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Microsoft unveils MAI-Thinking-1, its 1st advanced reasoning model, without distillation

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Top stories today:

  1. Microsoft unveils MAI-Thinking-1, its 1st advanced reasoning model
  2. Trump signs narrower AI oversight executive order
  3. New U.S. tariffs proposed by Trump on imports from 60 economies
  4. Anthropic’s Mythos expands to 15+ countries under Project Glasswing
  5. SpaceX said to set $135 share price in $75B IPO

0. Data and calendar

All values as of 6 AM ET / 3 AM PT, other than S&P500 and NASDAQ close (4 PM ET / 1 PM PT).

All times are ET.

Listen to our AI-generated podcast summarizing today’s newsletter (beware of hallucinations):

1. Microsoft unveils MAI-Thinking-1, its 1st advanced reasoning model, without distillation

Microsoft compared the new model with Anthropic’s Claude Opus 4.6, OpenAI’s GPT-5.4, and Kimi K2.6:

  • 1T parameters (35B active).

  • Trained “from the ground up on enterprise-grade, clean, and commercially licensed data,” Microsoft said.

  • 256K-token context window.

  • Available in private preview via Microsoft Foundry.

Microsoft also unveiled six other AI models spanning image generation, transcription, voice, and coding

MAI-Transcribe-1.5, Microsoft’s latest speech transcription model, ranks third on the Artificial Analysis Word Error Rate leaderboard:

MAI-Transcribe-1.5 is the fastest model among the top 10 for accuracy

MAI-Transcribe-1.5 is available at $6/1K minutes of audio via Microsoft Foundry

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3. Trump signs narrower AI oversight executive order

  • Some AI companies would be asked to submit new models for voluntary government review before launch.

  • The earlier draft called for reviews up to 90 days before release, a timeline industry executives opposed.

  • The Treasury Department has been directed to work with AI companies to establish a cybersecurity clearinghouse within 30 days.

  • The Pentagon has been ordered to secure its networks within 30 days.

  • The order also calls for criminal cases against individuals who use AI models to hack computer systems.

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5. New U.S. tariffs proposed by Trump on imports from 60 economies

Tariff rates of 10% and 12.5% would apply to U.S. imports under the proposal:

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