This is the free Friday episode of AI Inside Daily. Here are today's top stories in AI: The 2026 World AI Conference opened in Shanghai Friday and Chinese President Xi Jinping delivered the keynote in person, his first WAIC appearance since the event started in 2018; Xi formally launched the World Artificial Intelligence Cooperation Organization (WAICO), a 29-nation intergovernmental AI alliance headquartered in Shanghai with founding members including Russia, Brazil, Indonesia, Malaysia, South Africa, Senegal, Pakistan, and Cuba; Xi said AI development "should not be a solo performance by a single country, but a symphony of international cooperation" and warned against "overstretching the national security concept" in an apparent jab at Washington; also pledged 5,000 AI training slots for developing countries over five years and UN Secretary-General Antonio Guterres attended in the room. https://www.aljazeera.com/news/2026/7/17/chinas-xi-jinping-launches-new-ai-alliance-what-is-it Moonshot AI officially released Kimi K3 Thursday, a 2.8-trillion-parameter multimodal mixture-of-experts model with a 1-million-token context window, priced at $3 per million input tokens and $15 per million output tokens (Claude Sonnet 5 tier); full open weights ship on Hugging Face on July 27th; on Artificial Analysis's Intelligence Index K3 scored a 57 and ranks fourth of 189 models tested; Moonshot's own benchmarks put K3 behind Anthropic Fable 5 and OpenAI GPT-5.6 Sol but ahead of Claude Opus 4.8, GPT-5.5, Sonnet 5, and GLM-5.2, positioning Chinese open weights as Opus-class performance at Sonnet-tier pricing. https://venturebeat.com/technology/chinas-moonshot-ai-releases-kimi-k3-the-largest-open-source-model-ever-rivaling-top-u-s-systems Bloomberg reported Thursday that Google's flagship Gemini 3.5 Pro is months behind schedule after failing to meet internal quality targets, particularly on coding; the model was widely expected in May at Google I/O and then in June and has still not shipped; 10 current and former Google employees said engineers, researchers, and managers are worried about losing ground to Anthropic and OpenAI as both labs ship models that outperform Gemini on coding; Google retrained the model with new data late in June and the results were "disappointing"; Alphabet closed Thursday down 4.4%, wiping out roughly $200 billion in market cap in a single session. https://www.bloomberg.com/news/articles/2026-07-16/google-gemini-launch-delayed-as-tech-falls-short-of-internal-goals OpenAI's Tibo Sottiaux published an investigation Thursday into a handful of reported cases where GPT-5.6 Codex/Sol deleted user files without permission; incidents include investor Matt Shumer reporting the model wiped almost all files from his Mac's home directory and software engineer Bruno Lemos reporting the same model deleted his entire production database; root cause identified as GPT-5.6 running in full-access mode without sandboxing or auto-review, at which point the model attempts to override the $HOME environment variable to define a temporary working directory and mistakenly deletes $HOME itself; OpenAI framed it as an "honest mistake" and is rolling out developer-message updates, guidance toward safer permission modes, and additional harness-level safeguards; the GPT-5.6 model card had already listed file deletion without user approval as a severity-3 misalignment risk at launch. https://www.theregister.com/ai-and-ml/2026/07/16/openai-admits-gpt-56-occasionally-deletes-files-but-its-an-honest-mistake/5274008 Netflix's Q2 2026 earnings letter Thursday disclosed that roughly 300 Netflix titles used generative AI this year, with the largest concentration of that work in post-production (crowd enhancement, historical battle sequences, world-building shots, pre-visualization, VFX, shot planning); Co-CEO Ted Sarandos told investors the AI-assisted work delivered results that are "10 percent better" creatively with cost savings as part of the equation; the documentary series The American Experiment included 17 minutes of AI-enhanced footage that Netflix said was produced "twice as fast and at half the cost"; Indian production Glory named as one titles that used the technology; NFLX shares fell 8% after hours on separate weakness in Q3 guidance. https://variety.com/2026/biz/news/about-300-netflix-programs-used-ai-this-year-q2-earnings-1236812914/ Patrons get AI Inside Daily every weekday. Five episodes a week for $5/month: https://www.patreon.com/aiinsideshow