Our 235th episode with a summary and discussion of last week's big AI news!

Recorded on 02/27/2026

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In this episode:

Model and tool updates highlight Anthropic’s Sonnet 4.6 (1M context; strong ARC-AGI-2 results), Google’s Gemini 3.1 Pro (major ARC-AGI-2 jump and multimodal demos), xAI’s Grok 4.2 beta (multi-agent debate), plus Anthropic’s Claude Code “Remote Control” and Perplexity’s multi-agent “Computer” coordinator.
Compute and business moves include Meta’s reported up-to-$100B AMD chip deal with warrant/equity incentives, MatX raising $500M to build specialized transformer chips shipping in 2027, World Labs raising $1B for world-model/3D environment tech, and a new startup raising $100M to simulate/predict human behavior.
Infrastructure and geopolitics cover Stargate data-center delays amid OpenAI/Oracle/SoftBank control disputes and cash concerns, and China’s plan to scale 7nm/5nm wafer output despite yield and tooling constraints.
Research and safety/policy discuss optimizer gains from masked updates, “deep thinking tokens” as a reasoning-effort signal, LLM attractor-state behaviors in bot-to-bot chats, mechanistic interpretability of counting/line-wrapping, methods to map task difficulty to human time horizons, plus Anthropic–Pentagon contract tensions, Anthropic’s report on distillation attacks (DeepSeek/Moonshot/Minimax), and OpenAI’s report on disrupting malicious use.

A thank you to our current sponsors:

Box - visit Box.com/AI to learn more
ODSC AI - go to odsc.ai/east and use promo code LWAI for an additional 15% off your pass to ODSC AI East 2026.
Factor - head to factormeals.com/lwai50off and use code lwai50off to get 50 percent off and free breakfast for a year

Timestamps:

Mechanistic Interpretability: Geometry of Counting

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