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Chinese Startup Kills OpenAI Moat with This
The Rise of MAI, FoxBrain, Manus, and More
Today’s top stories:
Microsoft Develops ‘MAI’ AI Models to Reduce OpenAI Dependence
Foxconn Unveils FoxBrain: Taiwan’s First Advanced Reasoning AI Model
Chinese Startup Unveils Manus, a Fully Autonomous AI Agent
McDonald’s Integrates AI to Streamline Operations
Microsoft is reportedly working on MAI, a new family of AI models designed to rival top industry offerings while also developing in-house reasoning models to reduce reliance on OpenAI for its Copilot suite. The MAI models are being tested as potential replacements for OpenAI’s tech, with Microsoft also evaluating alternatives from xAI, Meta, and DeepSeek.
Tensions between Microsoft and OpenAI have been growing, particularly after OpenAI’s refusal to share details of its o1 reasoning model and a renegotiated deal allowing OpenAI to use other server providers. As competition in AI expands, Microsoft’s push for its own models signals a shift in the power dynamics of the industry.

Source: Industry Leaders Magazine
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Foxconn has introduced FoxBrain, its first large language model (LLM) with advanced reasoning, developed in just four weeks using Nvidia’s infrastructure. Built on Meta’s Llama 3.1 architecture, it was trained on Taipei-1, Taiwan’s largest supercomputer, with support from Nvidia’s team. Optimized for traditional Chinese, FoxBrain excels in data analysis, mathematics, reasoning, and code generation, performing near top-tier models.
Foxconn plans to open-source FoxBrain and collaborate with partners to enhance manufacturing and supply chain management. This rapid development underscores the growing trend of custom AI models tailored to specific industries, raising the question—when will Apple follow suit?

Source: Reuters
A Chinese startup has introduced Manus, which it claims is the world’s first fully autonomous AI agent capable of handling real-world tasks independently. In a demo, Manus performed resume screening, property research, web browsing, coding, and creating visuals, while also completing tasks on platforms like Upwork and Fiverr.
Manus outperformed top AI assistants like ChatGPT and Gemini on the GAIA benchmark, showcasing state-of-the-art agentic capabilities. Currently available by invitation only, the team plans to open-source the models behind the agent later this year, signaling a new phase in AI autonomy.

Source: Manus
McDonald's is rolling out a major AI-driven transformation across its 43,000 restaurants, integrating new technologies to enhance efficiency and customer experience. Partnering with Google Cloud, the company is deploying edge computing systems for real-time data processing, enabling AI-powered predictive maintenance for kitchen equipment, computer vision for order accuracy, and even a generative AI virtual manager.
The initiative aims to streamline operations across multiple ordering channels while leveraging customer data to offer personalized promotions, such as McFlurry deals on hot days. As McDonald’s embraces AI alongside other fast-food giants, the industry is poised for a widespread technological shift.

Source: McDonald’s
In Other News
U.S. markets experienced sharp volatility on Tuesday as investors reacted to President Trump’s renewed tariff threats against Canada. The Dow dropped over 700 points before recovering slightly to close down 478 points (1.14%), while the S&P 500 fell 0.76% and the Nasdaq dipped 0.18%. The uncertainty pushed the S&P 500 close to correction territory, with the Nasdaq already deep in it, reflecting investor anxiety over shifting trade policies.
Market analysts voiced frustration over the unpredictability of trade negotiations, which have fueled Wall Street’s recent turmoil. Airline stocks took a hit, with Delta, American, and United Airlines all posting declines, while European markets also slid amid global economic concerns. Despite mounting fears, Trump dismissed recession worries, emphasizing his commitment to rebuilding American industries.

Source: Yahoo Finance
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