OpenAI just launched o3 and o4-mini, models that combine visual intelligence with deeper reasoning. For the first time, these AIs don't just see images – they think with them, manipulating photos to extract insights just as a human would zoom in or rotate a picture to understand it better.
The US-China chip war just hit Wall Street hard. Tech stocks tumbled after Nvidia lost $5.5 billion from US restrictions on AI chip sales to China. Meanwhile, Taiwan strengthened its grip as the world's essential chip supplier.
A new artificial intelligence system from China's Shandong First Medical University helps scientists understand how genes turn on and off. Called TRAPT, it maps gene control with record-breaking accuracy.
In a twist that would make economists cringe, America's latest trade policy looks like it came straight from ChatGPT. The Trump administration's new tariff calculations match what AI language models suggest when asked about trade policy.
Economists and AI researchers worldwide have noted the striking similarity to AI-generated solutions. In a New York Times podcast with Ezra Klein, Nobel laureate Paul Krugman added his analysis.
"This is more a cautionary tale about AI than economics," Krugman told Klein. The formula takes a country's trade deficit with America, divides it by imports, then cuts that number in half. Ask ChatGPT how to set tariffs, and you'll get nearly identical math.
The implications stun economists. Different countries face different tariff rates - the EU pays more than Britain. This creates an immediate problem: Companies can ship goods through low-tariff countries to dodge higher rates.
Markets hate the uncertainty. Manufacturing stocks dropped despite theoretical benefits from protectionism. Investors see what AI missed - disrupting supply chains hurts American companies that rely on international trade.
Klein pressed Krugman on why this matters. The Nobel winner explained that language models simply repeat what they find online. They can't evaluate real-world consequences or spot logical flaws.
The policy creates unprecedented confusion. Previous trade disputes followed economic logic. But when AI formulas replace human judgment, no one can predict what happens next.
Europe faces higher tariffs than Britain. Mexico pays more than Canada. Bangladesh gets hit harder than Vietnam. The numbers follow AI's math but ignore economic reality.
This marks a shift in how governments make decisions. When leaders want backup for predetermined choices, AI offers ready-made formulas that sound smart but lack wisdom.
The irony cuts deep. An administration pushing "America First" may have outsourced trade policy to artificial intelligence. The result threatens both U.S. manufacturing and international relationships.
Why this matters:
Read on, my dear:
NYT Podcast: What Trump’s Tariffs Will Actually Do | The Ezra Klein Show
The global tech industry faces unprecedented pressure as Trump reverses course on electronics tariffs while China suspends exports of critical rare earth materials. This two-pronged assault threatens to reshape the electronics supply chain and drive up consumer costs.
President Trump threatened TSMC with up to 100% import taxes if it fails to build plants in the United States. He made these remarks at a Republican National Congressional Committee event, taking aim at both the semiconductor giant and Biden's chip policies.
Trump's White House claims Apple can start making iPhones in America right now. Press Secretary Karoline Leavitt says the U.S. has "the labor, workforce, and resources to do it." She points to Apple's $500 billion U.S. investment as proof.
The White House wants federal agencies to go all-in on artificial intelligence. And fast. A sweeping directive issued Monday orders federal agencies to name chief AI officers and craft strategies for expanding AI use across government operations.
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