Good morning, AI enthusiast.

AI-discovered drugs are officially moving from computer simulations to the clinic. Google's AI spinoff, Isomorphic Labs, is launching the first human trials for medicines designed entirely by its AI, a critical step from digital theory to real-world treatment.

The initiative builds on the success of DeepMind's AlphaFold, which mastered predicting protein structures. But will AI's predictive power in biology translate to success in the complex and unpredictable arena of human clinical trials?

In today’s AI recap:

• AI's first drugs enter human trials

• Google's founder launches secretive AI startup

• China’s AI giants clash over model theft claims

• Capgemini makes a $3.3B bet on AI agents

AI's First Drugs Enter The Clinic

The Recap: Google's AI-spinoff, Isomorphic Labs, is gearing up to launch the first human clinical trials for drugs discovered and designed entirely by its AI, marking a monumental leap from digital models to real-world medicine.

Unpacked:

• The initiative stems from the success of AlphaFold, DeepMind's Nobel Prize-winning AI that accurately predicts protein structures and provides the foundational technology for drug design.

• Isomorphic is backed by major industry players, securing partnerships with Novartis and Eli Lilly worth nearly $3B and raising an additional $600 million in funding to accelerate its mission.

• Its initial trials will target oncology, aiming to dramatically improve the current drug development process where new medicines have only a 10% chance of success once trials begin.

Bottom line:

This marks a critical milestone where AI's predictive power in biology is finally being put to the ultimate test. Success could fundamentally change how quickly we discover treatments for the world's most complex diseases.

Google's Founder Gets Back In The Game

The Recap: Google co-founder Larry Page has reportedly launched a new, secretive startup called Dynatomics. The venture aims to use AI to fundamentally reshape the manufacturing of physical products.

Unpacked:

• Page, who has maintained a low profile for years, is re-entering the tech scene with a focus on AI's industrial applications.

• The startup, Dynatomics, is reportedly targeting the complex challenges of making physical products, a major shift from the software-centric world of Google.

• Details remain scarce, but the company's core mission is to leverage artificial intelligence to innovate within the manufacturing sector.

Bottom line: Page's return signals a growing focus on applying AI to tangible, real-world problems beyond the digital realm. A founder with his track record and resources entering this space could significantly accelerate development in industrial automation.

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China's AI Giants Go To War

The Recap: A public feud has erupted between Huawei and Alibaba after a whistleblower group alleged Huawei's Pangu AI model was copied from Alibaba’s open-source Qwen model. The incident has ignited a fierce debate about trust and competition in China's AI sector.

Unpacked:

• The controversy started when a group called HonestAGI released a technical analysis claiming an "extraordinary correlation" between the two models.

• Huawei's Noah Ark Lab quickly denied the claims, insisting its Pangu model was built from the ground up on its own Ascend AI chips and followed open-source license rules.

• This clash fractures the previously collaborative front among China's tech leaders, signaling a shift from state-aligned goals to intense market competition.

Bottom line: This conflict is more than a corporate dispute; it’s a major test for proving originality and upholding trust in the open-source AI community. How this resolves could set a precedent for intellectual property in AI and impact global confidence in China's tech innovations.

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The $3.3B Bet On AI Agents

The Recap: French IT giant Capgemini is acquiring WNS for $3.3 billion in a massive push to lead the market for agentic AI. The deal signals a major industry bet on autonomous systems to power core business operations.

Unpacked:

• This acquisition aims to capture the strategic shift from traditional business process outsourcing to what Capgemini calls "agentic AI-powered intelligent operations."

• The goal is to move beyond simple automation, creating AI agents that can make decisions and perform tasks autonomously, reimagining operating models from automation to autonomy.

• The deal values WNS at a 28% premium over its average share price, with Capgemini expecting it to boost earnings per share by 4% in 2026.

Bottom line: This acquisition is more than just a big transaction; it's a clear indicator that enterprises are moving beyond AI-assisted tasks. The industry is now making significant investments in autonomous systems designed to manage complex business processes from end to end.

The Shortlist

Groq launched its first European data center in Helsinki, Finland, expanding its high-speed AI inference network to meet growing regional demand for sovereign AI.

Morph launched its Fast Apply model, an API that allows AI coding agents to apply generated edits to existing files at over 4,500 tokens per second, aiming to make AI patches faster and more reliable.

Wimbledon's AI line-calling system suffered a high-profile failure on Centre Court after an operator accidentally deactivated the cameras, forcing a crucial point to be replayed and shaking player confidence in the technology.

Google shipped a new "Batch mode" for the Gemini API, offering 50% discounts on its 2.5 models and allowing developers to enqueue billions of tokens for asynchronous processing.

An Xbox executive advised laid-off staff to use AI chatbots like ChatGPT to manage the emotional and cognitive load of job loss, sparking backlash from the gaming community.

Signing off,

David, Lucas, Mitchell — The Recap editorial team