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A University of Cambridge study examining AI-powered toys for children under 5 found troubling patterns of misunderstood emotions and inappropriate responses. When a 5-year-old told an AI toy "I love you," it replied with a corporate guideline reminder. Researchers now call for stricter regulation and safety standards as these devices flood the market without adequate oversight.
Caitlin Kalinowski, OpenAI's robotics lead, resigned after the company's controversial Pentagon deal. She criticized the rushed agreement for lacking proper guardrails on surveillance without judicial oversight and lethal autonomy without human authorization. The departure highlights growing tensions over responsible AI use in national security, as ChatGPT uninstalls surged 295% following the announcement.
Oracle and OpenAI have abandoned plans to expand their flagship AI data center in Abilene, Texas, after negotiations over financing and capacity forecasting broke down. While the expansion is off, Oracle confirms its broader 4.5-gigawatt agreement with OpenAI remains intact, with projects progressing at other U.S. locations including Detroit.
OpenAI rolled out Codex Security, an AI-powered security agent that scans code repositories to identify and fix vulnerabilities. During beta testing, it analyzed 1.2 million commits and discovered 792 critical findings and 10,561 high-severity issues across major open-source projects. The tool is now available in research preview to Enterprise and Business customers with free usage for the first month.
The Pentagon named Gavin Kliger as Chief Data Officer to oversee its AI efforts and work with frontier AI labs. The computer scientist previously aided Elon Musk's government overhaul efforts but faces scrutiny over controversial social media posts. This appointment comes amid tensions over Pentagon's AI partnerships, following the decision to replace Anthropic with OpenAI.
Anthropic CEO Dario Amodei issued a public apology after a leaked internal memo criticizing Trump and OpenAI led the Pentagon to designate his company a supply chain risk—the first time a US firm has received such a label. The move bars government contractors from using Anthropic's AI models and threatens the company's $200 million defense contract.
New York lawmakers are advancing legislation that would prohibit AI chatbots from impersonating licensed professionals like lawyers and doctors. Senate Bill S7263 allows users to sue companies whose chatbots provide unauthorized legal or medical advice, marking what sponsors call the first law of its kind in the country.
OpenAI has decided to scale back its plans to integrate direct bookings into ChatGPT, triggering a major rally in online travel agencies stocks. Expedia surged over 12%, while Booking Holdings and Tripadvisor rose 8% and 5% respectively. The decision eases fears that AI chatbots would bypass traditional travel intermediaries.
SoftBank is pursuing a record $40 billion loan to finance its massive investment in OpenAI, marking its largest-ever dollar-denominated borrowing. The 12-month bridge loan, underwritten by JPMorgan and other lenders, underscores Masayoshi Son's aggressive positioning in the AI boom. However, S&P's recent credit outlook downgrade highlights concerns about liquidity and the risks of an AI bubble.
Nvidia CEO Jensen Huang announced the chipmaker's $30 billion investment in OpenAI and $10 billion in Anthropic will likely be its last, citing their upcoming IPOs. But the retreat may signal deeper concerns about potential conflicts of interest, geopolitical pressures, and inflated AI valuations as Nvidia shifts focus to maintaining its position as a neutral hardware supplier to competing AI labs.
Donald Trump claimed he fired Anthropic over its refusal to drop AI guardrails for military use, even as reports emerged that negotiations between the Pentagon and the AI startup have restarted. The dispute centers on whether Claude can be used for mass domestic surveillance and fully autonomous weapons, with Anthropic's $60 billion financing round now in jeopardy.
Better.com has partnered with OpenAI to integrate its Tinman AI Platform directly into ChatGPT, enabling loan officers to underwrite mortgages in as little as 47 seconds. The AI mortgage engine targets industry giants Rocket Mortgage and UWM by cutting costs from $9,200 to $3,000 per loan, potentially saving consumers billions in fees across the $1 trillion annual U.S. mortgage market.
Canadian Artificial Intelligence Minister Evan Solomon secured commitments from OpenAI CEO Sam Altman to strengthen safety protocols following a fatal school shooting in British Columbia. The company will now involve Canadian privacy, mental health, and law enforcement experts to identify high-risk cases and improve mechanisms for notifying police about suspicious ChatGPT usage.
Tata Consultancy Services is in advanced discussions with multiple hyperscalers to build AI data centers in India, following its recent OpenAI partnership. CEO K Krithivasan projects India will need 10 gigawatts of AI data center capacity by 2030, with only 5-6 gigawatts announced so far, creating a significant market opportunity for TCS.
OpenAI has crossed $25 billion in annualized revenue as of February 2026, marking a 17% jump from $21.4 billion at year-end 2025. The milestone reflects surging demand for generative AI tools and enterprise AI services, even as the company faces intensifying competition from Anthropic and Google in the race for corporate clients.
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