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The Federal Reserve formed task forces including Mark Andreessen and Asha Sharma to assess AI's economic impact, announced the same day Microsoft laid off 10% of its Xbox workforce.
Microsoft is reportedly considering a locally hosted fine-tune of DeepSeek V4 for Copilot Co-work to offer cheaper AI access to enterprise customers, potentially normalizing Chinese models in US enterprise stacks.
Kevin Roose discloses that the New York Times is suing OpenAI and Microsoft, and his fiancé works at Anthropic, highlighting the entangled relationships and legal battles within the AI industry.
Microsoft announced seven new AI models, including MAI Thinking 1, a 1-trillion parameter model optimized for cost. Mustafa Suleyman claims it outperformed GPT-5.5 on McKinsey tasks while being 10x cheaper.
Patel criticizes Microsoft for pulling back on data center investments, failing in internal model efforts (MAI), losing grasp on OpenAI, and letting GitHub Copilot stagnate despite its early market lead and enterprise relationships.
Whittemore says Microsoft announced seven new AI models, including the 1-trillion parameter MAI Thinking 1, positioning them as part of a cost optimization strategy for enterprise adoption.