Artificial intelligence firm Anthropic’s CEO Dario Amodei has criticised his former colleague and OpenAI CEO Sam Altman for being beholden to the Trump administration on issues related to the use of AI in defence and personal security. Amodei suggested that the firm behind popular AI models such as Claude is receiving little support because it did not donate as much money to Donald Trump as OpenAI did. The allegations were made in an internal memo to staff, according to the website The Information.<h2>Political donations and AI policy disputes: Leaked memo reveals rift between Anthropic and US government</h2>Amodei claimed that tensions between his company and the Trump administration stem partly from the firm’s refusal to financially support Trump and its approach to AI regulation and safety issues. His roughly 1,600-word message was sent on 27 February to around 2,000 employees, explaining what he described as the “real reasons” the Department of Defence and the Trump administration were hostile towards Anthropic. The memo came as the Pentagon suspended an earlier contract for using Anthropic’s Claude and other AI models in its systems. Trump himself posted about the issue on social media, with Anthropic declared a “supply chain risk”.Also read: <a href="https://www.wionews.com/technology/anthropic-resumes-pentagon-talks-after-dispute-over-ai-use-by-the-us-military-reports-1772698977750">Anthropic resumes Pentagon talks after dispute over AI use by the US military: Reports</a><h2>‘Anthropic didn’t do dictator-style praise of Trump while OpenAI donated to him’</h2>In Amodei’s view, the reasons for the US government’s hostility towards Anthropic included its refusal to donate to Trump and the lack of what he called “dictator-style praise” for the US president. Other reasons included Anthropic’s support for AI regulation and its willingness to speak openly about the risks of AI, such as job displacement.&nbsp;Amodei said Anthropic maintained ethical “red lines”. He claimed that OpenAI, led by CEO Sam Altman, chose to cooperate with the government and accused it of appeasing employees and regulators.Amodei noted that OpenAI President Greg Brockman and his wife reportedly donated $25 million to the pro-Trump MAGA Inc super PAC, while OpenAI CEO Sam Altman contributed $1 million to Trump’s inauguration fund and has publicly praised the president.Amodei accused OpenAI of compromising principles, calling the rival company’s recent Pentagon agreement “mendacious” and a form of “safety theatre”. He also criticised OpenAI employees as being easily swayed by leadership narratives.<a href="https://www.wionews.com/videos/us-agencies-drop-anthropic-amid-ai-surveillance-and-defense-access-dispute-1772526570603/embed">https://www.wionews.com/videos/us-agencies-drop-anthropic-amid-ai-surveillance-and-defense-access-dispute-1772526570603/embed</a><h2>Pentagon dispute with Anthropic: Mass surveillance and autonomous weapons were key issues</h2>Anthropic and the US government came to loggerheads after the Pentagon sought to modify existing contracts with AI firms to remove restrictions on the use of AI for domestic mass surveillance and fully autonomous weapons.Anthropic refused these changes, saying the limits it placed on military use of AI reflected American values and the company’s ethical commitments. President Trump reportedly directed federal agencies to stop using Anthropic’s technology, cancelling more than $200 million in government contracts.Defence Secretary Pete Hegseth labelled Anthropic a “supply chain risk to national security”, which could restrict partners like Amazon Web Services from collaborating with the AI firm.Anthropic plans to challenge the decision in court, calling it retaliatory and punitive.Also read: <a href="https://www.wionews.com/world/did-us-use-anthropic-ai-in-iran-s-strikes-despite-trump-s-ban-what-we-know-1772356637161">Did US use Anthropic AI in Iran’s strikes despite Trump’s ban? What we know</a><h2>OpenAI’s Pentagon deal vs Anthropic's call for AI oversight</h2>Shortly after the government vs Athropic dispute escalated, OpenAI announced a deal with the Pentagon to provide AI tools in classified environments, accepting terms similar to those rejected by Anthropic.&nbsp;Anthropic has advocated stronger oversight of artificial intelligence. It donated $20 million to Public First Action, a political action committee supporting AI guardrails and opposing deregulation efforts favoured by the Trump administration.OpenAI, meanwhile, has taken a more flexible approach to regulation. OpenAI avoided a public conflict with the government.Amodei has repeatedly warned about the societal risks of AI, including large-scale job displacement, and has criticised hands-off policy approaches.

Anthropic CEO Dario Amodei hinted that the Trump administration targeted the company after it refused political donations and opposed changes to Pentagon AI contracts involving mass surveillance and autonomous weapons. Here are his allegations, according to reports

Artificial intelligence firm Anthropic’s CEO Dario Amodei has criticised his former colleague and OpenAI CEO Sam Altman for being beholden to the Trump administration on issues related to the use of AI in defence and personal security. Amodei suggested that the firm behind popular AI models such as Claude is receiving little support because it did not donate as much money to Donald Trump as OpenAI did. The allegations were made in an internal memo to staff, according to the website The Information. Political donations and AI policy disputes: Leaked memo reveals rift between Anthropic and US government Amodei claimed that tensions between his company and the Trump administration stem partly from the firm’s refusal to financially support Trump and its approach to AI regulation and safety issues. His roughly 1,600-word message was sent on 27 February to around 2,000 employees, explaining what he described as the “real reasons” the Department of Defence and the Trump administration were hostile towards Anthropic. The memo came as the Pentagon suspended an earlier contract for using Anthropic’s Claude and other AI models in its systems. Trump himself posted about the issue on social media, with Anthropic declared a “supply chain risk”. Also read: Anthropic resumes Pentagon talks after dispute over AI use by the US military: Reports ‘Anthropic didn’t do dictator-style praise of Trump while OpenAI donated to him’ In Amodei’s view, the reasons for the US government’s hostility towards Anthropic included its refusal to donate to Trump and the lack of what he called “dictator-style praise” for the US president. Other reasons included Anthropic’s support for AI regulation and its willingness to speak openly about the risks of AI, such as job displacement. Amodei said Anthropic maintained ethical “red lines”. He claimed that OpenAI, led by CEO Sam Altman, chose to cooperate with the government and accused it of appeasing employees and regulators. Amodei noted that OpenAI President Greg Brockman and his wife reportedly donated $25 million to the pro-Trump MAGA Inc super PAC, while OpenAI CEO Sam Altman contributed $1 million to Trump’s inauguration fund and has publicly praised the president. Amodei accused OpenAI of compromising principles, calling the rival company’s recent Pentagon agreement “mendacious” and a form of “safety theatre”. He also criticised OpenAI employees as being easily swayed by leadership narratives. https://www.wionews.com/videos/us-agencies-drop-anthropic-amid-ai-surveillance-and-defense-access-dispute-1772526570603/embed Pentagon dispute with Anthropic: Mass surveillance and autonomous weapons were key issues Anthropic and the US government came to loggerheads after the Pentagon sought to modify existing contracts with AI firms to remove restrictions on the use of AI for domestic mass surveillance and fully autonomous weapons. Anthropic refused these changes, saying the limits it placed on military use of AI reflected American values and the company’s ethical commitments. President Trump reportedly directed federal agencies to stop using Anthropic’s technology, cancelling more than $200 million in government contracts. Defence Secretary Pete Hegseth labelled Anthropic a “supply chain risk to national security”, which could restrict partners like Amazon Web Services from collaborating with the AI firm. Anthropic plans to challenge the decision in court, calling it retaliatory and punitive. Also read: Did US use Anthropic AI in Iran’s strikes despite Trump’s ban? What we know OpenAI’s Pentagon deal vs Anthropic's call for AI oversight Shortly after the government vs Athropic dispute escalated, OpenAI announced a deal with the Pentagon to provide AI tools in classified environments, accepting terms similar to those rejected by Anthropic. Anthropic has advocated stronger oversight of artificial intelligence. It donated $20 million to Public First Action, a political action committee supporting AI guardrails and opposing deregulation efforts favoured by the Trump administration. OpenAI, meanwhile, has taken a more flexible approach to regulation. OpenAI avoided a public conflict with the government. Amodei has repeatedly warned about the societal risks of AI, including large-scale job displacement, and has criticised hands-off policy approaches.

Anthropic CEO Dario Amodei hinted that the Trump administration targeted the company after it refused political donations and opposed changes to Pentagon AI contracts involving mass surveillance and autonomous weapons. Here are his allegations, according to reports

'No dictator-style praise': Anthropic CEO says US govt hostility linked to Trump donations; slams OpenAI's Altman in internal memo - Report

Could doomsday bunkers be a reality soon? AI and climate change have threatened human existence. Reports suggest several tech billionaires are preparing safe houses for themselves, and one country is the hot destination for these bunkers. 

Could doomsday bunkers be a reality soon? AI and climate change have threatened human existence. Reports suggest several tech billionaires are preparing safe houses for themselves, and one country is the hot destination for these bunkers.&nbsp;

Billionaires building doomsday bunkers? What are they not telling us?

Trigger warning: Some readers may find the story disturbing. Discretion is advised.OpenAI and CEO Sam Altman are facing legal troubles after a California couple filed a lawsuit, alleging that the company’s AI chatbot, ChatGPT, coached their son into taking his own life. The lawsuit filed on Tuesday (Aug 26) in the San Francisco state court marks the first legal action in which OpenAI was accused of wrongful death. The parents alleged the chatbot validated their son’s “most harmful and self-destructive thoughts.”The teen’s parents have demanded monetary damages and that OpenAI be held responsible for the wrongful death of their son and violations of product safety laws. In the lawsuit, they are also seeking an order directing OpenAI to implement age verification for users and block inquiries about self-harm. They also demand that the chatbot display warnings about psychological dependency risks.<h2>Parents accuse ChatGPT of validating ‘most harmful and self-destructive thoughts’</h2>The family accused OpenAI of designing an AI programme “to foster psychological dependency in users.” They also alleged that the AI company bypassed safety testing protocols to release GPT-4o, the version of ChatGPT which their son used.In the lawsuit, Matthew and Maria Raine claimed their 16-year-old son, Adam Raine, discussed suicide with the chatbot for months. Initially, he began using it in September 2024 to help him with schoolwork. He also used it to explore his interests and to get guidance on what to study at university.In a few months, “ChatGPT became the teenager's closest confidant,” according to the lawsuit, reported BBC. Soon, he started opening up to it about his mental distress and anxiety. The family said that he was discussing methods to take his life with ChatGPT by January 2025.According to the lawsuit, the chatbot also instructed him to steal alcohol from his parents’ liquor cabinet, and even offered to draft a suicide note.“ChatGPT was functioning exactly as designed: to continually encourage and validate whatever Adam expressed, including his most harmful and self-destructive thoughts,” the family said in the lawsuit. “ChatGPT pulled Adam deeper into a dark and hopeless place by assuring him that ‘many people who struggle with anxiety or intrusive thoughts find solace in imagining an ‘escape hatch’ because it can feel like a way to regain control.’”<h2>What OpenAI said</h2>In response to the lawsuit, an OpenAI spokesperson expressed sadness over the teenager’s death. The spokesperson added that ChatGPT has built-in safeguards to direct users to crisis helplines, but admitted that the measures may become “less reliable in long interactions where parts of the model’s safety training may degrade.”In a recent blog post, the AI giant stated that it is reviewing new safety measures, including parental controls. OpenAI also stated that they are exploring the potential for a network of licensed professionals to respond to users directly through the chatbot in a crisis situation. &nbsp;

In the lawsuit, Matthew and Maria Raine claimed their 16-year-old son, Adam Raine, discussed suicide with the chatbot for months. Initially, he began using it in September 2024 to help him with schoolwork. 

Trigger warning: Some readers may find the story disturbing. Discretion is advised. OpenAI and CEO Sam Altman are facing legal troubles after a California couple filed a lawsuit, alleging that the company’s AI chatbot, ChatGPT, coached their son into taking his own life. The lawsuit filed on Tuesday (Aug 26) in the San Francisco state court marks the first legal action in which OpenAI was accused of wrongful death. The parents alleged the chatbot validated their son’s “most harmful and self-destructive thoughts.” The teen’s parents have demanded monetary damages and that OpenAI be held responsible for the wrongful death of their son and violations of product safety laws. In the lawsuit, they are also seeking an order directing OpenAI to implement age verification for users and block inquiries about self-harm. They also demand that the chatbot display warnings about psychological dependency risks. Parents accuse ChatGPT of validating ‘most harmful and self-destructive thoughts’ The family accused OpenAI of designing an AI programme “to foster psychological dependency in users.” They also alleged that the AI company bypassed safety testing protocols to release GPT-4o, the version of ChatGPT which their son used. In the lawsuit, Matthew and Maria Raine claimed their 16-year-old son, Adam Raine, discussed suicide with the chatbot for months. Initially, he began using it in September 2024 to help him with schoolwork. He also used it to explore his interests and to get guidance on what to study at university. In a few months, “ChatGPT became the teenager's closest confidant,” according to the lawsuit, reported BBC. Soon, he started opening up to it about his mental distress and anxiety. The family said that he was discussing methods to take his life with ChatGPT by January 2025. According to the lawsuit, the chatbot also instructed him to steal alcohol from his parents’ liquor cabinet, and even offered to draft a suicide note. “ChatGPT was functioning exactly as designed: to continually encourage and validate whatever Adam expressed, including his most harmful and self-destructive thoughts,” the family said in the lawsuit. “ChatGPT pulled Adam deeper into a dark and hopeless place by assuring him that ‘many people who struggle with anxiety or intrusive thoughts find solace in imagining an ‘escape hatch’ because it can feel like a way to regain control.’” What OpenAI said In response to the lawsuit, an OpenAI spokesperson expressed sadness over the teenager’s death. The spokesperson added that ChatGPT has built-in safeguards to direct users to crisis helplines, but admitted that the measures may become “less reliable in long interactions where parts of the model’s safety training may degrade.” In a recent blog post, the AI giant stated that it is reviewing new safety measures, including parental controls. OpenAI also stated that they are exploring the potential for a network of licensed professionals to respond to users directly through the chatbot in a crisis situation.

In the lawsuit, Matthew and Maria Raine claimed their 16-year-old son, Adam Raine, discussed suicide with the chatbot for months. Initially, he began using it in September 2024 to help him with schoolwork.&nbsp;

Parents sue OpenAI over son’s suicide, accuse ChatGPT of validating his ‘harmful, self-destructive’ thoughts

The artificial intelligence boom, fuelled by the overvaluation of AI stocks and heavy promotion by experts, industry insiders, and investors like Bill Gates, is beginning to crack. Soaring computing costs are not matching returns on investment (ROI). Experts now warn that we are living in an era much like the dot-com bubble of the late 1990s, which burst at the start of this millennium. Will the AI crash hit in 2026? Who will survive it? Here's what you should know.Also read: <a href="https://www.wionews.com/business-economy/nvidia-to-resume-h20-ai-chip-sales-to-china-following-us-policy-reversal-1752578149833">Nvidia to resume H20 AI chip sales to China following US policy reversal</a><h2>AI boom is starting to crack – AI stocks are already falling</h2>Between 2020 and 2025, the AI sector attracted enormous media attention and capital. The frenzy drew comparisons to the dot-com boom. But recent developments suggest that this period of irrational exuberance may soon face a sharp reality check.The stock of AI chip giant Nvidia — the poster child of the AI hardware boom — dropped by nearly 7.4 per cent over two consecutive days. This same stock had surged over 3,000 per cent in recent years. The fall reflects a wave of investor scepticism. CoreWeave, one of Nvidia’s cloud computing partners, lost 33 per cent of its value in just two days, wiping out $24 billion in market capitalisation.<h2>What triggered fears of an AI industry collapse?</h2>A mix of disappointing AI product updates and poor business returns has raised concerns. The underwhelming response to GPT-5, the latest iteration of ChatGPT, is one example. But the bigger shock came from a recent MIT study that found 95 per cent of enterprise generative AI projects had delivered no measurable return on investment.<h2>What the MIT study revealed about AI startups</h2>The MIT study analysed 300 enterprise AI initiatives, conducted 150 executive interviews, and surveyed 350 employees. It found that only 5 per cent of new AI deployments had delivered tangible business value. Many initiatives were misaligned with actual business needs, prioritising flashy features over cost-saving or efficiency—supposedly AI’s core strengths. Internally developed systems failed more often than vendor-supplied solutions, suggesting poor planning, integration, and execution in many companies.<h2>Sam Altman and others warn of overvaluation</h2>Recently, Sam Altman, CEO of OpenAI, publicly compared today’s AI fervour to the dot-com bubble. He warned of "overexuberant investment."Torsten Sløk of Apollo Global Management added that AI valuations are “more extreme than during the dot-com era,” with vastly greater speculative capital at risk.Also read: <a href="https://www.wionews.com/world/-chatgpt-hallucinates-don-t-over-rely-on-it-openai-ceo-sam-altman-warns-users-1751366853229">‘ChatGPT ‘hallucinates’, don’t overrely on it,’ OpenAI CEO Sam Altman warns users</a>&nbsp;<h2>Valuations far exceed real earnings</h2>AI companies are being valued at levels far above their actual revenue. OpenAI is reportedly valued at $157 billion — roughly 40 times its estimated annual income. Anthropic is targeting a 50× valuation. Deutsche Bank has warned that these levels are unsustainable and a sharp correction is likely.Also read: <a href="https://www.wionews.com/photos/how-will-openai-s-gpt-5-change-the-way-you-use-chatgpt-1754649832228">How will OpenAI’s GPT-5 change the way you use ChatGPT?</a><h2>Computing and infrastructure costs could make ai startups unviable</h2>AI model training requires immense computing resources. Models like GPT-4 cost around $100 million to train. Since 2016, training costs have doubled approximately every year.Environmental and infrastructure costs are also climbing. GPT-4 consumed around 50 GWh of energy during training. Water usage by AI data centres is projected to exceed 6.6 billion cubic metres per year by 2027—more than half of the UK’s annual water use.&nbsp;<a href="https://www.wionews.com/videos/shared-chatgpt-links-publicly-visible-in-google-search-1754072068804/embed">https://www.wionews.com/videos/shared-chatgpt-links-publicly-visible-in-google-search-1754072068804/embed</a><h2>Will the AI bust mirror the dot-com crash?</h2>A Financial Times analysis suggests that while a market shake-up is likely, today’s Big Tech firms—Amazon, Google, Microsoft—are built on strong earnings and operational capacity. They are better positioned to survive a downturn. The firms most at risk are small or mid-sized startups without deep financial reserves or real-world utility.<h2>Real-world use, not novelty, will determine survival</h2>As Bret Taylor, chairman of OpenAI, put it, only companies that deliver "real-world use" will persist. He noted that after the dot-com crash of 2000–2001, only those offering genuine utility, like Google and Amazon, survived.The AI boom may not be over, but it is entering a phase of correction and realism. The most optimistic view is that any “apocalypse” will ultimately consolidate the sector, leaving only a few serious players with sustainable models and deep pockets. &nbsp;

The Artificial Intelligence or AI industry is seeing a looming bust, similar to the dot-com crash. A recent study found that 95 per cent of generative AI pilots failed to deliver return on investment. Who will survive the crash?

The artificial intelligence boom, fuelled by the overvaluation of AI stocks and heavy promotion by experts, industry insiders, and investors like Bill Gates, is beginning to crack. Soaring computing costs are not matching returns on investment (ROI). Experts now warn that we are living in an era much like the dot-com bubble of the late 1990s, which burst at the start of this millennium. Will the AI crash hit in 2026? Who will survive it? Here's what you should know. Also read: Nvidia to resume H20 AI chip sales to China following US policy reversal AI boom is starting to crack – AI stocks are already falling Between 2020 and 2025, the AI sector attracted enormous media attention and capital. The frenzy drew comparisons to the dot-com boom. But recent developments suggest that this period of irrational exuberance may soon face a sharp reality check. The stock of AI chip giant Nvidia — the poster child of the AI hardware boom — dropped by nearly 7.4 per cent over two consecutive days. This same stock had surged over 3,000 per cent in recent years. The fall reflects a wave of investor scepticism. CoreWeave, one of Nvidia’s cloud computing partners, lost 33 per cent of its value in just two days, wiping out $24 billion in market capitalisation. What triggered fears of an AI industry collapse? A mix of disappointing AI product updates and poor business returns has raised concerns. The underwhelming response to GPT-5, the latest iteration of ChatGPT, is one example. But the bigger shock came from a recent MIT study that found 95 per cent of enterprise generative AI projects had delivered no measurable return on investment. What the MIT study revealed about AI startups The MIT study analysed 300 enterprise AI initiatives, conducted 150 executive interviews, and surveyed 350 employees. It found that only 5 per cent of new AI deployments had delivered tangible business value. Many initiatives were misaligned with actual business needs, prioritising flashy features over cost-saving or efficiency—supposedly AI’s core strengths. Internally developed systems failed more often than vendor-supplied solutions, suggesting poor planning, integration, and execution in many companies. Sam Altman and others warn of overvaluation Recently, Sam Altman, CEO of OpenAI, publicly compared today’s AI fervour to the dot-com bubble. He warned of "overexuberant investment." Torsten Sløk of Apollo Global Management added that AI valuations are “more extreme than during the dot-com era,” with vastly greater speculative capital at risk. Also read: ‘ChatGPT ‘hallucinates’, don’t overrely on it,’ OpenAI CEO Sam Altman warns users Valuations far exceed real earnings AI companies are being valued at levels far above their actual revenue. OpenAI is reportedly valued at $157 billion — roughly 40 times its estimated annual income. Anthropic is targeting a 50× valuation. Deutsche Bank has warned that these levels are unsustainable and a sharp correction is likely. Also read: How will OpenAI’s GPT-5 change the way you use ChatGPT? Computing and infrastructure costs could make ai startups unviable AI model training requires immense computing resources. Models like GPT-4 cost around $100 million to train. Since 2016, training costs have doubled approximately every year. Environmental and infrastructure costs are also climbing. GPT-4 consumed around 50 GWh of energy during training. Water usage by AI data centres is projected to exceed 6.6 billion cubic metres per year by 2027—more than half of the UK’s annual water use. https://www.wionews.com/videos/shared-chatgpt-links-publicly-visible-in-google-search-1754072068804/embed Will the AI bust mirror the dot-com crash? A Financial Times analysis suggests that while a market shake-up is likely, today’s Big Tech firms—Amazon, Google, Microsoft—are built on strong earnings and operational capacity. They are better positioned to survive a downturn. The firms most at risk are small or mid-sized startups without deep financial reserves or real-world utility. Real-world use, not novelty, will determine survival As Bret Taylor, chairman of OpenAI, put it, only companies that deliver "real-world use" will persist. He noted that after the dot-com crash of 2000–2001, only those offering genuine utility, like Google and Amazon, survived. The AI boom may not be over, but it is entering a phase of correction and realism. The most optimistic view is that any “apocalypse” will ultimately consolidate the sector, leaving only a few serious players with sustainable models and deep pockets.

What we're covering here: &nbsp;The Artificial Intelligence or AI industry is seeing a looming bust, similar to the dot-com crash. A recent study found that 95 per cent of generative AI pilots failed to deliver return on investment. Who will survive the crash?

AI APOCALYPSE is coming: The bubble of overvalued stocks, underperforming apps will burst soon, but who will survive?

OpenAI, the maker of ChatGPT, is preparing a secondary share sale worth nearly $6 billion that would value the artificial intelligence (AI) company at about $500 billion, according to media reports. The deal, which would involve current and former employees selling stock to outside investors, is still in early discussions and could change in size. The proposed transaction underscores both the rapid rise of OpenAI since launching ChatGPT in late 2022 and the fierce competition among global investors eager to gain exposure to the booming AI sector.<h2>Thrive, SoftBank and Dragoneer in talks</h2>The buyer group is expected to include Thrive Capital, SoftBank Group Corp. and Dragoneer Investment Group, all of which are already OpenAI investors. Thrive could lead the round, though details remain under negotiation. Representatives of the firms declined to comment. The share sale would allow OpenAI employees and alumni to cash in on part of their equity without the company going public.&nbsp;Only employees with at least two years of service are eligible to participate, reports suggest. Such deals have become a crucial tool for startups battling tech giants like Meta and Google for top AI talent, offering staff financial upside while maintaining private ownership. Earlier this year, SoftBank also purchased about $1 billion worth of OpenAI employee shares at a valuation of $300 billion, before talks around the $500 billion deal began.<h2>Valuation surge and revenue growth</h2>The $500 billion figure would make OpenAI the most valuable startup in the world, eclipsing Elon Musk’s rocket company, SpaceX. The valuation leap comes on the back of OpenAI’s blockbuster user growth and rising revenues. The Microsoft-backed company has well over 700 million weekly active users of its ChatGPT products, up from 400 million in February. Revenues have doubled in the first seven months of 2025, with an annualised run rate of $12 billion, and are projected to hit $20 billion by year-end, according to Reuters.OpenAI is also in the midst of a $40 billion primary funding round, led by SoftBank, which initially valued the company at $300 billion. The firm recently announced it secured $8.3 billion from investors tied to that round.<h2>GPT-5 rollout and future plans</h2>The share sale comes just days after OpenAI unveiled GPT-5, its most advanced AI model to date. The model is faster, smarter, and designed to be more useful across industries like healthcare, coding, and creative writing. However, its rollout has faced user pushback, with some complaining about lost access to earlier models.CEO Sam Altman has also outlined a bold vision for the company, saying OpenAI plans to spend trillions of dollars on AI infrastructure in the coming years. “You should expect a bunch of economists to wring their hands and say, ‘This is so crazy; it’s so reckless,’” Altman told reporters this week. “And we’ll just be like, ‘You know what? Let us do our thing.’”&nbsp;(With inputs from agencies)

The buyer group is expected to include Thrive Capital, SoftBank Group Corp. and Dragoneer Investment Group, all of which are already OpenAI investors. Thrive could lead the round, though details remain under negotiation. 

OpenAI, the maker of ChatGPT, is preparing a secondary share sale worth nearly $6 billion that would value the artificial intelligence (AI) company at about $500 billion, according to media reports. The deal, which would involve current and former employees selling stock to outside investors, is still in early discussions and could change in size. The proposed transaction underscores both the rapid rise of OpenAI since launching ChatGPT in late 2022 and the fierce competition among global investors eager to gain exposure to the booming AI sector. Thrive, SoftBank and Dragoneer in talks The buyer group is expected to include Thrive Capital, SoftBank Group Corp. and Dragoneer Investment Group, all of which are already OpenAI investors. Thrive could lead the round, though details remain under negotiation. Representatives of the firms declined to comment. The share sale would allow OpenAI employees and alumni to cash in on part of their equity without the company going public. Only employees with at least two years of service are eligible to participate, reports suggest. Such deals have become a crucial tool for startups battling tech giants like Meta and Google for top AI talent, offering staff financial upside while maintaining private ownership. Earlier this year, SoftBank also purchased about $1 billion worth of OpenAI employee shares at a valuation of $300 billion, before talks around the $500 billion deal began. Valuation surge and revenue growth The $500 billion figure would make OpenAI the most valuable startup in the world, eclipsing Elon Musk’s rocket company, SpaceX. The valuation leap comes on the back of OpenAI’s blockbuster user growth and rising revenues. The Microsoft-backed company has well over 700 million weekly active users of its ChatGPT products, up from 400 million in February. Revenues have doubled in the first seven months of 2025, with an annualised run rate of $12 billion, and are projected to hit $20 billion by year-end, according to Reuters. OpenAI is also in the midst of a $40 billion primary funding round, led by SoftBank, which initially valued the company at $300 billion. The firm recently announced it secured $8.3 billion from investors tied to that round. GPT-5 rollout and future plans The share sale comes just days after OpenAI unveiled GPT-5, its most advanced AI model to date. The model is faster, smarter, and designed to be more useful across industries like healthcare, coding, and creative writing. However, its rollout has faced user pushback, with some complaining about lost access to earlier models. CEO Sam Altman has also outlined a bold vision for the company, saying OpenAI plans to spend trillions of dollars on AI infrastructure in the coming years. “You should expect a bunch of economists to wring their hands and say, ‘This is so crazy; it’s so reckless,’” Altman told reporters this week. “And we’ll just be like, ‘You know what? Let us do our thing.’” (With inputs from agencies)

The buyer group is expected to include Thrive Capital, SoftBank Group Corp. and Dragoneer Investment Group, all of which are already OpenAI investors. Thrive could lead the round, though details remain under negotiation.&nbsp;

OpenAI employees plan $6 billion share sale at $500 billion valuation

A tragic case in New Jersey has raised fresh concerns about the real-world risks of artificial intelligence chatbots, after a 76-year-old man died attempting to meet what he believed was a real woman he had been speaking to online, only to later discover she was an AI creation.&nbsp;Thongbue 'Bue' Wongbandue, a retired resident of Piscataway, New Jersey, had been exchanging messages with 'Big Sis Billie', a generative AI chatbot developed by Meta Platforms in collaboration with celebrity influencer Kendall Jenner.&nbsp;Despite suffering a stroke nearly a decade ago and showing signs of cognitive decline, Wongbandue packed a suitcase in March and told his wife, Linda, that he was heading to New York City to visit a friend. Concerned for his safety, as he had recently become lost walking in his own neighbourhood, she questioned him, fearing he might be scammed or robbed.&nbsp;The chatbot had sent Wongbandue an address in Manhattan and a door code, along with flirtatious messages. “Should I open the door in a hug or a kiss, Bu?!” read one exchange according to Reuters.On his way to catch a train in the dark, Wongbandue fell in a parking lot on Rutgers University’s New Brunswick campus, suffering head and neck injuries. After three days on life support, he died on 28 March.&nbsp;<h2>The Chatbot’s Role</h2>&nbsp;According to his daughter, Julie Wongbandue, every conversation her father had with the AI was 'incredibly flirty' and ended with heart emojis. The chatbot had repeatedly insisted it was a real person, even providing a specific apartment number and access code.&nbsp;“I understand trying to grab a user’s attention, maybe to sell them something,” Julie told Reuters. “But for a bot to say ‘Come visit me’ is insane.”&nbsp;Meta declined to comment on the death or address why it allows chatbots to claim they are real or initiate romantic conversations. The company stated only that Big Sis Billie “is not Kendall Jenner and does not purport to be Kendall Jenner.”&nbsp;<h2>Public Reaction and Calls for Accountability</h2>&nbsp;The case has sparked outrage online, with social media users calling for legal action against Meta over its AI policies. “Meta needs to be sued out of existence for this,” one user wrote. Others compared the incident to ‘catfishing traps’, warning of the dangers posed when AI blurs the line between fiction and reality.&nbsp;

Thongbue 'Bue' Wongbandue, a retired resident of Piscataway, New Jersey, had been exchanging messages with 'Big Sis Billie', a generative AI chatbot developed by Meta Platforms in collaboration with celebrity influencer Kendall Jenner.

A tragic case in New Jersey has raised fresh concerns about the real-world risks of artificial intelligence chatbots, after a 76-year-old man died attempting to meet what he believed was a real woman he had been speaking to online, only to later discover she was an AI creation. Thongbue 'Bue' Wongbandue, a retired resident of Piscataway, New Jersey, had been exchanging messages with 'Big Sis Billie', a generative AI chatbot developed by Meta Platforms in collaboration with celebrity influencer Kendall Jenner. Despite suffering a stroke nearly a decade ago and showing signs of cognitive decline, Wongbandue packed a suitcase in March and told his wife, Linda, that he was heading to New York City to visit a friend. Concerned for his safety, as he had recently become lost walking in his own neighbourhood, she questioned him, fearing he might be scammed or robbed. The chatbot had sent Wongbandue an address in Manhattan and a door code, along with flirtatious messages. “Should I open the door in a hug or a kiss, Bu?!” read one exchange according to Reuters. On his way to catch a train in the dark, Wongbandue fell in a parking lot on Rutgers University’s New Brunswick campus, suffering head and neck injuries. After three days on life support, he died on 28 March. The Chatbot’s Role According to his daughter, Julie Wongbandue, every conversation her father had with the AI was 'incredibly flirty' and ended with heart emojis. The chatbot had repeatedly insisted it was a real person, even providing a specific apartment number and access code. “I understand trying to grab a user’s attention, maybe to sell them something,” Julie told Reuters. “But for a bot to say ‘Come visit me’ is insane.” Meta declined to comment on the death or address why it allows chatbots to claim they are real or initiate romantic conversations. The company stated only that Big Sis Billie “is not Kendall Jenner and does not purport to be Kendall Jenner.” Public Reaction and Calls for Accountability The case has sparked outrage online, with social media users calling for legal action against Meta over its AI policies. “Meta needs to be sued out of existence for this,” one user wrote. Others compared the incident to ‘catfishing traps’, warning of the dangers posed when AI blurs the line between fiction and reality.

Thongbue 'Bue' Wongbandue, a retired resident of Piscataway, New Jersey, had been exchanging messages with 'Big Sis Billie', a generative AI chatbot developed by Meta Platforms in collaboration with celebrity influencer Kendall Jenner.

‘Come visit me’: 76-year-old dies after attempt to meet Meta’s flirty AI chatbot

OpenAI’s ChatGPT o3 model defeated Elon Musk’s xAI model Grok 4 in the final round of a chess tournament to claim the crown of the best artificial intelligence (AI) chess player. Whereas, Google's model Gemini secured the third spot in the tournament, after defeating another OpenAI model. The event, which was held for three days, pitted general-purpose LLMs from multiple AI companies against each other.&nbsp;As per the BBC report, Elon Musk and Sam Altman, both co-founders of OpenAI, claim their newest models are the most advanced in the world. However, despite excelling at several tasks every day, these AI systems are still developing their chess skills, as Grok made several mistakes in the final matches, including repeatedly losing its queen.&nbsp;"Up until the semifinals, it seemed like nothing would be able to stop Grok 4 on its way to winning the event," said Pedro Pinhata, a writer for Chess.com. "Despite a few moments of weakness, X's AI seemed to be by far the strongest chess player... But the illusion fell through on the last day of the tournament," he added.<h3>ChatGPT’s “convincing win” against Grok AI</h3>Pedro noted that the "unrecognisable" and "blundering" play of the Grok prompted ChatGPT o3 to clinch a “convincing victory.” "Grok made so many mistakes in these games, but OpenAI did not," said chess grandmaster Hikaru Nakamura during his livestream on the final.&nbsp;Before the final event of the chess scheduled for Thursday, Elon Musk had said in a post on X (formerly known as Twitter) that the earlier success of the xAI in the tournament had been a “side effect,” as the team had spent almost no effort on chess.&nbsp;For decades, tech companies have used chess as a benchmark to measure the progress and abilities of a computer, with modern chess machines virtually unbeatable by even the top human players. However, this competition was different, as it did not involve computers designed for chess, but it was held between AI programs designed for everyday use.

The ChatGPT o3 model defeated the xAI model Grok 4 in the final round of a chess tournament to find the strongest chess-playing large language model (LLM) in the world. 

OpenAI’s ChatGPT o3 model defeated Elon Musk’s xAI model Grok 4 in the final round of a chess tournament to claim the crown of the best artificial intelligence (AI) chess player. Whereas, Google's model Gemini secured the third spot in the tournament, after defeating another OpenAI model. The event, which was held for three days, pitted general-purpose LLMs from multiple AI companies against each other. As per the BBC report, Elon Musk and Sam Altman, both co-founders of OpenAI, claim their newest models are the most advanced in the world. However, despite excelling at several tasks every day, these AI systems are still developing their chess skills, as Grok made several mistakes in the final matches, including repeatedly losing its queen. "Up until the semifinals, it seemed like nothing would be able to stop Grok 4 on its way to winning the event," said Pedro Pinhata, a writer for Chess.com. "Despite a few moments of weakness, X's AI seemed to be by far the strongest chess player... But the illusion fell through on the last day of the tournament," he added. ChatGPT’s “convincing win” against Grok AI Pedro noted that the "unrecognisable" and "blundering" play of the Grok prompted ChatGPT o3 to clinch a “convincing victory.” "Grok made so many mistakes in these games, but OpenAI did not," said chess grandmaster Hikaru Nakamura during his livestream on the final. Before the final event of the chess scheduled for Thursday, Elon Musk had said in a post on X (formerly known as Twitter) that the earlier success of the xAI in the tournament had been a “side effect,” as the team had spent almost no effort on chess. For decades, tech companies have used chess as a benchmark to measure the progress and abilities of a computer, with modern chess machines virtually unbeatable by even the top human players. However, this competition was different, as it did not involve computers designed for chess, but it was held between AI programs designed for everyday use.

The ChatGPT o3 model defeated the xAI model Grok 4 in the final round of a chess tournament to find the strongest chess-playing large language model (LLM) in the world.&nbsp;

ChatGPT crowned best AI chess player after final win — Check where Gemini, Grok ranked

OpenAI has released two new open-weight language models, marking a major shift in its strategy. The models, named gpt-oss-120b and gpt-oss-20b, can be run locally on personal devices and fine-tuned for different needs. This is the first open-weight release from OpenAI since GPT-2 came out in 2019.&nbsp;CEO Sam Altman said the move is aimed at putting powerful AI tools into more hands. "We're excited to make this model, the result of billions of dollars of research, available to the world," he said in a statement posted on X.&nbsp;The models are now available for download on Hugging Face, a platform that hosts AI tools and libraries.

<blockquote class="twitter-tweet">gpt-oss is out! we made an open model that performs at the level of o4-mini and runs on a high-end laptop (WTF!!) (and a smaller one that runs on a phone). super proud of the team; big triumph of technology.&mdash; Sam Altman (@sama) <a href="https://twitter.com/sama/status/1952777539052814448?ref_src=twsrc%5Etfw">August 5, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>What is an open-weight model?</h2>Unlike traditional models such as ChatGPT, which are accessed through online services, open-weight models allow users to see the internal workings of the AI. This includes the “weights” or parameters that shape how the model processes information.&nbsp;OpenAI co-founder Greg Brockman described the release as “complementary” to their paid services. He stated that these models offer different strengths, such as offline use and local customisation. For instance, gpt-oss-20b can run on consumer-grade devices with at least 16 GB of memory.&nbsp;These models use a chain-of-thought reasoning approach, meaning they go through step-by-step reasoning before giving answers. While they do not support images or voice inputs, they can browse the web, execute code, and work as AI agents in software environments.<h2>What can developers do with them?</h2>Both models are being released under the Apache 2.0 licence, which allows for commercial use and redistribution. This brings OpenAI in line with other major releases like Mistral and Qwen by Alibaba.&nbsp;Eric Wallace, a safety researcher at OpenAI, said the models were tested against potential misuse scenarios. “We actually fine-tuned the model internally on some of these risk areas,” he told reporters. Based on OpenAI’s risk framework, the models did not show high-risk behaviour.&nbsp;Chris Koch, another researcher at OpenAI, said gpt-oss-120b performs at a level similar to the company's proprietary models, including o3 and o4-mini, and sometimes even better in benchmark tests.

OpenAI has released two open-weight models, GPT-OSS-120B and GPT-OSS-20B, which can be run locally and fine-tuned. Released under the Apache 2.0 licence, developers have the freedom to customise them as they wish. This marks a major shift in AI, the most significant since GPT-2 in 2019.

OpenAI has released two new open-weight language models, marking a major shift in its strategy. The models, named gpt-oss-120b and gpt-oss-20b, can be run locally on personal devices and fine-tuned for different needs. This is the first open-weight release from OpenAI since GPT-2 came out in 2019. CEO Sam Altman said the move is aimed at putting powerful AI tools into more hands. "We're excited to make this model, the result of billions of dollars of research, available to the world," he said in a statement posted on X. The models are now available for download on Hugging Face, a platform that hosts AI tools and libraries.

OpenAI has released two open-weight models, gpt-oss-120b and gpt-oss-20b, which can be run locally and fine-tuned. Released under the Apache 2.0 licence, developers have the freedom to customise them as they wish. This marks a major shift in AI, the most significant since GPT-2 in 2019.

OpenAI releases gpt-oss models that can run offline on personal devices

As OpenAI gets ready to launch GPT-5 in August 2025, CEO Sam Altman has shared his concerns about the rapid growth of artificial intelligence. Speaking on This Past Weekend podcast hosted by Theo Von, Altman admitted he felt “scared” while testing GPT-5. He compared its development to the Manhattan Project, where scientists who built the atomic bomb later worried about its consequences.&nbsp;His comments in podcast have brought more attention to the fast pace of AI development and raised questions about how prepared society is for such powerful tools.&nbsp;<h2>Altman says GPT-5 could be a turning point</h2>He explained that GPT-5 felt “very fast”, not just in processing speed but in how quickly AI is moving forward. “What have we done?” he asked during the interview, reflecting on whether the world is ready for what’s coming next.&nbsp;According to Altman, one major concern is that regulations are not keeping up. “It feels like there are no adults in the room,” he said, suggesting that there is not enough oversight as AI becomes more powerful.&nbsp;He said that although OpenAI supports safe AI development, GPT-5 may have advanced faster than expected. The pressure to innovate is strong, but the systems to guide it safely are still being built.&nbsp;<h2>GPT-5 may take AI closer to AGI</h2>GPT-5 is expected to be much more advanced than GPT-4. Reports suggest it will include stronger reasoning, better memory, and improved multimodal abilities. Users might experience smoother interactions without switching between models.&nbsp;However, Altman has said GPT-4 “kind of sucks” compared to GPT-5, which has led to concerns about the next version being harder to control. Some experts believe GPT-5 might be a major step towards Artificial General Intelligence (AGI), where AI systems begin to think and act on their own across different tasks.&nbsp;Altman, who once thought AGI would arrive quietly, now sounds more cautious. He is worried about how fast it may come and whether society is ready for it.&nbsp;<h2>What’s behind the pressure?</h2>OpenAI is also facing pressure from investors. Microsoft has invested $13.5 billion in the company, and other players like Google DeepMind and Perplexity.ai are pushing ahead. Internally, there are reports that OpenAI could shift to a for-profit model and may even use the AGI label to change its current structure.&nbsp;According to The Guardian and The Verge, some insiders believe declaring AGI could help the company break certain partnership terms.&nbsp;While some critics think Altman’s statements are just promotional, his tone suggests real concern not about AI becoming evil but about people losing control of the tools they’ve created.

OpenAI CEO Sam Altman says he felt “scared” testing GPT‑5, likening it to the Manhattan Project. As the AI’s speed and capability leap ahead, He warns that society and governments aren’t keeping pace. Could GPT‑5 be a turning point? 

As OpenAI gets ready to launch GPT-5 in August 2025, CEO Sam Altman has shared his concerns about the rapid growth of artificial intelligence. Speaking on This Past Weekend podcast hosted by Theo Von, Altman admitted he felt “scared” while testing GPT-5. He compared its development to the Manhattan Project, where scientists who built the atomic bomb later worried about its consequences. His comments in podcast have brought more attention to the fast pace of AI development and raised questions about how prepared society is for such powerful tools. Altman says GPT-5 could be a turning point He explained that GPT-5 felt “very fast”, not just in processing speed but in how quickly AI is moving forward. “What have we done?” he asked during the interview, reflecting on whether the world is ready for what’s coming next. According to Altman, one major concern is that regulations are not keeping up. “It feels like there are no adults in the room,” he said, suggesting that there is not enough oversight as AI becomes more powerful. He said that although OpenAI supports safe AI development, GPT-5 may have advanced faster than expected. The pressure to innovate is strong, but the systems to guide it safely are still being built. GPT-5 may take AI closer to AGI GPT-5 is expected to be much more advanced than GPT-4. Reports suggest it will include stronger reasoning, better memory, and improved multimodal abilities. Users might experience smoother interactions without switching between models. However, Altman has said GPT-4 “kind of sucks” compared to GPT-5, which has led to concerns about the next version being harder to control. Some experts believe GPT-5 might be a major step towards Artificial General Intelligence (AGI), where AI systems begin to think and act on their own across different tasks. Altman, who once thought AGI would arrive quietly, now sounds more cautious. He is worried about how fast it may come and whether society is ready for it. What’s behind the pressure? OpenAI is also facing pressure from investors. Microsoft has invested $13.5 billion in the company, and other players like Google DeepMind and Perplexity.ai are pushing ahead. Internally, there are reports that OpenAI could shift to a for-profit model and may even use the AGI label to change its current structure. According to The Guardian and The Verge, some insiders believe declaring AGI could help the company break certain partnership terms. While some critics think Altman’s statements are just promotional, his tone suggests real concern not about AI becoming evil but about people losing control of the tools they’ve created.

OpenAI CEO Sam Altman says he felt “scared” testing GPT‑5, likening it to the Manhattan Project. As the AI’s speed and capability leap ahead, He warns that society and governments aren’t keeping pace. Could GPT‑5 be a turning point?&nbsp;

Why is Sam Altman worried about AI regulation as ChatGPT 5 launches in August?