Top AI & Tech News (Through March 9th)

Hello AI Citizens 🤖,

This week’s AI newsletter has a major story on AI warfare so here’s a fun fact: In 2020, the DARPA AlphaDogfight Trials saw an AI agent defeat a U.S. Air Force pilot in five consecutive simulated dogfights, showcasing AI's growing role in defense.

This week’s AI updates showcase transformative breakthroughs, emerging trends, and important developments redefining the future of AI.

Here are the key headlines shaping the AI & tech landscape:

• AI Benchmarks Under Fire: Are Chatbots Really Getting Smarter?

• AI-Powered Google Searches Could Consume 30x More Energy Than Standard Queries

• OpenAI’s Specialized AI Agents Could Cost Up to $20K Monthly

• US Government Gears Up for AGI

• China's 'Manus' Claims to Be World's First AGI

• Student Uses AI to Cheat Amazon’s Technical Interview

• Scale AI Secures Major U.S. Defense Deal for AI-Powered Military Planning

Ready to unpack these stories? Let’s dive into the details 🚀

🔎 AI Benchmarks Under Fire: Are Chatbots Really Getting Smarter?

Researchers have found that popular AI models like GPT-4.5, Gemini, and DeepSeek may be inflating their performance by training on benchmark test data, undermining claims of rapid progress. This benchmark contamination suggests that high scores may stem from memorization rather than improved reasoning skills. Studies revealed that GPT-4, for example, could recall exact incorrect answers from past tests — a clear sign of exposure during training. While companies are exploring new evaluation methods, such as user-driven platforms like Chatbot Arena, no reliable solution has yet emerged. Source: The Atlantic

💡For business leaders, this raises concerns about overestimating AI’s true capabilities. Companies relying on AI for critical decision-making, automation, or customer interactions should be cautious about inflated performance claims. Executives may need to reassess AI adoption strategies, prioritize real-world testing, and demand greater transparency from AI providers to ensure they are investing in genuinely effective solutions.

🔋AI-Powered Google Searches Could Consume 30x More Energy Than Standard Queries

As the demand for generative AI surges, researchers warn that the energy consumption required to support these systems could be far greater than previously expected. Estimates suggest that AI-powered Google searches could consume up to 29 terawatt hours (TWh) annually — 23 to 30 times the energy of traditional searches. This rising energy demand is fueling concerns as data centers expand rapidly, with regions like Virginia — already home to 340 data centers — facing potential strains on local power grids.

Transparency remains a major hurdle, with tech companies revealing little about the true energy costs of their AI systems. Researchers are urging for clearer reporting, warning that unchecked growth could drive up electricity costs, intensify environmental concerns, and pose operational challenges for businesses reliant on AI infrastructure. Source: Nature

💡As AI-driven infrastructure scales rapidly, businesses and governments face mounting concerns about energy costs, supply risks, and environmental impact. Executives investing in AI must weigh these challenges carefully, pushing for energy-efficient solutions and greater transparency from AI providers to mitigate potential economic and regulatory fallout.

💰 OpenAI’s Specialized AI Agents Could Cost Up to $20K Monthly

OpenAI is reportedly planning to charge as much as $20,000 per month for specialized AI "agent" products designed for advanced tasks, according to The Information. The offerings include a $2,000/month agent for knowledge workers, a $10,000/month agent for developers, and a $20,000/month agent aimed at supporting PhD-level research. SoftBank, a major OpenAI investor, has reportedly committed $3 billion to these agent products in 2025. Source: The Information

💡 For businesses, OpenAI’s high-priced agents signal a shift toward specialized AI solutions with enterprise-grade capabilities. While these tools could unlock powerful efficiencies in research, sales, and engineering, the steep costs may limit adoption to larger corporations with substantial budgets. As AI competition heats up, executives should weigh the value of tailored AI agents against alternative solutions.

🇺🇸 US Government Gears Up for AGI as Experts Sound the Alarm

Ben Buchanan, a former White House Special Advisor on AI has stated that the U.S. government is starting to take AGI seriously, anticipating its potential arrival within the next few years. Buchanan emphasized that policymakers are now recognizing the urgent need to prepare for AGI’s profound societal and security impacts. His remarks highlight growing concerns about ensuring the nation’s readiness for this rapidly advancing technology. Source: New York Times

💡 For business leaders, the race toward AGI presents both opportunities and risks. While AGI could unlock transformative advancements in automation, research, and decision-making, the potential for geopolitical competition and security threats demands proactive planning. Executives should monitor regulatory developments closely and assess how AGI-driven disruption may reshape their industries.

🤖 China's 'Manus' Claims to Be World's First AGI, Surpassing OpenAI in Key Benchmark

Chinese startup Monica has introduced Manus, which it claims to be the world’s first artificial general intelligence (AGI) — an AI agent capable of independent thinking, planning, and task execution across diverse real-world scenarios. Manus can autonomously build websites, analyze stocks, create coursework, and plan trips, even continuing tasks in the cloud after users disconnect. The AI agent has reportedly outperformed OpenAI’s DeepResearch on the GAIA benchmark, a key measure for real-world problem-solving. This development has drawn comparisons to China's earlier DeepSeek-R1 breakthrough, further cementing the country’s growing influence in advanced AI innovation. Source: Manus

💡If Manus’ AGI claims hold true, it marks a significant leap toward human-level AI intelligence, raising new opportunities — and risks — for businesses. Companies across industries should prepare for the potential disruption this technology could bring, particularly in automation, strategic planning, and customer engagement. For tech leaders, staying informed on AGI developments will be crucial in navigating this rapidly evolving landscape.

💻 Student Uses AI to Cheat Amazon’s Technical Interview — Then Calls Tech Jobs 'Obsolete'

Columbia University student Roy Lee created an AI tool called Interview Coder that helped him secure offers from Amazon, Meta, and TikTok by automating the notoriously difficult technical interview process. The tool covertly solves coding problems during interviews using AI image recognition and ChatGPT. After Lee publicly shared his experience — including a recorded Amazon interview — someone reported him to Columbia, prompting a disciplinary hearing and Amazon reportedly rescinding its offer. Lee, however, remains unapologetic, claiming AI will make most programming jobs irrelevant within two years and declaring he no longer sees value in pursuing a Big Tech career. Source: Gizmodo

💡 Lee’s story underscores growing concerns that AI may soon disrupt the tech job market, particularly in technical roles that rely on coding assessments. For businesses, this signals a need to rethink hiring strategies and focus on assessing creative problem-solving and domain expertise — areas where human intelligence still outpaces AI. Leaders in tech should prepare for evolving workforce dynamics, as AI's rapid advancement may redefine the skills most valuable in software engineering and other knowledge-driven roles.

⚔️ Scale AI Secures Major U.S. Defense Deal for AI-Powered Military Planning

Scale AI has announced a multimillion-dollar partnership with the U.S. Department of Defense for its flagship Thunderforge program, designed to integrate AI agents into military planning and operations. The initiative aims to accelerate decision-making for commands such as U.S. Indo-Pacific Command and U.S. European Command and will involve partners like Anduril and Microsoft. While Scale AI emphasizes that the program will operate under human oversight, concerns persist about the ethical implications of AI in warfare and the potential for reduced human involvement in high-stakes decisions. Source: CNBC

💡 This deal reflects the accelerating push to integrate AI into military operations, signaling major business opportunities for AI firms in defense. For executives in AI and tech, this trend highlights both lucrative new revenue streams and rising ethical concerns. Companies seeking military contracts must weigh the potential reputational risks and carefully navigate public perception while ensuring transparency in how their technology is used.

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