Tesla Signs $16.5 Billion Deal with Samsung for AI Chips

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Tesla has signed a huge deal with Samsung to make its newest chip, called AI6. This chip will power everything from self-driving cars to Tesla’s Optimus robot and large AI systems in data centres. The chips will be made in a new Samsung factory in Texas, close to Elon Musk’s home.

Musk says the project is very important and may cost even more than the initial 16.5 billion dollars. Tesla will also help Samsung improve the chip-making process to make production faster and more reliable. The deal shows how Tesla is shifting from just a car company to a full AI and robotics firm.

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Read More: The Algorithm Daily​

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Anthropic Sets Limits on Claude Code to Stop Overuse

Anthropic is adding new weekly limits for Claude Code users, starting 28 August. Some people were using the tool all day or sharing accounts, which caused slowdowns and service problems for others. The limits apply to users on the Pro and Max subscription plans.

The company says most people will not notice the change and that it only affects heavy users. Claude Code has grown fast, but the tool needs to stay stable for everyone. The limits are meant to protect quality and fairness while Anthropic works on better long-term options.

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Read More: The Algorithm Daily​

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Google Chrome Adds AI Shopping Summaries

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Google is adding a smart shopping feature to Chrome that shows short summaries about online stores. When users click the icon near the web address, they will see reviews about pricing, returns, and customer service. The feature is now live on desktop for U.S. users only.

These summaries come from trusted review sites like Trustpilot and Yotpo. This tool is part of Google’s bigger plan to make online shopping safer and simpler. It also helps Google keep up with Amazon and other companies using AI to improve the way people shop.

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Read More: The Algorithm Daily​

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AI Tool of the Day

Runway
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Runway is an AI video and image creation tool that helps users generate professional content from simple text or image prompts. Runway makes it easy to turn ideas into videos, animations, or visual effects using powerful AI tools. It is widely used in media production and creative work.

• Best for: Creators, marketers, and filmmakers who want to make videos without editing skills
• Price: Free basic plan; paid plans start at $15 per month
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AI Word of the Day

Training Data

Training data is the set of information, like words, images, or code, that AI learns from. The better the data, the smarter the AI can become.

Why it matters: If the training data is poor, missing, or biased, the AI will make more mistakes. Good data helps create AI tools that are fair, useful, and accurate for everyone.
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Keep following along as we break down the latest AI updates in a way that’s easy to follow and easy to trust. See you next edition.

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Havilah Mbah

Staff Writer, The Algorithm Daily

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