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US AI Action Plan Unveils Major Infrastructure Overhaul 4 min read
Reports

US AI Action Plan Unveils Major Infrastructure Overhaul

By Agentive Studio

It's Friday, July 25, 2025, and you're reading the Agentive Daily Report. Let's cut the chatter.


For Busy People

Cursor is now worth a cool $28 billion, and Cognition and Windsurf are playing catch-up at $10 billion—tripling their valuations in just two months. Talk about a growth spurt!
The White House released an AI Action Plan to beef up infrastructure and innovation. Because apparently, they're serious about this AI thing.
Google DeepMind's Aeneas AI gets history nerds giddy by helping restore ancient Roman scribbles with 72% accuracy.
Anthropic research found that letting AI models chew over things longer can actually make them worse at reasoning. Who knew?
China flexes its AI muscle with new models like Qwen3-Coder, aiming to give Western AI a run for its money.

Today's Top Stories

Coding Agents Race to $28B+ Valuations in Just 60 Days

The AI coding race is on. Cursor is collecting funds at a dizzying $28 billion valuation with $1 billion ARR. Meanwhile, Cognition, after buying Windsurf for a cool $300 million, is raising at $10 billion. Both have tripled their numbers since May.

The real kicker? The lines are blurring in the industry. Cursor is tinkering with async engineering agents while Windsurf's skills in agentic IDE tech just got snapped up. These folks are blurring the lines, aiming to cover the whole development shebang.

US Government Declares AI Leadership Priority #1

The White House rolled out "Winning the Race: America's AI Action Plan." Basically, it's about cutting red tape, powering up the aging national grid, and making new tech buddies globally.

Past American AI endeavors mostly tiptoed around regulations but this new thing is all about going full-throttle on innovation and building a beefier infrastructure. Fun fact: America literally lacks the power juice for competitive AI systems unless they crack open the grid. Anthropic is clapping for the infrastructure bit, though they're curious about those chip export decisions.

DeepMind's Aeneas Brings Ancient Roman Inscriptions Back to Life

Google DeepMind's Aeneas is here to save history, one Latin inscription at a time. This AI contraption acts as a digital archaeologist, patching up and dating damaged writings from the Roman Empire. We're talking text and image wizardry that historians find 90% useful.

Origin places were pinned down with 72% accuracy, because apparently, that's the level of precision we're at these days. Aeneas could be the nerdy hero we've been waiting for, ready to decode ancient languages. Anyone up for some Greek next?

Fast-Forward

Inverse Scaling Paradox: Anthropic tells us that more reasoning tokens can actually dumb down AI performance. So, less thinking might not be so bad, huh?
Trump's AI Neutrality Order: Federal agencies now can only buy AI that's "truth-seeking" and "ideologically neutral." Add your own commentary here.
AI Token Explosion: Google's dealing with over 980 trillion monthly tokens. That's double since May. Apparently, AI services are hotter than ever.
YouTube's AI Editing Tools: YouTube Shorts is rolling out AI to spice up videos using static images. Because we all need more six-second clips in our lives.

Research Corner

AI Morality: The Real Hunger Games

Teaching AI morality is like binge-watching a tense drama. The folks over at OpenAI's Discord have been wrangling with this, pointing out the unsolved puzzle of aligning AI with human morals—since, let's face it, humans aren’t even on the same page about what's moral. The tug-of-war is over making AI systems that reflect values we can’t even agree on ourselves. What could possibly go wrong, right?

More Thinking Time Makes AI Dumber

Anthropic researchers had a lightbulb moment: more deliberation time can mess up AI reasoning. For our favorite large language models, extra tokens can actually make them stupider on reasoning puzzles. Who knew giving models time to think could backfire?

This whole "inverse scaling" idea pokes holes in the assumption that longer thought processes equal smarter outcomes. Maybe AIs need to operate more like scatterbrained teenagers—quickly spit out an answer and move on.

Community Voices

The Great Developer Replacement Debate Continues

Are AI coding tools the new overlords ready to oust developers? It's a spicy debate. Developer wizards like Gergely Orosz argue that actual, breathing humans are still essential for writing specs, debugging, and piecing things together.

Turns out, AI tools are more like a sidekick than a replacement. While models like Claude Code can spit out cool snippets, they're still pretty useless when it comes to understanding the whole picture. Developers aren't going extinct just yet.

Claude Code Workflow Optimizations Gain Traction

Developers are finding structure is the secret sauce for better results with Claude Code. Some popular hacks include breaking tasks into bite-sized steps and using test-driven dev principles. It's about working smart, not hard.

This method helps with higher-quality outputs, fewer tokens, and easier backtracking. So, if you're plugging away on code, maybe give this a spin.

New Tools Discovered

Trickle - Magic Canvas: Craft working apps visually while co-creating with AI—no code required. Because why struggle?
SkyPilot v0.10.0: The best update yet, this one offers AI infrastructure with fancy cloud management.
Qwen3-Coder: An open-source beast optimized for complex coding and efficient dev workflows.

We're bringing our Agentive.Directory up to date. Stay tuned for more AI tools and gems.Spotlight

Spotlight

China's AI Models Challenge Western Dominance

China is taking big strides with shiny new AI models. Everyone's hyped about Qwen3-Coder for its coding prowess, and GLM-4.5 is showing off with more parameters than Ikea furniture has pieces.

Don't forget Qwen's new Qwen3-235B-A22B-Thinking-2507, which specializes in reasoning tasks, and their multilingual model with 92 languages. They've even concocted a gaming GPU to rival NVIDIA's tech without breaking any trade rules. Talk about unrelenting progress.

AI Copilot Shrinks Error Margins in Nairobi Hospitals

OpenAI's partner-in-crime, Penda Health in Nairobi, rolled out an AI copilot that’s slashing diagnostic errors by 16% and treatment flubs by 13%. It doesn’t micromanage, though. The AI lets clinicians lead and provides a backup for better judgment calls, especially in places where resources are rare. Its success story might just be the blueprint for leveling the healthcare playing field in lesser-endowed areas—highlighting how AI can really be the great equalizer.


That's a wrap for today! Thanks for tuning in.

Got thoughts on today's edition? Love it, hate it, or somewhere in between, hit reply and let us know. Or if you've stumbled across an AI gem we should spotlight, give us a shout!