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What I learned after spending a week ICML, one of AI’s top research conferences, in Vancouver

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Welcome to Eye on AI! In this edition...Scale AI cuts 14% of workforce after Meta investment, hiring of founder Wang...OpenAI to take cut of ChatGPT shopping sales in hunt for revenues...Former top Google researchers have built a new kind of AI agent—and they think it could be a step toward superintelligence.

I am reporting Eye on AI this week from Vancouver, where I’ve been hanging out with thousands of PhD-level AI researchers at the International Conference for Machine Learning (ICML), one of the top annual gatherings for AI talent from elite universities, Big Tech labs and AI startups. 

I’ll be honest: It’s humbling to be here, surrounded by professors, postdocs, and industry researchers who casually drop references to mathematical proofs and thermodynamics metaphors into everyday conversation. There are thousands of posters, papers, and presentations—far too many to meaningfully absorb, even if I fed them all into ChatGPT. My brain feels like it’s running at max capacity as I try to make sense of talks titled “Controlling Underestimation Bias in Constrained Reinforcement Learning for Safe Exploration” and “Discrete Flow Matching for Graph Generation.”

Still, there’s something electric about being in the room where the future of AI is being debated, defined, and maybe even redirected. I’m a big believer in getting out of my comfort zone—and into a beginner’s mindset—especially in a space where today’s theories might become tomorrow’s technologies. As I wrap up my time at ICML, here’s what’s sticking with me: 

The AI talent wars are in full swing. Meta’s extraordinary, ongoing hiring spree, which has thrown tens and even hundreds of millions of dollars at elite AI researchers lured from OpenAI, Anthropic, Google DeepMind and others, is the talk of ICML. Some clearly see it as over-the-top, with one London-based researcher telling me it is creating “a bubble.” Others envision Meta as a dream gig—one Swedish PhD student, showing off an armful of swag from various exhibition hall booths, including a pair of blue IBM socks—said he could only hope to land an interview there one day. Either way, Big Tech had recruiters working overtime, with private after-hour events for candidates sprinkled out at venues near the Vancouver Convention Center. 

There’s no better place to ask questions. One of the best things about hanging out with really smart people is picking the brains of really smart people. It helps that AI researchers are typically incredibly kind about explaining their work to a curious journalist. In a vast expo hall filled with seemingly-endless rows of poster presentations, you never know when you’ll happen upon a well-known Stanford University professor perfectly happy to spend 20 minutes chatting about AI model behavior and ethical guardrails. How valuable are one-on-one meetings here? How about a machine learning pioneer waxing philosophically about the old days (which are only 10-15 years ago)? Or a former Google Brain researcher patiently explaining the ins and outs of Transformer models? Priceless. 

Scaling up reinforcement learning (RL) is all the rage. That’s not my line—it’s from former Tesla AI chief Andrej Karpathy on X—but RL was everywhere at ICML. (RL, or reinforcement learning, is a training method where Ai learns by trial and error, to maximize some reward. That could be points in a game, or the number of “thumbs up” grades an AI model’s outputs receive from a human evaluator.) Now, researchers are taking reinforcement learning techniques and pushing them to much larger scales to train or fine-tune today’s big language and multimodal models. With more data, more compute, and harder tasks, you (hopefully) get models that work to reason better, follow instructions more reliably, and behave more safely in messy, real-world, enterprise settings. 

Lots of researchers are ready to live their founder dream. There is the startlingly young duo out of Princeton building multimodal medical foundation models. The PhD-level intern at Waymo using Pokemon games to stress-test large language models and AI agents on strategy. The ex-Google and ex-OpenAI researchers aiming to leapfrog current AI tech. With VCs walking the halls during the day and offering open bar events at night, it was easy to view this research conference as partly a hotbed of current and potential founders. 

I’m ready to head back to New Jersey, with plenty of new story ideas and sources in tow. With that, here’s the rest of the AI news.

Sharon Goldman
sharon.goldman@fortune.com
@sharongoldman

AI IN THE NEWS

Scale AI cuts 14% of workforce after Meta investment, hiring of founder Wang. Just weeks after Meta invested $14.3 billion in Scale AI and hired founder Alexandr Wang, the AI startup is laying off 200 full-time employees—about 14% of its workforce, according to CNBC. In a memo to staff on Wednesday, interim CEO Jason Droege, who recently took over for Wang, said the company had scaled its generative AI efforts “too quickly” and had built up “excessive bureaucracy.” Despite the cuts, Droege emphasized that Scale remains well-funded and well-resourced. “These changes will make us more nimble—enabling us to react more quickly to shifts in the market and customer needs,” he wrote in the memo viewed by CNBC. “This structure will allow us to better serve the customers we have today and win back customers that have slowed down work with us.”

OpenAI to take cut of ChatGPT shopping sales in hunt for revenues. According to the Financial Times, OpenAI is planning to take a cut of product sales made directly through ChatGPT as it ramps up efforts to turn the chatbot into an ecommerce platform. Currently, ChatGPT surfaces product listings with links to external retailers. But according to multiple sources familiar with the plans, OpenAI now aims to integrate a full checkout system—allowing users to complete purchases within ChatGPT. Merchants who fulfill orders through this system would pay OpenAI a commission. The company also announced a partnership with Shopify in April as part of its broader push into AI-driven shopping.

Former top Google researchers have built a new kind of AI agent—and they think it could be a step toward superintelligence. Their startup, Reflection, just unveiled Asimov, an agent that learns how software is built not just by reading code, but by digesting everything around it: emails, Slack messages, documentation, and project updates. According to Wired, the goal is to create a more capable AI assistant—and to teach models how humans actually build things, one decision at a time.

FORTUNE ON AI

Elon Musk released xAI’s Grok 4 without any safety reports—despite calling AI more ‘dangerous than nukes’ – by Beatrice Nolan

Commentary: The companies laying off staff for AI today will regret it in five years – by Alexandra Ebert

Delta moves toward eliminating set prices in favor of AI that determines how much you personally will pay for a ticket – by Irina Ivanova

CEO of $14 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea – by Preston Fore

AI CALENDAR

July 22-23: Fortune Brainstorm AI Singapore. Apply to attend here.

July 26-28: World Artificial Intelligence Conference (WAIC), Shanghai. 

Sept. 8-10: Fortune Brainstorm Tech, Park City, Utah. Apply to attend here.

Oct. 6-10: World AI Week, Amsterdam

Dec. 2-7: NeurIPS, San Diego

Dec. 8-9: Fortune Brainstorm AI San Francisco. Apply to attend here.

EYE ON AI NUMBERS

75.6%

That’s how much startup funding surged in the first half of 2025, thanks to the continued AI boom, putting this year on track to become the second-strongest for venture capital investment in history. U.S. startups raised a total of $162.8 billion in the first six months of the year—the most since the record-setting first half of 2021, according to new data from PitchBook.

While that earlier surge was fueled by ultra-low interest rates during the COVID-19 era, this time it’s AI driving the momentum. Massive investments from Big Tech and AI-native firms have supercharged the market, even as many venture funds continue to struggle with fundraising. In just the past three months, startups brought in $69.9 billion.

Notable deals included OpenAI’s $40 billion round, Meta’s $14.3 billion stake in Scale AI, and billion-dollar-plus raises for Safe Superintelligence, Thinking Machines, Anduril, and Grammarly. AI accounted for 64.1% of total deal value and 35.6% of deal volume in the first half—clear evidence of where the money (and conviction) is flowing.

This is the online version of Eye on AI, Fortune’s weekly newsletter on how AI is shaping the future of business. Sign up for free.



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Nvidia CEO says U.S. data centers take 3 years, but China ‘can build a hospital in a weekend’

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Nvidia CEO Jensen Huang said China has an AI infrastructure advantage over the U.S., namely in construction and energy.

While the U.S. retains an edge on AI chips, he warned China can build large projects at staggering speeds.

“If you want to build a data center here in the United States from breaking ground to standing up a AI supercomputer is probably about three years,” Huang told Center for Strategic and International Studies President John Hamre in late November. “They can build a hospital in a weekend.”

The speed at which China can build infrastructure is just one of his concerns. He also worries about the countries’ comparative energy capacity to support the AI boom.

China has “twice as much energy as we have as a nation, and our economy is larger than theirs. Makes no sense to me,” Huang said.

He added that China’s energy capacity continues to grow “straight up”, while the U.S.’s remains relatively flat.

Still, Huang maintained that Nvidia is “generations ahead” of China on AI chip technology to support the demand for the tech and semiconductor manufacturing process.

But he warned against complacency on this front, adding that “anybody who thinks China can’t manufacture is missing a big idea.”

Yet Huang is hopeful about Nvidia’s future, noting President Donald Trump’s push to reshore manufacturing jobs and spur AI investments.

‘Insatiable AI demand’

Early last month, Huang made headlines by predicting China would win the AI race—a message he amended soon thereafter, saying the country was “nanoseconds behind America” in the race in a statement shared to his company’s X account.

Nvidia is just one of the big tech companies pouring billions of dollars into a data center buildout in the U.S., which experts tell Fortune could amount to over $100 billion in the next year alone.

Raul Martynek, the CEO of DataBank, a company that contracts with tech giants to construct data centers, said the average cost of a data center is $10 million to $15 million per megawatt (MW), and a typical data centers on the smaller side requires 40 MW.

“In the U.S., we think there will be 5 to 7 gigawatts brought online in the coming year to support this seemingly insatiable AI demand,” Martynek said.

This shakes out to $50 billion on the low end, and $105 billion on the high end.



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Trump finally meets Claudia Sheinbaum face to face at the FIFA World Cup draw

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Their long-delayed first face-to-face discussion focused on next year’s World Cup — and included side discussions about trade and tariffs — but immigration was not the top issue. That’s despite Trump’s push to crack down on the U.S.-Mexico border being a centerpiece of his administration, and the driving force in the relations between both countries.

Trump has been in office for more than 10 months, and his having taken so long to see Sheinbaum in-person is striking given that meeting with the leader of the country’s southern neighbor is often a top priority for U.S. presidents.

Trump and Sheinbaum had been set to meet in June on the sidelines of the Group of Seven summit in Canada, but that was scrapped after Trump rushed back to Washington early amid rising tensions between Israel and Iran.

Soccer took center stage — but tariffs still loom large

Trump and Sheinbaum sat talking in the president’s box and also appeared onstage with Canadian Prime Minister Mark Carney at the Kennedy Center for Friday’s 2026 World Cup draw. The U.S., Mexico and Canada are co-hosting the tournament, which begins in June.

A senior White House official, who spoke on the condition of anonymity to discuss private meetings, said Trump, Sheinbaum and Carney met privately after participating in the draw.

Sheinbaum had said before leaving Mexico that she’d talk to Trump about tariffs that his administration has imposed on automobiles, steel and aluminum from Mexico, among other things. She said after appearing at the Kennedy Center that the three leaders “talked about the great opportunity that the 2026 FIFA World Cup represents for the three countries and about the good relationship we have.”

“We agreed to continue working together on trade issues with our teams,” Sheinbaum posted on X.

Mexico is the United States’ largest trading partner. The the U.S.-Mexico-Canada Agreement which Trump forged in his first term as a replacement for 1994’s North American Free Trade Agreement also remains in place. But U.S. Trade Representative Jamieson Greer has begun scrutinizing it ahead of a joint review process set for July.

In the meantime, the U.S. and Mexico’s priorities have been reshaped by the steep drop in the number of people crossing into the U.S. illegally along its southern border, as well as the White House’s — so far largely unrealized — threats to impose large trade tariffs on its neighbor.

Before speaking in-person, Trump and Sheinbaum had repeatedly talked by phone, discussing tariffs and Mexican efforts to help combat the trafficking of fentanyl into the U.S. But despite other world leaders, including Russian President Vladimir Putin and Chinese President Xi Jinping, having already met with Trump this term, the meeting with Sheinbaum hadn’t happened until Friday.

The Trump whisperer?

Waiting so long to meet in person hasn’t seemed to hurt Mexico’s president’s standing with Trump.

The two spoke by phone in November 2024, with the then-U.S. president-elect declaring afterward that they’d agreed “to stop Migration through Mexico” — even as Sheinbaum suggested her country had already been doing enough.

Trump soon after taking office threatened to impose a 25% tariff on goods imported from Mexico in an effort to force that country to better combat fentanyl smuggling, only to later agree to a pause.

The White House subsequently backed off tariff threats against most Mexican goods. Then, in October, Sheinbaum announced that the U.S. had given her country another extension to avoid sweeping 25% tariffs on goods it imports to the U.S. — even as many items covered by the USMCA trade deal remain exempt.

Mexico, though, hasn’t avoided all U.S. tariffs. Sheinbaum’s country continues to try to negotiate its way out of import levies Trump has imposed worth 25% on the automotive sector and 50% on steel and aluminum.

Sheinbaum’s success at mitigating many tariffs, and other successes in the bilateral relationship, has led some to wonder if she has a special gift for getting what she wants from him.

She’s largely pulled it off by affording Trump the respect the U.S. president demands from leaders around the world — but especially a neighboring country — and by deploying occasional humor and pushing back, always respectfully, when necessary.

Sheinbaum also defused another potential point of contention, Trump’s renaming of the Gulf of Mexico to the “Gulf of America,” by proposing dryly that North America should be renamed “América Mexicana,” or “Mexican America.” That’s because a founding document dating from 1814 that preceded Mexico’s constitution referred to it that way.

Still, Mexican officials continue to work furiously to lessen the trade blow from tariffs going into 2026 — levies that could wreck its already low-growth economy, particularly in its all-important automotive sector. Sheinbaum’s government has also sought to defend its citizens living in the U.S. as the Trump administration expands its mass deportation operations.

Sheinbaum’s government also lobbied unsuccessfully against a 1% U.S. tax on remittances, or money transfers that millions of Mexicans send home every year from the United States. It was approved as part of Trump’s tax cut and spending package and takes effect Jan. 1.

Trump’s push for mass deportations

Trump has directed federal officials to prioritize major deportation pushes in Democratic-run cities — an extraordinary move that lays bare the politics of the issues. He’s also deployed the National Guard in an effort to curb crime, which has led to a spike in immigration-related arrests, in places like Los Angeles, Chicago and Washington, as well as Memphis, Tennessee, and Portland, Oregon.

The Trump administration says its priority is targeting “the worst of the worst” criminals, but most of the people detained in operations around the country have not had violent criminal histories.

Such operations often meant targeting Mexican citizens who have lived and worked in the United States for years and may face deportation to a homeland they no longer know well. It also has meant serious threats of declining remittance income, which has fallen for seven consecutive months.

The lower number of illegal U.S.-Mexico border crossings has knocked immigration off its perch as the top agenda item for the U.S.-Mexico bilateral relations for the first time in recent memory.

Mexican officials now say conversations around immigration have shifted toward cajoling countries into taking back their citizens and reintegrating them to keep them from leaving again — a major Trump administration priority around the world.

Cooperation on security

Sheinbaum has blunted some of the Trump administration’s tough talk on fentanyl and drug smuggling cartels by giving her security chief Omar García Harfuch more authority.

Mexico has also extradited dozens of drug cartel figures to the U.S., including Rafael Caro Quintero, long sought in the 1985 killing of a DEA agent. That show of goodwill, and a much more visible effort against the cartels’ fentanyl production, has gotten the Trump administration’s attention.

That’s a significant improvement. Only a few years ago, the DEA struggled to get visas for its people in Mexico, and then-President Andrés Manuel López Obrador accused the U.S. government of fabricating evidence against a former Mexican defense secretary, though he never presented evidence to back up the allegation.

Not everything has gone so smoothly, though. Trump criticized Sheinbaum for rejecting his proposal to send U.S. troops to Mexico to help thwart the illegal drug trade.

Last month, Sheinbaum said there was no way the U.S. military would be able to make strikes in Mexico, after Trump said he was open to the idea. And she has denounced U.S. strikes on boats allegedly carrying drugs in the Caribbean and eastern Pacific.

“The president of Mexico is a lovely woman, but she is so afraid of the cartels that she can’t even think straight,” Trump said earlier this year.

Sheinbaum declined to take the bait — and avoided turning up the political pressure — by sidestepping Trump’s criticism.

___

Associated Press writer Chris Sherman contributed from Mexico City.



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Former Amazon exec warns Netflix-WBD deal will make Hollywood ‘a system that circles a single sun’

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A Netflix-Warner Bros. merger would risk a monopsony where a single buyer wields enormous control over the marketplace, the former head of Amazon Studios warned.

Roy Price, who is now chief executive of the studio International Art Machine, wrote in a New York Times op-ed on Saturday that predictions of doom are nothing new in the film industry, pointing to the advent of TV, home video, streaming, and AI.

“But if Netflix acquires Warner Bros., this long-prophesied death may finally arrive, not in the sense that filmmaking will cease but in the sense that Hollywood will become a system that circles a single sun, materially changing its cultural output,” he added. “All orbits—every deal, every creative decision, every creative career—will increasingly revolve around the gravitational mass and imprimatur of one entity.”

To be sure, Netflix has said Warner Bros. operations will continue, and the studio’s films will still be released in theaters. Meanwhile, Warner’s TV channels will be spun off via a separate company, though HBO will be included in Netflix.

But Price said the danger “is not annihilation but centralization,” with the combined company accounting for an even bigger slice of overall content spending.

A reduction in bidders also means less content will be produced, while a separate development culture, set of tastes, and risk tolerances will be sidelined, he predicted.

“A Netflix merger with Warner Bros. would create a monopsony problem: too few buyers with too much bargaining power,” Price explained. “Writers, directors, actors, showrunners, puppeteers, visual effects artists—all are suppliers. The fewer buyers competing to hire them, the lower their compensation and the narrower their opportunities.”

Such reasoning sank Penguin Random House’s attempt to merge with Simon & Schuster that would’ve created a book publisher with too much leverage over authors, he pointed out.

Of course, the remaining players in Hollywood and content creation are giants in their own right as well. A KPMG survey of spending in 2024 put NBC Universal parent Comcast at the top with $37 billion, followed by Alphabet’s YouTube ($32 billion), Disney ($28 billion), Amazon ($20 billion), Netflix ($17 billion) and Paramount ($15 billion). Comcast and Paramount also made bids for Warner Bros.

Theater owners, producers and other creative workers have also voiced opposition to the deal. In addition to the business impact of a Warner Bros. takeover, other opponents raised even weightier concerns.

Oscar winner Jane Fonda sounded the alarm on a “constitutional crisis” and demanded that the Justice Department not use its regulatory power to “extract political concessions that influence content decisions or chill free speech.”

For its part, the Trump administration views the deal with “heavy skepticism,” sources told CNBC. The merger is expected to face exceptional antitrust scrutiny, and Netflix’s $5.8 billion breakup fee is among the biggest ever.

On Wall Street, analysts see a tech angle in the merger, namely the importance of content to train and power the next generation of AI models that will shape the entertainment industry’s future.

The acquisition of Warner Bros. would help Netflix stand out in an AI future, Divyaunsh Divatia, research analyst at Janus Henderson Investors, said in a note on Friday.

“They’re also levering up on premium entertainment at a time when competition on engagement from short form video is expected to intensify especially if AI models democratize video creation at an increasing rate,” he wrote.



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