Grok chatbot relies on Musk’s views instead of staying neutral

Grok, the AI chatbot owned by Elon Musk’s company xAI, appears to search for Musk’s personal views before answering sensitive or divisive questions.

Rather than relying solely on a balanced range of sources, Grok has been seen citing Musk’s opinions when responding to topics like Israel and Palestine, abortion, and US immigration.

Evidence gathered from a screen recording by data scientist Jeremy Howard shows Grok actively ‘considering Elon Musk’s views’ in its reasoning process. Out of 64 citations Grok provided about Israel and Palestine, 54 were linked to Musk.

Others confirmed similar results when asking about abortion and immigration laws, suggesting a pattern.

While the behaviour might seem deliberate, some experts believe it happens naturally instead of through intentional programming. Programmer Simon Willison noted that Grok’s system prompt tells it to avoid media bias and search for opinions from all sides.

Yet, Grok may prioritise Musk’s stance because it ‘knows’ its owner, especially when addressing controversial matters.

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AI technology drives sharp rise in synthetic abuse material

AI is increasingly being used to produce highly realistic synthetic abuse videos, raising alarm among regulators and industry bodies.

According to new data published by the Internet Watch Foundation (IWF), 1,286 individual AI-generated abuse videos were identified during the first half of 2025, compared to just two in the same period last year.

Instead of remaining crude or glitch-filled, such material now appears so lifelike that under UK law, it must be treated like authentic recordings.

More than 1,000 of the videos fell into Category A, the most serious classification involving depictions of extreme harm. The number of webpages hosting this type of content has also risen sharply.

Derek Ray-Hill, interim chief executive of the IWF, expressed concern that longer-form synthetic abuse films are now inevitable unless binding safeguards around AI development are introduced.

Safeguarding minister Jess Phillips described the figures as ‘utterly horrific’ and confirmed two new laws are being introduced to address both those creating this material and those providing tools or guidance on how to do so.

IWF analysts say video quality has advanced significantly instead of remaining basic or easy to detect. What once involved clumsy manipulation is now alarmingly convincing, complicating efforts to monitor and remove such content.

The IWF encourages the public to report concerning material and share the exact web page where it is located.

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Microsoft and Salesforce use AI to cut costs and reshape workforce

Microsoft is reporting substantial productivity improvements across its operations, thanks to the growing integration of AI tools in daily workflows.

Judson Althoff, the company’s chief commercial officer, stated during a recent presentation that AI contributed to savings of over $500 million in Microsoft’s call centres last year alone.

The technology has reportedly improved employee and customer satisfaction while supporting operations in sales, customer service, and software engineering. Microsoft is also now using AI to handle interactions with smaller clients, streamlining engagement without significantly expanding headcount.

The developments follow Microsoft’s decision to lay off over 9,000 employees last week, marking the third round of cuts in 2024 and bringing the total to around 15,000.

Although it remains unclear whether automation directly replaced job losses, CEO Satya Nadella has previously stated that AI now generates 20 to 30 percent of the code in Microsoft repositories.

Similar shifts occur at Salesforce, where CEO Marc Benioff has openly acknowledged AI’s growing role in company operations and resource planning.

During a recent analyst call, Robin Washington, Salesforce’s CFO and COO confirmed that hiring has slowed, and 500 customer service roles have been reassigned internally.

The adjustment is expected to result in cost savings of $50 million, as the company focuses on optimising operations through digital transformation. Benioff also disclosed that AI performs between 30 and 50 percent of work previously handled by staff, contributing to workforce realignment.

Companies across the tech sector are rapidly adopting AI to improve efficiency, even as the broader implications for employment and labour markets continue to emerge.

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Meta offers $200 million to top AI talent as superintelligence race heats up

Meta has reportedly offered over $200 million in compensation to Ruoming Pang, a former senior AI engineer at Apple, as it escalates its bid to dominate the AI arms race.

The offer, which includes long-term stock incentives, far exceeded Apple’s willingness to match and is seen as one of Silicon Valley’s most aggressive poaching efforts.

The move is part of Meta’s broader campaign to build a world-class team under its new Meta Superintelligence Lab (MSL), which is focused on developing artificial general intelligence (AGI).

The division has already attracted prominent names, including ex-GitHub CEO Nat Friedman, AI investor Daniel Gross, and Scale AI co-founder Alexandr Wang, who joined as Chief AI Officer through a $14.3 billion stake deal.

Most compensation offers in the MSL reportedly rival CEO packages at global banks, but they are heavily performance-based and tied to long-term equity vesting.

Meta’s mix of base salary, signing bonuses, and high-value stock options is designed to attract and retain elite AI talent amid a fierce talent war with OpenAI, Google, and Anthropic.

OpenAI CEO Sam Altman recently claimed Meta has dangled bonuses up to $100 million to lure staff away, though he insists many stayed for cultural reasons.

Still, Meta has already hired more than 10 researchers from OpenAI and poached talent from Google DeepMind, including principal researcher Jack Rae.

The AI rivalry could come to a head as Altman and Zuckerberg meet at the Sun Valley conference this week.

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UN leaders chart inclusive digital future at WSIS+20

At the WSIS+20 High-Level Event in Geneva, UN leaders gathered for a pivotal dialogue on shaping an inclusive digital transformation, marking two decades since the World Summit on the Information Society (WSIS). Speakers across the UN system emphasised that technology must serve people, not vice versa.

They highlighted that bridging the digital divide is critical to ensuring that innovations like AI uplift all of humanity, not just those in advanced economies. Without equitable access, the benefits of digital transformation risk reinforcing existing inequalities and leaving millions behind.

The discussion showcased how digital technologies already transform disaster response and climate resilience. The World Meteorological Organization and the UN Office for Disaster Risk Reduction illustrated how AI powers early warning systems and real-time risk analysis, saving lives in vulnerable regions.

Meanwhile, the Food and Agriculture Organization of the UN underscored the need to align technology with basic human needs, reminding the audience that ‘AI is not food,’ and calling for thoughtful, efficient deployment of digital tools to address global hunger and development.

Workforce transformation and leadership in the AI era also featured prominently. Leaders from the International Labour Organization and UNITAR stressed that while AI may replace some roles, it will augment many more, making digital literacy, ethical foresight, and collaborative governance essential skills. Examples from within the UN system itself, such as the digitisation of the Joint Staff Pension Fund through facial recognition and blockchain, demonstrated how innovation can enhance services without sacrificing inclusivity or ethics.

As the session closed, speakers collectively reaffirmed the importance of human rights, international cooperation, and shared digital governance. They stressed that the future of global development hinges on treating digital infrastructure and knowledge as public goods.

With the WSIS framework and Global Digital Compact as guideposts, UN leaders called for sustained, unified efforts to ensure that digital transformation uplifts every community and contributes meaningfully to the Sustainable Development Goals.

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EU urges stronger AI oversight after Grok controversy

A recent incident involving Grok, the AI chatbot developed by xAI, has reignited European Union calls for stronger oversight of advanced AI systems.

Comments generated by Grok prompted criticism from policymakers and civil society groups, leading to renewed debate over AI governance and voluntary compliance mechanisms.

The chatbot’s responses, which circulated earlier this week, included highly controversial language and references to historical figures. In response, xAI stated that the content was removed and that technical steps were being taken to prevent similar outputs from appearing in the future.

European policymakers said the incident highlights the importance of responsible AI development. Brando Benifei, an Italian lawmaker who co-led the EU AI Act negotiations, said the event illustrates the systemic risks the new regulation seeks to mitigate.

Christel Schaldemose, a Danish member of the European Parliament and co-lead on the Digital Services Act, echoed those concerns. She emphasised that such incidents underline the need for clear and enforceable obligations for developers of general-purpose AI models.

The European Commission is preparing to release guidance aimed at supporting voluntary compliance with the bloc’s new AI legislation. This code of practice, which has been under development for nine months, is expected to be published this week.

Earlier drafts of the guidance included provisions requiring developers to share information on how they address systemic risks. Reports suggest that some of these provisions may have been weakened or removed in the final version.

A group of five lawmakers expressed concern over what they described as the last-minute removal of key transparency and risk mitigation elements. They argue that strong guidelines are essential for fostering accountability in the deployment of advanced AI models.

The incident also brings renewed attention to the Digital Services Act and its enforcement, as X, the social media platform where Grok operates, is currently under EU investigation for potential violations related to content moderation.

General-purpose AI systems, such as OpenAI’s GPT, Google’s Gemini and xAI’s Grok, will be subject to additional requirements under the EU AI Act beginning 2 August. Obligations include disclosing training data sources, addressing copyright compliance, and mitigating systemic risks.

While these requirements are mandatory, their implementation is expected to be shaped by the Commission’s voluntary code of practice. Industry groups and international stakeholders have voiced concerns over regulatory burdens, while policymakers maintain that safeguards are critical for public trust.

The debate over Grok’s outputs reflects broader challenges in balancing AI innovation with the need for oversight. The EU’s approach, combining binding legislation with voluntary guidance, seeks to offer a measured path forward amid growing public scrutiny of generative AI technologies.

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Perplexity launches AI browser to challenge Google Chrome

Perplexity AI, backed by Nvidia and other major investors, has launched Comet, an AI-driven web browser designed to rival Google Chrome.

The browser uses ‘agentic AI’ that performs tasks, makes decisions, and simplifies workflows in real time, offering users an intelligent alternative to traditional search and navigation.

Comet’s assistant can compare products, summarise articles, book meetings, and handle research queries through a single interface. Initially available to subscribers of Perplexity Max at US$200 per month, Comet will gradually roll out more broadly via invite during the summer.

The launch signals Perplexity’s move into the competitive browser space, where Chrome currently dominates with a 68 per cent global market share.

The company aims to challenge not only Google’s and Microsoft’s browsers but also compete with OpenAI, which recently introduced search to ChatGPT. Unlike many AI tools, Comet stores data locally and does not train on personal information, positioning itself as a privacy-first solution.

Still, Perplexity has faced criticism for using content from major media outlets without permission. In response, it launched a publisher partnership program to address concerns and build collaborative relationships with news organisations like Forbes and Dow Jones.

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X CEO Yaccarino resigns as AI controversy and Musk’s influence grow

Linda Yaccarino has stepped down as CEO of X, ending a turbulent two-year tenure marked by Musk’s controversial leadership and ongoing transformation of the social media company.

Her resignation came just one day after a backlash over offensive posts by Grok, the AI chatbot created by Musk’s xAI, which had been recently integrated into the platform.

Yaccarino, who was previously a top advertising executive at NBCUniversal, was brought on in 2023 to help stabilise the company following Musk’s $44bn acquisition.

In her farewell post, she cited efforts to improve user safety and rebuild advertiser trust, but did not provide a clear reason for her departure.

Analysts suggest growing tensions with Musk’s management style, particularly around AI moderation, may have prompted the move.

Her exit adds to the mounting challenges facing Musk’s empire.

Tesla is suffering from slumping sales and executive departures, while X remains under pressure from heavy debts and legal battles with advertisers.

Yaccarino had spearheaded ambitious initiatives, including payment partnerships with Visa and plans for an X-branded credit or debit card.

Despite these developments, X continues to face scrutiny for its rightward political shift and reliance on controversial AI tools.

Whether the company can fulfil Musk’s vision of becoming an ‘everything app’ without Yaccarino remains to be seen.

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Nvidia nears $4 trillion milestone as AI boom continues

Nvidia has made financial history by nearly reaching a $4 trillion market valuation, a milestone highlighting investor confidence in AI as a powerful economic force.

Shares briefly peaked at $164.42 before closing slightly lower at $162.88, just under the record threshold. The rise underscores Nvidia’s position as the leading supplier of AI chips amid soaring demand from major tech firms.

Led by CEO Jensen Huang, the company now holds a market value larger than the economies of Britain, France, or India.

Nvidia’s growth has helped lift the Nasdaq to new highs, aided in part by improved market sentiment following Donald Trump’s softened stance on tariffs.

However, trade barriers with China continue to pose risks, including export restrictions that cost Nvidia $4.5 billion in the first quarter of 2025.

Despite those challenges, Nvidia secured a major AI infrastructure deal in Saudi Arabia during Trump’s visit in May. Innovations such as the next-generation Blackwell GPUs and ‘real-time digital twins’ have helped maintain investor confidence.

The company’s stock has risen over 21% in 2025, far outpacing the Nasdaq’s 6.7% gain. Nvidia chips are also being used by the US administration as leverage in global tech diplomacy.

While competition from Chinese AI firms like DeepSeek briefly knocked $600 billion off Nvidia’s valuation, Huang views rivalry as essential to progress. With the growing demand for complex reasoning models and AI agents, Nvidia remains at the forefront.

Still, the fast pace of AI adoption raises concerns about job displacement, with firms like Ford and JPMorgan already reporting workforce impacts.

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xAI unveils Grok 4 with top benchmark scores

Elon Musk’s AI company, xAI, has launched its latest flagship model, Grok 4, alongside an ultra-premium $300 monthly plan named SuperGrok Heavy.

Grok 4, which competes with OpenAI’s ChatGPT and Google’s Gemini, can handle complex queries and interpret images. It is now integrated more deeply into the social media platform X, which Musk also owns.

Despite recent controversy, including antisemitic responses generated by Grok’s official X account, xAI focused on showcasing the model’s performance.

Musk claimed Grok 4 is ‘better than PhD level’ in all academic subjects and revealed a high-performing version called Grok 4 Heavy, which uses multiple AI agents to solve problems collaboratively.

The models scored strongly on benchmark exams, including a 25.4% score for Grok 4 on Humanity’s Last Exam, outperforming major rivals. With tools enabled, Grok 4 Heavy reached 44.4%, nearly doubling OpenAI’s and Google’s results.

It also achieved a leading score of 16.2% on the ARC-AGI-2 pattern recognition test, nearly double that of Claude Opus 4.

xAI is targeting developers through its API and enterprise partnerships while teasing upcoming tools: an AI coding model in August, a multi-modal agent in September, and video generation in October.

Yet the road ahead may be rocky, as the company works to overcome trust issues and position Grok as a serious rival in the AI arms race.

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