Quantum light beats AI at its own game in surprise photonic experiment

A small-scale quantum device developed by researchers at the University of Vienna has outperformed advanced classical machine learning algorithms—including some used in today’s leading AI systems—using just two photons and a glass chip.

The experiment suggests that useful quantum advantage could arrive far sooner than previously thought, not in massive future machines but in today’s modest photonic setups.

The team’s six-mode processor doesn’t rely on raw speed to beat traditional systems. Instead, it harnesses a uniquely quantum property: the way identical particles interfere. This interference naturally computes mathematical structures known as permanents, which are computationally expensive for classical systems.

By embedding these quantum calculations into a pattern-recognition task, the researchers consistently achieved higher classification accuracy across multiple datasets.

Crucially, the device operates with extreme energy efficiency, offering a promising route to sustainable AI. Co-author Iris Agresti highlighted the growing energy costs of modern machine learning and pointed to photonic quantum systems as a potential solution.

These early results could pave the way for new applications in areas where training data is limited and classical methods fall short—redefining the future of AI and quantum computing alike.

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Odyssey presents immersive AI-powered streaming

Odyssey, a startup founded by self-driving veterans Oliver Cameron and Jeff Hawke, has unveiled an AI model that allows users to interact with streaming video in real time.

The technology generates video frames every 40 milliseconds, enabling users to move through scenes like a 3D video game instead of passively watching. A demo is currently available online, though it is still in its early stages.

The system relies on a new kind of ‘world model’ that predicts future visual states based on previous actions and environments. Odyssey claims its model can maintain spatial consistency, learn motion from video, and sustain coherent video output for five minutes or more.

Unlike models trained solely on internet data, Odyssey captures real-world environments using a custom 360-degree, backpack-mounted camera to build higher-fidelity simulations.

Tech giants and AI startups are exploring world models to power next-generation simulations and interactive media. Yet creative professionals remain wary. A 2024 study commissioned by the Animation Guild predicted significant job disruptions across film and animation.

Game studios like Activision Blizzard have been scrutinised for using AI while cutting staff.

Odyssey, however, insists its goal is collaboration instead of replacement. The company is also developing software to let creators edit scenes using tools like Unreal Engine and Blender.

Backed by $27 million in funding and supported by Pixar co-founder Ed Catmull, Odyssey aims to transform video content across entertainment, education, and advertising through on-demand interactivity.

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UK cracks down on rogue influencers

The UK’s Financial Conduct Authority (FCA) has taken action against unauthorised financial influencers in a coordinated international crackdown, resulting in three arrests. Regulators across six countries, participated in the effort, targeting those offering unlicensed tips or falsely promoting products.

Hundreds of social media posts of websites are being taken down after being linked to misleading financial advice presented under the guise of luxury lifestyles. The FCA issued cease and desist letters and called several influencers in for questioning.

The FCA highlighted that many of these posts fail to explain risks and often encourage followers to pay for unverified trading algorithms. The campaign aims to protect people, especially young users, who increasingly use online sources for financial education.

Meta was questioned by the Treasury Committee over delays, prompting the firm to acknowledge a processing lapse in 2024. Separately, the UK FCA is reviewing a ban on crypto exchange-traded notes, signalling a shift toward regulated crypto investment for retail users.

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Bjorn Ulvaeus says AI is ‘an extension of your mind’

ABBA legend Bjorn Ulvaeus is working on a new musical with the help of AI, describing the technology as ‘an extension of your mind.’ Despite previously criticising AI companies’ unlicensed use of artists’ work, the 80-year-old Swedish songwriter believes AI can be a valuable creative partner.

At London’s inaugural SXSW, Ulvaeus explained how he uses AI tools to explore lyrical ideas and overcome writer’s block. ‘It is like having another songwriter in the room with a huge reference frame,’ he said.

‘You can prompt a lyric and ask where to go from there. It usually comes out with garbage, but sometimes something in it gives you another idea.’

Ulvaeus was among over 10,000 creatives who signed an open letter warning of the risks AI poses to artists’ rights. Still, he maintains that when used with consent and care, AI can support — not replace — human creativity. ‘It must not exclude the human,’ he warned.

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AI in higher education: A mixed blessing for students and institutions

AI rapidly reshapes university life, offering students new tools to boost creativity, structure assignments, and develop ideas more efficiently. At institutions like Oxford Brookes University, students like 22-year-old Sunjaya Phillips have found that AI enhances confidence and productivity when used responsibly, with faculty guidance.

She describes AI as a ‘study buddy’ that transformed her academic experience, especially during creative blocks, where AI-generated prompts saved valuable time. However, the rise of AI in academia also raises important concerns.

A global student survey revealed that while many embrace AI in their studies, a majority fear its long-term implications on employment. Some admit to misusing the technology for dishonest purposes, highlighting the ethical challenges it presents.

Experts like Dr Charlie Simpson from Oxford Brookes caution that relying too heavily on AI to ‘do the thinking’ undermines educational goals and may devalue the learning process.

Despite these concerns, many educators and institutions remain optimistic about AI’s potential—if used wisely. Professor Keiichi Nakata from Henley Business School stresses that AI is not a replacement but a powerful aid, likening its expected workplace relevance to today’s basic IT skills.

He and others argue that responsible AI use could elevate the capabilities of future graduates and reshape degree expectations accordingly. While some students worry about job displacement, others, like Phillips, view AI as a support system rather than a threat.

The consensus among academics is clear: success in the age of AI will depend not on avoiding the technology, but on mastering it with discernment, ethics, and adaptability.

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ChatGPT adds meeting recording and cloud access

OpenAI has launched new features for ChatGPT that allow it to record meetings, transcribe conversations, and pull information directly from cloud platforms like Google Drive and SharePoint.

Instead of relying on typed input alone, users can now speak to ChatGPT, which records audio, creates editable summaries, and helps generate follow-up content such as emails or project outlines.

‘Record’ is currently available to Team users via the macOS app and will soon expand to Enterprise and Edu accounts.

The recording tool automatically deletes the audio after transcription and applies existing workspace data rules, ensuring recordings are not used for training.

Instead of leaving notes scattered across different platforms, users gain a structured and searchable history of conversations, voice notes, or brainstorming sessions, which ChatGPT can recall and apply during future interactions.

At the same time, OpenAI has introduced new connectors for business users that let ChatGPT access files from cloud services like Dropbox, OneDrive, Box, and others.

These connectors allow ChatGPT to search and summarise information from internal documents, rather than depending only on web search or user uploads. The update also includes beta support for Deep Research agents that can work with tools like GitHub and HubSpot.

OpenAI has embraced the Model Context Protocol, an open standard allowing organisations to build their own custom connectors for proprietary tools.

Rather than serving purely as a general-purpose chatbot, ChatGPT is evolving into a workplace assistant capable of tapping into and understanding a company’s complete knowledge base.

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AI avatar replaces CEO in Klarna’s update

Klarna CEO Sebastian Siemiatkowski recently used an AI-generated avatar to deliver the company’s quarterly earnings report, marking a bold step in the fintech firm’s ongoing integration of AI.

Though the avatar’s performance revealed minor flaws, such as awkward blinking and voice syncing issues, the presentation showcased Klarna’s broader commitment to using AI across both operations and communications.

The Swedish firm has credited AI-driven efficiencies and a 40% workforce reduction for sustaining profitability and increasing revenue per employee to nearly US$1 million.

These advances build on years of investment in machine learning, which began with personalised checkout systems and now underpin core services like fraud detection and customer support.

By using an AI avatar in a leadership role, Klarna signals its belief in AI not only as a business tool but also as a viable medium for engaging investors. As the company prepares for its IPO, this move underscores its technological focus and willingness to redefine fintech communication norms.

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G42 and Mistral team up to build AI platforms

Abu Dhabi-based tech company G42 has partnered with French startup Mistral AI to co-develop advanced AI platforms and infrastructure across Europe, the Middle East, and the Global South.

The collaboration aims to span the full AI value chain, from model training to sector-specific applications, combining Mistral’s open-weight language models with G42’s infrastructure expertise.

The deal builds on prior AI cooperation agreements endorsed by UAE President Sheikh Mohamed bin Zayed and French President Emmanuel Macron, reinforcing both countries’ shared ambition to lead in AI innovation.

G42 subsidiaries Core42 and Inception will support the initiative by contributing technical development and deployment capabilities.

This partnership is part of a broader UAE strategy to position itself as a global AI hub and diversify its economy beyond oil. With AI expected to add up to $91 billion to the UAE’s economy by 2030, such international alliances reflect a shift in AI power centres toward the Middle East.

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OpenAI and India plan AI infrastructure push

OpenAI is in discussions with the Indian government to collaborate on data centre infrastructure as part of its new global initiative, ‘OpenAI for Countries’.

The programme aims to help partner nations expand AI capabilities through joint investment and strategic coordination with the US. India could become one of the ten initial countries in the effort, although specific terms remain under wraps.

During a visit to Delhi, OpenAI’s chief strategy officer Jason Kwon emphasised India’s potential, citing the government’s clear focus on infrastructure and AI talent.

Similar to the UAE’s recently announced Stargate project in Abu Dhabi, India may host large-scale AI computing infrastructure while also investing in the US under the same framework.

To nurture AI skills, OpenAI and the Ministry of Electronics and IT’s IndiaAI Mission launched the ‘OpenAI Academy’. It marks OpenAI’s first international rollout of its educational platform.

The partnership will provide free access to AI tools, developer training, and events, with content in English, Hindi, and four additional regional languages. It will also support government officials and startups through dedicated learning platforms.

The collaboration includes hackathons, workshops in six cities, and up to $100,000 in API credits for selected IndiaAI fellows and startups. The aim is to accelerate innovation and help Indian developers and researchers scale AI solutions more efficiently, according to IT Minister Ashwini Vaishnaw.

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Amazon invests $10 billion in AI data centres

Amazon is investing $10 billion to build data centres in North Carolina, aiming to expand its AI and cloud infrastructure instead of outsourcing compute needs.

The initiative will create at least 500 high-skilled roles and includes support for education, broadband careers, and local development through a $150,000 community fund.

The company is also developing AI-powered humanoid robots for future delivery tasks, reportedly testing them in a newly constructed ‘humanoid park’ at its San Francisco office.

Although using third-party hardware for now, the long-term goal is to embed Amazon’s software into these robots, according to sources.

Experts say the investment underlines a growing concern: that only large firms can afford the infrastructure needed for cutting-edge AI.

‘It’s positive for growth but risks concentrating innovation in Big Tech’s hands,’ said Leo Fan, co-founder of Cysic, a blockchain-based AI firm. He argues that the shift could disincentivise smaller players and dampen broader AI progress.

Amazon is also rolling out Alexa+, a new generative AI-powered assistant, and has secured a licensing deal with The New York Times to integrate journalism, recipes, and sports content into Alexa and other AI products, further extending its ecosystem instead of relying solely on internal data.

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