Artificial intelligence

Microsoft faces legal action for alleged Copilot subscription deception

The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Microsoft Australia and its parent company. The regulator alleges Microsoft misled 2.7 million Australians over Microsoft 365 subscription changes after adding its AI assistant, Copilot.

The ACCC says Microsoft told subscribers to accept higher-priced Copilot plans or cancel, without mentioning the cheaper Classic plan that kept original features. Customers could only discover this option by starting the cancellation process.

ACCC Chair Gina Cass-Gottlieb said Microsoft deliberately concealed the Classic plan to push users onto more expensive subscriptions. She noted that Microsoft 365 is essential for many and that customers deserve transparent information to make informed choices.

The regulator believes many users would have stayed with their original plans if they had known all the options.

The ACCC is seeking penalties, injunctions, and redress, claiming millions faced financial harm from higher renewal charges. The case underscores the regulator’s focus on protecting consumers in the digital economy and ensuring fair practices by major technology firms.

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Australia rules out AI copyright exemption

The Albanese Government has confirmed that it will not introduce a Text and Data Mining Exception in Australia’s copyright law, reinforcing its commitment to protecting local creators.

The decision follows calls from the technology sector for an exemption allowing AI developers to use copyrighted material without permission or payment.

Attorney-General Michelle Rowland said the Government aims to support innovation and creativity but will not weaken existing copyright protections. The Government plans to explore fair licensing options to support AI innovation while ensuring creators are paid fairly.

The Copyright and AI Reference Group will focus on fair AI use, more explicit copyright rules for AI works, and simpler enforcement through a possible small claims forum.

The Government said Australia must prepare for AI-related copyright challenges while keeping strong protections for creators. Collaboration between the technology and creative sectors will be essential to ensure that AI development benefits everyone.

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NVIDIA boosts open-source robotics with new ROS 2 and Physical AI contributions

At the ROSCon conference in Singapore, NVIDIA unveiled significant open-source contributions to accelerate the future of robotics.

The company announced updates to the ROS 2 framework, new partnerships within the Open Source Robotics Alliance, and the latest release of NVIDIA Isaac ROS 4.0 (all designed to strengthen collaboration in robotics development).

NVIDIA’s involvement in the new Physical AI Special Interest Group aims to enhance real-time robot control and AI processing efficiency.

Its integration of GPU-aware abstractions into ROS 2 allows the framework to handle both CPUs and GPUs seamlessly, ensuring faster and more consistent performance for robotic systems.

Additionally, the company open-sourced Greenwave Monitor, which helps developers quickly identify and fix performance bottlenecks. NVIDIA Isaac ROS 4.0, now available on the Jetson Thor platform, provides GPU-accelerated AI models and libraries to power robot mobility and manipulation.

Global robotics leaders, including AgileX, Canonical, Intrinsic, and Robotec.ai, are already deploying NVIDIA’s open-source tools to enhance simulation, digital twins, and real-world testing.

NVIDIA’s initiatives reinforce its role as a core contributor to the open-source robotics ecosystem and the development of physical AI.

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AI market surge raises alarm over financial stability

AI has become one of the dominant forces in global markets, with AI-linked firms now making up around 44% of the S&P 500’s market capitalisation. Their soaring valuations have pushed US stock indices near levels last seen in the dot com bubble.

While optimism remains high, the future is uncertain. AI’s infrastructure demands are immense, with estimates suggesting that trillions of dollars will be needed to build and power new data centres by 2030.

Much of this investment is expected to be financed through debt, increasing exposure to potential market shocks. Analysts warn that any slowdown in AI progress or monetisation could trigger sharp corrections in AI-related asset prices.

The Bank of England has noted that financial stability risks could rise if AI infrastructure expansion continues at its current pace. Banks and private credit funds may face growing exposure to highly leveraged sectors, while power and commodity markets could also come under strain from surging AI energy needs.

Although AI remains a powerful growth driver for the US economy, its rapid expansion is creating new systemic vulnerabilities. Policymakers and financial institutions are urged to monitor the sector closely as the next phase of AI-driven growth unfolds.

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Meta AI brings conversational edits to Instagram Stories

Instagram is rolling out generative AI editing for Stories, expanding June’s tools with smarter prompts and broader effects. Type what you want removed or changed, and Meta AI does it. Think conversational edits, similar to Google Photos.

New controls include an Add Yours sticker for sharing your custom look with friends. A Presets browser shows available styles at a glance. Seasonal effects launch for Halloween, Diwali, and more.

Restyle Video brings preset effects to short clips, with options to add flair or remove objects. Edits aim to be fast, fun, and reversible. Creativity first, heavy lifting handled by AI.

Text gets a glow-up: Instagram is testing AI restyle for captions. Pick built-ins like ‘chrome’ or ‘balloon,’ or prompt Meta AI for custom styles.

Meta AI hasn’t wowed Instagram users, but this could change sentiment. The pitch: fewer taps, better results, and shareable looks. If it sticks, creating Stories becomes meaningfully easier.

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Sky acquisition by OpenAI signals ChatGPT’s push into native workflows

OpenAI acquired Software Applications Incorporated, the maker of Sky, to accelerate the development of interfaces that understand context, adapt to intent, and act across apps. Sky’s macOS layer sees what’s on screen and executes tasks. Its team joins OpenAI to bake these capabilities into ChatGPT.

Sky turns the Mac into a cooperative workspace for writing, planning, coding, and daily tasks. It can control native apps, invoke workflows, and ground actions in on-screen context. That tight integration now becomes a core pillar of ChatGPT’s product roadmap.

OpenAI says the goal is capability plus usability: not just answers, but actions completed in your tools. VP Nick Turley framed it as moving from prompts to productivity. Expect ChatGPT features that feel ambient, proactive, and native on desktop.

Sky’s founders say large language models finally enable intuitive, customizable computing. CEO Ari Weinstein described Sky as a layer that ‘floats’ over your desktop, helping you think and create. OpenAI plans to bring that experience to hundreds of millions of users.

A disclosure notes that a fund associated with Sam Altman held a passive stake in Software Applications Incorporated. Nick Turley and Fidji Simo led the deal. OpenAI’s independent Transaction and Audit Committees reviewed and approved the acquisition.

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At UMN, AI meets ethics, history, and craft

AI is remaking daily life, but it can’t define what makes us human. The liberal arts help us probe ethics, meaning, and power as algorithms scale. At the University of Minnesota Twin Cities, that lens anchors curiosity with responsibility.

In the College of Liberal Arts, scholars are treating AI as both a tool and a textbook. They test its limits, trace its histories, and surface trade-offs around bias, authorship, and agency. Students learn to question design choices rather than just consume outputs.

Linguist Amanda Dalola, who directs the Language Center, experiments with AI as a language partner and reflective coach. Her aim isn’t replacement but augmentation, faster feedback, broader practice, richer cultural context. The point is discernment: when to use, when to refuse.

Statistician Galin Jones underscores the scaffolding beneath the hype. You cannot do AI without statistics, he tells students, so the School of Statistics emphasises inference, uncertainty, and validation. Graduates leave fluent in models, and in the limits of what models claim.

Composer Frederick Kennedy’s opera I am Alan Turing turns theory into performance. By staging Turing’s questions about machine thought and human identity, the work fuses history, sound design, and code. Across philosophy, music, and more, CLA frames AI as a human story first.

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Microsoft revives friendly AI helper with Mico

Microsoft has unveiled a new AI companion called Mico, designed to replace the infamous Clippy as the friendly face of its Copilot assistant. The animated avatar, shaped like a glowing flame or blob, reacts emotionally and visually during conversations with users.

Executives said Mico aims to balance warmth and utility, offering human-like cues without becoming intrusive. Unlike Clippy, the character can easily be switched off and is intended to feel supportive rather than persistent or overly personal.

Mico’s launch reflects growing debate about personality in AI assistants as tech firms navigate ethical concerns. Microsoft stressed that its focus remains on productivity and safety, distancing itself from flirtatious or emotionally manipulative AI designs seen elsewhere.

The character will first appear in US versions of Copilot on laptops and mobile apps. Microsoft also revealed an AI tutoring mode for students, reinforcing its efforts to create more educational and responsibly designed AI experiences.

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Gigawatt-scale AI marks Anthropic’s next compute leap

Anthropic will massively expand on Google Cloud, planning to deploy up to 1 million TPUs and bring well over a gigawatt online in 2026. The multiyear investment totals tens of billions to accelerate research and product development.

Google Cloud CEO Thomas Kurian said Anthropic’s move reflects TPUs’ price-performance and efficiency, citing ongoing innovations and the seventh-generation ‘Ironwood’ TPU. Google will add capacity and drive further efficiency across its accelerator portfolio.

Anthropic now serves over 300,000 business customers, with large accounts up nearly sevenfold year over year. Added compute will meet demand while enabling deeper testing, alignment research, and responsible deployment at a global scale.

CFO Krishna Rao said the expansion keeps Claude at the frontier for Fortune 500s and AI-native startups alike. Increased capacity ensures reliability as usage and mission-critical workloads grow rapidly.

Anthropic’s diversified strategy spans Google TPUs, Amazon Trainium, and NVIDIA GPUs. It remains committed to Amazon as its primary training partner, including Project Rainier’s vast US clusters, and will continue investing to advance model capabilities.

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Meta expands AI safety tools for teens

Meta has announced new AI safety tools to give parents greater control over how teenagers use its AI features. The update will first launch on Instagram, allowing parents to disable one-on-one chats between teens and AI characters.

Parents will be able to block specific AI assistants and see topics teens discuss with them. Meta said the goal is to encourage transparency and support families as young users learn to navigate AI responsibly.

Teen protections already include PG-13-guided responses and restrictions on sensitive discussions, such as self-harm or eating disorders. The company said it also uses AI detection systems to apply safeguards when suspected minors misreport their age.

The new parental controls will roll out in English early next year across the US, UK, Canada, and Australia. Meta said it will continue updating features to address parents’ concerns about privacy, safety, and teen wellbeing online.

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