The Download: Claude’s inner workings, and the future of world models

Anthropic announced a new window into its AI models' internal reasoning, but senior editor Will Douglas Heaven cautions about the limits of such research. New York became the first state to enact a data center moratorium, banning large construction for up to a year. Global smartphone shipments hit a 13-year low in Q2 2026 due to a memory chip shortage.

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. 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. What Anthropic’s latest AI discovery does—and doesn’t—show —James O'Donnell When Anthropic announced last week that it had found a new window into its models’ “internal thoughts” as they reason through answers, there was one colleague I had to talk to: senior editor Will Douglas Heaven. Aside from having a PhD in computer science, Will has spent a lot of time digging into what we can say about how AI models work. I spoke with him about what we should take from Anthropic’s new and typically quirky research. Here’s what he had to say https://www.technologyreview.com/2026/07/13/1140343/what-anthropics-latest-ai-discovery-does-and-doesnt-show/?utm source=the download&utm medium=email&utm campaign=the download.unpaid.engagement&utm term= %7CSUBCLASS%7C &utm content= %7CDATE:m-d-Y%7C . This article is from The Algorithm, our weekly AI newsletter. Sign up to receive it in your inbox every Monday. How will AI understand the real world? Today’s AI systems can generate text, images, and code with impressive skill, but they still struggle with the complexities of the physical world. To bridge this gap, many researchers believe you need something called a world model. At a LinkedIn Live event today, MIT Technology Review will investigate how this technology could transform robotics and help unlock a new generation of intelligent machines. Join Will Douglas Heaven, our senior editor for AI, and Sam Sinha, founding AI researcher and head of world models at 1X Technologies, for the discussion. Register here to attend the free session https://www.linkedin.com/events/7477364739304742912/ at 9:30 PDT, 12:30 PM EDT, and 5:30 PM BST. The must-reads I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology. 1 New York has become the first state to enact a data center moratorium Its governor banned large data-center construction for up to a year. WSJ https://www.wsj.com/us-news/new-york-set-to-temporarily-ban-large-new-data-centers-3755924c?mod=rss Technology $ + A bill passed by state lawmakers could go even further. Verge https://www.theverge.com/policy/965110/new-york-ai-data-center-moratorium + Everyone hates data centers. MIT Technology Review https://www.technologyreview.com/2026/01/14/1131253/data-centers-are-amazing-everyone-hates-them/?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 Smartphone shipments have hit a 13-year low due to the memory crunch They fell 11% in the second quarter of 2026. Reuters https://www.reuters.com/business/media-telecom/global-smartphone-shipments-second-quarter-hit-lowest-13-years-memory-chip-2026-07-13/ $ + The memory chip shortage has increased prices. Gizmodo https://gizmodo.com/the-memory-shortage-is-so-bad-that-smartphone-shipments-hit-a-record-low-2000784996 + And threatens the promise of Moore’s Law. MIT Technology Review https://www.technologyreview.com/2021/06/30/1026438/global-microchip-shortage-problem-m1-apple-tsmc-intel/?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 Sugar molecules have been found in interstellar space for the first time It hints that life on Earth may have been seeded from space. Nature https://www.nature.com/articles/d41586-026-02173-5 + And boosts the odds of living organisms existing elsewhere. New Scientist https://www.newscientist.com/article/2533910-sugar-molecules-found-in-interstellar-space-for-the-first-time/ $ + Researchers used radio telescopes and data to spot the molecules. NYT https://www.nytimes.com/2026/07/13/science/space/sugar-milky-way.html $ 4 Nvidia has halved its Asia buyer list to stop AI chips reaching China It introduced a "white list" of companies that passed tougher checks. FT https://www.ft.com/content/7c146c56-cc7a-40ec-93cb-58106a012421?syn-25a6b1a6=1 $ + It moved amid tighter chip controls from the Trump administration. Reuters https://www.reuters.com/world/china/nvidia-halves-asia-buyer-list-china-chip-crackdown-ft-reports-2026-07-14/ $ 5 Russian state hackers are targeting routers to spy and steal, the US warns The government has warned users to secure their devices. Ars Technica https://arstechnica.com/security/2026/07/the-us-government-warns-that-russia-state-hackers-are-coming-after-your-router/ + Now is a good time for doing crime. MIT Technology Review https://www.technologyreview.com/2026/02/25/1132840/editors-letter-march-2026/?utm source=the download&utm medium=email&utm campaign=the download.unpaid.engagement&utm term= %7CSUBCLASS%7C &utm content= %7CDATE:m-d-Y%7C 6 Trump moved his crypto gains into stocks while urging people to buy more His crypto projects earned him a fortune—but steep losses for retail buyers. Reuters https://www.reuters.com/legal/government/trump-invested-crypto-gains-stocks-bonds-filings-show-2026-07-13/ $ + He’s called for Congress to pass a new crypto bill to honor Lindsey Graham. CNBC https://www.cnbc.com/2026/07/13/trump-congress-clarity-act-crypto-bill-lindsey-graham.html 7 A new cell therapy has saved four children with terminal brain cancer They were treated with an experimental immunotherapy. New Scientist https://www.newscientist.com/article/2533638-four-children-with-terminal-brain-cancer-saved-by-new-cell-therapy/ $ + Access for older children will also be limited. Bloomberg https://www.bloomberg.com/news/articles/2026-07-13/eu-to-present-plan-to-restrict-children-s-access-to-social-media $ 8 The LAPD has halted use of Flock surveillance cameras due to privacy issues Flock’s automated license plate readers have caused concerns. LA Times https://www.latimes.com/california/story/2026-07-11/lapd-suspends-use-of-flock-surveillance-cameras-over-privacy-issues $ + It’s also been criticized for sharing data with state and federal officials. Engadget https://www.engadget.com/2214135/los-angeles-law-enforcement-will-stop-using-flock-cameras/ 9 The US has approved launching a space mirror that reflects sunlight onto Earth As part of a controversial plan to power solar panels round the clock. Wired https://www.wired.com/story/reflect-orbital-earendil-mirror-satellite-fcc/ $ + But geoengineering faces many practical challenges. MIT Technology Review https://www.technologyreview.com/2026/06/18/1139227/geoengineering-engineering-challenges/?utm source=the download&utm medium=email&utm campaign=the download.unpaid.engagement&utm term= |SUBCLASS| &utm content= |DATE:m-d-Y| 10 Anthropic says Claude’s values vary depending on your language It’s most cautious in English and most deferential in Arabic. Gizmodo https://gizmodo.com/anthropic-says-claudes-values-are-different-depending-on-which-language-youre-using-2000785113 Quote of the day “The age when humans are the highest life form on earth will end. For better or for worse, it will happen and it can't be stopped.” —SoftBank CEO Masayoshi Son predicts that AI will overtake human intelligence by 2040 in a speech at his company’s annual corporate conference in Tokyo, Reuters https://www.reuters.com/world/asia-pacific/softbanks-son-says-ai-will-need-5-trillion-per-year-by-2040-dismisses-bubble-2026-07-14/ reports. One More Thing Inside the strange limbo facing millions of IVF embryos Millions of embryos created through IVF sit frozen in time, stored in cryopreservation tanks around the world. Many are left in a peculiar limbo, with no clear path forward. UK residents can discard them, make them available to other prospective parents, or donate them for research. People in the US can also opt for “adoption,” “placing” their embryos with families they get to choose. In Germany, people aren’t typically allowed to freeze embryos at all. And in Italy, unused embryos must remain frozen, ostensibly forever. While these embryos remain in suspended animation, patients, clinicians, embryologists, and legislators must grapple with the essential question of what to do with them. What do these embryos mean to us? Who should be responsible for them? Dive into the ethical and legal challenges surrounding frozen IVF embryos https://www.technologyreview.com/2025/01/13/1109922/inside-the-strange-limbo-facing-ivf-embryos/?utm source=the download&utm medium=email&utm campaign=the download.unpaid.engagement&utm term= %7CSUBCLASS%7C &utm content= %7CDATE:m-d-Y%7C . —Jessica Hamzelou 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 . + This website https://metromusic.weisswideweb.com/ turns live LA Metro data into music. + British grammar is enlivening the American World Cup https://www.newyorker.com/sports/world-cup-2026/british-grammar-invades-the-american-world-cup . + Comedy icon Mel Brooks recently turned 100. Here’s a look back at his legendary career https://people.com/mel-brooks-life-in-photos-12007725 . + Take a trip through modern music with this cinematic set from Thomas Bangalter https://www.youtube.com/watch?v=5BMvgdFzRsQ , one-half of French house music duo Daft Punk. Deep Dive The Download 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: Claude’s inner workings and OpenAI’s “super app” Plus: OpenAI has unveiled its long-awaited "super app." The Download: AI hacking beyond Mythos, and chatbots’ impact on our brains Plus: Anthropic has called for a global slowdown in AI development. The Download: keeping up with AI, and the future of IVF Plus: NASA unveiled plans for three uncrewed missions to the Moon this year. Stay connected Get the latest updates from MIT Technology Review Discover special offers, top stories, upcoming events, and more.