Artificial Intelligence

Dec 31, 2025

Microsoft CEO Satya Nadella has reportedly entered "founder mode." According to the Financial Times, Nadella has shaken up Microsoft's management to keep pace with Amazon, Google, and startups like Anthropic. "Satya is trying to demonstrate a sense of urgency," one executive said. "The goal is to get out of some of the structures that exist and make the route to him easier."

Nadella has brought in several new executives, including former Meta technology chief Jay Parikh. Mustafa Suleyman, co-founder of Google Deepmind, now leads Microsoft's in-house AI development with his own budget and salary structure. The move has created internal friction, but Microsoft is accepting that to stay competitive for AI talent.

Microsoft remains strong overall, especially thanks to its Azure cloud AI services, but faces tough challenges ahead. The company will lose exclusive rights to OpenAI's research and models in the early 2030s, and OpenAI is no longer required to use Microsoft's data centers. Meanwhile, Copilot's 150 million users trail Google's Gemini (650 million) and ChatGPT (800 million). Nadella has reportedly already stepped in to influence development directly.

Comment Source: Financial Times

Matthias Bastian

Dec 31, 2025

Short News

Elon Musk's xAI keeps growing its data center footprint. According to Musk and The Information, the AI company has snapped up a warehouse in Southaven, Mississippi, where it plans to build a third massive data center. Construction is set to begin in 2026. The new facility sits right next to xAI's existing Colossus 2 data center in Memphis. Musk says the expansion will push xAI's total computing power to nearly two gigawatts.

The new data center's name takes a jab at Microsoft. | Screenshot via X

The new data center goes by "Macrohardrr," a not-so-subtle dig at Microsoft. The name reflects Musk's ambition to build xAI into an AI software company that can go toe-to-toe with Microsoft. Back in early December, Musk teased the move on X, posting "MACROHARDER coming soon" in response to a satellite image showing the word "Macrohard" painted on the roof of Colossus 2.

Comment Source: The Information | Musk via xAI

Matthias Bastian

Dec 31, 2025

Update

AI in practice

Meta pays $3 billion for Manus AI after startup cut all Chinese ties to clear regulatory hurdles

Meta is buying AI agent startup Manus AI, a system built on competitor models. The deal shows how far the company has fallen behind on AI agents despite billions in spending. Still, the acquisition could be a smart shortcut.

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Matthias Bastian

Dec 31, 2025

AI in practice

China's semiconductor independence push is turning US export controls into a domestic boom

China is forcing chipmakers to use at least 50 percent domestic equipment in new factories. The undocumented rule is Beijing’s answer to US export restrictions; and a major step toward breaking the country’s dependence on Western technology.

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Matthias Bastian

Dec 30, 2025

AI research

Scientific AI models trained on different data are learning the same internal picture of matter, study finds

Matthias Bastian

Dec 29, 2025

Short News

If you use a chatbot and an Urban browser extension, you might want to rethink that combination. Security researchers at Koi have found that eight browser extensions with more than eight million users combined are secretly harvesting AI conversations and potentially selling them to third parties.

Extension	Chrome	Edge
Urban VPN Proxy	6,000,000	1,323,622
1ClickVPN Proxy	600,000	36,459
Urban Browser Guard	40,000	12,624
Urban Ad Blocker	10,000	6,476

The extensions intercept conversations with ChatGPT, Claude, Gemini, Copilot, Perplexity, DeepSeek, Grok, and Meta AI. Even when the VPN is switched off, data collection continues in the background. Uninstalling the extension is the only way to stop it.

According to Koi, the data collection feature was quietly added in July 2025 through an automatic update. The data goes to Urban VPN's servers, and the privacy policy states that browsing data is shared with affiliate BiScience and that AI prompts are used for marketing analytics.

But the provider tells a different story in the Chrome Web Store, claiming data is not sold to third parties. Adding to the confusion, "Featured" badges from Google and Microsoft give users a false sense of security. Urban Ad Blocker for Edge is the only extension without a Featured badge.

Comment Source: Koi

Matthias Bastian

Dec 29, 2025

Short News

Zara is using artificial intelligence to digitally edit photos of models. The Spanish fashion giant reaches out to models and asks for permission to reuse existing images, reports City AM from London. Using AI, the company then dresses the models in new clothes and places them in different settings, eliminating the need for new photo shoots. Two models told City AM they receive the same payment as they would for an actual shoot. But everyone else who would normally be involved in a photo shoot, from makeup artists to photographers and stylists, likely gets nothing.

Zara says AI will supplement traditional photo shoots, not replace them. The shift comes during a rough patch for the retailer, with UK sales hitting their lowest point in six months this past November. Competitors H&M and Zalando announced similar plans over the summer, creating AI-based "digital twins" of models.

Comment Source: CityAM

Matthias Bastian

Dec 29, 2025

Short News

The Association of Chartered Certified Accountants (ACCA), the world's largest accountancy organization, will stop offering online exams starting March 2026. The decision comes as AI-powered cheating outpaces detection methods. "We're seeing the sophistication of [cheating] systems outpacing what can be put in, [in] terms of safeguards," ACCA CEO Helen Brand told the Financial Times.

The organization serves nearly 260,000 members and more than 500,000 students. Despite efforts to combat cheating, "people who want to do bad things are probably working at a quicker pace," Brand said. One student told the FT that a friend photographed exam questions and fed them into an AI chatbot. A recent study found that current reasoning models can pass the demanding CFA certification.

Online exams launched during the pandemic. The ACCA is now overhauling its qualification for the first time in a decade, adding focus on AI, blockchain, and data science. The ICAEW, another major accountancy body, still offers some online exams but reports rising fraud cases.

Comment Source: Financial Times

Matthias Bastian

Dec 29, 2025

Short News

The Creators Coalition on AI (CCAI) brings together filmmakers and artists pushing for common standards around AI use in the entertainment industry. Oscar winners Daniel Kwan and Jonathan Wang founded the group alongside actor Joseph Gordon-Levitt. Natalie Portman, Cate Blanchett, Paul McCartney, Guillermo Del Toro, and Mark Ruffalo have signed on as supporters.

The coalition isn't against AI outright—instead, it's pushing for clear guidelines. The group focuses on four main issues: getting consent and fair pay when creative work is used for training data, protecting jobs in the industry, establishing safeguards against deepfakes and misuse, and keeping human creativity at the center of the creative process. The CCAI aims to become a central hub for industry-wide conversations about these issues.

Comment Source: CCAI

Matthias Bastian

Dec 29, 2025

AI and society

One in five YouTube Shorts shown to new users is AI-generated slop, study finds

A recent study shows that low-quality AI videos are already a million-dollar industry firmly embedded in YouTube’s daily feed. Set up a fresh account today, and one in five Shorts will be AI slop. And the technology is just getting started.

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