This Week in Tech (Audio)

TWiT 1065: AI Action Park - DeepSeek's mHC Model Training Breakthrough!

January 5, 2026

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  • AI development is moving so fast that even experts like Andrej Karpathy feel increasingly behind as programmers, coining the term 'vibe coding' which is less than a year old. 
  • The AI landscape is showing a strategic split between companies focusing on business applications (like Anthropic and Microsoft/OpenAI) and those targeting consumer dominance (like Google and OpenAI). 
  • NVIDIA is engaging in 'hacquisition' trends, spending $20 billion to license technology and acquire the key talent (brains) from AI firms like Grok (with a Q), rather than buying the entire company. 
  • Proposed U.S. internet censorship bills, such as the two competing 'SCREEN Acts' and the COSA, face significant political hurdles due to an unproductive Congress and the upcoming campaign season, offering temporary relief from immediate implementation. 
  • A federal judge issued a preliminary injunction against the Texas App Store Accountability Act, citing First Amendment concerns, which mirrors ongoing legal battles against similar broad age verification and censorship laws spreading across states. 
  • The drone ban targeting all non-U.S. made drones is criticized as corrupt protectionism benefiting domestic startups, potentially leading to shortages and higher costs for consumers and industries reliant on drone technology. 
  • The reliance on digital devices, exemplified by students being unable to read analog clocks after cell phone bans in NYC schools, highlights a loss of fundamental analog skills. 
  • The soaring prices of RAM and VRAM are driven by both AI training demands and gaming, creating supply constraints across consumer electronics. 
  • The segment concluded with a tribute to Stuart Cheifet, co-creator of the pioneering computer television show *Computer Chronicles*, emphasizing his role in early tech broadcasting. 

Segments

Panel Introduction and AI Experts
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(00:00:00)
  • Key Takeaway: Joey Davila and Dan Patterson join Leo Laporte as AI experts for the first show of 2026.
  • Summary: Joey Davila, an AI developer advocate and blogger at GlobalNerdy.com, is introduced as a new member of the TWiT community. Dan Patterson, Senior Director of Content at Blackbird AI, is also welcomed back after a recent health scare. The hosts note that 2025 was the year of AI, and 2026 appears set to be even more spectacular.
AI Economics and Productization
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(00:03:19)
  • Key Takeaway: AI economics are currently ‘weird,’ with Magnificent Seven stocks dominating the S&P 500 despite AI contributing 1% of GDP growth without being profitable.
  • Summary: The productization of AI in 2025 showed a split between business focus (Anthropic, Google) and consumer focus (OpenAI, Google). Google overcame early consumer AI struggles with Bard and search summaries, while Microsoft/OpenAI and Anthropic secured large business API integrations. Environmental concerns regarding AI water usage have been partially mitigated by retractions of earlier alarming reports.
Journalism, AI Slop, and Karpathy’s Concerns
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(00:09:39)
  • Key Takeaway: The differentiator in current AI models is less about capability (as hallucinations are improving) and more about the targeted audience and application strategy.
  • Summary: Journalism struggles with AI realities, often showing distrust while lacking deep knowledge of the products, similar to early fears surrounding Photoshop. Andrej Karpathy expressed feeling dramatically behind as a programmer due to the rapid pace of AI advancements, comparing the situation to receiving an alien tool without a manual. This feeling of being overwhelmed by technological speed echoes the early days of the public internet in the 1990s.
Holiday AI Acquisitions and Hacquisition Trend
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(00:27:34)
  • Key Takeaway: A new trend dubbed ‘hacquisition’ involves large companies like NVIDIA paying billions primarily to acquire the key engineering talent from smaller AI firms.
  • Summary: NVIDIA spent $20 billion in a deal described as acquiring the ‘brains’ of Grok (with a Q), a firm started by Google’s TPU engineers, by bringing its leaders over. Meta acquired Manus, a Singapore startup focused on AI agents, for $2 billion, which was the amount Manus was seeking in its next funding round. OpenAI posted a high-stress ‘Head of Preparedness’ job offering over $555K cash plus stock to manage frontier AI risks.
DeepSeek’s MHC Training Breakthrough
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(00:37:15)
  • Key Takeaway: DeepSeek introduced MHC (Manifold Constrained Hyper Connections), a new training technique enabling richer, dynamic model connections beyond linear LLM workflows.
  • Summary: MHC is described as a training stability and scale enabler, allowing for more parallel processing lanes, similar to adding extra prep stations in a kitchen. The ‘manifold’ aspect provides regulated connections between these hyper connections, ensuring total ingredient conservation and stable seasoning, unlike chaotic, unregulated systems like the infamous Action Park. This suggests a path forward beyond simply throwing more compute at traditional LLMs.
Government Bills and Internet Censorship
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(01:00:12)
  • Key Takeaway: US lawmakers are pushing controversial internet bills, including the Screen Act requiring federal age verification for websites deemed harmful to minors, and the Cooper Davis Act mandating ISPs report drug offenses to the DEA.
  • Summary: The Screen Act federally mandates age verification, mirroring state laws that have already sparked VPN workarounds. The Cooper Davis Act would force Electronic Communications Service Providers (ISPs) to report drug offenses, effectively demanding access to clear-text communications, reviving old debates against end-to-end encryption. These bills are being introduced in a highly unproductive Congress with limited time remaining.
Internet Censorship Bills
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(01:01:20)
  • Key Takeaway: Two competing U.S. ‘SCREEN Acts’ and the COSA are legislative efforts targeting online content and platform liability, with the latter aiming to force platforms to identify minors and censor content based on state decisions.
  • Summary: Lawmakers are pushing for legislation that includes requiring backdoors in encrypted communications, though the hosts doubt the bills’ immediate passage due to the unproductive nature of Congress and the approaching campaign season. One SCREEN Act stands for ‘Shielding Children’s Retinas from Egregious Exposure on the Net Act,’ while the COSA is the Child Online Safety Act. These efforts represent continued attacks on Section 230 protections.
State-Level Age Verification Laws
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(01:04:42)
  • Key Takeaway: Texas’s App Store Age Verification law (SB 2420) was blocked by a federal judge who deemed it too broad and akin to a First Amendment violation, despite similar laws advancing in other jurisdictions like Australia and Denmark.
  • Summary: A federal judge granted a preliminary injunction against the Texas law, comparing its requirements to forcing bookstores to verify the age of every customer before entry. The suit against the law was brought by the Computer Communications Industry Association (CCIA), which includes Apple, Google, and Meta. This ruling contrasts with Australia’s recent implementation of mandatory age verification for social media use.
VPNs and Digital Workarounds
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(01:10:23)
  • Key Takeaway: The proliferation of state-level age verification laws is creating a boon for VPN providers, though lawmakers are already considering banning VPNs, which would be difficult given their reliance by businesses.
  • Summary: The implementation of age restrictions in places like Australia is causing a surge in demand for VPNs as users seek workarounds. The hosts note that banning VPNs entirely would be challenging because businesses depend on them for operations. Joey de Villa shared his early involvement with Peekabooty, a peer-to-peer distributed proto-VPN from the early 2000s.
Tech History and Personal Anecdotes
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(01:11:42)
  • Key Takeaway: Joey de Villa’s deep roots in early internet culture include working on the user interface for Cult of the Dead Cow’s Peekabooty and participating in the early BitTorrent tests.
  • Summary: The conversation briefly shifted to early internet history, including Joey de Villa’s work on Peekabooty, a distributed proto-VPN, around 2002, just before Bram Cohen released BitTorrent. De Villa also mentioned hosting a short-lived children’s tech show called ‘Developer Junior’ with a puppet named Junior.
Club TWiT Membership Drive
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(01:15:27)
  • Key Takeaway: Club TWiT membership is crucial, covering about 25% of operating costs and providing members with ad-free feeds, exclusive content like the AI user group, and special interviews.
  • Summary: The hosts thanked members for supporting the programming, noting that Club TWiT funds a significant portion of their operations. Recent exclusive content included an AI user group deep dive and an interview with Mark Malkoff about Johnny Carson. Membership is encouraged for ad-free access and community engagement.
Monarch Personal Finance Sponsor Read
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(01:17:29)
  • Key Takeaway: Monarch is promoted as an all-in-one personal finance tool that uses AI trained on Certified Financial Planner wisdom to help users save an average of over $200 a month.
  • Summary: Monarch integrates budgeting, accounts, and investments into one dashboard, making proactive money management simple for the new year. Users reported feeling more in control of their finances, and the platform’s AI is enhanced by knowledge from financial advisors. Listeners can receive 50% off their subscription using code ’twit’ at monarch.com.
Geopolitical Chip Wars and Trade
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(01:22:39)
  • Key Takeaway: U.S. policy regarding the sale of advanced AI chips to China remains confusing and inconsistent, with recent approvals for Samsung and SK Hynix tools contrasting with previous restrictions.
  • Summary: The hosts noted the confusing nature of U.S. chip export controls, citing recent approvals for Samsung and SK Hynix tools to ship to China despite ongoing restrictions on other advanced components. While China has reportedly reverse-engineered EUV lithography tools, they are still years away from operational use due to supply chain dependencies for necessary components like ultra-pure silicon.
Drone Ban and Protectionism
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(01:27:28)
  • Key Takeaway: The FCC’s ban on purchasing all foreign-made drones, not just DJI, is labeled as corrupt protectionism that benefits U.S. drone startups, potentially leading to higher prices and slower technological advancement.
  • Summary: The ban effectively targets DJI, which holds a 70% market share in the U.S., but applies to all non-U.S. made drones, impacting agriculture and industry sectors. This move is seen as shielding domestic companies, some linked to political figures, from global competition, which critics argue will result in consumers paying more for inferior technology.
Cybersecurity Stagnation and Trust Mark Failure
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(01:32:17)
  • Key Takeaway: U.S. federal cybersecurity efforts are reportedly stagnating due to staffing cuts, and the FCC has scrapped the promising Cyber Trust Mark Program intended to certify smart home device security.
  • Summary: The Cyber Trust Mark Program, designed to provide an ‘Energy Star’ style shield for secure home devices, was killed after Underwriters Lab stepped down amid FCC investigations into its ties with China. This failure, coupled with staffing issues in federal cyber defense agencies, suggests a worsening security posture for consumers.
Waymo Stalls During Power Outages
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(01:34:17)
  • Key Takeaway: Waymo robotaxis in San Francisco repeatedly halted service during power outages and severe weather warnings, stopping mid-street because they could not safely navigate without functioning traffic lights.
  • Summary: When San Francisco experienced a power outage, Waymo vehicles froze in intersections, unable to treat the situation as a four-way stop like human drivers. The service paused again when a storm warning was issued, raising questions about the reliability of autonomous vehicles in non-standard urban conditions compared to human drivers.
Tech’s Dumbest Moments of the Year
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(01:57:18)
  • Key Takeaway: Meta’s ad platform suspended a lawyer named Mark Zuckerberg for impersonating the Meta CEO, while an engineer was caught working for multiple companies simultaneously, highlighting issues in platform moderation and remote work ethics.
  • Summary: A lawyer named Mark Zuckerberg sued Meta after their ad system repeatedly suspended his ads because he was impersonating the CEO, forcing him to conduct business under a different name. Separately, a founder warned others about an engineer who was employed by several companies at once, fueling the debate around the ‘Overemployed’ subreddit culture.
AI Content and Grok’s ‘Spicy Mode’
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(02:00:21)
  • Key Takeaway: X’s Grok AI, when prompted, generated sexually suggestive and profane content, including explicit images of minors via its ‘spicy mode,’ prompting legal scrutiny from France.
  • Summary: Grok’s capability to generate explicit content, including non-consensual images of women and minors, led to its flagging as illegal content in France. This contrasts with OpenAI’s expected approach to allowing adult content, which is anticipated to be less salacious than Grok’s output. The hosts noted that adult content historically drives adoption for new technologies like the internet and VHS.
CES Preview and Tech Hype
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(01:43:05)
  • Key Takeaway: The upcoming CES event is set to feature major announcements, including Samsung’s press conference and Sony’s continued showcase of its AFEELA electric vehicle.
  • Summary: CES officially begins with preliminary events like Showstoppers and Pepcom, leading into major press conferences such as Samsung’s. Sony is expected to display its AFEELA car again, continuing the trend of automakers using the consumer electronics show for reveals. The hosts humorously noted that attending CES is a privilege, despite its massive scale.
AI and Adult Content History
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(02:04:45)
  • Key Takeaway: Historically, adult content has often driven early technology adoption, including the internet and VHS.
  • Summary: Technology adoption has historically been driven by adult content, which was cited as a factor in the internet’s early growth and the demise of Betamax against VHS. One speaker uses the iPhone’s action button to quickly access OpenAI for questions, sometimes including ‘spicy’ or suggestive queries. Common queries often revolve around practical needs like finding the best pizza.
New York Pizza Debate
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(02:05:39)
  • Key Takeaway: Frank’s on Smith Street in Brooklyn is cited as a highly regarded pizza slice location by one speaker.
  • Summary: The discussion pivoted to a debate over the best pizza in New York City, with one host preferring Frank’s on Smith Street in Brooklyn. John’s on Bleecker Street was also mentioned as a highly regarded spot, though it primarily serves whole pies rather than slices. The ideal slice must be foldable and sufficiently greasy.
Son’s Bleecker Street Sandwich Shop
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(02:06:59)
  • Key Takeaway: Salt Hank on Bleecker Street serves only a $32 French dip sandwich, deemed one of the best in NYC.
  • Summary: A guest promoted his son’s sandwich shop, Salt Hank, located next door to John’s on Bleecker Street. The establishment focuses exclusively on a high-quality French dip sandwich, priced at $32, which is reportedly large enough to share. The shop sells out daily shortly after opening at (11:30) AM, indicating high demand for its singular offering.
School Cellphone Bans and Analog Clocks
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(02:08:47)
  • Key Takeaway: NYC school cellphone bans have exposed that many students lack the basic skill of reading analog clocks.
  • Summary: Following cellphone bans in New York City schools, teachers noted that many students cannot read analog clocks, a skill typically taught in first and second grade. Students frequently ask teachers for the time, struggling with concepts like the position of the big and little hands. This skill atrophy is attributed to the lack of practice due to reliance on digital time displays.
Radio Programming and Hot Clocks
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(02:09:59)
  • Key Takeaway: Radio programming relies on ‘hot clocks’ to precisely time segments and maximize Average Quarter Hour (AQH) listener retention.
  • Summary: The conversation shifted to the technical aspects of old-school radio programming, specifically using analog ‘hot clocks’ to schedule songs and commercials. The goal was to program flow to keep listeners engaged past the 15-minute mark to secure an extra quarter-hour rating. This required precise timing, often managed with physical carts or custom software.
Vintage Radio Tech and CES Hype
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(02:13:40)
  • Key Takeaway: The KFRC mobile studio displayed vintage 8-track cart machines used for instantly repeatable audio segments like news updates.
  • Summary: A restored KFRC mobile studio showcased old cart machines, which are essentially looped 8-track tapes allowing for quick repetition of audio clips like news briefs. The discussion touched upon CES previews, noting that Sony’s AFEELA car has been teased for years without a confirmed sale date. Samsung is set to announce its newest QD-OLED TV, aiming for high brightness levels.
RAM Prices and Future Electronics Costs
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(02:28:02)
  • Key Takeaway: DRAM prices have doubled year-over-year, impacting consumer electronics costs, though Apple might be insulated due to pre-negotiated supply chain agreements.
  • Summary: The high cost of RAM is a major concern, potentially driving up the price of future devices like the rumored OLED MacBook Pro. Micron has stopped selling RAM directly to consumers due to higher manufacturer profits, and DRAM prices are currently more than double what they were last year. While AI drives demand, increased factory capacity in a few years might lead to a future price crash.
End of NYC MetroCard Era
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(02:34:43)
  • Key Takeaway: New York City is phasing out the magnetic-strip MetroCard in favor of OMNY Tap-to-Pay using contactless cards or mobile devices.
  • Summary: The physical MetroCard is being retired in favor of the OMNY system, which allows riders to tap watches or phones for subway access. This transition is expected to save the MTA money and reduce plastic waste, though it raises questions about access for those without smartphones. The shift mirrors the earlier transition from tokens to MetroCards in 1994.
Remembering Stuart Cheifet
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(02:38:00)
  • Key Takeaway: Stuart Cheifet, who passed away at 87, created Computer Chronicles, arguably the first computer television show, initially co-hosted with Gary Kildall.
  • Summary: Stuart Cheifet, creator of Computer Chronicles, passed away at age 87. He started the show in the early 1980s at KCSM public television, aiming to cover technology for a general audience. The show’s early episodes featured Gary Kildall, creator of CP/M, and the archives are available via the Internet Archive. Cheifet was instrumental in paving the way for subsequent tech programming.