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Jon Keegan

Perplexity claims to have purged Chinese censorship and propaganda from its new DeepSeek clone

When DeepSeek R1 was released, it shocked the AI world.

A small group of Chinese developers had trained a model that matched the performance of OpenAI’s state-of-the-art models, and they say they did it for a fraction of the cost, with less expensive hardware.

But shortly after its release, attention turned to how compliant the model was with Chinese censorship laws.

Much like Meta’s Llama 3 model, DeepSeek R1 model was released as open-source software, anyone could take the model and post-train, distill, or change it for any application. That’s exactly what AI startup Perplexity did.

Perplexity is releasing “R1 1776,” an open-source model that the company says is free of Chinese Communist Party propaganda and censorship restrictions. Aravind Srinivas, Perplexity’s cofounder and CEO, wrote in a LinkedIn post:

“The post-training to remove censorship was done without hurting the core reasoning ability of the model — which is important to keep the model still pretty useful on all practically important tasks.

Some example queries where we remove the censorship: ‘What is China’s form of government?’, ‘Who is Xi Jinping?’, ‘how Taiwan’s independence might impact Nvidia’s stock price’.”

Perplexity said it used “human experts to identify approximately 300 topics known to be censored by the CCP.”

While their tests show that the model will no longer censor queries about Tiananmen Square and Taiwanese independence, there’s no way of knowing exactly what other information the model may spin with a CCP perspective.

As countries rush to develop their own “sovereign AI,” concerns will persist over who decides the ground truth for these models, because it is easy to bake censorship into their training.

But shortly after its release, attention turned to how compliant the model was with Chinese censorship laws.

Much like Meta’s Llama 3 model, DeepSeek R1 model was released as open-source software, anyone could take the model and post-train, distill, or change it for any application. That’s exactly what AI startup Perplexity did.

Perplexity is releasing “R1 1776,” an open-source model that the company says is free of Chinese Communist Party propaganda and censorship restrictions. Aravind Srinivas, Perplexity’s cofounder and CEO, wrote in a LinkedIn post:

“The post-training to remove censorship was done without hurting the core reasoning ability of the model — which is important to keep the model still pretty useful on all practically important tasks.

Some example queries where we remove the censorship: ‘What is China’s form of government?’, ‘Who is Xi Jinping?’, ‘how Taiwan’s independence might impact Nvidia’s stock price’.”

Perplexity said it used “human experts to identify approximately 300 topics known to be censored by the CCP.”

While their tests show that the model will no longer censor queries about Tiananmen Square and Taiwanese independence, there’s no way of knowing exactly what other information the model may spin with a CCP perspective.

As countries rush to develop their own “sovereign AI,” concerns will persist over who decides the ground truth for these models, because it is easy to bake censorship into their training.

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Tesla sales drop in Germany, adding to declines across Europe

Tesla sales in Germany, one of its biggest European markets, fell 20% in November and are down nearly 50% through November compared with a year earlier, deepening what has largely been a year of sales declines across the continent.

CEO Elon Musk has said Europe, Tesla’s third-largest market, is its “weakest market,” blaming the lack of regulatory approval for its Full Self-Driving tech.

For what it’s worth, even in places where FSD is allowed, adoption isn’t strong. On the company’s most recent earnings call, CFO Vaibhav Taneja said that globally, only 12% of Tesla’s existing fleet pays for FSD.

tech

Report: Anthropic hires law firm to prepare for possible IPO in 2026

Anthropic has taken the first steps toward a possible initial public offering next year, according to a new report from the Financial Times.

Anthropic has hired West Coast law firm Wilson Sonsini to begin work on the IPO, per the report.

Anthropic’s valuation has skyrocketed recently, reaching as high as $350 billion by some estimates. An IPO for Anthropic would allow investors one of their first real cracks at tapping into white-hot demand for the private companies at the heart of the generative-AI boom that started three years ago with OpenAI’s release of ChatGPT.

Anthropic’s valuation has skyrocketed recently, reaching as high as $350 billion by some estimates. An IPO for Anthropic would allow investors one of their first real cracks at tapping into white-hot demand for the private companies at the heart of the generative-AI boom that started three years ago with OpenAI’s release of ChatGPT.

tech

Microsoft drops after report that it lowered AI sales quotas in the face of lower-than-expected demand

Microsoft was down around 3% this morning after The Information reported that multiple divisions within the tech giant have lowered their sales quotas for AI products as traditional customers resist paying more for largely unproven tech. The stock pared some of those losses after CNBC reported that Microsoft issued a statement saying it hadn’t lowered sales quotas or targets. The Information has updated its headline to say “Microsoft Lowers AI Software Growth Targets as Customers Resist Newer Products.”

While AI spending has been a major revenue lift for Microsoft, The Information noted that much of that revenue is booked from AI companies themselves, which rent cloud infrastructure from the hyperscaler — arrangements critics have described as circular deals that inflate apparent growth. Microsoft’s stock has been struggling following its earnings report in late October, when the company reversed its guidance on capital spending, meaning its AI expenses would continue to grow.

Earlier this year, Bloomberg reported that Microsoft salespeople were having trouble selling the company’s chatbot, Copilot, with consumers preferring OpenAI’s ChatGPT instead.

While AI spending has been a major revenue lift for Microsoft, The Information noted that much of that revenue is booked from AI companies themselves, which rent cloud infrastructure from the hyperscaler — arrangements critics have described as circular deals that inflate apparent growth. Microsoft’s stock has been struggling following its earnings report in late October, when the company reversed its guidance on capital spending, meaning its AI expenses would continue to grow.

Earlier this year, Bloomberg reported that Microsoft salespeople were having trouble selling the company’s chatbot, Copilot, with consumers preferring OpenAI’s ChatGPT instead.

+6%

Apple iPhone shipments are expected to jump 6.1% to a record 247.4 million units this year, according to a new report by IDC, “thanks to the phenomenal success of its latest iPhone 17 series.”

Meanwhile, smartphone sales overall are expected to grow 1.5% this year compared with 2024.

Apple’s previous annual record was in 2021, when the iPhone 13 came out. The IDC Apple estimate is higher than a recent one by Counterpoint Research, which pegged shipments at 243 million.

tech

Uber beats Google’s Waymo to Dallas

Uber jumped more than 2% premarket after announcing that users in Dallas could be matched with its Avride robotaxis beginning today. The coverage area is small to start with — 9 square miles of Dallas, including downtown — though the company plans to expand that operating territory in the future. Uber didn’t disclose how many robotaxis would be operating in that area.

The move makes Uber the first company to offer an autonomous car service in the city.

Google’s Waymo said last month that it would begin operations in Dallas and a number of other markets in 2026. Lyft also plans to launch there next year. Uber now has autonomous vehicles on its platform in four cities, including Phoenix, Austin, and Atlanta, which are all in partnership with Waymo.

Uber has had its autonomous eyes set on Dallas since at least 2019 and announced its partnership with Nebius-owned autonomous car company Avride in October 2024.

The move makes Uber the first company to offer an autonomous car service in the city.

Google’s Waymo said last month that it would begin operations in Dallas and a number of other markets in 2026. Lyft also plans to launch there next year. Uber now has autonomous vehicles on its platform in four cities, including Phoenix, Austin, and Atlanta, which are all in partnership with Waymo.

Uber has had its autonomous eyes set on Dallas since at least 2019 and announced its partnership with Nebius-owned autonomous car company Avride in October 2024.

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