Welcome back, AI’ers!

Here’s What’s On The Menu For Today

• AI cracks abstract reasoning with English

• OpenAI's major UK compute project

• China’s leap in domestic chipmaking

• Meta's new $800 AI smart glasses

AI ON MY MIND

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TODAY’S TOP STORIES

AI Cracks Abstract Reasoning

The Recap: A developer just set a new state-of-the-art score on the challenging ARC-AGI abstract reasoning benchmark, not with complex code, but by guiding the AI with plain English. This novel approach achieved a 29.4% score on the test's latest version, a significant jump from the previous 25% record.

Unpacked:

• The ARC-AGI benchmark is a set of visual reasoning puzzles designed to measure an AI's ability to generalize from just a few examples—a task that is simple for humans but notoriously difficult for large language models.

• The system uses a multi-agent approach where one AI generates English instructions to solve a puzzle, and other sub-agents test and score those instructions against training examples, evolving better solutions over multiple generations.

• This new method moved away from generating Python functions because the complex patterns in the latest ARC puzzles are better described with the nuance of natural language, making the instructions more flexible than rigid code. You can find the code for this method on GitHub.

Bottom line: This achievement suggests that the path to more general AI may involve teaching models core reasoning skills directly, rather than just training them on domain-specific data. It marks a creative step towards closing the gap on tasks that remain easy for humans but hard for machines.

OpenAI's UK 'Stargate'

The Recap: OpenAI is partnering with NVIDIA and Nscale to launch "Stargate UK," a major initiative to build out the United Kingdom's sovereign AI computing power. This project aims to run advanced AI models on local infrastructure for sensitive and specialist UK use cases.

Unpacked:

• The project plans to start with 8,000 GPUs in early 2026, with the potential to scale up to 31,000 over time, powered by NVIDIA's most advanced hardware.

• This move strengthens the UK's sovereign AI capabilities, though it's a smaller version of the massive $500 billion Stargate project announced for the US.

• Beyond hardware, OpenAI will also launch its OpenAI Academy in the UK to help upskill the national workforce and expand access to AI education.

Bottom line: Stargate UK positions the country as a key player in the global AI race by securing its own dedicated compute infrastructure. This initiative underscores the growing global trend of nations building sovereign AI systems to protect sensitive data and drive economic competitiveness.

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👾 AI Tools We Use Everyday

➡️ N8N for AI Agents - Literally use this everyday to write this newsletter (link)

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Tools are sourced from our database and are not sponsored or affiliated.

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MORE NEWS

China's Chipmaking Leap

The Recap: China's top chipmaker, SMIC, is testing its first domestically-produced advanced lithography machine, a major breakthrough that could enable the country to produce 7nm AI chips and bypass U.S. technology sanctions.

Unpacked:

• The new machine is a deep-ultraviolet (DUV) lithography tool developed by Shanghai-based startup Yuliangsheng, representing China's most advanced known effort to build its own chipmaking equipment.

• While the pilot is currently making 28nm chips, the goal is to use multi-patterning techniques to produce 7nm processors, potentially even pushing to 5nm chips at lower yield rates.

• This development is a direct response to U.S. export controls, which restrict China from accessing the most advanced chipmaking tools from foreign companies like the Netherlands-based ASML.

Bottom line: This marks a significant step toward China's goal of semiconductor independence, even if mass production remains a few years away. Success in this area could fundamentally alter the global AI hardware supply chain by establishing a powerful domestic ecosystem outside of Western control.

Meta's $800 Smart Glasses Get a Display

The Recap: Meta unveiled its new Hypernova smart glasses at its Connect 2025 event, a major upgrade that features built-in displays and a neural wristband controller for $800.

Unpacked:

• The biggest leap is the inclusion of displays, moving the glasses beyond the camera-only functionality of the previous Ray-Ban Meta models.

• A new neural wristband allows you to control the interface with hand gestures, offering a glimpse into future hands-free interaction with AI.

• At nearly 3x the price of the original Ray-Ban Metas, the $800 cost positions Hypernova as a premium device aimed at early adopters.

Bottom line: The Hypernova glasses represent Meta's most significant step toward creating mainstream augmented reality hardware. This move pushes wearables from simple data capture devices into truly interactive AI platforms.

OTHER NEWS YOU MAY LIKE

Cursor updated its pricing to move away from a flat-fee "unlimited" model, marking another AI developer tool shifting toward usage-based billing.

OpenAI announced sweeping new safety features for ChatGPT, including an age-prediction system and stricter guardrails to protect teen users.

Character.AI faces three new lawsuits filed on behalf of minors, with families claiming the company marketed predatory chatbot technology aimed at children.

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THAT’S IT FOR TODAY

Until next time, stay safe.

-Best of AI Team

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