Future of work

Investors adapt as AI reshapes US market 

Firms such as Wix.com, Shutterstock, and Adobe have been labelled high risk by Bank of America, with stock declines far outpacing the broader market. The shift stems from fears that AI will replace services like graphic design and data analysis, delivering them faster and cheaper.

Some analysts say the impact, once expected over five years, may unfold in just two.

The disruption is not limited to creative industries. Gartner saw a record share drop after cutting its revenue forecast, with some attributing the slump to cheaper AI-powered alternatives.

Meanwhile, major tech firms, including Microsoft, Meta, Alphabet, and Amazon, are expected to invest around $350 billion this year, nearly 50% more than last year, to expand AI infrastructure.

Despite the pressure, certain businesses are adapting successfully. Duolingo has doubled its share price over the past year by integrating AI into its language-learning tools, though questions remain over the long-term sustainability of such gains.

As the gap between AI-powered growth and industry decline widens, markets are bracing for further upheaval.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Dojo team disbanded amid AI strategy shift

Tesla has disbanded its Dojo supercomputer team, with team leader Peter Bannon departing amid a shift in AI strategy. Resources are being reallocated to other company data centres and computing projects.

The supercomputer was initially intended to process large volumes of vehicle data and video to train its autonomous‑driving systems. The team had recently lost around 20 members to the start‑up DensityAI.

Tesla plans to rely more on external partners for compute and chip supply. Strategic collaborations with Nvidia, AMD and Samsung Electronics are being pursued to bolster capacity.

The company focuses on integrating AI, including robotics and self‑driving technologies, across its business. A recent $16.5 billion agreement with Samsung aims to support services like robotaxi, humanoid robots and data‑centre operations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

BlackSuit infrastructure dismantled in global raid

US law enforcement, alongside nine other nations, dismantled the BlackSuit ransomware gang’s infrastructure, replacing its leak site with a takedown notice after a coordinated operation. The group, formerly known as Royal, had amassed over $370 million in ransoms since 2022.

More than 450 victims were targeted across critical infrastructure sectors, with ransom demands soaring up to $60 million. Dallas suffered severe disruption in a notable attack, affecting emergency services and courts.

German authorities seized key infrastructure, securing data that is now under analysis to identify further collaborators. The operation also included confiscating servers, domains and digital assets used for extortion and money laundering.

New research indicates that members of BlackSuit may already be shifting to a new ransomware operation called Chaos. US agencies seized $2.4 million in cryptocurrency linked to a Chaos affiliate, marking a significant blow to evolving cybercrime efforts.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Musk ends in-house ‘Dojo’ AI chip programme, shifts focus to external partners

Tesla has reportedly shut down its Dojo supercomputer project following multiple high-profile departures, including that of project head Peter Bannon. CEO Elon Musk ended the AI chip programme, reassigning the remaining staff to other data centre projects.

Dojo aimed to process vehicle data for autonomous driving and reduce Tesla’s reliance on Nvidia and AMD. The project faced delays, with leaders such as Jim Keller, Ganesh Venkataramanan, and Bannon departing before its closure.

About 20 former Dojo employees have joined DensityAI, a stealth startup founded by ex-Tesla staff, which is expected to work on AI chips for robots and data centres. Tesla will now rely more on Nvidia, AMD, and Samsung.

Samsung recently secured a $16.5 billion deal to supply AI chips for Tesla’s self-driving cars, robots, and data centres. Musk said Samsung’s Texas factory will produce Tesla’s AI6 chips, with AI5 chips to be made in 2026.

Musk suggested that combining AI5 and AI6 chips could form a ‘Dojo 3’ system, while Dojo 2 would not launch. The shutdown comes as Tesla restructures, with executive exits, job cuts, and renewed focus on AI integration across Musk’s companies.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

GitHub CEO says developers will manage AI agents

GitHub’s CEO, Thomas Dohmke, envisions a future where developers no longer write code by hand but oversee AI agents that generate it. He highlights that many developers already use AI tools to assist with coding tasks.

Early adoption began with debugging, boilerplate and code snippets, and evolved into collaborative brainstorming and iterative prompting with AI. Developers are now learning to treat AI tools like partners and guide their ‘thought processes’.

According to interviews with 22 developers, half expect AI to write around 90 percent of their code within two years, while the rest foresee that happening within five. The shift is seen as a change from writing to verifying and refining AI-generated work.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Sam Altman praises rapid AI adoption in India

OpenAI’s new GPT‑5 model has been unveiled, and the company offers it free to all users. Three model versions, gpt‑5, gpt‑5‑mini and gpt‑5‑nano, offer developers a balance of performance, cost and latency.

CEO Sam Altman applauded India’s rapid AI adoption and hinted that India, currently OpenAI’s second‑largest market, may soon become the largest. A visit to India is planned for September.

The new GPT‑5 achieves a level of expertise akin to a PhD‑level professional and is described as a meaningful step towards AGI. OpenAI intends to make the model notably accessible through its free tier.

Head of ChatGPT Nick Turley noted that GPT‑5 significantly enhances understanding across more than twelve Indian languages, reinforcing India as a key market for localisation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

GPT-5 launch sparks backlash as OpenAI removes ChatGPT model choice

OpenAI has launched GPT-5, replacing previous ChatGPT models and removing the model picker option. CEO Sam Altman called it a PhD-level AI, claiming improvements in reasoning, writing, coding, accuracy, and health-related queries, with fewer hallucinations. The rollout followed right after the announcement.

GPT-5 includes both an efficient and a reasoning model, but users no longer choose which to engage, OpenAI’s system automatically routes queries. The change has frustrated many, as favourite models like GPT-4o and o3 are no longer available.

Users on social media and forums complain that GPT-5 gives shorter, less engaging answers and has less personality. Some say the model ignores instructions, gets basic things wrong, and is slower despite not running in ‘thinking mode’.

Several users allege OpenAI shortened responses deliberately to reduce costs, removing emotional intelligence to discourage casual chatting. Critics believe the move could result in lost subscriptions despite efficiency gains.

Others describe GPT-5 as more organised but clipped in tone, with no clear quality improvement over earlier models. The loss of previous models has left some feeling that the upgrade is a downgrade, with one user saying it feels like ‘watching a close friend die’.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Microsoft Copilot launches GPT-5 Smart Mode for users

Microsoft has upgraded all its Copilot tools with OpenAI’s latest GPT-5 model, now available through a new Smart Mode.

The update brings enhanced speed and better performance across Microsoft 365 Copilot, Azure AI Foundry, GitHub Copilot, and the Windows AI chatbot pre-installed on PCs.

Users can try the Smart Mode via the Copilot website, which can be selected from a model selector below the text input. Notably, a Microsoft account is not required to use this new mode.

The Smart Mode rollout is gradual, and while not yet visible in the Windows Copilot app for everyone, early users have reported that GPT-5 delivers faster and more accurate responses compared to earlier models.

Unlike the free ChatGPT tier that limits queries and switches automatically to older versions after usage caps, Copilot offers fewer restrictions, allowing more extensive use.

Microsoft’s AI Red Team tested GPT-5 thoroughly before release, highlighting its strong safety profile and improved reasoning capabilities.

Microsoft 365 Copilot benefits from GPT-5’s advanced abilities to answer complex questions, maintain coherence over long conversations, assist with email replies, and analyse documents effectively.

GitHub Copilot has also been enhanced with GPT-5, significantly improving reasoning, code quality, and overall user experience. The upgrade positions Microsoft’s AI tools to support developers and professionals across multiple platforms better.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

GPT-5 launches with ‘PhD-level performance’

OpenAI has unveiled GPT-5, the latest generation of its widely used ChatGPT tool, offering what CEO Sam Altman described as a ‘huge improvement’ in capability.

Now free to all users, the model builds on previous versions but stops short of the human-like reasoning associated with accurate artificial general intelligence.

Altman compared the leap in performance to ‘talking to a PhD-level expert’ instead of a student.

While GPT-5 does not learn continuously from new experiences, it is designed to excel in coding, writing, healthcare and other specialist areas.

Industry observers say the release underscores the rapid acceleration in AI, with rivals such as Google, Meta, Microsoft, Amazon, and Elon Musk’s xAI investing heavily in the race. Chinese startup DeepSeek has also drawn attention for producing powerful models using less costly chips.

OpenAI has emphasised GPT-5’s safety features, with its research team training the system to avoid deception and prevent harmful outputs.

Alongside the flagship release, the company launched two open-weight models that can be freely downloaded and modified, a move seen as both a nod to its nonprofit origins and a challenge to competitors’ open-source offerings.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Autonomous AI coding tool Jules now publicly available from Google

Google has released its autonomous coding agent Jules for free public use, offering AI-powered code generation, debugging, and optimisation. Built on the Gemini 2.5 Pro model, the tool completed a successful beta phase before entering general availability with both free and paid plans.

Jules supports a range of users, from developers to non-technical staff, automating tasks like building features or integrating APIs. The free version allows 15 tasks per day, while the Pro tier significantly raises the limits, providing access to more powerful tools.

Beta testing began in May 2025 and saw Jules process hundreds of thousands of tasks. Its new interface now includes visual explanations and bug fixes, refining usability. Integrated with GitHub and Gemini CLI, Jules can suggest optimisations, write tests, and even provide audio summaries.

Google positions Jules as a step beyond traditional code assistants by enabling autonomy. However, former researchers warn that oversight remains essential to avoid misuse, especially in sensitive systems where AI errors could be costly.

While its free tier may appeal to startups and hobbyists, concerns over code originality and job displacement persist. Nonetheless, Jules could reshape development workflows and lower barriers to coding for a much broader user base.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!