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If you want to understand AI, there's one video you need to watch this week. Andrej Karpathy, formerly of OpenAI and Tesla, has released what might be the clearest explanation yet of how Large Language Models actually work. The video breaks down the entire training process of these AI systems and provides mental models for understanding their "psychology" - essentially, how they process and respond to information. Karpathy, who recently co-founded the AI education company Eureka Labs, also includes practical tips for getting the most out of these tools in real-world applications. What makes this explanation special is how Karpathy brings technical depth without sacrificing clarity.

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Pika Labs' new "Pikadditions" tool allows users to seamlessly insert objects into existing videos. The process is simple: upload a video and an image, and the system places the object from the image into the video, trying to make it look as natural as possible. Users can create playful scenarios such as placing animals in washing machines or adding objects to videos of people opening refrigerators. While these may sound like simple effects, they represent a practical step forward in AI video editing. Pika Labs has recently focused on developing these easy-to-use AI video effects lately, rather than perfecting the ability to create entire videos from scratch. Their approach to "video inpainting" - while still a work in progress - can produce compelling results when the conditions are right.

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OpenAI expands its European presence with its first German office in Munich. The company plans to build a local team focused on sales, development, communications and policy work, while strengthening its ties with German universities. According to CEO Sam Altman, Germany's reputation for technical excellence and industrial innovation made it a natural choice for expansion. The move is aimed at helping more German individuals, companies, and organizations make effective use of AI technology. Germany has become one of OpenAI's key markets globally, with ChatGPT usage showing particular growth: The company reports that its German user base has tripled in the past year, making it one of the platform's largest markets worldwide.

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The United Arab Emirates and France have signed an agreement to build a massive AI campus, including a data center with up to one gigawatt of computing power. The project could require an investment of between €30 billion and €50 billion, making it the largest facility of its kind in Europe. The campus project, signed by French President Emmanuel Macron and UAE President Mohamed bin Zayed Al Nahyan, will be developed by a consortium of French and Emirati companies, including UAE-based AI investment fund MGX. The exact location is yet to be determined.

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