Chinese firm DeepSeek has unveiled its latest AI model, V4, which can process much longer prompts than before. This could mark a significant shift in the AI landscape, especially with China's dependence on Huawei's Ascend chips.

The focus is now on world models—AI systems designed to understand and interact with real-world environments, potentially bridging the gap between digital and physical realms. Researchers like Stanford’s Fei-Fei Li see these as key to unlocking AI’s full potential in robotics.

Meanwhile, tech giants are making big moves. Google is investing heavily in Anthropic, while China blocks Meta's acquisition of Manus over national security concerns. These developments indicate a fierce global competition for AI supremacy.