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  • 🤖 The AI Cold War Officially Begins

🤖 The AI Cold War Officially Begins

Plus: Environmental Impact Enters the Conversation

July 31, 2025

Hello AI Enthusiast,

This week shows the global AI landscape splitting into camps. The US unveiled an aggressive deregulation plan to beat China, China immediately countered by proposing a collaborative international AI organization, and Europe's response? Mistral released the first comprehensive environmental study of AI models. Welcome to the AI Cold War, where geopolitics now drives every major decision.

The Big Picture 🔊

Trump Unveils AI Deregulation Plan

The White House released an "AI Action Plan" reversing Biden-era safety measures and removing regulatory barriers to speed up AI development. The plan eliminates references to misinformation, diversity, and climate change from federal AI frameworks while streamlining data center permits.

Over 90 organizations criticized it as a "Big Tech handout" ignoring safety and environmental concerns.

Andrea Mattiello
Andrea MattielloCM and Board Lover

This shows America's growing insecurity about their AI leadership. Despite being ahead, they're abandoning safety measures because they see China gaining ground.

The "genie's out of the bottle" problem means someone will always prioritize power over safety - if not the US, then someone else. Europe's caught in the middle, trying to set standards while everyone else races to build data centers that might cause blackouts.

China Proposes Global AI Body to Counter US

China announced plans for a new international AI organization headquartered in Shanghai, positioning itself as an alternative to US leadership. Premier Li Qiang warned AI risked becoming an "exclusive game" for few countries and offered to share China's advances with the "Global South."

The move comes a few days after Trump's AI Action Plan. Over 30 countries attended China's roundtable, including Russia, South Africa, and Germany.

Gioele Mottarlini
Gioele MottarliniCOO and Image Addict

This is a smart political move by China - positioning themselves as the "good guy" offering open collaboration while the US plays the bully with tariffs and restrictions. We expect more countries to shift toward China's camp, especially as the US approach feels more fear-driven than strategic.

The real question is where smaller nations and the EU will position themselves in this new AI Cold War.

Don't get caught unprepared in the AI Cold War. As governments pick sides and regulations shift overnight, companies need teams that can adapt quickly. Our Corporate AI Training helps your organization navigate these changes - making sure your people know how to work with AI effectively.

Mistral AI Releases First Environmental Impact Study for AI

Talking about environmental concerns, Mistral AI published the first comprehensive environmental analysis of an AI model.

The study found model size directly correlates with environmental impact - bigger models generate proportionally more emissions. Mistral calls for industry-wide standardized environmental reporting.

Helin Yontar
Helin YontarCPO and Polyglot

This feels like Mistral trying to position themselves as the transparent, responsible AI company. The timing is perfect given the US deregulation push and China's cooperation pitch.

Europe's geographic limitations for massive data centers might explain why they're focusing on regulation rather than competing directly with the US and China. We expect to see "emissions per prompt" labels soon.

Bits and Bobs 🗞️

  • Microsoft has introduced Copilot Mode in its Edge browser, revolutionizing web browsing with AI features that streamline tasks, enhance navigation, and support natural voice interactions.

  • Anthropic is introducing new weekly rate limits for its Claude Pro and Max users in late August.

  • Runway Aleph introduces a video model capable of editing, transforming, and generating videos by adding or removing objects and modifying scenes.

  • Google Labs has introduced Opal, a tool that allows users to create and share AI mini apps by combining prompts, models, and tools, all using natural language and visual editing.

  • A hacker breached Amazon's AI system by exploiting a pull request to insert malicious code in a software update, but rendered it nonfunctional.

  • GitHub has introduced Spark, a workbench for building and deploying full-stack intelligent apps using natural language.

  • Gemini 2.5 Flash-Lite, the newest addition to the Gemini 2.5 model family, is now available and offers a cost-effective and fast AI solution.

  • Chinese universities are increasingly integrating AI into their curriculum, reflecting a shift from caution to full endorsement.

  • Oracle and OpenAI are teaming up to develop 4.5 gigawatts of new data center capacity in the U.S..

  • Google has introduced Web Guide, a tool in Search that organizes web links based on specific aspects of queries to enhance search capabilities.

That's a wrap on our newsletter! Before you go, here’s a quick recap of our offerings:

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Catch you next week! 👋