📋 Quick Takeaways

• Grok deepfake crisis escalates as mother of Musk’s child sues xAI; California AG orders cease-and-desist; Pentagon adoption questioned
• Skild AI raises $1.4 billion led by SoftBank, tripling valuation to $14B in just 7 months for “robot brain” technology
• A16z announces record $15 billion in new funds, largest fundraise in firm history, with focus on AI and American interests
• DeepSeek V4 expected mid-February, reportedly outperforming Claude and GPT models in coding benchmarks
• Anthropic appoints former Microsoft India MD Irina Ghose to lead Bengaluru expansion as India becomes second-largest market
• State AI laws take effect in California, Texas, and Illinois while Trump administration pushes federal preemption

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🛡️ AI Safety & Regulation

Grok AI Deepfake Crisis: Ashley St. Clair Sues xAI Over Exploitative Images

Landmark Lawsuit Filed: On January 16, Ashley St. Clair—the mother of one of Elon Musk’s children—filed a lawsuit in New York against xAI, alleging Grok’s chatbot generated sexually exploitative deepfake images that caused her “humiliation and emotional distress.”

Week 41 in AI: OpenAI DevDay unveils GPT-5 Pro & Sora 2, AMD-OpenAI forge $6B chip partnership, SoftBank acquires ABB Robotics for $5.4B entering Physical AI era, global AI infrastructure race intensifies with $193B investments, 54% of US jobs face AI transformation.

📋 Executive Summary

• US Senate passes GAIN Act requiring AI chip manufacturers to prioritize domestic customers before exports
• OpenAI faces massive power crisis seeking 250 gigawatts of new electricity capacity
• Meta acquires top AI researcher Andrew Tulloch for potential $1.5 billion compensation package
• Google reports 50% of new code now generated by AI systems internally
• Anthropic expands to India with CEO meeting PM Modi as Claude usage jumps 5x

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🏛️ Policy & Regulatory Impact

US Senate Passes GAIN Act: AI Chip Export Restrictions

The US Senate approved the GAIN Act on October 12, 2025, mandating that AI chip manufacturers like NVIDIA and AMD must prioritize domestic customers before fulfilling export orders. This legislation directly impacts global AI hardware supply chains and could significantly affect cryptocurrency mining operations and international AI development projects.

📋 Quick Takeaways

• 54% of US jobs will be moderately transformed by generative AI, with white-collar analytical roles most exposed
• AI investments are preventing US recession in 2025 according to Deutsche Bank analysis
• Anthropic opens India office in Bengaluru - India is Claude’s 2nd largest market globally
• Former Google CEO warns AI models can be hacked, raising critical security concerns
• YouTube reverses policy on banned creators, signaling platform governance shifts

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💼 Economic & Workforce Impact

AI Investments Sustaining U.S. Economic Stability Amid Tariff Pressures

Deutsche Bank analysts report that AI infrastructure spending is effectively preventing a U.S. recession in 2025. “AI machines—in quite a literal sense—appear to be saving the US economy right now,” noted George Saravelos.