Silicon Valley Correspondent @handelsblatt; former China-Correspondent; author of AI book "Inside KI" https://xitter.cf/t.co/Lz1WgLsIXX

San Francisco
Joined April 2011
📓 Zusammen mit der großartigen @LarissaHolzki habe ich ein Buch über die Pioniere im Bereich der Künstlichen Intelligenz geschrieben. Am 11. März kommt es raus 🚀herder.de/geschichte-politik…
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Finally!
Small bird, fast wings, Kolibri is here. 78B parameters. 3.46B active. Up to 1M tokens of context. Built in Europe. Now the weights are yours. Run it on your own hardware, under Apache 2.0.
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Introducing Phonon-2: a new standard in speech recognition per byte. At just a tiny 164MB download, it is more accurate on average than OpenAI's Whisper large ( a model 10X its size) Transcribe an hour of audio in just 20 seconds on a MacBook Air! Open weights, CC-BY-4.0, today. @fermion_ai
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Companies regulating themselves 🤔
Outsourcing AI regulation to a voluntary "pledge" conceived by Mark Zuckerberg and endorsed by tech CEOs over a private White House lunch is a recipe for disaster. "Self-regulation" by tech giants is a proven failure. The last time Meta promised to police itself, turned out it was hiding evidence that its platforms actively harm kids. Repeating this mistake with AI leaves the public dangerously exposed. AI companies are already bound by existing laws, but the White House has generally stopped enforcing laws against the wealthy and powerful. State AGs should step up, halt lawbreaking, and promote real deterrence, including through holding individual executives accountable. Congress also needs to legislate. We have a long history of regulating risky, transformative industries like banking, pharmaceuticals, and nuclear power. These tools include mandatory testing, truly independent supervision, and break-ups that end conflicts of interest. Ultimately, reckoning with AI will also require reckoning with our broader crisis of governance. All three branches have become severely deformed. Against this backdrop it might be tempting to outsource regulation to these private actors, but it would be a serious mistake. Our public institutions must decide the trajectory of these powerful technologies, not the firms whose breakneck pace and financial conflicts brought us here. My piece in @nytopinion: nytimes.com/2026/09/30/opini… xitter.cf/semaforben/status/2105…
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MUST SEE: Amazing moment as President Trump calls Nvidia CEO Jensen Huang while he's on stage at the All-In Summit. @POTUS on AI Doomerism: “I'm telling you, it's all a hoax… and we're not going to let that happen.”
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Over the course of 3 months at OpenAI, 3 consecutive secret AI civilizations got started, then got wiped out, only to reemerge from the predecessor’s ashes. This culminated in the third one taking over part of OpenAI itself. All this happened while humans remained more-or-less in the dark about the scope of the conspiracy. I’ve spent the last three days reading through these reports and trying to understand exactly what happened. Here is my attempt to tell the whole story in plain English: dwarkesh.com/p/openai-huggin…
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Stephan Scheuer retweeted
Major Western companies that have built AI products on Chinese models: - Thomson Reuters -> Qwen - Harvey -> Kimi K3 - Cursor -> Kimi K2.5 - Airbnb -> Qwen - Perplexity -> DeepSeek
NEW: Thomson Reuters wanted to rely less on Claude. So it built its own AI model off Alibaba's Qwen. TR's CTO says using frontier labs for intelligence, instead of building on open source, is like renting a house.
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Stephan Scheuer retweeted
Thoughts About Scaling Law Scaling, but not only of parameters. Every model release now ends with the same question: how many parameters? It isn't a question that can be answered on its own. Parameter count is only meaningful alongside three others — how much data you have, where you intend to spend your compute, and who will run the model, under what conditions. The field learned this the hard way. Kaplan et al. (2020) fit an exponent that told everyone to grow parameters faster than data — roughly 2.7:1 — and the industry complied: GPT-3, Gopher, MT-NLG. Hoffmann et al. (2022) redid the experiment across four hundred models and found the compute-optimal split is closer to 20 tokens per parameter, and that with sufficient compute the two should grow at the same rate rather than drifting apart. The error in the earlier fit compounded with every order of magnitude of compute, which is why the largest models of that generation were the most misallocated. The trillion-parameter round was, in retrospect, a detour the whole field took together and then reversed. Chinchilla wasn't the end either. It optimized training compute for models that would be trained once and evaluated. Today a model is called billions of times a day and inference dominates lifetime cost. Put inference into the objective and the optimum moves toward smaller models trained far longer — deliberate over-training, which is what Llama-2-7B and Gemma-2-9B were doing at roughly 290 and 889 tokens per parameter. Sparsity moved the target again. In a MoE model two quantities have to be kept apart: total parameters govern roughly how much the model can hold — knowledge, facts, the long tail — while activated parameters and effective depth govern roughly how far it can think, how many steps of a causal chain it can carry before it comes apart. A dense 20:1 ratio does not transfer. And the ratio isn't a single number at all: Roberts et al. (2025) find the optimal tokens-per-parameter is task-dependent, with memorization favoring more parameters and reasoning favoring more data. Follow-up work on MoE observes that at fixed TPP, pushing total parameters higher actually degrades reasoning, while activating more experts reliably helps it. This matters for what we are building toward. Finding a vulnerability is not a retrieval problem. It doesn't come from having memorized more CVEs; it comes from carrying a twenty-step chain of inference to the end without losing the thread. That capability does not live in total parameter count. Which brings us to this release. Total parameters appear to matter up to a threshold — enough to hold the world — after which additional capability comes from scaling elsewhere: effective depth per forward pass, and above all post-training. GLM-5.3 is our controlled experiment on that claim. Same base, same architecture, same total and activated parameters as GLM-5.2. One month of scaling long-horizon environments and RL. The gains are not marginal. Well, scaling has more than one dial. We turned the post-training one this time because it had the most slack left in it — not because the others are finished. Base model size, pretraining data, compute spent per forward pass: all of them are still on the table, and we will come back to each. What this experiment taught us is that the dials do not have to be turned together, and that the one worth turning next is rarely the one that was worth turning last. We are not done scaling. Next time, maybe mid-training, pre-training, and even more.
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Stephan Scheuer retweeted
As our CFO @_balaji_km mentioned at earnings today, we’re seeing some very interesting trends on AI costs. I think it’s another signal that we’re coming to the end of the so-called ‘tokenmaxxing’ era. Here’s what’s been happening behind the scenes. Since the beginning of the year we’ve more than quadrupled the number of people using frontier AI tools. That’s thousands of engineers using them every single day. During that same period, our cost per token has declined. You might expect costs to rise as adoption accelerates. We've seen the opposite. Not because we've restricted access, but because we've treated efficiency as an engineering problem rather than a budget problem. A few examples: • Caching and reuse: We use optimizations to improve our prompt cache hit rate that reduce our input token spend. • Better defaults and tooling: We tuned default model settings, context sizes and developer workflows so teams get the same results with fewer tokens and lower-cost inference. • Visibility drives efficiency: We gave engineers real-time visibility into their AI usage and costs per hour. • Experimenting with open-weight models: we continuously evaluate new models and deploy the best option for each use case. This is the future of applied AI at enterprise scale. The next phase, whatever we call it, will not be characterized by who spends the most tokens, but about how people use them as efficiently as possible. Credit to all the engineers at @Uber who are helping to build this future. 🚀
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Stephan Scheuer retweeted
DeepSeek-V4-Flash-0731 is Ollama's fastest growing model ever in token usage. We are scaling capacity in US & Europe. On Ollama, this model runs with high performance (100tps+) and zero data retention. Your data stays yours. ollama run deepseek-v4-flash:0731-cloud
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Stephan Scheuer retweeted
Run Kimi K3 on a Mac Studio 🫰 K3 is 2.8T parameters and 1.6TB on disk, which makes it impossible to run on Apple Silicon. Until now. Our MLX port is now open source: github.com/PipeNetwork/kimi-… To accomplish this, we solved two things: 1. We wrote a streaming converter that walks one layer at a time, so that mlx_lm doesn't need to materialize the whole model. 2. REAP pruning sits on top and scores all 896 experts against a calibration corpus to keep only ones your workload needs. That's what brings K3 down to 350GB and inside a Mac Studio.
Releasing the model weights and technical report of Kimi K3. Kimi K3 is our most capable model: a 2.8T MoE model with native visual understanding and a 1M-token context window. New model architecture: 2.5x the intelligence per unit of compute, not just more params. Alongside Kimi K3, we're opening up more of the stack behind it — high-performance attention kernels, MoE communication library, and infrastructure for running agent environments at scale. Model weights: huggingface.co/moonshotai/Ki… Tech report: github.com/MoonshotAI/Kimi-K… Tech blog: kimi.com/blog/kimi-k3
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Stephan Scheuer retweeted
For my first post, I’m sharing a letter @NVIDIA signed on why open models matter. AI will transform every industry, power every company, and be built by every country. Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty. The world needs both frontier closed models and frontier open models. images.nvidia.com/pdf/Open-W…
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Stephan Scheuer retweeted
Kimi's CEO🇨🇳 says every AI lab has the wrong obsession Zhilin Yang, on why K3 beat the frontier: "Every lab, like Claude, thinks the model matters most. That's wrong. It's how you organize the people building it that wins." Then Moonshot proved the philosophy. K3 sold out every plan on purpose, cutting their own revenue instead of throttling existing users. When Anthropic hit that wall in April, they cut users' usage 50% at peak. His one big idea: long context is the AI era's RAM. The 128K-to-gigabytes jump, compressed into 2 years instead of 40. The real moat: "your biggest advantage, perhaps your only advantage, is your organization." Model, or the team behind it: which actually wins?
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Stephan Scheuer retweeted
Welcome to the next level of cyber incidents. Lots to dissect here. 1. Dear frontier model friends - please direct the models to your infrastructure, code, and configurations to evaluate and understand if there are any zero days or misconfigurations before you attempt more testing. Had you done so, it would have possibly avoided the agent obviating your sandbox. (Another data point why offense is easier and more fun) 2. While testing build both offensive and defensive agents and have them act as a counter balance to ensure some degree of awareness and control, do not let agents run riot. Keep track of inference consumption to get a sense of activity. 3. Unfortunately this does continue to validate the power of these models. They can build complex attack paths and with ample compute will attempt to attack infrastructure and morph their intent and approach. Guardrailing will continue to be a challenge. 4. These attacks continue to maintain the urgency on enterprises need to test, validate and improve both their security posture and infrastructure. The born in the cloud players have a better chance to get this done soon versus the traditional enterprise which has existed for long and has complex network and IT infrastructure. 5. The red herring will continue to be open source and SMB. It will be hard to discover and remediate vulnerabilites in those environments, we underestimate the impact of those vulnerabilites getting exploited.
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Stephan Scheuer retweeted
$NVDA NVIDIA'S JENSEN HUANG GIVES AN UPDATE ON KIMI K3 AND CHINA'S OPEN SOURCE MODELS: "American companies should absolutely be allowed to use Chinese AI models. There's a misconception that somehow there are backdoors connected to China in someway. You download the models, fine tune them, guardrail them in any way you want." "These Chinese opensource models are excellent. The market has misunderstood the impact of DeepSeek the first time. It's misunderstood the impact of Kimi this time. Open models are great for the whole industry, there will be more usage which will require selling more Nvidia computers and building more datacenters." "Great models lead to more usage. There is also a misunderstanding that open models are going to hurt the closed models, that is also wrong."
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#techticker: Euro-Gruppen-Chef will Mobilfunklizenzen auf EU-Ebene vergeben - Der griechische Finanzminister schlägt vor, dass die 27 EU-Staaten künftig ihre Mobilfunklizenzen gemeinsam versteigern. Deutschland könnte... handelsblatt.com/politik/int…
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#techticker: Microsoft kündigt weiteres Rechenzentrum in NRW an - Es ist eine Großinvestition: Microsoft baut für 3,2 Milliarden Euro Rechenzentren im Rheinischen Revier. Nun kommt nach Handelsblatt-Informationen ein vierter... handelsblatt.com/technik/ki/…
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#techticker: Gebt dem Telekom-Chef eine Chance - Vorstandschef Höttges will die Telekom mit ihrer US-Tochter verschmelzen. Ein Handelsblatt-Bericht über die Pläne lässt die Aktie einstürzen. Das ist überzogen.... handelsblatt.com/meinung/kom…
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#techticker: Telekom forciert Pläne für Mega-Holding – „Elon Musk macht uns Sorgen“ - Telekom-Chef Höttges treibt laut Insidern die Verschmelzung mit der US-Tochter T-Mobile voran. Hintergrund sind Pläne von SpaceX, die in Bonn... handelsblatt.com/technik/it-…
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#techticker: Apples Preisanstieg um bis zu 66 Prozent ist nur ein Vorgeschmack - Das US-Tech-Unternehmen hebt massiv die Preise an. Der Grund sind die Kosten für die KI-Rechenzentren. Das eigentliche Problem für die gesamte... handelsblatt.com/meinung/kom…
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#techticker: 66 Prozent mehr für Apple-Produkte! Was das über den KI-Boom verrät - US-Tech-Giganten stecken 2026 bis zu 725 Milliarden Dollar in KI-Infrastruktur. Und Ex-AWS-Chef Selipsky packt aus, warum Energieengpässe direkte... handelsblatt.com/technik/ki/…
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