Sam Altman admits OpenAI holds back stronger AI models

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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AI’s promise comes with a heavy environmental price

Governments worldwide are racing to harness the economic potential of AI, but the technology’s environmental toll is growing, and it is impossible to ignore. In the US, President Trump is calling for a ten-year freeze on AI regulation, while the UK is planning ‘AI growth zones’ filled with data centres. Yet these same centres consume enormous amounts of electricity and water, resources already under strain globally.

From 2027, AI systems are expected to use at least four billion cubic metres of water annually, five times Denmark’s yearly consumption. That raises a pressing dilemma: How to support innovation without deepening an already critical global water crisis, where one in four people lacks access to clean drinking water?

The paradox is stark. AI is driving breakthroughs in medicine, agriculture, and climate science, with systems predicting cancer-fighting protein structures and detecting deforestation from space.

AI could save the UK government tens of billions in the public sector by automating routine tasks. But powering these advances requires vast, always-on data centres, which last year in the US alone consumed enough electricity for seven million homes.

Regulators are beginning to respond. The EU now requires big data centres to disclose energy and water use.

The UK, however, has yet to weave AI infrastructure into its climate and planning strategies, a gap that could worsen grid congestion and even delay housing projects. Public concern is mounting: four of five Britons believe AI needs stricter oversight.

Experts say transparency is key. Mandatory reporting on emissions, water use, and energy consumption could give citizens and policymakers the data they need to act. Incentives for efficiency, renewable energy requirements, and creative solutions like using data centre heat to warm homes are already being tested abroad.

The technology’s potential remains enormous. Studies suggest AI could cut more than five billion tonnes of global emissions by 2035, with energy, transport, and food applications. But unless sustainability becomes central to the UK’s AI strategy, the race to innovate risks becoming a sprint into environmental crisis.

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Energy crisis in Iran sparks protests over crypto mining

Iran’s energy shortage has sparked public anger, with residents blaming crypto mining and government mismanagement for blackouts and water scarcity. Demonstrations have broken out across several towns, with protesters demanding accountability.

The crisis has been exacerbated by record drought, soaring summer heat, and the drying of Lake Urmia. Tehran government buildings have shut down to save electricity, and hospitals face power cuts affecting patient care.

Videos shared on social media show protesters chanting ‘water, electricity, life – these are our indisputable rights’ as outages hit homes and businesses. Small traders say they cannot keep shops open, while medics in darkened wards have used handheld fans.

Critics say energy is diverted to IRGC-linked crypto mining, while experts warn of long-term mismanagement. President Masoud Pezeshkian has described the situation as ‘serious and unimaginable’, urging action as public resentment grows ahead of a volatile political season.

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Royal Wolverhampton NHS Trust reshapes care with AI and robotic

At The Royal Wolverhampton NHS Trust, AI is beginning to transform how doctors and patients experience healthcare, cutting down on paperwork and making surgery more precise. Hospital leaders say the shift is already delivering tangible results, from faster clinical letters to reduced patient hospital visits.

One of the most impactful innovations is CLEARNotes, a system that records and summarises doctor-patient consultations. Instead of doctors spending days drafting clinic letters, the technology reduces turnaround time from as long as a week to just a day or two. Clinicians report that this tool saves time and improves productivity by as much as 25% in some clinics while ensuring that safety and governance standards remain intact.

Surgery is another area where technology is making its mark. The trust operates two Da Vinci Xi robots, now a regular feature in complex procedures, including urology, colorectal, cardiothoracic, and gynaecology cases. Compared to traditional keyhole surgery, robotic operations give surgeons better control and dexterity through a console linked to a 3D camera, while patients benefit from shorter stays and faster recoveries.

Digital tools also shape the patient’s journey before surgery begins. With My Pre-Op, patients complete their pre-operative questionnaires online from home, reducing unnecessary hospital visits and helping to ensure they are in the best condition for their operation. Hospital staff say this streamlines both efficiency and patient comfort.

The innovations recently drew praise from Science, Innovation and Technology Secretary Peter Kyle, who visited the hospital to see the systems in action. He described the trust’s embrace of AI and robotics as ‘inspiring,’ noting how safe experimentation and digital adoption already translate into improved care and efficiency. For Wolverhampton’s healthcare providers, the changes represent not just a technological upgrade but a glimpse into the future of how the NHS might deliver care across the country.

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Singapore sets jobs as top priority amid global uncertainty

Singapore’s Prime Minister Lawrence Wong said employment for citizens will remain the government’s top priority as the nation confronts global trade tensions and the rapid advance of AI.

Speaking at the annual National Day Rally to mark Singapore’s 60th year, Wong pointed to the risks created by the USChina rivalry, renewed tariff policies under President Donald Trump, and the pressure technology places on workers.

In his first primary address since the May election, Wong emphasised the need to reinforce the trade-reliant economy, expand social safety nets and redevelop parts of the island.

He pledged to protect Singaporeans from external shocks by maintaining stability instead of pursuing risky shifts. ‘Ultimately, our economic strategy is about jobs, jobs and jobs. That’s our number one priority,’ he said.

The government has introduced new welfare measures, including the country’s first unemployment benefits and wider subsidies for food, utilities and education.

Wong also announced initiatives to help enterprises use AI more effectively, such as a job-matching platform and a government-backed traineeship programme for graduates.

Looking ahead, Wong said Singapore would draw up a new economic blueprint to secure its future in a world shaped by protectionism, climate challenges and changing energy needs.

After stronger-than-expected results in the first half of the year, the government recently raised its growth forecast for 2025 to between 1.5% and 2.5%.

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Seedbox.AI backs re-training AI models to boost Europe’s competitiveness

Germany’s Seedbox.AI is betting on re-training large language models (LLMs) rather than competing to build them from scratch. Co-founder Kai Kölsch believes this approach could give Europe a strategic edge in AI.

The Stuttgart-based startup adapts models like Google’s Gemini and Meta’s Llama for medical chatbots and real estate assistant applications. Kölsch compares Europe’s role in AI to improving a car already on the road, rather than reinventing the wheel.

A significant challenge, however, is access to specialised chips and computing power. The European Union is building an AI factory in Stuttgart, Germany, which Seedbox hopes will expand its capabilities in multilingual AI training.

Kölsch warns that splitting the planned EU gigafactories too widely will limit their impact. He also calls for delaying the AI Act, arguing that regulatory uncertainty discourages established companies from innovating.

Europe’s AI sector also struggles with limited venture capital compared to the United States. Kölsch notes that while the money exists, it is often channelled into safer investments abroad.

Talent shortages compound the problem. Seedbox is hiring, but top researchers are lured by Big Tech salaries, far above what European firms typically offer. Kölsch says talent inevitably follows capital, making EU funding reform essential.

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Google launches small AI model for mobiles and IoT

Google has released Gemma 3 270M, an open-source AI model with 270 million parameters designed to run efficiently on smartphones and Internet of Things devices.

Drawing on technology from the larger Gemini family, it focuses on portability, low energy use and quick fine-tuning, enabling developers to create AI tools that work on everyday hardware instead of relying on high-end servers.

The model supports instruction-following and text structuring with a 256,000-token vocabulary, offering scope for natural language processing and on-device personalisation.

Its design includes quantisation-aware training to work in low-precision formats such as INT4, reducing memory use and improving speed on mobile processors instead of requiring extensive computational power.

Industry commentators note that the model could help meet demand for efficient AI in edge computing, with applications in healthcare wearables and autonomous IoT systems. Keeping processing on-device also supports privacy and reduces dependence on cloud infrastructure.

Google highlights the environmental benefits of the model, pointing to reduced carbon impact and greater accessibility for smaller firms and independent developers. While safeguards like ShieldGemma aim to limit risks, experts say careful use will still be needed to avoid misuse.

Future developments may bring new features, including multimodal capabilities, as part of Google’s strategy to blend open and proprietary AI within hybrid systems.

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Cohere secures $500m funding to expand secure enterprise AI

Cohere has secured $500 million in new funding, lifting its valuation to $6.8 billion and reinforcing its position as a secure, enterprise-grade AI specialist.

The Toronto-based firm, which develops large language models tailored for business use, attracted backing from AMD, Nvidia, Salesforce, and other investors.

Its flagship multilingual model, Aya 23, supports 23 languages and is designed to help companies adopt AI without the risks linked to open-source tools, reflecting growing demand for privacy-conscious, compliant solutions.

The round marks renewed support from chipmakers AMD and Nvidia, who had previously invested in the company.

Salesforce Ventures’ involvement hints at potential integration with enterprise software platforms, while other backers include Radical Ventures, Inovia Capital, PSP Investments, and the Healthcare of Ontario Pension Plan.

The company has also strengthened its leadership, appointing former Meta AI research head Joelle Pineau as Chief AI Scientist, Instagram co-founder Mike Krieger as Chief Product Officer, and ex-Uber executive Saroop Bharwani as Chief Technology Officer for Applied R&D.

Cohere intends to use the funding to advance agentic AI, systems capable of performing tasks autonomously, while focusing on security and ethical development.

With over $1.5 billion raised since its 2019 founding, the company targets adoption in regulated sectors such as healthcare and finance.

The investment comes amid a broader surge in AI spending, with industry leaders betting that secure, customisable AI will become essential for enterprise operations.

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Google backs workforce and AI education in Oklahoma with a $9 billion investment

Google has announced a $9 billion investment in Oklahoma over the next two years to expand cloud and AI infrastructure.

The funds will support a new data centre campus in Stillwater and an expansion of the existing facility in Pryor, forming part of a broader $1 billion commitment to American education and competitiveness.

The announcement was made alongside Governor Kevin Stitt, Alphabet and Google executives, and community leaders.

Alongside the infrastructure projects, Google funds education and workforce initiatives with the University of Oklahoma and Oklahoma State University through the Google AI for Education Accelerator.

Students will gain no-cost access to Career Certificates and AI training courses, helping them acquire critical AI and job-ready skills instead of relying on standard curricula.

Additional funding will support ALLIANCE’s electrical training to expand Oklahoma’s electrical workforce by 135%, creating the talent needed to power AI-driven energy infrastructure.

Google described the investment as part of an ‘extraordinary time for American innovation’ and a step towards maintaining US leadership in AI.

The move also addresses national security concerns, ensuring the country has the infrastructure and expertise to compete with domestic rivals like OpenAI and Anthropic, as well as international competitors such as China’s DeepSeek.

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Musk faces an OpenAI harassment lawsuit after a judge rejects dismissal

A federal judge has rejected Elon Musk’s bid to dismiss claims that he engaged in a ‘years-long harassment campaign’ against OpenAI.

US District Judge Yvonne Gonzalez Rogers ruled that the company’s counterclaims are sufficient to proceed as part of the lawsuit Musk filed against OpenAI and its CEO, Sam Altman, last year.

Musk, who helped found OpenAI in 2015, sued the AI firm in August 2024, alleging Altman misled him about the company’s commitment to AI safety before partnering with Microsoft and pursuing for-profit goals.

OpenAI responded with counterclaims in April, accusing Musk of persistent attacks in the press and on his platform X, demands for corporate records, and a ‘sham bid’ for the company’s assets.

The filing alleged that Musk sought to undermine OpenAI instead of supporting humanity-focused AI, intending to build a rival to take the technological lead.

The feud between Musk and Altman has continued, most recently with Musk threatening to sue Apple over App Store listings for X and his AI chatbot Grok. Altman dismissed the claim, criticising Musk for allegedly manipulating X to benefit his companies and harm competitors.

Despite the ongoing legal battle, OpenAI says it will remain focused on product development instead of engaging in public disputes.

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