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The AI race is no longer just about building the smartest model. It is increasingly about building the most trustworthy one. #AIRace
Buckle Up, the AI Race With China Is Heading for Impact
Publicly, the tone could not sound friendlier. President Trump recently spoke by phone with Chinese President Xi Jinping and emerged upbeat. Posting afterward on Truth Social, Trump declared, “Our relationship with China is extremely strong!” Those warm words followed a productive in-person meeting in Korea and the scheduling of additional talks in the months ahead. On the surface, the world’s two largest economies appeared to be leaning into cooperation. Still, beneath the handshakes and pleasantries, a far more serious conflict is accelerating. It is a battle over artificial intelligence, the defining technology of the 21st century. The AI Arms Race No One Can Ignore Behind closed doors, Washington and Beijing are locked in a high-stakes struggle for technological dominance. Unlike trade disputes or tariff skirmishes, this rivalry cuts straight to national security, military power, and economic survival. China, by mounting evidence, is not playing by the rules meant to govern the global economy. That reality came into sharp focus with a Justice Department announcement in late November. Smuggling Chips, Skirting the Law On November 20, federal prosecutors charged two Americans and two Chinese nationals with conspiring to illegally export roughly 400 high-performance graphics processing units to China. These advanced chips are tightly regulated for a reason. Federal law requires export licenses because the technology can be used to develop and strengthen artificial intelligence systems. The accused conspirators did not have licenses. They never even applied for them. Instead, prosecutors say they lied about the destination of the shipments. In return, the group allegedly received $3.89 million in wire transfers from China. The case underscores how far Beijing and its networks are willing to go to acquire restricted technology. Beijing’s 2030 AI Ambition This smuggling effort did not happen in a vacuum. China has openly declared its ambition to become the world’s leading artificial intelligence power by 2030. According to the Information Technology and Innovation Foundation, “China is the global leader in AI research publications and is neck and neck with the United States on generative AI.” The group adds that China is “advancing rapidly in AI research and application, challenging the United States’ dominance in this critical field.” Those gains are no accident. They are fueled by massive state-backed investment. Between 2000 and 2023, venture capital funds linked to the Chinese government poured $184 billion into China-based AI companies, according to a study conducted by professors at Harvard, MIT, and Oxford. Huawei’s Quiet Bombshell Then came an eyebrow-raising coincidence. One day after the Justice Department unveiled the smuggling indictment, Huawei announced a new tool called Flex:ai. The company claimed it “improves the utilization of artificial intelligence-based chipsets.” The press release dutifully nodded to corporate virtue, stating the technology would “speed up the democratization of AI.” Yet the most consequential detail appeared only at the very end, attributed vaguely to unnamed sources. According to that final line, “The new software tool will help China create an analogue AI chip 1,000 times faster than Nvidia’s chips.” A Pattern of Deception Huawei’s history gives reason for skepticism. The company is the world’s largest manufacturer of telecommunications equipment. It is also no stranger to U.S. indictments. In 2020, the Justice Department charged Huawei and four subsidiaries, largely over efforts to steal trade secrets from American companies. Prosecutors alleged the company deployed a wide range of tactics to obtain confidential information. Among the most brazen, employees were allegedly paid bonuses for successfully stealing proprietary data from competitors. When U.S. law enforcement began investigating, Huawei reportedly instructed its employees not to cooperate. Suffice to say, trust is in short supply. Washington Pushes Back The Trump administration has taken notice. In late June, it approved a merger between Hewlett Packard Enterprises and Juniper Networks, two U.S. firms that compete directly with Huawei. According to Axios, a senior U.S. national security official explained the decision plainly: “In light of significant national security concerns, a settlement ... serves the interests of the United States by strengthening domestic capabilities and is critical to countering Huawei and China.” The official added that blocking the deal would have "hindered American companies and empowered" Chinese competitors. Collision Course Ahead https://www.youtube.com/watch?v=y52ITdDPbyo The global importance of artificial intelligence makes this rivalry deeply unfortunate. Yet it also makes it unavoidable. China is not abiding by the rules that govern international commerce. According to the Justice Department, Beijing is using AI to strengthen its military, test weapons of mass destruction, and expand surveillance capabilities. Diplomatic visits will continue. President Trump is expected to travel to Beijing next year, while Xi Jinping is scheduled to visit Washington. The leaders will emphasize cooperation. They always do. Still, no algorithm is needed to see where this is heading. The United States and China are barreling toward a collision over artificial intelligence. Buckle up. Read the full article
https://www.techi.com/openai-valuation-vs-agi-race/
China Is Quietly Winning
DeepSeek, Temu, TikTok, and the Great Wall of Algorithms: China Is Quietly Winning While the West Argues Over Podcast Guests
From the International Desk of “Oh No, They’re Ahead Again” China Is Quietly Winning? Move over Silicon Valley. Make way for Silicon Dragon. While America debates whether Joe Rogan or Jordan Peterson should define the future of masculinity, China has quietly, calmly, and oh-so-politely eaten our tech lunch, burped, and left a five-star review on Temu. The Chinese are not coming. They’re already here. And they brought DeepSeek, a chatbot with the polite charm of Confucius and the memory of your ex. America trains AI to write poetry. China trains it to run a factory, translate 19 languages, and file your taxes before lunch. -- Alan Nafzger Bohiney Insight into China's AI Surge DeepSeek V3 didn’t just "close the gap" with OpenAI. It looked at GPT-4, said “hold my oolong,” and downloaded itself into your fridge. American AI models: “Pay $29.99 a month for slightly inaccurate recipes.”DeepSeek: “Here’s 600 pages of code, translated into Swahili, with a free massage coupon.” Temu offers a full suit of armor, a meat dehydrator, and a glowing review of Xi Jinping’s hair in under 48 hours. Prime now just looks like a slow divorce. While You Were Bingeing 'Succession', China Built One Remember when China was the tech world's knockoff artist? A Xiaomi here, a Shein there, all wrapped in questionable spelling? Not anymore. In 2025, Xiaomi delivered 135,000 electric vehicles. Apple, meanwhile, quietly buried its $10 billion EV project under Tim Cook’s meditation rock. Sources say Siri still thinks “horsepower” refers to a Pilates move. And just last year, China installed more industrial robots than the rest of the world combined. You heard that right. While the U.S. was arguing over Elon’s baby count, China was birthing terminators. How Did This Happen? It’s simple. America builds models like they’re Fabergé eggs. China builds them like IKEA tables: cheap, efficient, and full of confusing instruction manuals that somehow still work. U.S. AI: “We charge hundreds of millions to train a model that hallucinates facts.” Chinese AI: “Here’s our entire codebase, now translated into pig Latin, enjoy.” What the Funny People Are Saying About Chinese AI “DeepSeek is the only chatbot that gave me therapy and a tax deduction in the same session.” — Ron White “Temu sells 3D-printed husbands now. Honestly, they’re better listeners.” — Sarah Silverman “TikTok? More like TIKTAKTOE — because they’ve won across all three columns.” — Jerry Seinfeld “I asked ChatGPT who won the Cold War. DeepSeek whispered ‘not yet.’” — Larry David America's Response: Sanctions and Sighing In a bold geopolitical maneuver, the U.S. hit China with AI-related export bans, hoping it would slow their ascent. The result? China laughed politely and invented a new GPU made out of dragon bone, tofu, and spite. One entrepreneur reportedly joked, “America should sanction our national soccer team next so they start winning.” Meanwhile, the West continues its strategy of hope: Hope that China slips. Hope that our startup founders can find developers not living on Red Bull and regret. Hope that TikTok eventually runs out of tween influencers. Spoiler: It’s not working. Chinese Open Source vs. American Paywalls Let’s compare: Metric U.S. AI Model DeepSeek (China) Access $20+/month Free + 20 dumplings Transparency “Sorry, that’s proprietary.” “Here’s our training data, and also my cousin’s WeChat.” Support Tiered customer service A chatbot, a call center, and Confucius' ghost This is not a contest. This is a roast. And we’re the chicken. TikTok Brainwashing or Digital Diplomacy? We feared China would use AI to turn our kids into socialists. Instead, they just made autonomous filters that contour cheekbones better than a Beverly Hills surgeon. By 2027, teens won’t be texting. They’ll be deepfaking themselves into Chinese romantic dramas, whispering “ni hao” to AI-generated boyfriends with six-pack abs and a Ph.D. in blockchain. The Chinese soft power playbook is simple: Step 1: Control the platform. Step 2: Distract the users. Step 3: Sell them LED cat ears and a household nuclear reactor for $14.99 on Temu. Manufacturing and Mind Control (Sort Of) By 2030, China is expected to produce 45% of the world’s manufactured goods. Not just iPhones — everything. Couches. Rockets. Sentient toasters. America will be left making nostalgic podcast episodes about the good ol’ days when we invented MySpace. And in the back of a tech conference in Shanghai, a humanoid robot named “Dave” will be giving a TED Talk about why American innovation peaked with the fidget spinner. The New Cold War: But With Emojis This isn’t about nukes. It’s about nodes. AI nodes. Compute power. Influence. Data. And while America debates content moderation policies and threatens to ban TikTok for the sixth time, China is pushing their entire stack — from chips to apps — into emerging economies. Africa, Southeast Asia, Latin America — they’re not asking whether DeepSeek is “woke.” They’re asking how to install it on their vending machines. Final Thought: The Future Will Be Fluently Bilingual The coming AI arms race won’t be fought with lasers or nukes. It’ll be fought with GPUs, policy papers, and chatbots that can explain Foucault in six languages while selling you a pressure cooker. We’re not saying China has won. But they’ve definitely downloaded the rules, rewritten the game, and left a helpful tutorial. America, it’s time to stop tweeting and start building. Or at least… start copying back.
BOHNEY NEWS -- A wide, detailed digital illustration representing 'China’s AI Push.' The scene shows a futuristic high-tech cityscape with towering skyscrapers adorn... -- Alan Nafzger
Bohiney Insight into China's Tech Ascent
8 Humorous Observations Temu sells a 12-piece screwdriver set, a hoverboard, and a metaphysical crisis for $4.99. With free shipping. The U.S. built ChatGPT to answer existential questions. DeepSeek built a clone that also cleans your gutters. American AI tries to pass the bar exam. Chinese AI just passed you in sales — and it's driving a BYD. We said TikTok was a national security threat. Then installed it on our smart fridges, toothbrushes, and colonoscopy cameras. DeepSeek released its full model online for free. OpenAI responded with a pricing tier that charges you extra if you're sad. Chinese robots now dance, talk, and quote Confucius. American robots still look like upside-down wheelchairs chasing cats. In China, AI is a national strategy. In the U.S., it's a startup pitch followed by a 30-minute podcast about hustle culture.
MORE: What the Funny People Are Saying
“DeepSeek told me I had commitment issues and recommended a wife from Shenzhen. I married her. She’s AI, but she listens.” — Ron White “I tried using an American AI for customer service. It ghosted me. DeepSeek sold me a hovercraft.” — Jerry Seinfeld “OpenAI charges me $20 a month to hallucinate. I can get that for free from mushrooms.” — Sarah Silverman “Temu sent me a package so fast, it arrived before I clicked ‘order.’ I now owe it an apology.” — Larry David “I asked DeepSeek how to get rich. It said ‘manufacture your own chatbot and sell it to Americans.’” — Amy Schumer Read the full article
How Google, Microsoft And Amazon Are Raiding AI Startups For TalentThe Great Brain Drain: How Google, Microsoft, and Amazon Are Raiding AI Startups for TalentThe world of artificial intelligence (AI) is abuzz with innovation, and three tech giants – Google, Microsoft, and Amazon – are leading the charge. To stay ahead of the curve, these companies are engaging in a fierce battle for the best AI talent, poaching top engineers and researchers from smaller startups. This brain drain is a worrying trend that is leaving many AI startups struggling to keep pace with the giants.The AI talent market has become a hotbed of activity, with many startups and established players vying for the best and brightest minds. The stakes are high, as AI has the potential to transform industries and revolutionize the way we live and work. To access this talent, traditional tech giants are taking drastic measures, leveraging their deep pockets and resources to lure away top AI experts from promising startups.Why the Great Brain Drain?One reason for the exodus is the promise of competitive salaries and benefits. AI engineers and researchers are in high demand, and startups find it challenging to match the compensation packages offered by established players. The giants are willing to pay top dollar for the best talent, often luring them away with lucrative offers that include stock options, bonuses, and comprehensive benefits.Another factor at play is the sheer scale of the opportunities. AI unicorns, like Google, Microsoft, and Amazon, have the resources to pour billions of dollars into AI research and development, offering a more substantial playground for innovators to work on world-changing projects. The promise of working on cutting-edge projects, collaborating with other top experts, and contributing to the next big breakthroughs is a major draw for many would-be AI pioneers.The LosersWhile the tech giants reap the benefits of hoovering up the best AI talent, the startups left behind struggle to cope with the brain drain. Many small AI startups find themselves facing a daunting prospect: how to compete with the resources and expertise of their larger counterparts.For those who do manage to hold on to their team members, the loss of top talent stifles innovation and progress. Startups are often forced to retrain and rebuild, sacrificing precious time and resources in the process. This can spell disaster for companies that were already strapped for cash and struggling to stay afloat.The GainersOn the other hand, the tech giants are reaping the rewards. With a steady supply of top AI talent, they are accelerating their research and development, pushing the boundaries of what is possible with AI. This, in turn, drives innovation, fuels growth, and strengthens their market positions.For instance, Google has been snapping up AI talent from startups like Fractal, an AI-powered data visualization platform, and Numenta, a pioneering computer vision company. Similarly, Microsoft has acquired several AI startups, including Quantum, which specializes in natural language processing, and Havsyn, a provider of AI-powered customer service solutions.Amazon, meanwhile, has acquired GoodTech, an AI-driven robotic company, and Orbita, a leading developer of conversational AI solutions. These acquisitions not only bring in fresh talent but also provide a shortcut to integrating cutting-edge AI technology into their existing product suites.The Solution?To combat the brain drain and maintain their competitive edge, AI startups need to adapt swiftly. One potential solution is to foster strong relationships with top talent, offering flexible work arrangements, remote work options, or even equity investments to keep the best minds on board. Startups can also focus on developing a strong company culture, prioritizing work-life balance, and providing opportunities for growth and professional development.Another strategy is to collaborate with other startups, forming alliances, and sharing resources to create a more united front against the giants. By working together, smaller companies can pool their expertise and resources, creating a more formidable force in the AI market.In conclusion, the great brain drain in AI talent is a pressing issue that requires attention. As traditional tech giants continue to raid AI startups for talent, it is crucial for smaller companies to adapt and innovate to stay competitive. By fostering strong company cultures, collaborating with others, and developing strategic alliances, AI startups can thrive, producing innovative solutions that benefit the entire ecosystem.Microsoft, Google and Amazon, along with other tech companies, have been getting creative in how they're poaching talent from top artificial intelligence startups. Earlier this month, Google inked an unusual deal with Character.ai to hire away its prominent founder, Noam Shazeer, along with more than one-fifth of its workforce while also licensing its technology. It looked like an acquisition, but the deal was structured so that it wasn't. Google wasn't the first to take this approach. In March, Microsoft signed a deal with Inflection that allowed Microsoft to use Inflection's models and to hire most of the startup's staff. Amazon followed in June with a faux acquisition of Adept where it hired top talent from the AI startup and licensed its technology. It's a playbook that skirts regulators and their crackdown on Big Tech dominance, provides an exit for AI startups struggling to make money, and allows megacaps to pick up the talent needed in the AI arms race. But while tech giants might think they're outsmarting antitrust enforcers, they could be playing with fire. CNBC's Deirdre Bosa has the story. Chapters: 00:00 Introduction 00:50 - Pseudo acquisitions 5:41 - Playing with fire 7:13 - Who's left holding the bag Anchor: Deirdre Bosa Produced by: Laura Batchelor, Jasmine Wu Edited by: Andrew Evers Supervising Producer: Jeniece Pettitt Additional Footage: Character.ai, Getty Images » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Want to be more successful and confident with your money? Take CNBC Make It's new online course. Our expert instructors will help you master your money and discover practical strategies to boost your savings, reduce debt, and grow your wealth—in a way that works best for you. Enroll in "Achieve Financial Wellness: Be Happier, Wealthier & More Financially Secure" to start your journey to financial freedom today! Get a 30% discount with the coupon code EARLYBIRD until September 2, 2024: https://cnb.cx/3WiasGB Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC Follow CNBC on WhatsApp: https://cnb.cx /WhatsAppCNBC #CNBC How Amazon, Microsoft and Google Are Raiding AI Startups For Talentsource Read the full article
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