link)

  • AXA Group: Division Lead, Data Science and AI Excellence (Link)

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