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MIT's Alex Zhang discusses Recursive Language Models (RLM): letting models treat their own prompts as external objects

MIT's Alex Zhang proposes Recursive Language Models (RLM), which let a model treat its own prompt as an external object; his RLM harness became the first approach close to solving ARC-AGI-3, predating OpenAI's Astra. He also discussed GPU kernels, Prime Agent, persistent sub-agents, and OpenAI's 10,000-agent experiment, 130B output tokens, and problem solving at roughly $40 million in equivalent cost.

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AI is causing the collapse of US Treasuries, and even if it ultimately succeeds, it will face heavy taxes

As of August, the five major cloud providers have issued nearly $230 billion in bonds this year, more than twice last year's total for the full year, with a large share in 20-40 year maturities. Nomura estimates that tech giants have borrowed about $200 billion in long-term funds, accounting for a quarter of the Treasury's full-year medium- and long-term Treasury issuance, pushing up US Treasury yields. More than 75% of US federal revenue comes from individual income and social security taxes. AI is compressing labor income and employment, and combined with the depreciation tax cuts in the "One Big Beautiful Bill," corporate income tax revenue plunged by a quarter year-on-year in the first 11 months of this fiscal year. The fiscal gap forces the only growing source—AI profits—to face heavy taxes.

AI assistant Instinct, founded by a 23-year-old college dropout, saw its valuation rise from $2.5 billion to $10 billion in two months

AI assistant Instinct saw its valuation rise from $2.5 billion to $10 billion in less than two months, with its Series C led by Sequoia Capital, Benchmark, and Coatue, and only 14 full-time employees. Founder Noah Shinn is 23 years old, dropped out of college, published the Agent paper Reflexion at NeurIPS as first author, and later joined Sierra as a research scientist. Instinct uses authorized permissions for email, calendar, credit cards, and more to book tickets, shop, cancel subscriptions, and negotiate insurance for users via text message or phone instructions; users spend an average of more than $1,300 per month through it, but its excessive permission requests have also sparked privacy controversy.

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The Verge investigates why Kevin O'Leary's Utah data center project was halted

The Verge reporter Josh Dzieza recounted on a podcast his months-long investigation into Kevin O'Leary's Utah data center project Stratos (also known as Wonder Valley). The project is planned to cover 40,000 acres and supply 9 gigawatts of power, more than twice the average electricity consumption of the entire state of Utah. It bypassed local land approval through the state-level military installation development agency MIDA, and Box Elder County only learned of it one month before the vote. Local residents quickly organized opposition, causing two local commissioners and state Senate President J. Stuart Adams to lose their seats, and the project is currently paused due to referendum litigation. Dzieza believes that the core of data center development is speed, and local residents are never participants in this chain.

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Photon, which held a funeral for mobile apps, raises $4.5M seed round to replace apps with agents

AI startup Photon has closed a $4.5 million seed round, co-led by Gradient and A*, with participation from Vercel, Sequoia China and others. The company helps developers build agents on messaging platforms such as iMessage and WhatsApp, and has attracted more than 40,000 developers to sign up, with revenue growing 10x in four months and message volume up 5x last month. Its hosted platform offers 99.95% availability and has achieved SOC 2 Type II and HIPAA compliance certification.

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