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Jon Keegan

FTC Chair: Open AI models can “liberate startups”

The Commissioner of the FTC, Lina Khan, spoke at a Y Combinator event yesterday, supporting open AI models as a way to help level the playing field for “little tech” in the fast-moving industry.

Khan noted that at moments of technological disruption such as AI, “these are also the moments when incumbents can try to tighten their grasp, even if it means abusing their power because they have the most to lose.”

“Open weights models can reduce costs for developers so that they can focus their capital on products and services rather than expensive model training, and they can free up venture capitalists to pursue promising new applications of models rather than starting at square one with model development.”

-Lina Khan, FTC Chair

Khan made a point to clarify that the FTC supports “open weights models,” rather than AI models simply labeled as “open source,” which don’t make the model weights available. Model weights are basically the weighted contextual relationships between words. When weights are made available, others have more freedom to tailor “distilled” AI models from the larger model, and in Khan’s view “drive innovation, promote competition and consumer choice and lower costs and barriers to entry for startups like the ones that incubate here.”

This week’s release of Llama 3.1 from Meta is an example where the model weights were made available, in addition to the model itself.

“Open weights models can reduce costs for developers so that they can focus their capital on products and services rather than expensive model training, and they can free up venture capitalists to pursue promising new applications of models rather than starting at square one with model development.”

-Lina Khan, FTC Chair

Khan made a point to clarify that the FTC supports “open weights models,” rather than AI models simply labeled as “open source,” which don’t make the model weights available. Model weights are basically the weighted contextual relationships between words. When weights are made available, others have more freedom to tailor “distilled” AI models from the larger model, and in Khan’s view “drive innovation, promote competition and consumer choice and lower costs and barriers to entry for startups like the ones that incubate here.”

This week’s release of Llama 3.1 from Meta is an example where the model weights were made available, in addition to the model itself.

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OpenAI acquires Astral, adding talent to Codex team

OpenAI has acquired open-source Python tool developer Astral, bringing aboard additional coding talent for its Codex team.

The company said the acquisition will help Codex “expand beyond coding” by helping address a wider range of development tasks, such as planning, testing, and code maintenance.

OpenAI said Codex has seen “3x user growth and 5x usage increase” since the start of 2026, and has over 2 million weekly active users.

Software development is emerging as one of the key battlegrounds where OpenAI is competing for market share with Anthropic, which has been enjoying success with its Claude Code product.

OpenAI said it will continue to support Astral’s open-source software projects.

OpenAI said Codex has seen “3x user growth and 5x usage increase” since the start of 2026, and has over 2 million weekly active users.

Software development is emerging as one of the key battlegrounds where OpenAI is competing for market share with Anthropic, which has been enjoying success with its Claude Code product.

OpenAI said it will continue to support Astral’s open-source software projects.

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Elon Musk gives an estimate for Tesla’s AI6 chip timeline... while the AI5 is still unfinished

Tesla CEO Elon Musk said yesterday that the company’s AI6 chip could, with “some luck and acceleration using AI,” be finalized and sent to manufacturing by December. For those paying attention, Tesla hasn’t confirmed that its previous chip, the AI5, has reached tape-out, with Musk saying only that the design is in “good shape” and “almost done.” Still, Musk is already talking about subsequent chips AI6, AI7, AI8, and beyond.

Here’s a roundup of when these chips are expected, what they’re supposed to do, and what Musk himself has said about them.

While the AI5 and AI6 will be made by TSMC and Samsung, respectively, Musk has said Tesla eventually aims to manufacture its future AI chips at Tesla’s upcoming Terafab factory in Austin.

tech

NHTSA expands Tesla FSD probe, focusing on whether system can detect when cameras can’t see the road

The National Highway Traffic Safety Administration said it is expanding its probe into Tesla’s Full Self-Driving system into an engineering analysis covering about 3.2 million Teslas, a majority of its vehicles that are on the road in the US, Reuters reports.

The agency is focusing on Tesla’s “degradation detection system,” which is meant to recognize when its camera-based technology cannot reliably perceive the road and prompt drivers to intervene:

“Available incident data raise concerns that Tesla’s degradation detection system, both as originally deployed and later updated, fails to detect and/or warn the driver appropriately under degraded visibility conditions such as glare and airborne obscurants. In the crashes that ODI has reviewed, the system did not detect common roadway conditions that impaired camera visibility and/or provide alerts when camera performance had deteriorated until immediately before the crash occurred.”

Tesla CEO Elon Musk has long argued that the company’s self-driving approach does not require the expensive lidar sensors used by rivals such as Waymo.

The agency is focusing on Tesla’s “degradation detection system,” which is meant to recognize when its camera-based technology cannot reliably perceive the road and prompt drivers to intervene:

“Available incident data raise concerns that Tesla’s degradation detection system, both as originally deployed and later updated, fails to detect and/or warn the driver appropriately under degraded visibility conditions such as glare and airborne obscurants. In the crashes that ODI has reviewed, the system did not detect common roadway conditions that impaired camera visibility and/or provide alerts when camera performance had deteriorated until immediately before the crash occurred.”

Tesla CEO Elon Musk has long argued that the company’s self-driving approach does not require the expensive lidar sensors used by rivals such as Waymo.

$1B

Apple is behind the rest of Big Tech when it comes to developing its own AI, but that hasn’t stopped it from cashing in on the AI boom. The iPhone maker stands to bring in more than $1 billion in App Store fees this year from other companies’ generative-AI apps, mostly from ChatGPT, The Wall Street Journal reports, citing data from App Magic.

Unlike rivals pouring hundreds of billions into AI infrastructure, Apple’s spending has been relatively modest, with its overall capital expenditure actually declining last quarter. Its lucrative App Store model lets Apple profit from AI as a gatekeeper without fully joining the expensive race to build it.

Multicolor Sticks

OpenAI is shipping everything. Anthropic is perfecting one thing.

The two AI titans are in a race to grow revenues, but they have very different strategies for releasing products. And one approach appears to be winning out.

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