WEEK OF JUN 28 – JUL 4, 2025

Open weights from China, a tollbooth on the crawlers, and a state-by-state AI rulebook

Baidu and Huawei both shipped open weights on the same Monday, the Senate killed a ten-year ban on state AI laws 99-1, and Cloudflare started charging AI crawlers at the edge.

Three of the week's biggest AI stories landed on one Monday. Baidu published the full ERNIE 4.5 family under Apache 2.0, Huawei open-sourced Pangu 7B and a 72B MoE for its own Ascend chips, and Mark Zuckerberg folded all of Meta's AI work into a lab named for superintelligence. No US frontier model shipped; the week's model news was Chinese, openly licensed and downloadable.

The labor market made the contrast explicit. While Meta closed a $14.3 billion stake in Scale AI and memo'd eleven poached researchers into place, OpenAI went dark for a week to recharge and told staff it was recalibrating compensation. On Wednesday Microsoft cut about 9,000 jobs, under 4% of a 228,000-person workforce, two days into a fiscal year of record AI capex.

Regulation moved the other way. In a predawn vote on Tuesday the Senate removed the ten-year moratorium on state AI laws 99-1, and the same day Cloudflare began returning HTTP 402 to AI crawlers that would not pay. Both changes push decisions closer to the developer: which laws apply where, and which data you can still fetch.

TUE · Jul 1, 2025infrastructurecrawlershttp 402raglicensing

Cloudflare flips the default: AI crawlers blocked unless they pay

From July 1 Cloudflare began defaulting new zones to blocking unverified AI crawlers — asking owners at signup rather than requiring an opt-out — and launched Pay Per Crawl in private beta, a marketplace that answers a bot with HTTP 402 Payment Required and a price in a crawler-price header, or 200 with a crawler-charged receipt when the bot accepts. Cloudflare says its network fronts about 20% of the web.

The company's own Radar numbers are the argument: it measured OpenAI's GPTBot at roughly 750 fetches per referral and Anthropic's crawler at roughly 30,000, against about 10 for the old Google search bargain. Cloudflare acts as merchant of record and says it will delist crawlers that spoof identity.

Cloudflare flips the default: AI crawlers blocked unless they pay
blog.cloudflare.com

WHY IT MATTERS

For anyone running a RAG pipeline or a product that fetches third-party pages, this changes the data supply chain, not just a CDN setting: newly onboarded origins behind Cloudflare now return 402 or a challenge to unverified bots, so ingestion needs to declare identity and handle a payment handshake instead of retrying on 429. Budget per-fetch cost, cache hard, and treat first-party corpora as the only input you control.

TUE · Jul 1, 2025regulationpolicyai actstate law

Senate votes 99-1 to strip the ten-year ban on state AI laws

In a predawn vote on July 1 the Senate adopted Marsha Blackburn's amendment striking the AI section from the reconciliation bill 99-1, with Thom Tillis the only member voting to keep it. Authored in the Senate by Ted Cruz, the provision would have barred states from enforcing AI laws for a decade and, in its funding-linked form, gated BEAD broadband money on states standing down.

It follows the House's 215-214 passage in May, opposition from 17 Republican governors and 40 state attorneys general, and a Cruz-Blackburn compromise that cut the moratorium to five years and survived less than a day. The Senate then passed the bill 51-50 on the vice president's tiebreak, and the moratorium is not in the law signed on July 4.

WHY IT MATTERS

The compliance map stays state-by-state, with no federal pre-emption and no federal floor: Colorado's AI Act, Texas deepfake statutes and California disclosure rules all remain live, and states now know a federal override is politically expensive. For teams shipping AI features across US jurisdictions, that means jurisdiction-aware control flow in the product — audit logs, disclosure strings, model-card metadata, retention rules — built now rather than bolted on after the first state AG letter.

MON · Jun 30, 2025metallamatalentreorgopenai

Meta folds its whole AI org into Meta Superintelligence Labs

Zuckerberg told staff Monday that every AI team at Meta — foundations, products, FAIR — now reports into Meta Superintelligence Labs, led by ex-Scale AI CEO Alexandr Wang as Chief AI Officer with ex-GitHub CEO Nat Friedman over products and applied research. The memo names eleven researchers hired from OpenAI, Anthropic and Google DeepMind, keeps Llama 4.1 and 4.2 on the roadmap, and starts a small new lab on frontier models.

It closes a month in which Meta invested $14.3 billion for a 49% stake in Scale AI and, by multiple accounts, dangled packages worth up to $100 million at individual researchers. OpenAI's chief research officer told staff in a Slack memo that leadership was recalibrating compensation while the company went dark for a week to recharge, warning that Meta would use the pause to pressure people into fast decisions.

Meta folds its whole AI org into Meta Superintelligence Labs
image.cnbcfm.com

WHY IT MATTERS

The reorg matters to builders mainly as a schedule and a license signal: Meta Superintelligence Labs now owns Llama, and the memo's own sequencing — 4.1 and 4.2 to hold the line while a new lab chases the frontier in the next year or so — argues against expecting a step-change open Llama release next quarter. Keep the model layer swappable: prompts, tool schemas and evals should survive a base-model change.

MON · Jun 30, 2025open weightsmoehuaweiascendsupply chain

Huawei open-sources openPangu: 7B dense plus a 72B MoE built for Ascend

The same Monday, Huawei released open weights for its Pangu line: a 7B dense model and Pangu Pro MoE 72B with 16 billion active parameters, plus Ascend-optimized inference code. Huawei describes Pro MoE as the strongest sub-100B model it has published, built on a Mixture-of-Grouped-Experts router designed to even out expert load in distributed training.

The framing is ecosystem, not charity: weights and serving code that make Huawei's accelerators a workable target without CUDA. Huawei said the 7B weights would follow shortly; the Pro MoE weights and its inference stack shipped on day one, and the company invited outside developers and researchers to download and feed back.

WHY IT MATTERS

A second open-weight line outside the Nvidia and CUDA stack gives architects an escape hatch for cost and supply-chain reasons, but only as far as the tooling travels — PaddlePaddle for Baidu, CANN and Ascend for Huawei. If you build on either, budget for a portability layer: vLLM and transformers coverage, quantization formats, and hardware-specific kernels, because these weights do not drop into a CUDA-only serving stack without work.

MON · Jun 30, 2025open weightsmoeapache 2.0baidupricing

Baidu open-sources the ERNIE 4.5 family: 424B-parameter MoE, Apache 2.0

Baidu published weights and inference code for all ten ERNIE 4.5 variants on Monday, including an MoE flagship with 424 billion total parameters and 47 billion active per token, down to a 0.3B dense model, all under Apache 2.0 with 128K context on the language variants. Baidu had shipped the same family as a closed API in March.

The company reports ERNIE-4.5-300B-A47B-Base beating DeepSeek-V3-671B-A37B-Base on 22 of 28 benchmarks, and a 21B-A3B variant competitive with Qwen3-30B-A3B at roughly 30% fewer total parameters. Training and serving run on Baidu's own PaddlePaddle stack, with 4-bit and 2-bit quantization and the ERNIEKit fine-tuning toolkit open-sourced alongside.

WHY IT MATTERS

Apache-2.0 at 47B active parameters moves the price of a near-frontier tier out of the vendor's hands: a 424B MoE can be self-hosted on a handful of nodes, fine-tuned with the shipped toolkit, and run without per-token billing for prompt-processing-heavy work. The work then shifts to ops — quantization, expert-parallel serving, regression evals against your own traffic — rather than procuring API quota.