{"slug": "the-download-chinese-ai-divides-the-white-house-and-a-record-copyright-payout", "title": "The Download: Chinese AI divides the White House, and a record copyright payout", "summary": "Chinese AI company Moonshot's launch of Kimi, a free open-source model rivaling OpenAI and Anthropic, has divided President Donald Trump's AI advisers, with David Sacks and Emil Michael publicly attacking US AI firms. Meanwhile, a judge has approved Anthropic's record $1.5 billion copyright settlement for using pirated works to train Claude, the largest known copyright payout in history.", "body_md": "# The Download: Chinese AI divides the White House, and a record copyright payout\n\nPlus: Anthropic's record $1.5 billion copyright settlement has been approved.\n\n*This is today's edition of *[ The Download](https://forms.technologyreview.com/newsletters/briefing-the-download/?_ga=2.179569122.736533416.1649661040-405833893.1649413289),\n\n*our weekday newsletter that provides a daily dose of what's going on in the world of technology.*\n\n**China’s AI models have Trump’s AI world at war with itself**\n\nLast weekend, several current and former advisers to President Donald Trump on AI publicly lobbed insults at the country’s leading AI companies. David Sacks branded Anthropic’s models “lobotomized” and “woke.” Emil Michael, a top Pentagon official, called OpenAI’s new head of strategic futures a “supreme village idiot.”\n\nIt began because no one can agree on what to do about Kimi, a free, open-source model that Chinese AI company Moonshot launched last week. It appears to rival the intelligence of models from OpenAI and Anthropic, which are very much not free.\n\nEvery time a new smart, free model from China gets released, US companies see less reason to fork out money for models from Anthropic or OpenAI. That’s creating economic and political problems for the president—and dividing the top AI strategists in his orbit.\n\n[Read the full story on why no one can agree what to do about Kimi](https://www.technologyreview.com/2026/07/20/1140675/chinas-ai-models-have-trumps-ai-world-at-war-with-itself/?utm_source=the_download&utm_medium=email&utm_campaign=the_download.unpaid.engagement&utm_term=*%7CSUBCLASS%7C*&utm_content=*%7CDATE:m-d-Y%7C*).\n\n*—James O'Donnell*\n\n**This ****article**** is from The Algorithm, our weekly AI newsletter. ****Sign up**** to receive it in your inbox every Monday.**\n\n**The must-reads**\n\n*I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.*\n\n**1 Anthropic's record $1.5 billion copyright settlement has been approved**\n\nThe plaintiffs said Anthropic used pirated works to train Claude. ([Reuters](https://www.reuters.com/world/us-judge-approves-anthropics-15-billion-settlement-copyright-lawsuit-2026-07-20/) $)\n\n+ *And won the largest known copyright payout in history.* ([Engadget](https://www.engadget.com/2219475/judge-approves-anthropic-1-5-billion-settlement-authors/))*+ Yet many authors and creators still don’t view it as a win.* ([TechCrunch](https://techcrunch.com/2026/07/20/anthropics-landmark-1-5b-copyright-settlement-is-approved/))*+ But AI copyright anxiety could limit creativity. *([MIT Technology Review](https://www.technologyreview.com/2025/06/17/1118898/ai-copyright-anxiety-will-hold-back-creativity/?utm_source=the_download&utm_medium=email&utm_campaign=the_download.unpaid.engagement&utm_term=*%7CSUBCLASS%7C*&utm_content=*%7CDATE:m-d-Y%7C*))\n\n**2 The Trump administration is weighing a ban on Chinese AI models**\n\nThe launch of Kimi K3 has revived calls for restrictions. ([Axios](https://www.axios.com/2026/07/20/ai-us-china-open-source-kimi))*+ But officials are divided on the proposals.* ([Fast Company](https://www.fastcompany.com/91576757/trumps-proposed-ban-on-chinese-ai-models-could-strengthen-beijings-hand))*+ China’s bet on open-source is paying off. *([MIT Technology Review](https://www.technologyreview.com/2026/04/21/1135658/china-open-source-models-ai-artificial-intelligence/?utm_source=the_download&utm_medium=email&utm_campaign=the_download.unpaid.engagement&utm_term=*%7CSUBCLASS%7C*&utm_content=*%7CDATE:m-d-Y%7C*))\n\n**3 China is mulling tighter export controls on AI models and chips**\n\nIt wants to stop the West from acquiring its tech and startups. ([FT](https://www.ft.com/content/6049a031-9e9b-464c-97bb-414da04d5a6a?syn-25a6b1a6=1) $)*+ Beijing has held talks with tech firms about potential restrictions*. ([Reuters](https://www.reuters.com/world/asia-pacific/china-considers-tighter-export-controls-ai-models-chips-ft-reports-2026-07-21/) $)\n\n**4 Trump’s AI safety head has resigned after just three months**\n\nChris Fall had led CAISI, the federal AI Safety Institute, since April. ([Axios](https://www.axios.com/2026/07/20/trump-ai-security-agency-head-resigns))*+ No reason was given for his exi*t. ([CNBC](https://www.cnbc.com/amp/2026/07/20/trumps-head-of-ai-safety-agency-caisi-resigns-after-months-on-job.html))\n\n**5 Google is working on a new chip to run Gemini models more efficiently **\n\nThe chip, called “Frozen V2,” may be deployed in 2028. ([Information](https://www.theinformation.com/articles/google-plans-new-frozen-chip-run-ai-models-efficiently) $)*+ Alphabet stock popped on the report. *([CNBC](https://www.cnbc.com/2026/07/20/alphabet-googl-stock-ai-chip-report.html))**6 New Orleans police have explored arming drones with weapons**\n\nA draft drone manual paves the way for weaponised quadcopters. ([404 Media](https://www.404media.co/new-orleans-cops-published-policy-document-allowing-weaponized-drones/))*+ Shoplifters could soon be chased by drones. *([MIT Technology Review](https://www.technologyreview.com/2025/09/25/1124088/shoplifters-could-soon-be-chased-down-by-drones/?utm_source=the_download&utm_medium=email&utm_campaign=the_download.unpaid.engagement&utm_term=*%7CSUBCLASS%7C*&utm_content=*%7CDATE:m-d-Y%7C*))\n\n**7 The EU has handed AliExpress a record fine over unsafe product sales**\n\nThe €550 million fine is the largest-ever under the Digital Services Act. ([BBC](https://www.bbc.com/news/articles/cp8714286dpo))*+ Alibaba has vowed to appeal the fine.* ([SCMP](https://www.scmp.com/tech/policy/article/3361255/alibaba-vows-appeal-us629m-eu-fine-breaches-digital-services-act?utm_source=feedly_feed))**8 Election advice from AI chatbots is “inaccurate and unreliable”**\n\nThat’s the conclusion from tests in Hungary earlier this year. ([Guardian](https://www.theguardian.com/technology/2026/jul/21/election-voting-advice-ai-chatbots-inaccurate-unreliable-hungary))**9 Red light therapy is showing promise for healing and healthy aging**\n\nBetter skin and reduced vision loss are also on the cards. ([Economist](https://www.economist.com/science-and-technology/2026/07/20/the-surprising-benefits-of-red-light) $)**10 Neill Blomkamp’s new horror clip is all AI-generated—and it sucks**\n\nThe acclaimed director wants to make “a full feature in this format.” ([Gizmodo](https://gizmodo.com/neill-blomkamps-new-horror-clip-is-entirely-ai-generated-sucks-2000788103))\n\n**Quote of the day**\n\n**“This would be a terribly self-defeating form of intervention if it were to happen.” **\n\n—Tech investor Chamath Palihapitiya slams plans to restrict Chinese AI models in a post [on X](https://x.com/chamath/status/2079236756365348888).\n\n**One More Thing**\n\nInside Chicago’s surveillance panopticon\n\nInside Chicago’s surveillance panopticon\n\nEarly on the morning of September 2, 2024, four people were shot and killed on a westbound train in Chicago. Police swiftly activated a digital dragnet—a surveillance network that connects thousands of cameras across the city—and arrested the suspect just 90 minutes later.\n\nLaw enforcement and security advocates say this vast monitoring system protects public safety and works well. But activists and many residents say it's a surveillance panopticon that creates a chilling effect on behavior and violates guarantees of privacy and free speech.\n\n[Go inside the surveillance network that’s dividing Chicago](https://www.technologyreview.com/2026/02/23/1132740/inside-chicago-surveillance-panopticon/?utm_source=the_download&utm_medium=email&utm_campaign=the_download.unpaid.engagement&utm_term=*%7CSUBCLASS%7C*&utm_content=*%7CDATE:m-d-Y%7C).\n\n*—Rod McCullom*\n\n**We can still have nice things**\n\n*A place for comfort, fun, and distraction to brighten up your day. (Got any ideas? **Drop me a line**.)*\n\n+ NASA has shared [a stunning timelapse video](https://www.jpl.nasa.gov/news/nasas-psyche-mission-delivers-mars-flyby-data-time-lapse-video/) of the Psyche spacecraft's view of Mars.\n\n+ This comparison of [American and European Urbanism](https://www.instagram.com/p/DZzaXrjiIaS?img_index=3) shows good city design is a choice.\n\n+ Musician Luca Stricagnoli recently performed a marvellous [acoustic guitar medley of Prodigy songs](https://www.youtube.com/watch?v=rtbjZTAzZhc).\n\n+ Two Australian paddleboarders saved a stranded wallaby after it was swept out to sea—and [caught the whole rescue on video](https://x.com/depressionlesss/status/2066473290114208125).\n\n### Deep Dive\n\n### The Download\n\n### The Download: Claude’s inner workings and OpenAI’s “super app”\n\nPlus: OpenAI has unveiled its long-awaited \"super app.\"\n\n### The Download: Claude’s inner workings, and the future of world models\n\nPlus: New York has become the first state to enact a data center moratorium.\n\n### The Download: the future of chipmaking and Anthropic’s government clash\n\nPlus: Meta is pausing an AI training program that tracks workers’ keystrokes.\n\n### The Download: AI hacking beyond Mythos, and chatbots’ impact on our brains\n\nPlus: Anthropic has called for a global slowdown in AI development.\n\n### Stay connected\n\n## Get the latest updates from\n\nMIT Technology Review\n\nDiscover special offers, top stories, upcoming events, and more.", "url": "https://wpnews.pro/news/the-download-chinese-ai-divides-the-white-house-and-a-record-copyright-payout", "canonical_source": "https://www.technologyreview.com/2026/07/21/1140685/the-download-chinese-ai-divides-white-house-anthropic-copyright-settlement/", "published_at": "2026-07-21 12:10:00+00:00", "updated_at": "2026-07-21 12:30:39.625843+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-policy", "ai-products", "ai-ethics"], "entities": ["Moonshot", "OpenAI", "Anthropic", "David Sacks", "Emil Michael", "Donald Trump", "Kimi", "Claude"], "alternates": {"html": "https://wpnews.pro/news/the-download-chinese-ai-divides-the-white-house-and-a-record-copyright-payout", "markdown": "https://wpnews.pro/news/the-download-chinese-ai-divides-the-white-house-and-a-record-copyright-payout.md", "text": "https://wpnews.pro/news/the-download-chinese-ai-divides-the-white-house-and-a-record-copyright-payout.txt", "jsonld": "https://wpnews.pro/news/the-download-chinese-ai-divides-the-white-house-and-a-record-copyright-payout.jsonld"}}