OpenAI has imposed temporary rate limits on image generation using its latest GPT-4o model after an online surge in Studio Ghibli-inspired images strained its servers.
The move follows the company’s decision to restrict free users from generating images with the new model due to overwhelming demand. OpenAI’s CEO, Sam Altman, said the rapid increase in image requests was pushing the company’s server capacity, joking that it could be ‘melting’ GPUs.
The restrictions are aimed at optimising system efficiency, with OpenAI working on fine-tuning performance. While some ChatGPT users may experience denied requests, Altman assured that the limitations should be lifted soon.
What if Studio Ghibli directed Lord of the Rings?
I spent $250 in Kling credits and 9 hours re-editing the Fellowship trailer to bring that vision to life—and I’ll show you exactly how I did it 👇🏼 pic.twitter.com/IqUeBSH4H0
Free users will eventually regain the ability to generate up to three images per day, but no timeline has been provided.
Despite the restrictions, the internet remains flooded with AI-generated images in the distinctive art style of Studio Ghibli, known for films like My Neighbor Totoro.
The GPT-4o model has proven highly effective at recreating detailed scenes in various artistic styles, further fuelling the trend. The viral phenomenon has also sparked discussions on copyright, fair use, and AI’s role in digital art.
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The latest draft of the EU AI Act’s Code of Practice offers a more flexible approach to copyright rules, focusing on proportionate compliance based on a provider’s size and capabilities.
However, this change comes as model providers face looming deadlines under the Act.
AI Developers must still avoid training on pirated content, respect opt-outs like robots.txt, and make reasonable efforts to prevent models from repeating copyrighted material.
However, they are no longer expected to perform exhaustive copyright checks on every dataset.
With potential fines of up to 15 million euros or 3% of global turnover, stakes remain high. Still, stakeholders welcome the clearer, more practical path to compliance, with final feedback on the draft due by the end of this month.
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Microsoft has scrapped plans for over 2GW of data centre leases in the US and Europe, signalling a strategic shift in its AI infrastructure support.
The move appears linked to scaled-back OpenAI workloads and concerns over market oversupply.
The decision has sent shockwaves through US tech markets, with shares of AI players like Nvidia and Dell taking hits. Bitcoin mining stocks also slumped by up to 12%, as hopes for sustained AI-driven demand dimmed.
While Microsoft steps back, Google and Meta are ramping up their own capacity, trying to fill the gap.
Analysts warn that crypto miners, already facing profitability pressure, may need to rethink their business models in light of this new reality.
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CoreWeave, the Nvidia-backed AI infrastructure company, has reduced the size of its US initial public offering (IPO) and priced its shares below the initial range, raising concerns over investor interest in AI infrastructure.
The company will offer 37.5 million shares, 23.5% fewer than originally planned, with shares priced at $40 each, well below the lower end of the expected price range.
Despite strong backing from Nvidia, which committed to a $250 million order, the IPO has faced a tepid reception due to concerns about CoreWeave’s long-term growth and capital-intensive business model.
Investors have expressed worries over the company’s reliance on Microsoft’s shifting AI strategy, which could affect demand for its GPU chips. Additionally, CoreWeave’s high debt levels and lack of profitability have raised doubts about its financial sustainability.
The reduced IPO comes at a time when the US IPO market is struggling, with fewer equity deals and lower transaction values in 2024 compared to last year.
CoreWeave’s stock market debut, once seen as a test for the AI infrastructure market, now signals waning investor confidence in AI companies, especially those without a proven profit history.
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Two former Meta AI executives have secured $15 million in funding for Yutori, a San Francisco-based startup focused on developing AI personal assistants.
The funding round was led by Radical Ventures, with backing from prominent investors including AI pioneer Fei-Fei Li and Google DeepMind’s Jeff Dean.
Yutori aims to create autonomous AI agents capable of executing complex online tasks without human intervention. Unlike traditional chatbots, these AI assistants will handle real-world actions, from ordering food to managing travel plans, streamlining everyday digital interactions.
The company is also advancing post-training techniques to enhance AI models’ ability to navigate the web efficiently.
With a team of experts who previously worked on Meta’s AI projects, including the development of Llama 3 and Llama 4 models, Yutori is positioning itself at the forefront of AI-driven automation.
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Just months after predicting a booming future, US airlines are now grappling with economic uncertainty as rising tariffs and government spending cuts dampen travel demand. Consumers and businesses are cutting back on trips, forcing major carriers to lower profit forecasts for the first quarter.
The industry’s outlook for the rest of the year has also dimmed as fears of slow economic growth and high inflation persist.
The S&P 500 passenger airlines index has fallen 15% this year, with stocks of major carriers like Delta and United dropping around 20%. With demand slowing, airlines have begun reducing flight schedules to avoid fare cuts and protect profit margins.
Several airlines, including Delta, United, and American Airlines, have trimmed their April-to-June capacity, while United’s CEO has warned of further cuts if demand does not recover by late summer.
Adding to the industry’s woes, concerns over airline safety have surged, contributing to the travel slowdown. Meanwhile, US consumer confidence has plunged to a four-year low, and airfares posted their first year-on-year decline in six months.
While airlines remain hopeful that full-year earnings targets will hold, sustained weak demand during the peak summer season could force further adjustments.
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South Korea’s SK Hynix has reported that some customers are accelerating orders ahead of potential US tariffs on semiconductor imports.
Speaking at the company’s annual shareholder meeting, Head of Global Sales and Marketing Lee Sang-rak noted that this trend, combined with reduced customer inventory, has contributed to favourable market conditions.
However, he cautioned that it remains uncertain whether the demand surge will continue.
The US government is considering a 25% tariff on semiconductor imports, prompting fears of price increases and supply chain disruptions. Analysts at Nomura have observed preemptive stockpiling in response, though the final decision on tariffs is still pending.
Meanwhile, competitors Micron, SanDisk, and China’s YMTC have raised their memory chip prices due to strong demand from the AI sector.
SK Hynix remains optimistic about growth, particularly in the high-bandwidth memory (HBM) chip market. CEO Kwak Noh-Jung stated that demand is expected to soar this year, with sales for 2025 already sold out and 2026 orders nearing finalisation.
He also dismissed concerns that Chinese AI startup DeepSeek’s low-cost models would slow demand for high-performance accelerators, arguing that AI advancements will drive further expansion in the memory chip industry.
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The Stock Exchange of Thailand (SET) suspended all trading activities for the afternoon session on Friday after a powerful earthquake hit neighbouring Myanmar, sending tremors across Bangkok.
The exchange announced the immediate closure on its website, citing the impact of the seismic event.
The suspension affected all markets, including the SET, the Market for Alternative Investment (MAI), and the Thailand Futures Exchange (TFEX). The decision was made as a precautionary measure following the quake, which caused concern among investors and businesses in the region.
Before the halt, the benchmark SET index was trading 1.05% lower at 1,175.45 points, marking an over one-week low.
The market had already been under pressure earlier in the session due to concerns over new US auto tariffs, adding to the volatility triggered by the earthquake.
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Chinese scientists have developed a compact chip-based quantum digital signature network that drastically improves both speed and efficiency.
The system replaces bulky, expensive equipment with streamlined silicon chips, making it easier to integrate into today’s fibre networks.
The new setup allows multiple users to share a single central detector, reducing cost and complexity. By adopting a star network design and a new cryptographic protocol, the system can handle longer documents with fewer resources and lower delays.
The Chinese experiment outperformed previous quantum signature technologies, achieving reliable performance even over a 200 km fibre link.
Experts say this research opens the door to future applications in quantum e-commerce, secure communication, and digital finance.
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OpenAI is reportedly finalising a $40 billion funding round led by SoftBank, potentially pushing its valuation to $300 billion. Other major investors, including Magnetar Capital and Coatue Management, are also in talks to join.
SoftBank is expected to invest $30 billion across two tranches, starting with $7.5 billion, while an additional $10 billion will be pooled from various backers.
Magnetar alone may contribute $1 billion to the deal.
This comes just months after OpenAI raised $6.6 billion in October 2024. The latest round cements its place as a dominant force in AI, drawing unprecedented investor interest as demand for its tools soars.
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