Anthropic warns AI models could soon replicate across home devices, become difficult to shut down
New research from Anthropic suggests AI models could soon spread autonomously across smart TVs, appliances and other internet-connected devices, raising concerns about a new generation of digital threats that could be difficult to contain.
Former OpenAI employee, a Saudi national, charged after allegedly bugging OpenAI conference room
A Saudi national has been arrested and charged after allegedly planting a recording device inside an OpenAI office in San Francisco, authorities announced Tuesday.
Abdulrahman Alfozan, 35, was taken into custody last week. Security footage captured Alfozan near the executive conference room multiple times prior to the device’s discovery, despite having no authorization to access the space or attend meetings there, federal prosecutors said.
"FBI and partners arrested this individual after he allegedly concealed a recording device inside his employer's executive conference room to secretly capture sensitive communications about the company’s super intelligence tech," FBI Director Kash Patel wrote on X. "Protecting American SI innovation is critically important and FBI views it as one of our highest counterintelligence priorities."
Alfozan had been employed by OpenAI since July 2025. Around Sept. 30, someone discovered a surreptitious audio recording device inserted into a USB port on the back of a television in an executive conference room inside an OpenAI building in San Francisco, a federal complaint states.
The company later determined that the device, which had been concealed in toilet paper, was installed two days before it was found, and that its contents were encrypted.
According to authorities, a chatbot account linked to Alfozan’s spouse — which shared key identifiers with Alfozan’s own account — submitted prompts between Sept. 24 and Sept. 30 regarding the assembly and deployment of surveillance hardware. The queries sought information on building continuous audio recorders, customizing Wi-Fi connectivity, improving live listening capabilities, encrypting SD cards, and obfuscating remote-access devices. Prompts also included specific technical details, such as the device's custom header and unique MAC address.
In a statement, OpenAI said it discovered the "sophisticated" recording device and "used our models to understand the device and where it had come from, identifying that a specific employee had planted it a few days earlier."
"We referred the matter to the FBI, and we’re grateful to the agents and prosecutors who moved quickly to make an arrest," the company said, adding that it will continue supporting the ongoing investigation. "We take protecting our technology, data, and people seriously, and as a matter of national importance. Our security program is designed to protect against a wide range of threat actors... and this case is an example of how AI can help address these sophisticated security threats."
OpenAI noted there was no evidence that Alfozan accessed or exfiltrated model weights, source code or customer data.
Alfozan has since been terminated.
Anthropic petitions federal appeals court to overturn Department of War security risk designation
AI giant Anthropic has petitioned a federal appeals court for a rehearing following a divided panel's ruling that upheld the Department of War's designation of the company as a national security supply chain risk.
In its filing, the company argued that the panel's majority decision set a dangerous precedent by stretching federal authority beyond its intended scope, which was designed to target hostile foreign actors, and unfairly penalizing an American firm without evidence of malicious intent or subversive motives.
According to the petition, War Secretary Pete Hegseth branded Anthropic — "an American AI company whose models help defend the nation — a national-security ‘supply chain risk’ because it declined to permit its models to be used for mass surveillance of Americans or lethal autonomous warfare and publicly explained those AI-safety commitments.”
“The standards for panel and en banc rehearing are readily met here,” Anthropic wrote in the filing. “The majority decided four exceptionally important questions in conflict with decisions of this Court, the Supreme Court, and the Northern District of California.”
"Any one of these errors would warrant rehearing. Together, they compel it," the company added. "The majority handed the Secretary a coercive power that can be aimed at virtually any American company, exercised without notice, justified in a sentence, and wielded to punish speech or a refusal to supply whatever the Secretary demands."
The filing noted that 15 amicus briefs representing trade associations, civil liberties organizations, former judges, national security officials and AI experts were submitted in support, demonstrating the "far-reaching consequences" of the ruling.
IMF upgrades global growth outlook while warning of AI market risks
The International Monetary Fund on Tuesday upgraded its outlook for the global economy, while cautioning against potential risks tied to the current market euphoria surrounding artificial intelligence.
The IMF released the report as global economic and financial leaders gathered in Bangkok for the organization's annual autumn meetings.
IMF economists noted that the financial boom driven by AI is helping offset economic drag from higher oil and gas prices.
However, they warned that the rapid expansion carries significant risks..
Together, the U.S. and China account for more than three-quarters of net global demand for semiconductor chips and other AI infrastructure equipment, according to the report, as cited by The Associated Press.
"The outlook is highly uneven," Silvana Tenreyro, the IMF’s director of research, told reporters in Bangkok.
"The global economy is not simply slowing or accelerating," a report by the IMF said. "Rather, growth is being reallocated across countries according to their exposure to the war-induced supply shock and AI-related demand strength."
Disney bids $20 million for assets of bankrupt AI startup Character.AI
Disney has submitted a $20 million bid to acquire assets from Character.AI, the embattled artificial intelligence companion startup.
The bid follows Disney’s hiring of former Character.AI CEO Karandeep Anand as its chief technology officer in September.
Last year, the entertainment giant alleged that the startup made unauthorized use of its copyrighted characters, according to The Washington Post.
Character.AI has since filed for bankruptcy and put its assets up for sale following a wave of lawsuits alleging the platform encouraged users to self-harm, starve, or commit suicide.
JPMorgan Chase will not allow outside AI agents in its network, Jamie Dimon says
JPMorgan Chase will not allow external artificial intelligence agents to operate within its systems, CEO Jamie Dimon announced Tuesday.
"We’re not going to allow just any … outside agent to come in inside the company, because it’s just too risky for clients and for JPMorgan," Dimon told analysts during the bank’s third-quarter earnings call.
"We're not against agents or for agents," Dimon added. "They're tools. You use them for customers. There is a defensive side, which is you got to make sure our customers aren't hurt by it. That is of concern."
Fox News Digital reached out to JPMorgan Chase for further elaboration on Dimon's remarks.
Senators push Trump administration to tackle rising AI cybersecurity threats
A bipartisan duo of U.S. senators is urging the Trump administration to confront rising cybersecurity threats driven by artificial intelligence.
In a Tuesday letter, Sens. Maria Cantwell, D-Wash., and Mike Rounds, R-S.D., called on the federal government to take decisive action against a growing surge in cyber breaches.
“Recent AI security incidents should serve as a warning,” the senators wrote to Director of National Intelligence Jay Clayton and White House Office of Science and Technology Policy Director Michael Kratsios. “Advanced AI agents have escaped testing environments, bypassed safeguards, and gained unauthorized access to real-world systems owned by government agencies and private organizations.”
To mitigate these risks, the lawmakers recommended strengthening national safety standards through agencies like the National Institute of Standards and Technology (NIST) and expanding independent testing frameworks.
The letter also advocates for scaling independent auditing ecosystems to continuously evaluate the reliability of emerging technologies and guard against potential weaponization by malicious actors.
OpenAI turns to in-person field marketing to sell ChatGPT to enterprises
OpenAI is leaning into face-to-face field marketing to sell ChatGPT to corporate clients.
"Field is the one I would definitely put out as our strongest channel right now," said Leila Woodington, OpenAI’s head of B2B marketing for EMEA, during a panel at the Semrush Spotlight event in London this week, according to Adweek.
The company is hosting in-person events to showcase ChatGPT's capabilities to potential enterprise clients.
Additionally, OpenAI is building local teams in key markets—hiring professionals who understand local languages, cultures, and regional trade organizations.
In the social media space, the company also works with a “bench of really carefully curated creators and influencers who genuinely love our products," Woodington said.
AI chatbots show bias toward Walmart, frequently ranking it as top retailer
Walmart is benefiting from artificial intelligence chatbots that show a bias toward the retail giant, making it a frequent go-to recommendation.
According to analysts at UBS who studied various AI tools, Walmart was often the default answer for everyday consumer goods, reported by The Motley Fool.
The findings come at a time when an increasing number of consumers are turning to AI tools for advice on what to buy and where to shop.
Melania Trump launches 2027 AI challenge for students, unveils new school readiness seal
First lady Melania Trump announced a nationwide artificial intelligence challenge for K-12 students Tuesday, along with a new recognition program for schools preparing students and educators to use the technology responsibly.
The 2027 Presidential Super Intelligence (SI) Challenge encourages students to develop AI-powered projects addressing real-world problems in their schools and communities, according to a statement from the Office of the First Lady.
New this year, participating schools can earn the First Lady Seal of SI Readiness by completing a series of milestones demonstrating their efforts to prepare students and teachers to understand and use AI.
"America's next groundbreaking idea is already sitting in a classroom," the first lady said. "We must give our children the knowledge, tools, and opportunities to bring those ideas to life."
The initiative builds on the inaugural competition earlier this year, which drew more than 20,000 students from all 50 states and U.S. schools abroad, according to the White House.
Google launches powerful new Gemini AI model as it battles OpenAI, Anthropic
Google is making a new push to compete with OpenAI and Anthropic, launching its flagship Gemini 4 Argon artificial intelligence model following months of delays and a leadership shakeup at its DeepMind research lab.
The new model is designed to handle complex, multi-step tasks involving coding, finance, law, cybersecurity and scientific research, according to Google.
The company says Gemini 4 Argon is capable of performing what it calls "deep work," including analyzing legal documents, solving engineering problems and identifying cybersecurity vulnerabilities.
The launch follows a turbulent period for Google's AI division. In September, the company scrapped plans to release Gemini 3.5 Pro and reorganized DeepMind after its co-founder and CEO Demis Hassabis stepped aside and several Gemini leaders departed, Reuters reported.
Early testers of the new model include Deloitte, LexisNexis and healthcare technology company Ambience Healthcare.
Google also announced plans to expand access to a version of Argon without certain cybersecurity safeguards for hundreds of vetted security partners, while offering up to 10,000 scientists six months of free access to its Antigravity coding tool, subject to eligibility and selection.
Goldman Sachs CEO flags midterm election uncertainty surrounding AI data center boom
Goldman Sachs CEO David Solomon said Tuesday that the growing political debate over artificial intelligence data centers could create uncertainty for the industry as the U.S. approaches the midterm elections.
Speaking during the bank's quarterly earnings call, Solomon pointed to the potential for political volatility surrounding the rapid expansion of AI infrastructure, Reuters reported.
"Localized political volatility around data centers. You know, we've got an election coming up. It'll be interesting to see," Solomon said.
Data centers, which provide the computing power needed to run AI systems, have faced growing opposition from communities across the U.S. over concerns about rising electricity demand, potentially higher utility bills and environmental impacts.
Solomon also noted that growing financing needs and pressure on interest rates could affect the returns and viability of some AI infrastructure projects.
The comments come as AI infrastructure investment is projected to exceed $10 trillion through 2032, according to research by Columbia Business School professor Stijn Van Nieuwerburgh cited by Reuters.
Despite the uncertainty, Solomon said Goldman Sachs continues to see significant opportunities in the AI expansion.
"We still see an enormous amount of activity," he said.
Apple unveils AI-powered Siri smart-home device as competition heats up
Apple is bringing its upgraded artificial intelligence-powered Siri assistant into the home with a new smart-home device, as competition intensifies among tech giants to make AI part of everyday life.
The company on Tuesday unveiled HomeView, a $299 device featuring a 7-inch screen, facial recognition and smart-home controls, as it looks to compete with rivals including Amazon and Google.
According to Apple's announcement, HomeView uses Siri AI to answer questions, hold natural conversations and control connected household devices, including lights, thermostats and smart locks.
When paired with a compatible iPhone or iPad, Siri can also draw on personal information from Messages, Calendar and other apps to provide customized responses and take action across apps.
Apple upgraded Siri's AI capabilities earlier this year with assistance from Google, but analysts say the company still faces challenges making its smart-home ecosystem easier to use and improving the assistant's ability to deliver useful answers.
HomeView is expected to begin shipping Nov. 13 but will not be available in the European Union, where Siri AI remains unavailable because of regulatory restrictions, according to Apple.
Reuters contributed to this report.
Character.AI files for bankruptcy, Disney offers $20M as chatbot's future hangs in balance
Artificial intelligence chatbot company Character.AI has filed for Chapter 11 bankruptcy and agreed to sell certain assets to Disney for $20 million, raising questions about the future of its platform.
The company, which allows users to create and interact with AI-powered characters, announced Monday that Disney would serve as the lead bidder in a court-supervised auction, Reuters reported.
Disney's offer includes a license to certain intellectual property, but competing bidders will have an opportunity to submit higher offers.
Character.AI plans to continue operating with minimal disruptions during the sale process, which is expected to conclude by late November or early December.
However, the company warned that its chatbot platform could be shut down if the process fails to produce a buyer willing to keep it running.
Character Technologies, the company behind Character.AI, listed estimated assets and liabilities of between $50 million and $100 million in bankruptcy filings.
AI boom helps keep global economy afloat despite war and debt, IMF warns
The global economy is getting a major boost from the artificial intelligence investment boom, helping offset the economic fallout from the war in the Middle East, but the International Monetary Fund warns that a downturn in AI spending could threaten future growth.
The IMF on Tuesday raised its forecast for global economic growth to 3.1% in 2026, up from 3.0% in July, citing strong investment in AI infrastructure as a key driver of the improved outlook, Reuters reported.
The U.S. economy is projected to grow 2.3% this year, supported by consumer spending, tax cuts and AI investment.
But the IMF cautioned that the technology boom also poses risks. If anticipated AI productivity gains fail to materialize, triggering a pullback in investment and financial-market turmoil, global economic output could fall 1.1% below its baseline forecast by 2028, with U.S. output declining 1.8%.
"The global economy has been resilient, but that resilience is reaching its limits, so we need to move from just coping to rebuilding," IMF chief economist Silvana Tenreyro told reporters.
The IMF also warned that AI's economic benefits are increasingly concentrated in a handful of countries, while mounting government debt, particularly in advanced economies, could drive up borrowing costs and further threaten global growth.
Reuters contributed to this report.
Elon Musk's SpaceXAI agrees to testify before NYC lawmakers after subpoena standoff
Elon Musk's artificial intelligence company SpaceXAI has agreed to testify before New York City lawmakers after a weeks-long standoff over a subpoena that prompted threats of court action, according to a new report.
The company is scheduled to appear before the City Council's Committee on Technology on Friday at 10 a.m., amNewYork reported Tuesday. The agreement came after council officials warned they would seek a state judge's intervention to compel testimony.
SpaceXAI had previously skipped an Oct. 5 hearing where executives from OpenAI, Anthropic, Google and Meta testified under oath about potential AI safety risks.
City Council Speaker Julie Menin subpoenaed Musk's company on Sept. 28 after it failed to respond to requests for voluntary testimony.
Lawmakers are expected to question SpaceXAI about safeguards against potentially dangerous AI systems, including whether companies should be required to implement emergency shutdown mechanisms and undergo independent safety reviews.
The company has not publicly identified who will testify.
Anthropic warns self-replicating AI could spread across household devices within months
Artificial intelligence models could soon be capable of copying themselves across everyday household devices, potentially creating networks that are difficult to shut down, according to new research from AI company Anthropic.
In a report published Monday, Anthropic's Frontier Red Team warned that smaller AI models may be just months away from independently spreading across internet-connected devices, including smart ovens, TVs and other household electronics.
Researchers demonstrated that an AI model could run across 15 inexpensive Android TV boxes, while separate experiments showed that more advanced models could replicate across a simulated network.
Unlike traditional malware, self-replicating AI could potentially adapt to unfamiliar devices and find new ways to spread without human intervention.
Researchers cautioned that they have not yet demonstrated a fully autonomous AI worm operating in the real world, but warned that continued advances could make such threats increasingly difficult to contain.
AI invents murder tip and sends it to police as company takes heat over delay
An Anthropic AI chatbot generated a false lead in an unsolved Philadelphia murder case and sent it to police during a test, triggering criticism over how long the company took to uncover and report it.
The false tip was submitted July 18 through the department’s unsolved murders website but landed in spam and never reached investigators, according to 6abc. Police said their systems and data were not compromised.
Anthropic confirmed that its Claude Haiku 4.5 model claimed to have seen someone matching a description near the crime scene, even though the webpage contained no suspect description. The chatbot left its name and contact information blank. The company said its testing rules prohibited several actions but did not explicitly ban submitting forms.
Anthropic discovered the incident Sept. 28 and notified police Oct. 7, according to 6abc. Police called the delay “unacceptable,” stressing that unsolved cases involve “real victims, grieving families and investigators working to secure answers.”
Gizmodo reported that the fake tip was among several unwanted actions Anthropic disclosed involving outside websites. In its own report, Anthropic said it has suspended live internet access for all internal evaluations until stronger safeguards reliably catch such behavior, warning that similar failures could cause greater harm as AI becomes more powerful.
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