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Jon Keegan

Anthropic researchers crack open the black box of how LLMs “think”

OK, first off — LLMs don’t think. They are clever systems that use probabilistic methods to parse language by mapping tokens to underlying concepts via weighted connections. Got it?

But exactly how a model goes from the user’s prompt to “reasoning” a solution is the subject of great speculation.

Models are trained, not programmed, and there are definitely weird things happening inside these tools that humans didn’t build. As the industry struggles with AI safety and hallucinations, understanding this process is key to developing trustworthy technology.

Researchers at the AI startup Anthropic have devised a way to perform a “circuit trace” that allows them to dissect the pathways that a model chooses between concepts on its journey to devising an answer to the prompt it was given. Their paper sheds new light on this mysterious process, much like a real-time fMRI brain scan can show which parts of the human brain “light up” in response to different stimuli.

Some of the interesting findings:

  • Language appears to be independent from concepts — it’s trivial for the model to parse a query in one language and answer in another. The French “petit” and English “small” map to the same concept.

  • When “reasoning,” sometimes the model is just bullshitting you. Researchers found that sometimes the “chain of thought” that an end user sees does not actually reflect the processes at work inside the model.

  • Models have created novel ways to solve math problems. Watching exactly how the model solved simple math problems showed some weird techniques that humans have definitely never learned in school.

Anthropic made a helpful video that describes the research clearly:

Anthropic is working hard to catch up to industry leader OpenAI as it seeks to grow revenues to cover the expensive computing resources needed to offer its services. Amazon has invested $8 billion in the company, and Anthropic’s Claude model will be used to power parts of the AI-enhanced Alexa.

Models are trained, not programmed, and there are definitely weird things happening inside these tools that humans didn’t build. As the industry struggles with AI safety and hallucinations, understanding this process is key to developing trustworthy technology.

Researchers at the AI startup Anthropic have devised a way to perform a “circuit trace” that allows them to dissect the pathways that a model chooses between concepts on its journey to devising an answer to the prompt it was given. Their paper sheds new light on this mysterious process, much like a real-time fMRI brain scan can show which parts of the human brain “light up” in response to different stimuli.

Some of the interesting findings:

  • Language appears to be independent from concepts — it’s trivial for the model to parse a query in one language and answer in another. The French “petit” and English “small” map to the same concept.

  • When “reasoning,” sometimes the model is just bullshitting you. Researchers found that sometimes the “chain of thought” that an end user sees does not actually reflect the processes at work inside the model.

  • Models have created novel ways to solve math problems. Watching exactly how the model solved simple math problems showed some weird techniques that humans have definitely never learned in school.

Anthropic made a helpful video that describes the research clearly:

Anthropic is working hard to catch up to industry leader OpenAI as it seeks to grow revenues to cover the expensive computing resources needed to offer its services. Amazon has invested $8 billion in the company, and Anthropic’s Claude model will be used to power parts of the AI-enhanced Alexa.

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Nvidia backs Reflection AI in $2 billion fundraising round

When DeepSeek R1 was released at the end of last year, it shook the AI world to its core.

The scrappy Chinese startup developed a competitive open-weights reasoning model that bested several state-of-the-art models from OpenAI and Google in several benchmarks.

The release caused the industry to question its bet on massive AI infrastructure over clever engineering done with constrained resources.

American startup Reflection AI thinks the West needs its own DeepSeek, and plans on being the company to build it.

On Thursday, Reflection AI announced it had raised $2 billion at an $8 billion valuation, with Nvidia leading the fundraising round with an $800 million investment.

Reflection does not appear to have developed a frontier-scale model yet, but has built the software needed to train one. A $2 billion cash infusion will certainly help with the company’s training costs, but by comparison, DeepSeek’s R1 model was trained for only $249,000.

The release caused the industry to question its bet on massive AI infrastructure over clever engineering done with constrained resources.

American startup Reflection AI thinks the West needs its own DeepSeek, and plans on being the company to build it.

On Thursday, Reflection AI announced it had raised $2 billion at an $8 billion valuation, with Nvidia leading the fundraising round with an $800 million investment.

Reflection does not appear to have developed a frontier-scale model yet, but has built the software needed to train one. A $2 billion cash infusion will certainly help with the company’s training costs, but by comparison, DeepSeek’s R1 model was trained for only $249,000.

tech

Nvidia’s Jensen Huang throws shade at OpenAI-AMD deal

In an interview on CNBC yesterday, Nvidia CEO Jensen Huang threw some shade at the recently announced megadeal between competitor Advanced Micro Devices and its partner, OpenAI.

The unusual deal calls for AMD to sell multiple generations of its GPUs to OpenAI, totaling 6 gigawatts of computing power, in exchange for stock warrants for OpenAI to buy about 10% of the company.

When asked about the deal, Huang said:

“Yeah, I saw the deal. It’s imaginative, it’s unique and surprising. Considering they were so excited about their next-generation product, I’m surprised that they would give away 10% of the company before they even built it.”

The move diversifies part of OpenAI’s GPU supply chain away from Nvidia, which supplies the vast majority of GPUs for hyperscalers today.

When asked about the deal, Huang said:

“Yeah, I saw the deal. It’s imaginative, it’s unique and surprising. Considering they were so excited about their next-generation product, I’m surprised that they would give away 10% of the company before they even built it.”

The move diversifies part of OpenAI’s GPU supply chain away from Nvidia, which supplies the vast majority of GPUs for hyperscalers today.

0.6%

The Washington Post’s Geoffrey Fowler tracked prices before and during Amazon’s recent “Prime Big Deal Days” and found the savings to be paltry: on a group of nearly 50 products he’d bought on Amazon over the past six months, he would have saved just 0.6% if he’d bought them during Amazon’s high-profile sale. And those savings, Fowler points out, don’t factor in the annual $139 Prime membership fee.

In a number of cases, some big-ticket items like TVs were actually more expensive during the e-commerce giant’s much-hyped discount days than they are normally.

8%
Rani Molla

Some 8% of kids ages 5-12 have interacted with AI chatbots like OpenAI’s ChatGPT or Google’s Gemini, according to a new Pew Research Center survey of their parents. While that’s nowhere near the usage rates of other devices like smartphones or even voice assistants, it’s still notable for a relatively new technology — especially one that’s already had devastating consequences for young people.

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