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THE DAILY INDEX

Technology, AI, software, security, crypto and business

GENERAL

TLDR AI

MICROSOFT REPLACES OPENAI, ANTHROPIC WITH OWN AI IN SOME APPS

Microsoft is starting to replace OpenAI and Anthropic's models with its own in software products like Excel and Outlook. The move shows that the company is making progress in its efforts to build competitive AI models at a lower cost. Microsoft uses massive quantities of tokens in its products. It gets a lot of its tokens at a discount, but those deals are set to expire soon, and Microsoft is working to make sure it isn't stuck paying whoever the leading AI labs decide to charge.

FACING US EXPORT CONTROLS, CHINA'S DEEPSEEK PLANS TO MAKE ITS OWN CHIPS

DeepSeek is planning to enter the silicon business. The company has been meeting with potential partners in the hardware and silicon space for the past year and has been hiring engineers for the project. It is focusing on data center chips for inference, likely to reduce its reliance on both Huawei and Nvidia. Developing its own chip could give the company an advantage in a market where data center access is likely to remain constrained.

HARNESS ENGINEERING FOR SELF-IMPROVEMENT

Recursive self-improvement (RSI) is when ultraintelligent machines can design better machines to improve themselves and surpass humans in all intellectual activities. The feedback loop in modern AI involves models improving the training pipeline and deployment system, which enables better successor models with improved performance. A harness is the system surrounding a base model that orchestrates execution and decides how a model thinks and plans, calls tools and acts, perceives and manages context, stores artifacts, and evaluates results. This post looks at the research around harness engineering and how it contributes to RSI.

MINIMAX M3: HOW SPARSE ATTENTION MAKES LONG-HORIZON AGENTS PRACTICAL

Long-horizon tasks are demanding because the context never stops growing. The longer an agent works, the more expensive each step becomes. MiniMax Sparse Attention changes what the model reads at each step, which results in predictable cost at any length and cheap long context with minimal quality cost. It makes long context cheap and fast enough to sit inside iterative systems that need to keep state over time.

NO SPACE LIKE J-SPACE

The 'J-space' is the area of conscious access where things are available for a model to do what humans could call conscious reasoning. It is named after an interpretability technique called the Jacobian Lens, which computes, for each layer, the average causal effect of changes in the residual stream of a model's eventual outputs, averaged across a wide variety of contexts. This allows researchers to trace what concepts are associated with each layer as the model proceeds through. The J-space and J-lens are remarkably effective tools and mark a major advance in our understanding of LLMs.

GEMMA 4 TECHNICAL REPORT

Gemma 4 introduces a new generation of open-weight multimodal language models featuring dense and Mixture-of-Experts architectures, with parameters ranging from 2.3B to 31B. It enhances computational efficiency and reasoning via innovations like a thinking mode, long-context efficiency, and a unified encoder-free architecture. These models achieve performance comparable to larger models across various benchmarks and are available under an Apache 2.0 license for widespread adoption.

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