Google strengthens position as Perplexity and OpenAI launch browsers

OpenAI is reportedly preparing to launch an AI-powered web browser in the coming weeks, aiming to compete with Alphabet’s dominant Chrome browser, according to sources cited by Reuters.

The forthcoming browser seeks to leverage AI to reshape how users interact with the internet, while potentially granting OpenAI deeper access to valuable user data—a key driver behind Google’s advertising empire.

If adopted by ChatGPT’s 500 million weekly active users, the browser could pose a significant challenge to Chrome, which currently underpins much of Alphabet’s ad targeting and search traffic infrastructure.

The browser is expected to feature a native chat interface, reducing the need for users to click through traditional websites. The features align with OpenAI’s broader strategy to embed its services more seamlessly into users’ daily routines.

While the company declined to comment on the development, anonymous sources noted that the browser is likely to support AI agent capabilities, such as booking reservations or completing web forms on behalf of users.

The move comes as OpenAI faces intensifying competition from Google, Anthropic, and Perplexity.

In May, OpenAI acquired the AI hardware start-up io for $6.5 billion, in a deal linked to Apple design veteran Jony Ive. The acquisition signals a strategic push beyond software and into integrated consumer tools.

Despite Chrome’s grip on over two-thirds of the global browser market, OpenAI appears undeterred. Its browser will be built on Chromium—the open-source framework powering Chrome, Microsoft Edge, and other major browsers. Notably, OpenAI hired two former Google executives last year who had previously worked on Chrome.

The decision to build a standalone browser—rather than rely on third-party plug-ins—was reportedly driven by OpenAI’s desire for greater control over both data collection and core functionality.

The control could prove vital as regulatory scrutiny of Google’s dominance in search and advertising intensifies. The United States Department of Justice is currently pushing for Chrome’s divestiture as part of its broader antitrust actions against Alphabet.

Other players are already exploring the AI browser space. Perplexity recently launched its own AI browser, Comet, while The Browser Company and Brave have introduced AI-enhanced browsing features.

As the AI race accelerates, OpenAI’s entry into the browser market could redefine how users navigate and engage with the web—potentially transforming search, advertising, and digital privacy in the process.

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

Zuckerberg unveils Meta’s multi-gigawatt AI data clusters

Meta Platforms is building several of the world’s largest data centres to power its AI ambitions, with the first facility expected to go online in 2026.

Chief Executive Mark Zuckerberg revealed on Threads that the site, called Prometheus, will be the first of multiple ‘titan clusters’ designed to support AI development instead of relying on existing infrastructure.

Frustrated by earlier AI efforts, Meta is investing heavily in talent and technology. The company has committed up to $72 billion towards AI and data centre expansion, while Zuckerberg has personally recruited high-profile figures from OpenAI, DeepMind, and Apple.

That includes appointing Scale AI’s Alexandr Wang as chief AI officer through a $14.3 billion stake deal and securing Ruoming Pang with a compensation package worth over $200 million.

The facilities under construction will have multi-gigawatt capacity, placing Meta ahead of rivals such as OpenAI and Oracle in the race for large-scale AI infrastructure.

One supercluster in Richland Parish, Louisiana, is said to cover an area nearly the size of Manhattan instead of smaller conventional data centre sites.

Zuckerberg confirmed that Meta is prepared to invest ‘hundreds of billions of dollars’ into building superintelligence capabilities, using revenue from its core advertising business on platforms like Facebook and Instagram to fund these projects instead of seeking external financing.

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

Meta buys PlayAI to strengthen voice AI

Meta has acquired California-based startup PlayAI to strengthen its position in AI voice technology. PlayAI specialises in replicating human-like voices, offering Meta a route to enhance conversational AI features instead of relying solely on text-based systems.

According to reports, the PlayAI team will join Meta next week.

Although financial terms have not been disclosed, industry sources suggest the deal is worth tens of millions. Meta aims to use PlayAI’s expertise across its platforms, from social media apps to devices like Ray-Ban smart glasses.

The move is part of Meta’s push to keep pace with competitors like Google and OpenAI in the generative AI race.

Talent acquisition plays a key role in the strategy. By absorbing smaller, specialised teams like PlayAI’s, Meta focuses on integrating technology and expert staff instead of developing every capability in-house.

The PlayAI team will report directly to Meta’s AI leadership, underscoring the company’s focus on voice-driven interactions and metaverse experiences.

Bringing PlayAI’s voice replication tools into Meta’s ecosystem could lead to more realistic AI assistants and new creator tools for platforms like Instagram and Facebook.

However, the expansion of voice cloning raises ethical and privacy concerns that Meta must manage carefully, instead of risking user trust.

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

OpenAI to release Chromium-based AI browser competing with Chrome

OpenAI is preparing to launch an AI-powered web browser that could challenge Google Chrome’s dominant market position. The browser is expected to debut in the coming weeks and aims to change how users interact with the web fundamentally.

The new browser will reportedly integrate AI capabilities directly into the browsing experience, allowing for more intelligent and task-driven user interactions. Instead of simply directing users to websites, the browser is designed to keep many interactions within a native ChatGPT-style interface.

If adopted by ChatGPT’s 500 million weekly users, the browser could seriously threaten Google’s ad-driven ecosystem. Chrome is critical in Alphabet’s advertising revenue, accounting for nearly three-quarters of the company’s income by collecting user data and directing traffic to Google Search.

By building its browser, OpenAI would gain more direct access to user behaviour data, improving its AI models and enabling new forms of web engagement. However, this move is part of OpenAI’s broader strategy to integrate its services into users’ personal and professional lives.

The browser will reportedly support AI ‘agents’ capable of performing tasks such as making reservations or filling out web forms automatically. These agents could operate directly within websites, making the browsing experience more seamless and productive.

While OpenAI declined to comment, sources suggest the browser is built on Google’s open-source Chromium codebase—the same foundation behind Chrome, Edge, and Opera. However, this allows OpenAI to maintain compatibility while customising user experience and data control.

Competition in the AI-powered browser space is heating up. Startups like Perplexity and Brave have already launched intelligent browsers, and The Browser Company continues to develop features for AI-driven navigation and summarisation.

Despite Chrome’s 3-billion-strong user base and over two-thirds of the browser market share, OpenAI sees an opportunity to disrupt the space. Apple’s Safari holds second place with just 16% of the global share, leaving room for new challengers.

Last year, OpenAI hired two senior Google engineers from the original Chrome team, fueling speculation that the company was eyeing the browser space. One executive even testified that OpenAI would consider buying Chrome if it were made available through antitrust divestiture.

Instead, OpenAI built its browser from the ground up, allowing greater autonomy over features, data collection, and AI integration. A source told Reuters this approach ensures better alignment with OpenAI’s goal of embedding AI across user experiences.

In addition to hardware acquisitions and agent-based interfaces, the browser represents a crucial link in OpenAI’s strategy to deepen user engagement. The company recently acquired the AI hardware firm io, co-founded by Apple’s former design chief Jony Ive, for $6.5 billion.

The browser could become the gateway for OpenAI’s AI agents like ‘Operator,’ enhancing productivity by turning passive browsing into interactive assistance. Such integration could give OpenAI a competitive edge in the evolving consumer AI landscape.

Meanwhile, Google faces legal challenges over Chrome’s central role in its ad monopoly. A US judge ruled that Google maintains an unlawful hold over online search, prompting the Department of Justice to push for divestiture of key assets, including Chrome.

OpenAI’s entry could spark a broader shift in how consumers, businesses, and advertisers engage with the internet as the browser race intensifies. With built-in AI capabilities and task automation, browsing may become a different experience.

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

AI industry warned of looming financial collapse

Despite widespread popularity and unprecedented investment, OpenAI may be facing a deepening financial crisis. Since launching ChatGPT, the company has lost billions yearly, including an estimated $5 billion in 2024 alone.

Tech critic Ed Zitron argues that the AI industry is heading towards a ‘subprime AI crisis’, comparing the sector’s inflated valuations and spiralling losses to the subprime mortgage collapse in 2007. Startups like OpenAI and Anthropic continue to operate at huge losses.

Companies relying on AI infrastructure are already feeling the squeeze. Anysphere, which uses Anthropic’s models, recently raised prices sharply, angering users and blaming costs passed down from its infrastructure provider.

To manage exploding demand, OpenAI has also introduced tiered pricing and restricted services for free users, raising concerns that access to AI tools will soon be locked behind expensive paywalls. With 800 million weekly users, any future revenue strategy could alienate a large part of its global base.

Zitron believes these conditions cannot sustain long-term growth and will ultimately damage revenues and public trust. The industry, he warns, may be building its future on unstable ground.

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

ChatGPT quietly tests new ‘Study Together’ feature for education

A few ChatGPT users have noticed a new option called ‘Study Together’ appearing among available tools, though OpenAI has yet to confirm any official rollout. The feature seems designed to make ChatGPT a more interactive educational companion than just delivering instant answers.

Rather than offering direct solutions, the tool prompts users to think for themselves by asking questions, potentially turning ChatGPT into a digital tutor.

Some speculate the mode might eventually allow multiple users to study together in real-time, mimicking a virtual study group environment.

With the chatbot already playing a significant role in classrooms — helping teachers plan lessons or assisting students with homework — the ‘Study Together’ feature might help guide users toward deeper learning instead of enabling shortcuts.

Critics have warned that AI tools like ChatGPT risk undermining education, so it could be a strategic shift to encourage more constructive academic use.

OpenAI has not confirmed when or if the feature will launch publicly, or whether it will be limited to ChatGPT Plus users. When asked, ChatGPT only replied that nothing had been officially announced.

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

Sam Altman shrugs off Meta poaching, backs Trump, jabs at Musk

OpenAI CEO Sam Altman addressed multiple hot topics during the Sun Valley conference, including Meta’s aggressive recruitment of top AI researchers, his strained relationship with Elon Musk, and a surprising show of support for Donald Trump.

Altman downplayed Meta’s talent raids, saying he had not spoken to Mark Zuckerberg since the Meta CEO lured away three OpenAI researchers with a $100 million signing bonus. All three had worked at OpenAI’s Zurich office, which opened in 2024.

Despite the losses, Altman described the situation as ‘fine’ and ‘good’, suggesting OpenAI’s mission continues to retain top talent.

The OpenAI chief also took a subtle swipe at Meta’s smartglasses, saying he doesn’t like wearable tech and implying his company has no plans to follow suit.

On the topic of Elon Musk, Altman laughed off their rivalry, saying only that Musk’s bust-ups with everybody, and hinting at the long-running tension between the two former co-founders.

Perhaps most notably, Altman expressed disillusionment with the Democratic Party, saying he no longer feels represented by mainstream figures he once supported.

He praised Donald Trump’s focus on AI infrastructure. He even donated $1 million to Trump’s inaugural fund — a gesture reflecting a broader shift among Silicon Valley leaders warming to Trump as his popularity rises.

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

OpenAI locks down operations after DeepSeek model concerns

OpenAI has significantly tightened its internal security following reports that DeepSeek may have replicated its models. DeepSeek allegedly used distillation techniques to launch a competing product earlier this year, prompting a swift response.

OpenAI has introduced strict access protocols to prevent information leaks, including fingerprint scans, offline servers, and a policy restricting internet use without approval. Sensitive projects such as its AI o1 model are now discussed only by approved staff within designated areas.

The company has also boosted cybersecurity staffing and reinforced its data centre defences. Confidential development information is now shielded through ‘information tenting’.

These actions coincide with OpenAI’s $30 billion deal with Oracle to lease 4.5 gigawatts of data centre capacity across the United States. The partnership plays a central role in OpenAI’s growing Stargate infrastructure strategy.

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

Lithuania questions legality of Robinhood’s new tokens

Robinhood’s new blockchain tokens, which are tied to firms like SpaceX and OpenAI, are under EU scrutiny, with Lithuania’s central bank reviewing whether the product meets financial rules.

The tokens, introduced on 30 July, allow retail investors to gain exposure to high-profile private firms through digital assets. Although Robinhood offered a promotional giveaway to attract EU users, questions quickly arose over the product’s legal classification and how it was marketed to the public.

OpenAI has publicly stated it has no affiliation with Robinhood and has not authorised share transfers. Robinhood responded by confirming that the tokens do not represent actual equity but provide access to the value of private firms via non-equity instruments.

Regulators are now assessing whether the product meets compliance standards and whether investor information has been presented clearly and accurately. The central bank has requested further details before issuing a formal judgement.

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

OpenAI rejects Robinhood’s token offering

OpenAI has publicly disavowed Robinhood’s decision to sell so-called ‘OpenAI tokens’, warning that these blockchain-based contracts do not offer real equity in the company.

In a statement posted on X, OpenAI made clear that it had not approved, endorsed, or participated in the initiative and emphasised that any equity transfer requires its direct consent.

Robinhood recently announced plans to offer tokenised access to private firms like OpenAI and SpaceX for investors in the EU. The tokens do not represent actual shares but mimic price movements using blockchain contracts.

Despite OpenAI’s sharp rejection, Robinhood’s stock surged to record highs following the announcement.

A Robinhood spokesperson later claimed the tokens were linked to a special purpose vehicle (SPV) that owns OpenAI shares, though SPVs do not equate to direct ownership either.

The company said the move aims to give everyday investors indirect exposure to high-profile startups through digital contracts.

Robinhood CEO Vlad Tenev defended the strategy on X, saying the token sale was just the beginning of a broader effort to democratise access to private markets.

OpenAI, meanwhile, declined to comment further.

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