Good morning. It's Thursday, June 25, and we're covering China's GPU-free supercomputing, the U.S. political battle over AI infrastructure, and Google's push to make AI agents more autonomous with Gemini 3.5 Flash.

Plus: the verdict from yesterday's Real or AI challenge.

OpenAI's first custom AI chip is designed specifically for inference, signaling a push beyond software into the hardware powering its models. Developed with Broadcom, the Jalapeño accelerator is built for large language models and aims to deliver significantly better performance per watt than current leading systems. The companies say the chip went from design to tape-out in nine months and is already running workloads including GPT-5.3-Codex-Spark.

Google folds computer use directly into Gemini 3.5 Flash, turning what was once a separate model into a built-in capability for cross-platform automation. The update lets developers build agents that can see, reason, and take actions across browsers, mobile devices, and desktop applications. Google says the feature improves performance on long-horizon tasks such as software testing and enterprise workflows, and is now available through the Gemini API and Enterprise Agent Platform.

Reports that Anthropic's Mythos AI breached nearly all of the NSA's classified systems in hours omit critical details about how the tests were conducted. The model reportedly identified multiple vulnerabilities during controlled evaluations, fueling concerns about AI's growing cybersecurity capabilities. However, U.S. officials later clarified that the testing occurred in a highly restricted environment and that Mythos did not actually exploit the vulnerabilities it found.

China's humanoid robot market is commercializing faster than analysts anticipated, prompting Morgan Stanley to double its shipment forecast for the second time this year. The bank now expects 50,000 humanoid robots to ship in 2026, up from a previous estimate of 28,000 units and more than triple its January forecast. Morgan Stanley projects the market will grow from $2 billion to $15 billion by 2030, with annual shipments reaching 446,000 units.

Discover 12 standout open-source AI projects, from autonomous agent frameworks and coding copilots to OCR models and voice AI tools.

Morgan Stanley just doubled its forecast for China's humanoid robot shipments this year to 50,000 units — and projects 446,000/year by 2030.

China’s LineShine supercomputer, located in Shenzhen, was named the world’s fastest on June 23, 2026, ending the United States’ hold on the top spot and marking China’s first No. 1 ranking since 2017. According to Top500 benchmark tests, LineShine outperformed the U.S.-based El Capitan system by more than 20%, despite relying solely on central processing units (CPUs) rather than graphics processing units (GPUs), the chips that power most leading AI and supercomputing systems.

Experts say the architecture could offer a new approach to combining artificial intelligence workloads with traditional scientific computing, while also reducing dependence on advanced AI chips targeted by U.S. export restrictions. The achievement highlights China’s ability to advance high-performance computing through alternative chip designs and comes amid intensifying technological competition between Washington and Beijing. → Read the full article here. (Paywall)

A wave of opposition to AI data centers is spreading across the United States as tech companies pour hundreds of billions of dollars into the infrastructure needed to train and run advanced AI models. Residents and local officials are increasingly pushing back over concerns about noise, land use, power consumption, environmental impacts, and the rapid industrialization of communities, leading to the cancellation of at least $42 billion in projects during the first quarter of 2026 alone.

The backlash comes as companies including Meta, Microsoft, Google, OpenAI, and Amazon race to expand computing capacity, with industry forecasts suggesting trillions of dollars will be invested globally in AI data centers by 2030. The growing resistance has turned data centers into a political issue, raising questions about whether the infrastructure required to sustain the AI boom can be built quickly enough to meet demand and maintain America’s technological lead over China. → Read the full article here. (Paywall)

AI Reads Vesuvius-Burnt Scroll: Researchers used AI to reveal 20 columns of hidden Herculaneum text on Stoic philosophy without unrolling it.

Qualcomm Buys AI Startup Modular: Qualcomm acquired AI startup Modular to strengthen its software stack and expand its data center business.

Cerebras Shares Fall After Earnings: Cerebras shares fell after it forecast lower profit margins than AI chip rivals, overshadowing strong revenue growth.

Agility Robotics Targets $2.5B SPAC Deal: Agility Robotics plans a $2.5B SPAC merger to scale Digit production and meet growing demand for robots.

Anthropic Poaches More Google AI Talent: Two key researchers are leaving Google for Anthropic, adding to a string of high-profile talent departures.

Yesterday's image was AI. Here's how you voted: 75% spotted it as AI, while 25% were convinced it was real.

Thanks for reading. See you next time!

— Matthew Berman, Nick Wentz & the Forward Future Team