AI Radar: Google 'AI Mode', Superintelligence, and China's Battle for AI Dominance

The last 24 hours have been intense in the world of AI, with developments revealing important trends about the future of this technology. In this edition of the daily radar, I analyze the main events that are shaping the global artificial intelligence market and their impacts on entrepreneurs, corporations and society as a whole.

Google enters the search wars with AI

Google has finally responded to competitors like Perplexity AI and ChatGPT with the launch of 'AI Mode' in search. The Mountain View giant is trying to protect its most valuable territory – the search market – which has been constantly threatened by new players powered by generative AI.

Second Terra information, the feature promises to answer long and complex questions with greater accuracy, integrating Gemini 2.0, the latest version of Google's AI. However, access is still restricted to American subscribers of Google One AI Premium, with a monthly cost of R$$ 97.

The move shows how Google is trying to balance monetizing its AI tools with the urgent need to maintain its relevance in the market. The company that for years profited from search advertising now needs to rethink its business model for the era of generative AI, where direct responses can drastically reduce the number of clicks on ads.

The race for superintelligence: between alarms and opportunities

One of the most important warnings of the last few hours came from Eric Schmidt, former CEO of Google. In an article titled 'Superintelligence Strategy', Schmidt and his co-authors warn against a headlong rush to create artificial general intelligence (AGI), arguing that this development should not follow the model of the Manhattan Project, which developed the atomic bomb.

According to report from Estadão, the concern is that accelerated global competition could result in superpower conflicts, similar to the nuclear arms race. The authors argue that transparency and international cooperation are essential for AI to benefit humanity.

Schmidt’s warning is particularly relevant as we observe the rise in geopolitical tensions around AI. I have been closely following how these technological disputes are shaping the global innovation landscape, and I see that startups need to position themselves strategically in this new international context of technology.

China advances: Alibaba challenges competitors with new AI model

Speaking of global competition, China continues to make important moves on the AI board. Alibaba announced the launch of the QwQ-32B artificial intelligence model, sending its shares up an impressive 8.4%, the biggest increase since late 2021.

Second the Power360, even with just 32 billion parameters (significantly fewer than the 671 billion in DeepSeek's R1 model), the company claims its model can achieve comparable performance, excelling in mathematical reasoning and coding.

The most interesting thing here is how China is rapidly developing competitive alternatives to Western models. Alibaba is clearly betting that the efficiency of a smaller model can outweigh the bulk of larger models, which reveals a different strategic approach to the race for ever-more-giant models.

This battle between Chinese companies like DeepSeek and Alibaba was even the subject of analysis on UOL's Deu Tilt podcast, which placed the two Chinese AIs face to face to assess their performance in practical tasks, with Qwen (from Alibaba) excelling in several of them.

Software trumps hardware: AI investments shift focus

An important trend detected in the capital markets is the migration of investor interest from chip companies to software companies. According to CNN Brazil report, after a year 2024 dominated by chipmaker stocks, the market begins to prioritize software companies in 2025.

Reasons include tariff issues and the prospect of lower demand following the emergence of cheaper AI models, such as those from China's DeepSeek. This shift represents a natural evolution for AI investment., as the technology's use cases are primarily about software.

I follow this trend closely in my work with startups and I see that this is an important moment for software entrepreneurs in Brazil. As AI development tools become more widely available, the opportunities for startups to create innovative solutions increase exponentially – even without the capital needed to invest in heavy hardware infrastructure.

AI Agents: The Future of Technological Interaction According to OpenAI

Bret Taylor, chairman of the board of directors at OpenAI, made a bold prediction during Mobile World Congress (MWC): AI agents will become as important as applications in the next 5 to 10 years, completely transforming the digital experience of users.

Second report by Meio&Mensagem, Taylor emphasized the need for responsible development and implementation of these technologies, highlighting the importance of public-private sector collaboration in regulation.

What makes this statement particularly interesting is that it comes on the heels of news that the OpenAI plans to charge up to US$20,000 per month by highly specialized AI agents – with a level comparable to a doctorate. This clearly indicates the monetization strategy the company is planning for the future.

AI regulation in Brazil: ANPD will not wait for the legal framework

In Brazil, the National Data Protection Authority (ANPD) took an important step by announcing that it will move forward with regulating artificial intelligence systems even before the approval of the country's AI legal framework.

According to the Economic Value, the president of the body considers it essential that algorithms are monitored more effectively, considering the sensitive nature of the data that can be processed by AI technologies.

This is a movement that deserves special attention from startups and companies that are developing or implementing AI-based solutions in Brazil. Regulation should not be seen as an obstacle, but as an opportunity to build safer, more ethical products that are aligned with society's expectations..

In my experience working with the startup ecosystem, I have observed that companies that anticipate regulations and incorporate ethical and data protection principles from the beginning have significant competitive advantages in the long term.

AI in the job market: replacement or complement?

The eternal debate about the impact of AI on employment has gained new data with a report from the World Economic Forum indicating that 41% of global companies plan to replace part of their employees with AI.

Second the Brazilian Post Office, despite concerns, experts believe that technology will not cause a collapse in the labor market, but will require workers to develop new skills to adapt to changes.

A practical example of this transformation comes from McDonald's, which is implementing AI into its work processes to improve the experience of customers and employees, modernizing its 43,000 restaurants with new technologies, including AI-powered drive-thru service and specific tools for managers.

I have discussed this topic a lot in my lectures on the future of work. The skills that I have called CACACA (Creativity and Autonomy; Collaboration and Adaptability; Connection and Affection) become even more relevant in this scenario. Workers who can develop these capabilities and understand how to work with AI, rather than against it, will have many more opportunities in this new market.

Who is responsible for AI errors?

Finally, an important regulatory discussion is ongoing: the civil liability of AI system providers for damages resulting from defects.

According to Conjur, projects under consideration, such as the AI legal framework, propose the categorization of risks and establish rules for the civil liability of suppliers, highlighting the need for an ongoing debate on ethical and safe regulations.

This is a topic that deserves special attention from startups and companies that are developing AI-based solutions. Clearly defining responsibilities will be crucial for responsible technology development and for the protection of consumers and users.

What this means for entrepreneurs and innovators

Analyzing all this news together, it is clear that we are in a moment of acceleration in the adoption of AI in all spheres, with special emphasis on:

• The geopolitical dispute between the US and China for leadership in AI
• The shift in investment focus from hardware to software
• The emergence of AI agents as a new frontier of digital interaction
• The urgent need for balanced regulation
• The profound transformation of the labor market

For Brazilian entrepreneurs, this scenario presents both challenges and opportunities. Startups that are able to develop ethical, efficient solutions that truly add value will have a significant space in this changing market..

I’ve observed in my work with startup acceleration that companies that are able to find the balance between technological innovation and human purpose are the ones that stand out the most. Technology alone is not enough – you need to solve real problems for real people.

In my mentoring work, I’ve helped entrepreneurs navigate this complex landscape, identifying genuine opportunities and developing strategies that combine technological innovation with positive impact. If you’re building an AI startup or looking to implement these technologies in your business, consider how these trends might affect your long-term strategy.

The future of AI is being written now, and we as entrepreneurs and innovators have a responsibility to ensure that it is constructive, inclusive, and beneficial to all of society.