News
US Department of Defense commits $2B to training AI to have “common sense”
While artificial intelligence is being painted by companies and government as the catch-all answer to many of today’s inefficiencies and problems, it currently has one glaring shortcoming: It can’t answer common sense questions.
In an effort to address this current shortcoming of AI, The U.S. Department of Defense (DoD) is committing $2 billion dollars over the next five years to its Machine Common Sense (MCS) Program. The program aims to enable computers to communicate naturally, behave reasonably in new situations, and learn from new experiences.
Thanks in part to Iron Man (and Elon Musk) fame, the Defense Advanced Research Projects Agency, aka “DARPA”, an agency within the DoD, may be one of the few alphabet soup government agencies with a future-tech-savvy reputation. That reputation is well deserved, too, if history has anything to say about it. As the agency that gave us the Internet through an extension of a defense communication project, just having a discussion online about DARPA itself is testament to the tech potential it represents. The challenge of creating true, thinking computers is perfectly aligned with what DARPA has done well with overall.
As the advancement of computer technology increases at a near exponential rate, so too has the potential relationship between them and humans. However, the possibility of a troubling disconnect is also a growing reality. In other words, humans and computers currently operate very differently from one another, and that could spell bad things for the weaker logician of the two. Yeah, that means us.
Elon Musk has famously harped about this predicted disconnect on numerous occasions, and one of the companies he’s invested in, Neuralink, is working on preemptive solutions for its coming problems. While Neuralink generally aims to help human brains work more like computers, DARPA is taking the approach of having computers work more like humans.
The term “common sense” can often be tossed around in conversations to imply a variety of shared knowledge bases, but as a federal government agency, DARPA has its own specific definition for this context: “The basic ability to perceive, understand, and judge things that are shared by nearly all people and can be reasonably expected of nearly all people without need for debate.” By mimicking the cognitive processes we go through when we are young, the agency hopes computers will develop the “fundamental building blocks of intelligence and common sense” just like a human.
With advanced neural networks making amazing (and humorous) headlines regularly, what would a “common sense” machine bring to the table in terms of advancement? One primary answer is the requirement for less initial information. To quote Dr. Brian Pierce, director of DARPA’s Innovation Office, at a recent summit, “We’d like to get away from having an enormous amount of data to train neural networks.” If a machine could use its environment to deduct answers when compared to its existing knowledge base, as humans do, it wouldn’t need to be taught to interpret data solely based on an enormous amount of data previously provided. Essentially, it could think for itself using common sense.
DARPA has now completed a “Proposers Day” wherein potential contractors were presented with the agency’s specifics for its MCS program. The next step is a “Broad Agency Announcement”, i.e., a formal invitation for proposals to work on the project with the hope of obtaining a federal contract to fulfill its aim.
If the contract winner is successful, will common sense lead to computer behavior we’d welcome rather than fear? Hopefully that will be figured out sooner rather than later.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.
On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.
CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst
“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”
The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.
Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.
Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.
Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.
Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:
“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.
Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.
Elon Musk
Elon Musk’s Biggest Revelations on AI, Robots, and the Future of Work from the Moonshots Podcast
Elon Musk’s appearance on the Moonshots with Peter Diamandis podcast was packed with bold predictions, candid admissions, and surprising tech insights. The nearly three-hour conversation covered everything from artificial intelligence to humanoid robots, geopolitics, and the future of work. Here are the top 10 most intriguing takeaways:
-
Aggressive AGI Timeline Predictions
Musk offered a detailed view on when artificial general intelligence (AGI) could emerge, suggesting it may arrive sooner than many expect, emphasizing both transformative potential and risks.
-
U.S. vs. China in the AI Race
He discussed the strategic competition between the United States and China over AI development, noting that geopolitical dynamics will shape how and who leads in the next decades.
-
Future of Job Markets
Musk touched on how AI and automation could reshape employment, predicting massive boosts in productivity alongside potential disruptions in traditional work structures.
-
Clean Energy Transition
A recurring theme was the role of clean energy in future economies, with Musk reiterating the importance of scaling sustainable power generation and storage.
-
Humanoid Robots Are Coming
On the podcast, Musk elaborated on Tesla’s work on humanoid robots, hinting at timelines and applications that go beyond factories to general-purpose assistance.
-
Tesla Roadster “Last Human-Driven Car”
Outside the core discussion topics, Musk teased features of the upcoming Tesla Roadster — calling it “the best of the last of the human-driven cars” and suggesting safety won’t be its main selling point.
-
The Role of AI in Clean Energy and Robotics
Linking AI to both energy optimization and robotics, Musk explained how smarter systems could accelerate decarbonization and task automation across industries.
-
U.S. Innovation Leadership
Musk argued that maintaining American leadership in key tech sectors like AI, space, and robotics should be a national priority, with thoughtful policy and investment.
-
Job Creation vs. Job Elimination
While acknowledging automation’s disruptive effects, he also outlined scenarios where new industries and opportunities could emerge, particularly in AI, space, and advanced manufacturing.
-
Long-Term Vision for Humanity
Throughout the conversation, Musk revisited his long-term philosophical views — including a belief in humanity’s responsibility to become a multi-planetary and technologically empowered species.
Whether you agree with Musk’s optimism or not, the podcast offers a window into the thinking of one of the most influential figures in tech today, in and why his visions continue to spark debate and inspiration.
Elon Musk’s xAI closes upsized $20B Series E funding round
Tesla gets price target bump, citing growing lead in self-driving
