DeepSeek’s AI Leap and the Race for World Models

I have combed the internet to bring you today’s most compelling stories about technology,what’s fun, frightening, and fascinating.

China has blocked Meta’s proposed $2 billion acquisition of AI startup Manus, citing national security concerns. Beijing labeled the deal a “conspiratorial” attempt to hollow out its tech base, according to the Financial Times. The country is tightening its grip on AI firms that attempt to leave, as reported by TechCrunch. This decision escalates the AI rivalry between China and the US, but as MIT Technology Review notes, there will be no winners in this competition.

Google is investing up to $40 billion in Anthropic, a deal that values the AI firm at $350 billion, according to CNBC. The funding will support the company’s growing computing needs, while Anthropic and OpenAI are locked in a fierce battle for compute capacity, Axios reports.

President Trump has fired the entire National Science Board, a move that has heightened fears over political interference in US science. The NSF has played a crucial role in developing technology, and The Verge notes the decision raises alarms about the future of American innovation.

Conspiracy theories about the Washington shooting are proliferating online. Over 300,000 posts on X used the keyword “staged,” according to the New York Times. The theories are also spreading on Bluesky and Instagram, as Wired reports.

The AI compute crunch is starting to hit the broader economy, affecting jobs, gadgets, and electricity prices, according to 404 Media. The AI compute explosion is the tech story of our time, says MIT Technology Review.

Elon Musk says a new banking tool brings X close to a “super app,” pledging to launch it this month, Bloomberg reports.

AI optimism is surging across Asia while US sentiment cools, a divide that could shape where adoption happens fastest, according to Rest of World.

Apple is tying its new CEO’s ascent to its first foldable iPhone, aiming to build buzz around John Ternus, Gizmodo reports.

Twelve firms are developing the Golden Dome’s space-based interceptors, winning contracts worth up to $3.2 billion, according to Ars Technica.

NASA has shared promising results from Artemis II, with the spacecraft and rocket faring well, Engadget reports.

Quote of the day: “Getting out the truth and establishing facts and reliable information takes time. But our audiences really don’t have that kind of patience.” ,Amanda Crawford, associate professor at the University of Connecticut, tells the NYT why conspiracy theories are gaining traction online.

One More Thing: Kenya’s Great Carbon Valley is a bold new gamble to fight climate change. The Great Rift Valley is home to five geothermal power stations, which harness clouds of steam to generate about a quarter of the country’s electricity. But some energy escapes into the atmosphere, while more remains underground for lack of demand. That’s where Octavia Carbon stepped in. Last year, the startup began using that excess energy to remove CO2 from the air. The company says the method is efficient, affordable, and scalable. But the project faces fierce opposition.