Sent to 953 readers
Race to AGI - Wednesday, December 10, 2025
Share:
TLDR
India locks in $17.5B Microsoft AI buildout
EU scrutinizes Google AI data sourcing
AI +3.7% as pure-play names track infra bets
BIDU -4.7% amid mixed sentiment on platforms
HN questions reliance on AI-generated answers
The Full Story
Microsoft's decision to commit US$17.5 billion to expand AI and cloud infrastructure in India is today's clearest signal that states are hard-wiring commercial AI stacks into national development plans. The investment, made in partnership with the Government of India, positions Microsoft as a primary supplier of compute, cloud, and AI services in one of the world's most important growth markets.
Europe offered a sharp contrast: Brussels opened an antitrust investigation into Google's use of online content for AI services, challenging how foundation models source training data. The case goes to the heart of Google's AI economics—whether large-scale web scraping and content aggregation can remain the default input pipeline.
At the same time, the U.S. national security establishment doubled down on commercial AI. The Pentagon selected Google Cloud's Gemini for Government to power its new GenAI.mil environment, while the U.S. Navy tapped Palantir's ShipOS for submarine production. These moves formalize hyperscalers and data-analytics vendors as core suppliers of sovereign AI capability.
On the consumer and enterprise edge, OpenAI's multi-year collaboration with Deutsche Telekom aims to bring its models to millions of European users through operator channels, reinforcing OpenAI's strategy of embedding into distribution networks rather than going direct everywhere.
Equity markets reflected selective optimism: pure-play C3.ai gained roughly 3–4%, while Baidu fell about 5%, and large platforms like Meta and Alibaba traded modestly lower. That tilt underscores investor preference for names levered to Western capex and government contracts over Chinese internet platforms.
In the developer community, Hacker News debated whether "I asked AI, and it said…" replies should be discouraged, even as Mistral's Devstral 2 pushed coding benchmarks higher. The result is a bifurcated landscape: states and incumbents are scaling AI into infrastructure, while practitioners grapple with how prominently these systems should feature in everyday technical reasoning. Expect the next phase of the "Enterprise AI Ecosystems" trend to blend with state policy as governments become the largest, and most demanding, AI customers.
Get This Delivered Daily
Join thousands of AI professionals who start their day with Race to AGI.