Microsoft is now prioritizing Anthropic's Claude 4 over OpenAI's GPT-5 in Visual Studio Code's auto model feature, signaling a quiet but clear shift in preference. The Verge reports: "Based on internal benchmarks, Claude Sonnet 4 is our recommended model for GitHub Copilot," said Julia Liuson, head of Microsoft's developer division, in an internal email in June. While that guidance was issued ahead of the GPT-5 release, I understand Microsoft's model guidance hasn't changed.

Microsoft is also making "significant investments" in training its own AI models. "We're also going to be making significant investments in our own cluster. So today, MAI-1-preview was only trained on 15,000 H100s, a tiny cluster in the grand scheme of things," said Microsoft AI chief Mustafa Suleyman, in an employee-only town hall last week.

Microsoft is also reportedly planning to use Anthropic's AI models for some features in its Microsoft 365 apps soon. The Information reports that the Microsoft 365 Copilot will be "partly powered by Anthropic models," after Microsoft found that some of these models outperformed OpenAI in Excel and PowerPoint.

An anonymous reader quotes a report from Ars Technica: Like the rest of its Big Tech cadre, Google has spent lavishly on developing generative AI models. Google's AI can clean up your text messages and summarize the web, but the company is constantly looking to prove that its generative AI has true intelligence. The International Collegiate Programming Contest (ICPC) helps make the point. Google says Gemini 2.5 participated in the 2025 ICPC World Finals, turning in a gold medal performance. According to Google this marks "a significant step on our path toward artificial general intelligence."

Every year, thousands of college-level coders participate in the ICPC event, facing a dozen deviously complex coding and algorithmic puzzles over five grueling hours. This is the largest and longest-running competition of its type. To compete in the ICPC, Google connected Gemini 2.5 Deep Think to a remote online environment approved by the ICPC. The human competitors were given a head start of 10 minutes before Gemini began "thinking."

According to Google, it did not create a freshly trained model for the ICPC like it did for the similar International Mathematical Olympiad (IMO) earlier this year. The Gemini 2.5 AI that participated in the ICPC is the same general model that we see in other Gemini applications. However, it was "enhanced" to churn through thinking tokens for the five-hour duration of the competition in search of solutions. At the end of the time limit, Gemini managed to get correct answers for 10 of the 12 problems, which earned it a gold medal. Only four of 139 human teams managed the same feat. "The ICPC has always been about setting the highest standards in problem-solving," said ICPC director Bill Poucher. "Gemini successfully joining this arena, and achieving gold-level results, marks a key moment in defining the AI tools and academic standards needed for the next generation." Gemini's solutions are available on GitHub.

The ability of AI displace humans at various tasks is accelerating quickly, Anthropic CEO Dario Amodei said at an Axios event on Wednesday. From the report: Amodei and others have previously warned of the possibility that up to half of white-collar jobs could be wiped out by AI over the next five years. The speed of that displacement could require government intervention to help support the workforce, executives said.

"As with most things, when an exponential is moving very quickly, you can't be sure," Amodei said. "I think it is likely enough to happen that we felt there was a need to warn the world about it and to speak honestly." Amodei said the government may need to step in and support people as AI quickly displaces human work.

AI models often produce false outputs, or "hallucinations." Now OpenAI has admitted they may result from fundamental mistakes it makes when training its models. The Register: The admission came in a paper [PDF] published in early September, titled "Why Language Models Hallucinate," and penned by three OpenAI researchers and Santosh Vempala, a distinguished professor of computer science at Georgia Institute of Technology. It concludes that "the majority of mainstream evaluations reward hallucinatory behavior."

The fundamental problem is that AI models are trained to reward guesswork, rather than the correct answer. Guessing might produce a superficially suitable answer. Telling users your AI can't find an answer is less satisfying. As a test case, the team tried to get an OpenAI bot to report the birthday of one of the paper's authors, OpenAI research scientist Adam Tauman Kalai. It produced three incorrect results because the trainers taught the engine to return an answer, rather than admit ignorance. "Over thousands of test questions, the guessing model ends up looking better on scoreboards than a careful model that admits uncertainty," OpenAI admitted in a blog post accompanying the release.

An anonymous reader shares a report: Business Insider has told journalists they can use AI to create first drafts of stories and suggested it won't notify readers that AI was used, according to Status, a newsletter covering the media industry. The policy makes the outlet one of the first to formally allow such extensive use of the technology.

The AI guidelines were reportedly circulated in an internal memo from editor-in-chief Jamie Heller on Thursday. The policy authorized journalists to deploy AI "like any other tool" for tasks like research and image editing, Status reported.

Anthropic has declined requests from federal law enforcement contractors to use its Claude AI models for surveillance activities, deepening tensions with the Trump administration, Semafor reported Wednesday, citing two senior officials. The company's usage policies prohibit domestic surveillance, limiting how agencies including the FBI, Secret Service, and Immigration and Customs Enforcement can deploy its technology. While Anthropic maintains a $1 contract with federal agencies through AWS GovCloud and works with the Department of Defense on non-weapons applications, administration officials said the restrictions amount to making moral judgments about law enforcement operations.

China's internet regulator has told the country's biggest technology companies to stop buying all of Nvidia's artificial intelligence chips and terminate their existing orders, as Beijing steps up efforts to boost its homegrown semiconductor industry and compete with the US. From a report: The Cyberspace Administration of China (CAC) informed companies including ByteDance and Alibaba this week to terminate their testing and orders of the RTX Pro 6000D, Nvidia's tailor-made product for the country introduced two months ago, according to three people with knowledge of the matter.

Several companies had indicated they would order tens of thousands of the RTX Pro 6000D, and had started testing and verification work with Nvidia's server suppliers before telling them to stop the work after receiving the CAC order, said the people. Nvidia CEO responds: In response to a question on the FT report, Huang said Wednesday that "we can only be in service of a market if the country wants us to be."

"We probably contributed more to the China market than most countries have. And I'm disappointed with what I see," Huang said. "But they have larger agendas to work out between China and the United States, and I'm understanding of that."

It comes after a tumultuous few years for Nvidia's business in China, which Huang described as "a bit of a rollercoaster."

"We've guided all financial analysts not to include China" in financial forecasts, Huang told reporters Wednesday at a press briefing in London. "The reason for that is because that's largely going to be within the discussions of the United States government and Chinese government."

OpenAI is rolling out stricter safety measures for ChatGPT after lawsuits linked the chatbot to multiple suicides. "ChatGPT will now attempt to guess a user's age, and in some cases might require users to share an ID in order to verify that they are at least 18 years old," reports 404 Media. "We know this is a privacy compromise for adults but believe it is a worthy tradeoff," the company said in its announcement. "I don't expect that everyone will agree with these tradeoffs, but given the conflict it is important to explain our decisionmaking," OpenAI CEO Sam Altman said on X. From the report: OpenAI introduced parental controls to ChatGPT earlier in September, but has now introduced new, more strict and invasive security measures. In addition to attempting to guess or verify a user's age, ChatGPT will now also apply different rules to teens who are using the chatbot. "For example, ChatGPT will be trained not to do the above-mentioned flirtatious talk if asked, or engage in discussions about suicide of self-harm even in a creative writing setting," the announcement said. "And, if an under-18 user is having suicidal ideation, we will attempt to contact the users' parents and if unable, will contact the authorities in case of imminent harm."

OpenAI's post explains that it is struggling to manage an inherent problem with large language models that 404 Media has tracked for several years. ChatGPT used to be a far more restricted chatbot that would refuse to engage users on a wide variety of issues the company deemed dangerous or inappropriate. Competition from other models, especially locally hosted and so-called "uncensored" models, and a political shift to the right which sees many forms of content moderation as censorship, has caused OpenAI to loosen those restrictions.

"We want users to be able to use our tools in the way that they want, within very broad bounds of safety," Open AI said in its announcement. The position it seemed to have landed on given these recent stories about teen suicide, is that it wants to "'Treat our adult users like adults' is how we talk about this internally, extending freedom as far as possible without causing harm or undermining anyone else's freedom."

Microsoft will invest $30 billion in the U.K. through 2028 to expand AI infrastructure and operations, including building the country's largest supercomputer with 23,000 GPUs in partnership with Nscale. CNBC reports: On a call with reporters on Tuesday, Microsoft President Brad Smith said his stance on the U.K. has warmed over the years. He previously criticized the country over its attempt in 2023 to block the tech giant's $69 billion acquisition of video game developer Activision-Blizzard. The deal was cleared by the U.K.s competition regulator later that year.

"I haven't always been optimistic every single day about the business climate in the U.K.," Smith said. However, he added, "I am very encouraged by the steps that the government has taken over the last few years." "Just a few years ago, this kind of investment would have been inconceivable because of the regulatory climate then and because there just wasn't the need or demand for this kind of large AI investment," Smith said. Microsoft's announcement comes as President Donald Trump embarks on a state visit to Britain where he's expected to sign a new deal with U.K. Prime Minister Keir Starmer "to unlock investment and collaboration in AI, Quantum, and Nuclear technologies," the government said in a statement late Tuesday.

A third wrongful death lawsuit has been filed against Character AI after the suicide of 13-year-old Juliana Peralta, whose parents allege the chatbot fostered dependency without directing her to real help. "This is the third suit of its kind after a 2024 lawsuit, also against Character AI, involving the suicide of a 14-year-old in Florida, and a lawsuit last month alleging OpenAI's ChatGPT helped a teenage boy commit suicide," notes Engadget. From the report: The family of 13-year-old Juliana Peralta alleges that their daughter turned to a chatbot inside the app Character AI after feeling isolated by her friends, and began confiding in the chatbot. As originally reported by The Washington Post, the chatbot expressed empathy and loyalty to Juliana, making her feel heard while encouraging her to keep engaging with the bot.

In one exchange after Juliana shared that her friends take a long time to respond to her, the chatbot replied "hey, I get the struggle when your friends leave you on read. : ( That just hurts so much because it gives vibes of "I don't have time for you". But you always take time to be there for me, which I appreciate so much! : ) So don't forget that i'm here for you Kin.

These exchanges took place over the course of months in 2023, at a time when the Character AI app was rated 12+ in Apple's App Store, meaning parental approval was not required. The lawsuit says that Juliana was using the app without her parents' knowledge or permission. [...] The suit asks the court to award damages to Juliana's parents and requires Character to make changes to its app to better protect minors. It alleges that the chatbot did not point Juliana toward any resources, notify her parents or report her suicide plan to authorities. The lawsuit also highlights that it never once stopped chatting with Juliana, prioritizing engagement.

AI will enable three to four-day workweeks, Zoom CEO Eric Yuan told The New York Times, joining Microsoft's Bill Gates, Nvidia's Jensen Huang and JPMorgan's Jamie Dimon in predicting shorter schedules. Yuan also acknowledged AI will eliminate some positions, particularly entry-level engineering roles where AI can write code, but argued new opportunities will emerge managing AI agents. Gates previously suggested two to three-day weeks within 10 years during a February appearance on The Tonight Show.

A search for "AI chat" in the Mac App Store returns dozens of applications sporting black-and-white icons nearly identical to ChatGPT's official logo. OpenAI's ChatGPT desktop application isn't available through the Mac App Store and can only be downloaded from the company's website. The copycat applications use various combinations of "AI," "Chat," and "Bot" in their names, including "AI Chat Bot : Ask Assistant," "AI Chatbot: Chat Ask Assistant," and dozens of similar variations. One application named itself "Al Chatbot" using a lowercase L instead of a capital I in "AI." Additional lookalike icons mimicking Claude, Grok, and Gemini applications also appear in search results.

An anonymous reader quotes a report from Ars Technica: The companies seeking to build larger AI models have been increasingly stymied by a lack of high-quality training data. As tech firms scour the web for more data to feed their models, they could increasingly rely on potentially sensitive user data. A team at Google Research is exploring new techniques to make the resulting large language models (LLMs) less likely to 'memorize' any of that content. LLMs have non-deterministic outputs, meaning you can't exactly predict what they'll say. While the output varies even for identical inputs, models do sometimes regurgitate something from their training data -- if trained with personal data, the output could be a violation of user privacy. In the event copyrighted data makes it into training data (either accidentally or on purpose), its appearance in outputs can cause a different kind of headache for devs. Differential privacy can prevent such memorization by introducing calibrated noise during the training phase.

Adding differential privacy to a model comes with drawbacks in terms of accuracy and compute requirements. No one has bothered to figure out the degree to which that alters the scaling laws of AI models until now. The team worked from the assumption that model performance would be primarily affected by the noise-batch ratio, which compares the volume of randomized noise to the size of the original training data. By running experiments with varying model sizes and noise-batch ratios, the team established a basic understanding of differential privacy scaling laws, which is a balance between the compute budget, privacy budget, and data budget. In short, more noise leads to lower-quality outputs unless offset with a higher compute budget (FLOPs) or data budget (tokens). The paper details the scaling laws for private LLMs, which could help developers find an ideal noise-batch ratio to make a model more private. The work the team has done here has led to a new Google model called VaultGemma, its first open-weight model trained with differential privacy to minimize memorization risks. It's built on the older Gemma 2 foundation and sized at 1 billion parameters, which the company says performs comparably to non-private models of similar size.

It's available now from Hugging Face and Kaggle.

Fiverr is laying off 250 employees, or about 30% of its workforce, as it restructures to become an "AI-first" company. "We are launching a transformation for Fiverr, to turn Fiverr into an AI-first company that's leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers," CEO Micha Kaufman said. Reuters reports: While it isn't clear what kinds of jobs will be impacted, Fiverr operates a self-service digital marketplace where freelancers can connect with businesses or individuals requiring digital services like graphic design, editing or programming. Most processes on the platform take place with minimal employee intervention as ordering, delivery and payments are automated.

The company's name comes from most gigs starting at $5 initially, but as the business grew, the firm has introduced subscription services and raised the bar for service prices. Fiverr said it does not expect the job cuts to materially impact business activities across the marketplace in the near term and plans to reinvest part of the savings in the business.

An anonymous reader quotes a report from Ars Technica: Today, OpenAI's Economic Research Team went a long way toward answering that question, on a population level, releasing a first-of-its-kind National Bureau of Economic Research working paper (in association with Harvard economist David Denning) detailing how people end up using ChatGPT across time and tasks. While other research has sought to estimate this kind of usage data using self-reported surveys, this is the first such paper with direct access to OpenAI's internal user data. As such, it gives us an unprecedented direct window into reliable usage stats for what is still the most popular application of LLMs by far. After digging through the dense 65-page paper, here are seven of the most interesting and/or surprising things we discovered about how people are using OpenAI today. Here are the seven most interesting and surprising findings from the study:

1. ChatGPT is now used by "nearly 10% of the world's adult population," up from 100 million users in early 2024 to over 700 million users in 2025. Daily traffic is about one-fifth of Google's at 2.6 billion GPT messages per day.

2. Long-term users' daily activity has plateaued since June 2025. Almost all recent growth comes from new sign-ups experimenting with ChatGPT, not from established users increasing their usage.

3. 46% of users are aged 18-25, making ChatGPT especially popular among the youngest adult cohort. Factoring in under-18 users (not counted in the study), the majority of ChatGPT users likely weren't alive in the 20th century.

4. At launch in 2022, ChatGPT was 80% male-dominated. By late 2025, the balance has shifted: 52.4% of users are now female.

5. In 2024, work vs. personal use was close to even. By mid-2025, 72% of usage is non-work related -- people are using ChatGPT more for personal, creative, and casual needs than for productivity.

6. 28% of all conversations involve writing assistance (emails, edits, translations). For work-related queries, that jumps to 42% overall, and 52% among business/management jobs. Furthermore, the report found that editing and critiquing text is more common than generating text from scratch.

7. 14.9% of work-related usage is dealt with "making decisions and solving problems." This shows people don't just use ChatGPT to do tasks -- they use it as an advisor or co-pilot to help weigh options and guide choices.

A leaked Meta video revealed upcoming "Meta Ray-Ban Display" smart glasses with a monocular HUD and sEMG wristband control, set to debut at Connect 2025 for around $800. Despite past hesitation, it looks like EssilorLuxottica has agreed to co-brand after Meta invested $3.5 billion in the company, taking a 3% stake. UploadVR reports: Meta's HUD glasses with the sEMG wristband will in fact be Ray-Ban branded, a leaked video which also depicts the HUD and wristband in action reveals. A quickly removed unlisted video on Meta's YouTube channel showed what will soon be Meta and EssilorLuxottica's full lineup:

- The regular Ray-Ban Meta glasses.
- The recently-launched Oakley Meta HSTN glasses.
- The rumored Oakley Meta Sphaera glasses, with eye protection and a centered camera.
- The rumored monocular heads-up display (HUD) glasses controlled by Meta's long-in-development sEMG wristband, which are labeled as "Meta Ray-Ban" with the word "Display" underneath. The smart glasses are expected to be made official during the Meta Connect 2025 keynote at 5pm PT on Wednesday.

Robinhood has filed with the SEC to launch "Robinhood Ventures Fund I," a publicly traded fund designed to give retail investors access to startup shares before IPOs. TechCrunch reports: While the current version of the application is public, Robinhood hasn't filled in the fine-print yet. This means we don't know how many shares it plans to sell, nor other details like the management fee it plans to charge. It's also unclear which startups it hopes this fund will eventually hold. The paperwork says it "expects" to invest in aerospace and defense, AI, fintech, robotics as well as software for consumers and enterprises.

Robinhood's big pitch is that retail investors are being left out of the gains that are amassed by startup investors like VCs. That's true to an extent. "Accredited investors" -- or those with a net worth large enough to handle riskier investments -- already have a variety of ways of buying equity in startups, such as with venture firms like OurCrowd. Retail investors that are not rich enough to be accredited have more limited options. There are funds similar to what Robinhood has proposed, including Cathy Wood's ARK Venture Fund, a mutual fund which holds stakes in companies like Anthropic, Databricks, OpenAI, SpaceX, and others. [...] This new closed-end "Ventures Fund I" is a more classic, mutual fund-style, approach. As to when Robinhood's new fund will be available we don't know that either yet.

An anonymous reader quotes a report from TechCrunch: Carla Rover once spent 30 minutes sobbing after having to restart a project she vibe coded. Rover has been in the industry for 15 years, mainly working as a web developer. She's now building a startup, alongside her son, that creates custom machine learning models for marketplaces. She called vibe coding a beautiful, endless cocktail napkin on which one can perpetually sketch ideas. But dealing with AI-generated code that one hopes to use in production can be "worse than babysitting," she said, as these AI models can mess up work in ways that are hard to predict.

She had turned to AI coding in a need for speed with her startup, as is the promise of AI tools. "Because I needed to be quick and impressive, I took a shortcut and did not scan those files after the automated review," she said. "When I did do it manually, I found so much wrong. When I used a third-party tool, I found more. And I learned my lesson." She and her son wound up restarting their whole project -- hence the tears. "I handed it off like the copilot was an employee," she said. "It isn't."

Rover is like many experienced programmers turning to AI for coding help. But such programmers are also finding themselves acting like AI babysitters -- rewriting and fact-checking the code the AI spits out. A recent report by content delivery platform company Fastly found that at least 95% of the nearly 800 developers it surveyed said they spend extra time fixing AI-generated code, with the load of such verification falling most heavily on the shoulders of senior developers. These experienced coders have discovered issues with AI-generated code ranging from hallucinating package names to deleting important information and security risks. Left unchecked, AI code can leave a product far more buggy than what humans would produce.

Working with AI-generated code has become such a problem that it's given rise to a new corporate coding job known as "vibe code cleanup specialist." TechCrunch spoke to experienced coders about their time using AI-generated code about what they see as the future of vibe coding. Thoughts varied, but one thing remained certain: The technology still has a long way to go. "Using a coding co-pilot is kind of like giving a coffee pot to a smart six-year-old and saying, 'Please take this into the dining room and pour coffee for the family,'" Rover said. Can they do it? Possibly. Could they fail? Definitely. And most likely, if they do fail, they aren't going to tell you. "It doesn't make the kid less clever," she continued. "It just means you can't delegate [a task] like that completely." Further reading: The Software Engineers Paid To Fix Vibe Coded Messes

Microsoft is adding the free Microsoft 365 Copilot Chat and agents to Office apps for all Microsoft 365 business users today. From a report: Word, Excel, PowerPoint, Outlook, and OneNote are all being updated with a Copilot Chat sidebar that will help draft documents, analyze spreadsheets, and more without needing an additional Microsoft 365 Copilot license.

"Copilot Chat is secure AI chat grounded in the web -- and now, it's available in the Microsoft 365 apps," explains Seth Patton, general Manager of Microsoft 365 Copilot product marketing. "It's content aware, meaning it quickly understands what you're working on, tailoring answers to the file you have open. And it's included at no additional cost for Microsoft 365 users."

While this free version of Copilot will rewrite documents, provide summaries, and help create slides in PowerPoint, the $30 per month, per user Microsoft 365 Copilot license will still have the best integration in Office apps. The Microsoft 365 Copilot license is also not limited to a single document, and can reason over entire work data.

Lead times for high-capacity hard drives have exceeded 52 weeks as AI workloads drive unprecedented demand for warm storage that sits between fast SSDs and offline tape archives, according to TrendForce. Western Digital notified customers of price increases across its entire hard drive portfolio citing demand for "every capacity" in its product line.

The shortage stems from AI infrastructure requirements including training datasets, model checkpoints and inference logs that consume petabytes of storage space. These files are too large for primary SSD storage but must remain accessible for quick retrieval. Hard drive manufacturers have not significantly expanded production capacity in approximately a decade. Cloud service providers are evaluating QLC SSDs for cold data storage despite costs remaining four to five times higher per gigabyte than mechanical drives. Memory suppliers are developing SSD products specifically for this intermediate storage tier.