🏁Is China going to win the AI race?Jensen Huang thinks so... Plus: Government Surveillance at its Best
Hi Team, China has been dominating headlines with major government energy subsidies for its AI companies, rapid progress from Tencent and Tsinghua University on new LLMs, and a surge in R&D spending to accelerate its AI capabilities. Now, Nvidia CEO Jensen Huang is warning that China is on track to win the AI race. Do you agree? Meanwhile, in the U.S., DHS is rolling out facial-recognition apps for local law enforcement, Perplexity is facing another high-profile lawsuit, and Apple is reportedly paying Google $1B to power the next generation of Siri. A lot is shifting fast. Let’s dive in and stay curious.
📰 AI News and Trends
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Amazon Sues Perplexity AI
Amazon just filed a major lawsuit against Perplexity AI, and it could shape the future of AI shopping agents. The retailer claims Perplexity’s new browser agent, Comet, secretly logs into Amazon accounts and buys items on users’ behalf, violating Amazon’s Terms of Service, which ban bots, data mining, and automated purchasing tools. Amazon argues this “computer fraud” creates privacy risks and degrades the shopping experience. The lawsuit comes after months of warnings, including a cease-and-desist letter in November 2024 and another this year, which Perplexity allegedly ignored. Perplexity, now valued at $20 billion, calls the lawsuit “a bully tactic” and says users should be able to choose whichever AI agent they want to shop with. But in reality, Amazon may only want its own shopping agents to be used on their site. What we are reading:
Government Surveillance at its Best
DHS has released a new facial-recognition app called Mobile Identify, giving local police and sheriff’s departments the ability to scan someone’s face to check their immigration status. The app is tied to the 287(g) program, which already involves more than 550 agencies across 34 states, and directs officers to contact ICE if the scan flags a potential match. Privacy groups warn this is a major expansion of government surveillance. ICE already uses a similar tool, Mobile Fortify, which pulls from 200+ million images and can override documents like birth certificates—leading to U.S. citizens being detained. Critics say putting this technology in the hands of local police with a history of profiling will further erode civil liberties. DHS has offered few details on how the new app works or what databases it accesses. 🧰 AI Tools of The DayAI Travel Planner
Is China going to win the AI race?
Nvidia CEO Jensen Huang issued his strongest warning yet that the U.S. is at risk of losing the global AI race to China. Speaking to the Financial Times, Huang said “China is going to win the AI race,” citing Beijing’s aggressive subsidies for energy and AI infrastructure while the U.S. faces a patchwork of “50 new regulations” across different states. The remarks reflect growing frustration as the Trump administration continues restricting Nvidia’s most advanced chip sales to China, even though the Chinese market represents a $50 billion opportunity for the company. Huang emphasized that China now produces roughly 50% of the world’s AI researchers and a large share of leading open-source AI models, making it a critical ecosystem for innovation. While he later clarified that China is “nanoseconds behind America,” he warned that the U.S. must “race ahead” by expanding energy capacity and attracting global developers. The comments come as policymakers debate whether to tighten regulations or accelerate data-center expansion to maintain America’s current lead in AI. 🧰 AI Guides
🚀 Showcase Your Innovation in the Premier Tech and AI Newsletter (link) As a vanguard in the realm of technology and artificial intelligence, we pride ourselves in delivering cutting-edge insights, AI tools, and in-depth coverage of emerging technologies to over 55,000+ tech CEOs, managers, programmers, entrepreneurs, and enthusiasts. Our readers represent the brightest minds from industry giants such as Tesla, OpenAI, Samsung, IBM, NVIDIA, and countless others. Explore sponsorship possibilities and elevate your brand's presence in the world of tech and AI. Learn more about partnering with us. You’re a free subscriber to Yaro’s Newsletter. For the full experience, become a paying subscriber. Disclaimer: We do not give financial advice. Everything we share is the result of our research and our opinions. Please do your own research and make conscious decisions.
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Thursday, November 6, 2025
🏁Is China going to win the AI race?
Wednesday, November 5, 2025
Live video with Yaro Celis and AI Governance Lead now: AI Governance Matters with AD & Yaro
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Watch the live videoTuesday, November 4, 2025
China’s Cheap Power Push To Tilt the AI Race
Brought to you by Delve:
The AI race is quickly becoming a battle for cloud power. Tech giants now sit on more GPUs than the electric grid can support, turning compute and energy into the new oil of the digital era. China is countering with massive energy subsidies that could tilt the balance in its favor, while Microsoft and others play chess-like moves to lock up cloud access and outsource power capacity. For the rest of us, the best strategy is to stay ahead of the curve, keep learning, and experimenting. So today, we’re sharing 3 powerful AI-augmented tools to explore and a set of free AI courses to level up your skills. Let’s dive in and stay curious.
📰 AI News and Trends
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Turn RAG into riches with Delve’s AI for security questionnaires
Hate those endless security questionnaires? We do too. So we hired the sharpest AI brains from Stanford, MIT, and beyond—and made them do your grunt work. Delve uses state-of-the-art agentic RAG, not your average “retrieve + answer” hack. Our agents think ahead: pull evidence, resolve conflicts, reason across your policy graph, interrogate your infrastructure, and draft bullet-proof responses. We’ve helped Lovable, Bland, Micro1, and a ton of the fastest-growing AI companies navigate and close review with almost every F50 - and saved dozens of hours with our AI-native compliance platform.
China’s Cheap Power Push To Tilt the AI Race
China is cutting electricity costs by up to 50% for major data centers using domestic AI chips from Huawei and Cambricon, according to the Financial Times. Local governments in regions like Guizhou, Gansu, and Inner Mongolia are offering massive energy subsidies to tech giants, including ByteDance, Alibaba, and Tencent, a move to offset U.S. chip bans and boost homegrown computing power. With industrial electricity dropping to ~$0.056/kWh (half U.S. rates), China could rapidly expand its AI infrastructure, training more models and deploying AI at scale. US AI companies are struggling to power GPUs and are sitting on more hardware than they can power. Cheaper energy may help Chinese firms narrow the compute gap with the West, even if their chips are less efficient. Lower-cost AI experimentation, faster scaling, and a stronger domestic ecosystem all powered by state-backed energy policy.
The AI race has become an energy race, and those with access to more and cheaper energy will have the upper hand. What we are reading:
🧰 AI Tools of The DayAI-augmented Workflows Tools
Microsoft’s $33 B Compute War
These NeoClouds act as leveraged shock troops, borrowing billions against Microsoft contracts to rapidly deploy liquid-cooled GPU farms. It’s a new kind of industrial policy funded by debt and fueled by AI hype. This leads to computing that comes online faster than regulators or power grids can respond. Microsoft gains agility and scale; its partners gain survival-level revenue; Wall Street gains another asset class built on AI infrastructure. Competitors like Amazon and Google are countering with their own massive compute commitments, while China is cutting energy costs by half to power domestic AI chips. Microsoft’s strategy resembles a chess match for compute dominance, trading capex for strategic positioning and locking up GPU supply before anyone else. The risks are over-leveraged partners, soaring energy costs, and a race that may outpace real AI demand. 🧰 AI GuidesThree New AI Courses You Can’t Miss.
🚀 Showcase Your Innovation in the Premier Tech and AI Newsletter (link) As a vanguard in the realm of technology and artificial intelligence, we pride ourselves in delivering cutting-edge insights, AI tools, and in-depth coverage of emerging technologies to over 55,000+ tech CEOs, managers, programmers, entrepreneurs, and enthusiasts. Our readers represent the brightest minds from industry giants such as Tesla, OpenAI, Samsung, IBM, NVIDIA, and countless others. Explore sponsorship possibilities and elevate your brand's presence in the world of tech and AI. Learn more about partnering with us. You’re a free subscriber to Yaro’s Newsletter. For the full experience, become a paying subscriber. Disclaimer: We do not give financial advice. Everything we share is the result of our research and our opinions. Please do your own research and make conscious decisions.
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