Meta has frozen hiring in its AI division, halting a spree that had drawn top researchers with lucrative offers. The company described the pause as basic organisational planning, aimed at building a more stable structure for its superintelligence ambitions.
The freeze, first reported by the Wall Street Journal, began last week and prevents employees in the unit from transferring to other teams. Its duration has not been communicated, and Meta declined to comment on the number of hires already made.
The decision follows growing tensions inside the newly created Superintelligence Labs, where long-serving researchers have voiced concerns over disparities in pay and recognition compared with recruits.
Alexandr Wang, who leads the division, recently told staff that superintelligence is approaching and that significant changes are necessary to prepare. His email outlined Meta’s most significant reorganisation of its AI efforts.
The pause also comes amid investor scrutiny, as analysts warn that heavy reliance on stock-based compensation to attract talent could fuel innovation or dilute shareholder value without precise results.
Despite these concerns, Meta’s stock has risen by about 28% since the start of the year, reflecting continued investor confidence in the company’s long-term prospects.
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Chief of Microsoft AI, Mustafa Suleyman, has urged AI firms to stop suggesting their models are conscious, warning of growing risks from unhealthy human attachments to AI systems.
In a blog post, he described the phenomenon as Seemingly Conscious AI, where models mimic human responses convincingly enough to give users the illusion of feeling and thought. He cautioned that this could fuel AI rights, welfare, or citizenship advocacy.
Suleyman stressed that such beliefs could emerge even among people without prior mental health issues. He called on the industry to develop guardrails that prevent or counter perceptions of AI consciousness.
AI companions, a fast-growing product category, were highlighted as requiring urgent safeguards. Microsoft AI chief’s comments follow recent controversies, including OpenAI’s decision to temporarily deprecate GPT-4o, which drew protests from users emotionally attached to the model.
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Meta is launching a research lab focused on superintelligence, led by Scale AI founder Alexandr Wang, in an attempt to regain ground in the global AI race.
Mark Zuckerberg is reportedly in talks to invest billions into Scale, reflecting strong confidence in Wang’s data-driven approach and industry influence.
While Meta’s past efforts with its Llama models gained traction, its latest release, Llama 4, failed to meet expectations and drew criticism.
Wang’s appointment arrives during an ongoing talent exodus from Meta, with several senior AI researchers departing for rivals or founding startups.
The new lab is separate from Meta’s existing FAIR division, led by Yann LeCun, who has dismissed the idea of chasing superintelligence. Meta’s partnership with Scale mirrors deals by Microsoft, Amazon, and Google, aiming to secure top AI talent without formal acquisitions.
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Databricks has secured a fresh funding round that pushes its valuation beyond $100bn, cementing its place among the world’s most valuable private tech firms. The Series K deal marks a sharp rise from the company’s $62bn figure in late 2024 and underscores investor confidence in its long-term AI strategy.
The new capital will accelerate Databricks’ global expansion, fuel acquisitions in the AI space, and support product innovation. Upcoming launches include Agent Bricks, a platform for enterprise-grade AI agents, and Lakebase, a new operational database that extends the company’s ecosystem.
Chief executive Ali Ghodsi said the round was oversubscribed, reflecting strong investor demand. He emphasised that businesses can leverage enterprise data to create secure AI apps and agents, noting that this momentum supports Databricks’ growth across 15,000 customers.
The company has also expanded its role in the broader AI ecosystem through partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir. Last year, it opened a European headquarters in London to cement the UK as a key market and strengthen ties with global enterprises.
Databricks has avoided confirming an IPO timeline, though Ghodsi told CNBC that investor appetite surged after fintech Figma’s listing. With Klarna now eyeing a return to New York, Databricks’ soaring valuation highlights how leading AI firms continue to attract capital even as market conditions shift.
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OpenAI chief Sam Altman has warned that the US may be underestimating China’s rapid advancement in AI.
Speaking to CNBC, Altman explained that China’s use of open-source models and its manufacturing capacity may allow it to move faster in some areas of development.
He questioned the effectiveness of export controls, noting that chip restrictions may not be enough to curb long-term innovation. Chinese firms like DeepSeek and MoonshotAI are gaining traction with open-weight models that rival US offerings in cost and capability.
Altman’s comments echo concerns voiced earlier by Nvidia’s CEO, who said firms like Huawei continue to grow despite restrictions.
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Elon Musk has taken an unexpected conciliatory turn in his feud with Sam Altman by praising a ChatGPT-5 response, ‘I don’t know’, as more valuable than overconfident answers. Musk described it as ‘a great answer’ from the AI chatbot.
At one point, xAI’s Grok chat assistant sided with Altman, while ChatGPT offered a supportive nod to Musk. These chatbot alignments have introduced confusion and irony into a clash already rich with irony.
Musk’s praise of a modest AI response contrasts sharply with the often intense claims of supremacy. It signals a rare acknowledgement of restraint and clarity, even from an avowed critic of OpenAI.
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Nexon launched an investigation after players spotted several suspicious adverts for The First Descendant on TikTok that appeared to have been generated by AI.
One advertisement allegedly used a content creator’s likeness without permission, sparking concerns about the misuse of digital identities.
The company issued a statement acknowledging ‘irregularities’ in its TikTok Creative Challenge, a campaign that lets creators voluntarily submit content for advertising.
While Nexon confirmed that all videos had been verified through TikTok’s system, it admitted that some submissions may have been produced in inappropriate circumstances.
Nexon apologised for the delay in informing players, saying the review took longer than expected. It confirmed that a joint investigation with TikTok is underway to determine what happened, and it was promised that updates would be provided once the process is complete.
The developer has not yet addressed the allegation from creator DanieltheDemon, who claims his likeness was used without consent.
The controversy has added to ongoing debates about AI’s role in advertising and protecting creators’ rights.
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OpenAI has updated GPT-5 to make its tone noticeably warmer and more engaging, without reverting to the overly flattering style some users criticised in GPT-4o. The change is rolling out, aiming to balance emotional resonance with substance.
CEO Sam Altman stated the adjustment directly responds to users finding GPT-5 too formal or robotic. The update is subtle yet visible, enhancing conversational warmth while avoiding sycophantic tendencies.
OpenAI also expands user control by offering three interaction modes, Auto, Fast, and Thinking, which adapt response style to user preference. These changes empower users to shape the tone and depth of their AI interactions.
Reacting to public frustration, OpenAI has reinstated GPT-4o (along with GPT-4.1, o3, and GPT-5 Thinking mini) for paid subscribers, while promising more customisation options in future updates.
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The ads, circulating primarily on TikTok, combine unnatural expressions with awkward speech patterns, triggering community outrage.
Fans on Reddit slammed the ads as ’embarrassing’ and akin to ‘cheap, lazy marketing,’ arguing that Nexon had bypassed genuine collaborators for synthetic substitutes, even though those weren’t subtle attempts.
Critics warned that these deepfake-like promotions undermine the trust and credibility of creators and raise ethical questions over likeness rights and authenticity in AI usage.
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OpenAI recently unveiled GPT-5, a significant upgrade praised for its advances in accuracy, reasoning, writing, coding and multimodal capabilities. The model has also been designed to reduce hallucinations and excessive agreeableness.
Chief executive Sam Altman has admitted that OpenAI has even more powerful systems that cannot be released due to limited capacity.
Altman explained that the company must make difficult choices, as existing infrastructure cannot yet support the more advanced models. To address the issue, OpenAI plans to invest in new data centres, with spending potentially reaching trillions of dollars.
The shortage of computing power has already affected operations, including a cutback in image generation earlier in the year, following the viral Studio Ghibli-style trend.
Despite criticism of GPT-5 for offering shorter responses and lacking emotional depth, ChatGPT has grown significantly.
Altman said the platform is now the fifth most visited website worldwide and is on track to overtake Instagram and Facebook. However, he acknowledged that competing with Google will be far harder.
OpenAI intends to expand beyond ChatGPT with new standalone applications, potentially including an AI-driven social media service.
The company also backs Merge Labs, a brain-computer interface rival to Elon Musk’s Neuralink. It has partnered with former Apple designer Jony Ive to create a new AI device.
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