AI distillation, a technique for training smaller models with large ones, is a double-edged sword. While it boosts efficiency and innovation, concerns arise over intellectual property theft, particularly regarding China’s rapid AI advancements through open-weight models. US firms worry about competitors bypassing R&D investment. Policymakers face a dilemma between fostering innovation and protecting national security interests.

Finland’s largest commercial sand battery in Pornainen stores 100 MWh of heat, using 2,000 tons of soapstone. It provides reliable heating for the town, significantly reducing carbon emissions and reliance on wood chips. This innovation addresses renewable energy intermittency, offering long-duration, cost-effective thermal storage without rare earth materials, and showing great potential for decarbonization.

Nvidia has secured a $500 billion deal with South Korea’s SK Hynix for a critical supply of AI memory, ensuring components for its processors and AI systems. This partnership also initiates large-scale data center construction by 2027 and includes SK Telecom developing a cloud business with Nvidia’s systems. Nvidia is also investing $1 billion in Korean cloud company Naver, bolstering AI infrastructure development beyond hyperscale providers.

Waymo is ending its exclusive ride-hailing partnership with Uber in Atlanta and Austin by January 2028, opting to launch its own Waymo app. While continuing to offer Waymo rides on Uber through May 2028, this move signifies Waymo’s desire for direct customer engagement and broader market control. Uber will explore integrating other AV partners, as the autonomous vehicle sector intensifies with multiple companies developing independent platforms. The shift reflects a maturing AV industry towards diversified strategies and direct consumer interaction.

SpaceX’s 13th Starship test flight achieved critical milestones. The Super Heavy booster successfully executed a controlled splashdown, paving the way for reusability, while the upper stage demonstrated atmospheric re-entry. The flight also deployed 20 advanced Starlink V3 satellites, bolstering the constellation’s capabilities for global internet expansion. Starship remains central to SpaceX’s lunar and Mars ambitions, and NASA’s Artemis program. Despite challenges, this test flight signifies significant progress towards reusability and orbital payload delivery.

The US is launching a trade investigation into the EU, potentially leading to tariffs. This is a response to the EU’s $1 billion fine against Google, which the Trump administration views as unfairly targeting American tech firms. President Trump accused the EU of “robbing” US companies and vowed to reverse such penalties, threatening substantial tariffs on EU goods. The investigation, under Section 301 of the Trade Act, signals escalating trade tensions and differing regulatory philosophies between the US and EU.

Alphabet’s $190-$205 billion 2026 capex plan to fuel AI initiatives has caused concern, driving its free cash flow negative. Investors now demand clear monetization strategies from Big Tech peers Amazon, Meta, and Microsoft similarly investing heavily in AI. Meta’s potential public cloud launch and Amazon/Microsoft’s cloud infrastructure are under scrutiny. The market will assess their ability to balance growth investment with sustained free cash flow generation.

Investors are growing wary of the massive capital required for AI expansion, pushing up credit spreads for tech giants like Alphabet, Amazon, and Meta. Rising energy costs and volatile treasury yields add to concerns, as hyperscalers’ capital expenditures may soon outpace free cash flow. Oracle’s credit default swap hitting multi-year highs reflects this AI-related debt anxiety, while even strong players like Meta face higher borrowing costs for new projects.

Elon Musk faced a challenging week as both Tesla and SpaceX experienced significant market declines. Tesla shares plunged, impacting Musk’s trillionaire status due to ambitious long-term investments impacting cash flow. SpaceX’s stock also trended downwards, with its upcoming Starship test flight being crucial for its future plans. Musk also defended his political endorsements in a high-profile interview, calling his supporters “normal people.”

Anthropic has launched Claude Opus 5, its most performant and cost-efficient AI model, aimed at enterprise clients seeking value. Opus 5 shows significant improvements in coding and knowledge work, with a 50% price reduction. While designed for everyday business use, it’s not intended for risky, specialized applications like advanced cybersecurity. This launch occurs amidst intense competition, with businesses prioritizing cost-effective, high-quality AI solutions. Anthropic continues to work with government agencies on AI development and deployment.