The Sequence Opinion #762: Trillion-Parameter Diplomacy: China, the US, and the Battle for Open Models

A recent report from MIT indicates that artificial intelligence (AI) has the potential to automate approximately 12% of jobs in the United States, which translates to over $1.2 trillion in wages, particularly affecting sectors such as finance and healthcare.

Alibaba Group Holding Ltd. has commenced sales of its Quark S1 smart glasses in China, priced at approximately $537. These glasses are powered by Alibaba's Qwen AI models, marking the company's entry into the consumer hardware market. International versions are expected to be released in 2026.

Tidalwave has successfully raised $22 million in a Series A funding round led by Permanent Capital. The company utilizes AI agents to automate the checking of mortgage documents and provide real-time multilingual feedback to borrowers, addressing the challenges faced by non-native English speakers in the mortgage process.

A recent study by MIT and Oak Ridge National Laboratory has revealed that agentic AI technology has the potential to replace approximately 11% of the US workforce. This research utilized a new simulation model, known as the Iceberg Index, to assess the impact of AI on various job sectors across the nation.

BMW, GM, and various startups are innovating electric vehicle (EV) motors to reduce reliance on rare-earth materials, a critical component in current EV technology. This shift involves securing alternative supplies outside of China and exploring new motor and magnet technologies that minimize or eliminate rare-earth usage.

Shenzhen-based UBTech Robotics has secured a multimillion-dollar contract to deploy humanoid robots at select Chinese border crossings, aimed at guiding travelers and managing crowds during peak times. This trial project marks a significant step in integrating advanced robotics into public service roles.

HP has announced plans to cut up to 6,000 jobs globally by 2028 as part of a strategy to enhance product development through increased use of artificial intelligence. This decision follows a lower-than-expected profit outlook for the upcoming year, indicating a shift in the company's operational focus.

The United States is facing a potential electricity crisis this decade, as a surge in demand for data centers threatens to overwhelm aging and vulnerable power grids, according to Schneider. This situation raises concerns about the ability to support the growing needs of artificial intelligence technologies.