Oracle reduced its workforce by 21,000 employees in fiscal 2026, a 13% drop, as the cloud computing giant accelerates its shift toward AI-driven automation. The company confirmed that AI systems have replaced roles in customer support, database management, and software testing. Oracle now employs around 141,000 full-time workers, down from 162,000 a year ago. The layoffs reflect a broader trend across the tech industry as companies invest heavily in AI.
OpenAI announced its first custom-designed artificial intelligence chip, built in collaboration with Broadcom, marking a major step toward reducing the company's reliance on Nvidia's graphics processing units. The new chip is designed specifically for inference workloads, the process of running trained AI models to generate responses. The move reflects a broader industry trend of AI companies designing their own silicon to optimize performance and cost for their specific needs.
Anthropic launched Claude Tag, an AI assistant that integrates with Slack and other workplace tools to learn company-specific context and terminology. The tool indexes internal conversations and documents to provide more relevant responses, but privacy advocates warn it could enable unprecedented workplace surveillance. The launch comes amid ongoing tension between Anthropic and the Trump administration over AI regulation.
Norway announced a near-total ban on generative AI tools in elementary schools starting in late August, Prime Minister Jonas Gahr Støre said Friday. Children aged 6 to 13 will generally not be allowed to use AI in school, while older students face supervised age-tiered access. The government cited concerns that AI erodes children's ability to develop cognitive and social skills, and that the technology does too much of the work children need to learn themselves. Norway, one of the first countries to ban smartphones in schools, is also considering new legislation to promote book use in classrooms.
White House talks with AI company Anthropic have shifted to setting AI security rules, Politico reported. Meta executive Joel Kaplan detailed the company's AI, data center and workforce plans at POLITICO's Energy Summit. The Federal Energy Regulatory Commission chair discussed the agency's AI agenda, as fast-tracked power plants fuel AI's booming energy demands.
The US government blocked Anthropic from releasing its Fable 5 AI model, citing national security concerns, in what experts call the most aggressive federal action yet against a private AI company. The ban has sparked debate about export controls, with Anthropic's CEO clashing with the White House over the restrictions. Separately, Amazon announced plans to sell its own AI training chips directly to customers, challenging Nvidia's dominance. ChatGPT's market share slipped below 50% for the first time as competitors gain ground. AI data centers also secured a government-mandated fast lane to the electrical grid.
Amazon announced a $50 billion investment in OpenAI as part of a broader strategic partnership that will see OpenAI run more workloads on AWS infrastructure, including a commitment to deploy 2 gigawatts of Amazon's Trainium AI chips. The deal is part of a $110 billion funding round for OpenAI that values the company at $730 billion. Analysts estimate the $100 billion cloud services component could add roughly $17 billion a year in AWS revenue—about 11% of expected 2026 revenue. The partnership reshapes the competitive AI landscape.
SpaceX acquired AI coding startup Cursor for $60 billion in stock, just days after its record-breaking IPO valued the company at $1.77 trillion. The acquisition marks one of the largest AI deals in history and signals SpaceX's push beyond aerospace into artificial intelligence. Meanwhile, Google's Gemini co-lead Noam Shazeer is leaving to join IPO-bound OpenAI, and Anthropic suspended access to its Mythos model after the US government banned foreign nationals from using it.
A new study published by TechCrunch reveals that only 16% of Americans think artificial intelligence will have a positive impact on society, reflecting deep public skepticism about the technology. Meanwhile, ChatGPT's market share slipped below 50% for the first time as competition intensifies, and Google launched Android 17 with expanded Gemini AI features. The findings come amid growing debates over AI regulation, with Anthropic facing a White House meeting after its models were suspended by the US government.
OpenAI's ChatGPT has seen its market share slip below 50% for the first time, reflecting intensifying competition in the AI chatbot space. Google launched Android 17 with expanded Gemini AI features, while Anthropic faces a US government ban on its most powerful models. SpaceX announced plans to acquire AI startup Cursor for $60 billion. Salesforce acquired AI customer service platform Fin for $3.6 billion. A survey found 60% of US consumers say 'AI' in brand messaging is a turnoff.