The Download: Chinese AI divides the White House, and a record copyright payout

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.

The Download: Chinese AI divides the White House, and a record copyright payout Plus: Anthropic's record $1.5 billion copyright settlement has been approved. This is today's edition of The Download https://forms.technologyreview.com/newsletters/briefing-the-download/? ga=2.179569122.736533416.1649661040-405833893.1649413289 , our weekday newsletter that provides a daily dose of what's going on in the world of technology. China’s AI models have Trump’s AI world at war with itself Last 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.” It 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. Every 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. 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 . —James O'Donnell This article is from The Algorithm, our weekly AI newsletter. Sign up to receive it in your inbox every Monday. The must-reads I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology. 1 Anthropic's record $1.5 billion copyright settlement has been approved The 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/ $ + 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 2 The Trump administration is weighing a ban on Chinese AI models The 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 3 China is mulling tighter export controls on AI models and chips It 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/ $ 4 Trump’s AI safety head has resigned after just three months Chris 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 5 Google is working on a new chip to run Gemini models more efficiently The 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 A 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 7 The EU has handed AliExpress a record fine over unsafe product sales The €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” That’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 Better 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 The 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 Quote of the day “This would be a terribly self-defeating form of intervention if it were to happen.” —Tech investor Chamath Palihapitiya slams plans to restrict Chinese AI models in a post on X https://x.com/chamath/status/2079236756365348888 . One More Thing Inside Chicago’s surveillance panopticon Inside Chicago’s surveillance panopticon Early 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. Law 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. 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 . —Rod McCullom We can still have nice things A place for comfort, fun, and distraction to brighten up your day. Got any ideas? Drop me a line . + 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. + This comparison of American and European Urbanism https://www.instagram.com/p/DZzaXrjiIaS?img index=3 shows good city design is a choice. + Musician Luca Stricagnoli recently performed a marvellous acoustic guitar medley of Prodigy songs https://www.youtube.com/watch?v=rtbjZTAzZhc . + 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 . Deep Dive The Download The Download: Claude’s inner workings and OpenAI’s “super app” Plus: OpenAI has unveiled its long-awaited "super app." The Download: Claude’s inner workings, and the future of world models Plus: New York has become the first state to enact a data center moratorium. The Download: the future of chipmaking and Anthropic’s government clash Plus: Meta is pausing an AI training program that tracks workers’ keystrokes. The Download: AI hacking beyond Mythos, and chatbots’ impact on our brains Plus: Anthropic has called for a global slowdown in AI development. Stay connected Get the latest updates from MIT Technology Review Discover special offers, top stories, upcoming events, and more.