Pulse

The Middle East was poised to become a major hub for data center development, attracting significant global investment due to cheap energy, available capital, and government support. Nations like the UAE, Qatar, and Saudi Arabia had launched national AI strategies and were seen as prime locations for building AI infrastructure. However, recent geopolitical escalations, including drone and missile attacks on data centers in the UAE and Bahrain, have introduced significant uncertainty. AI

OpenAI CEO Sam Altman is testifying in court against Elon Musk, who is suing the AI company for allegedly betraying its founding mission. Altman defended his business practices, stating he is an honest person and that Musk himself was supportive of OpenAI's for-profit ventures. The trial, now in its third week, could significantly impact OpenAI's future, especially as it prepares for a potential $1 trillion IPO. Testimony has also touched upon concerns regarding OpenAI's AI safety protocols and the company's shift from a research-focused entity to a product-driven one. AI

Anthropic has issued a warning to investors regarding unauthorized secondary platforms that are offering access to its shares. The AI company explicitly named several platforms, stating that any transactions facilitated by them are void and will not be recognized. This action comes as demand for shares in AI companies surges, with Anthropic being a particularly sought-after stock on secondary markets. The company is reinforcing its transfer restrictions, making it clear that any share sales or transfers not approved by its board are invalid. AI

Israel's military is employing an artificial intelligence system to identify and target individuals associated with Hezbollah. This AI fuses data from various sources, including smartphones, cameras, and social media, to track targets. Experts express concern that such AI-driven systems could lead to misidentification and unintended civilian casualties. AI

A massive 9-gigawatt data center project, dubbed the "Stratos Project" or "Wonder Valley," backed by Kevin O'Leary, has been approved in rural Utah despite significant local opposition and environmental concerns. Residents and environmental groups are protesting the project's enormous energy and water consumption, which could exceed the state's current electricity usage and negatively impact the Great Salt Lake ecosystem. O'Leary argues the facility is crucial for national security and the U.S. AI race against China, claiming it will create thousands of jobs and that opposition is fueled by misinformation. AI

Apple is reportedly planning to allow users to select third-party AI models to power its native AI features in upcoming operating system updates, including iOS 27. This new AI

Elon Musk is suing OpenAI, alleging the company has strayed from its nonprofit origins and become a for-profit entity that has "looted a charity." During his testimony, Musk admitted to donating $38 million to OpenAI, a fraction of his initial $1 billion pledge, and acknowledged that xAI has distilled OpenAI models to train its Grok model. OpenAI's legal team presented evidence suggesting Musk himself had pushed for a for-profit structure and sought control of the company in its early days. The trial has revealed contentious exchanges and conflicting accounts from both sides regarding OpenAI's founding principles and Musk's involvement. AI

A report highlights six critical chokepoints in the AI supply chain, emphasizing China's dominance in processing 90% of rare earth minerals. The analysis maps the entire process from mining to AI model development, underscoring geopolitical control over essential components like GPUs, HBM chips, and data center cooling systems. AI

The White House is considering an executive order that would require government review of new AI models before their release, a move reportedly prompted by Anthropic's Mythos model. This potential policy shift was discussed with executives from Anthropic, Google, and OpenAI. Meanwhile, major tech companies like Google, Microsoft, Amazon, and Meta are significantly increasing their AI spending, collectively up 71% year-over-year, though Meta's shares saw a dip after its plans were revealed. AI

Elon Musk is suing OpenAI, alleging that Sam Altman betrayed the company's original nonprofit mission by shifting it to a for-profit model. Court documents and testimonies are surfacing, including emails and texts, as both Musk and Altman present their cases. The lawsuit centers on Musk's claim that Altman tricked him into funding an organization that was meant to benefit humanity, not generate profit. This legal battle highlights the complex history and evolving tensions surrounding OpenAI's development and commercialization. AI

Seven families of victims from the Tumbler Ridge, Canada mass shooting have filed lawsuits against OpenAI and CEO Sam Altman. The suits allege negligence and aiding and abetting the attack by failing to alert authorities about the shooter's concerning ChatGPT activity. Reports indicate OpenAI's safety team flagged the shooter's references to gun violence months before the incident, but leadership allegedly vetoed reporting it to the police, potentially to protect the company's valuation. AI

Taiwanese drone company Thunder Tiger is pivoting to a China-free supply chain, aiming to provide low-cost, AI-enabled suicide drones for military use. The company's general manager, Gene Su, highlighted the cost asymmetry between expensive missiles and affordable drones, drawing lessons from conflicts in Ukraine and Iran. This strategic shift is driven by Taiwan's geopolitical situation and aims to counter China's dominance in the global drone market, with the government supporting the production of 180,000 homegrown drones by 2028. AI

Nvidia CEO Jensen Huang was notably absent from President Trump's upcoming state visit to China, a move interpreted by experts as a signal of the U.S. maintaining its stance on restricting advanced AI chip exports. This exclusion, despite Huang's previous inclusion in presidential delegations, comes as China's domestic chip industry grows in response to U.S. sanctions. The situation highlights ongoing trade tensions, particularly concerning access to high-end AI hardware like Nvidia's latest GPUs. AI

Elon Musk initiated a $130 billion lawsuit against OpenAI, alleging CEO Sam Altman "stole a charity," while OpenAI's defense characterized the suit as "sour grapes." The trial began with opening statements, with Musk testifying about the potential damage to charitable giving if such actions are deemed acceptable. Concurrently, Google finalized a classified AI deal with the Pentagon, allowing its models like Gemini for "any lawful government purpose," despite internal employee protests. This Pentagon agreement follows similar deals by OpenAI and xAI, and comes as Google's AI principles have evolved since 2018. AI

The European Commission has issued proposed measures to Google, requiring the company to grant AI competitors access to core Android functionalities. This move aims to ensure compliance with the EU's Digital Markets Act, as Google currently reserves key capabilities like voice activation and background processes for its own Gemini AI services. Separately, Microsoft and OpenAI have adjusted their partnership terms, with Microsoft no longer receiving revenue share from OpenAI but maintaining IP licensing until 2032, while continuing as OpenAI's primary cloud partner. AI

The European Commission has proposed new measures under the Digital Markets Act (DMA) that would require Google to grant third-party AI services deeper access to Android's core functionalities. Currently, features like sending emails or sharing photos are largely exclusive to Google's own AI offerings, such as Gemini. The Commission aims to ensure rival AI assistants can integrate with applications and perform tasks on user devices with the same ease as Google's native tools, fostering greater competition and user choice. AI

OpenAI has released GPT-5.5, positioning it as a significant step towards an integrated AI "super app" that combines chat, coding, and browsing functionalities. The company also launched an upgraded image generation tool, ChatGPT Images 2.0, which offers improved layouts and text rendering, though its practical usability for complex tasks remains a concern. Meanwhile, Google is reportedly planning to embed its Gemini AI deeply into Android 17, aiming to automate everyday tasks by allowing users to describe their needs and have the AI manage app interactions seamlessly across devices. AI

During the ongoing Musk v. OpenAI trial, new evidence has emerged regarding Elon Musk's past attempts to recruit OpenAI's CEO, Sam Altman, to Tesla and his alleged efforts to gain control of OpenAI. Emails presented in court suggest Musk offered Altman a Tesla board seat and explored integrating an AI lab within Tesla, aiming to absorb OpenAI. The trial also revealed Musk's admission that his company xAI's Grok model was trained using data distilled from OpenAI's models, a practice he described as common in the industry, despite suing OpenAI for allegedly betraying its non-profit mission. AI

Project Maven, a controversial military AI initiative, has significantly accelerated the pace of warfare by using computer vision and workflow management to identify and target entities on the battlefield. Initially a Google experiment, the system was developed by Palantir with contributions from Microsoft, Amazon, and Anthropic, and is now used by the US armed forces and NATO. The system's speed has been linked to lethal outcomes, such as the targeting of a girls' school, with critics pointing to the AI's role in enabling rapid, potentially flawed, decision-making. Concerns are also rising about Anthropic's Claude model exhibiting political bias, with users reporting instances of it labeling criticism of Zionism as antisemitic. AI

China has suspended new autonomous vehicle licenses following an incident where dozens of Baidu's robotaxis malfunctioned in Wuhan. This regulatory pause will prevent companies from expanding their driverless fleets or initiating new test projects. The move comes as Chinese automakers are increasingly focusing on autonomous driving technology, with significant investments being made in AI and computing power for these systems. AI

Nvidia CEO Jensen Huang announced a partnership with Corning to boost US AI infrastructure, focusing on optical connections to meet escalating computational demands. This collaboration aims to significantly increase US optical fiber production capacity. Meanwhile, the US has accused China of large-scale industrial campaigns to steal AI secrets, a claim China denies as slander. Separately, the US is seeing a surge in local bans on new data center construction due to concerns over resource strain and environmental impact. AI