Anthropic has released Claude Opus 4.1, an upgrade to Opus 4 that reportedly improves on agentic tasks, computer coding and reasoning. Pricing has not increased from what customers were paying for Opus 4, and the company promises “substantially larger improvements to our models in the coming weeks.” The move comes as Anthropic nears a new funding round targeting $3 to $5 billion, which could place a valuation of up to $170 billion on the startup. Recurring revenue hit $5 billion as of late July, which could increase to $9 billion by the end of the year. Claude Opus 4.1 was released two days before OpenAI unleashed GPT-5, and performs comparably in coding benchmarks. Continue reading Anthropic Seeks to Raise $5 Billion, Debuts Claude Opus 4.1

Grok Imagine is xAI’s new video and image generator, which is currently available via the X social platform, the Grok mobile app, and Grok web interface. Imagine replaces AI image generator Aurora, which was retired in May following a string of offensive posts that led to media criticism and user concerns. Despite the backlash, Elon Musk’s xAI seems determined to have Imagine push conventional limits, with a “spicy” mode that outputs imagery including adult content. Its text-to-image capabilities work with text or voice prompts, while the video tool relies on image prompts to make short clips using images from a user’s gallery or generated by Grok. Continue reading Grok Imagine from xAI Offers Video Generation, ‘Spicy’ Mode

YouTube is testing a new collaboration feature that allows creators to link other users’ content to their videos, enabling recommendations to followers of each account as a means of driving visibility and engagement. Creators can tag collaborators, who must approve before their name and audience reach is added to the clip. In addition to a collective graphic, a designation along the lines of “and three more” appears next to the name of the host account holder. When clicked, the “more” opens to display the hot-linked channels that are collaborating. Instagram and TikTok already have similar features in place. Continue reading YouTube Collaboration Tool Helps Creators Expand Audience

Google has upgraded Gemini 2.5 with a feature called Deep Think that “could be a powerful tool in creative problem solving,” according to the company. Deep Think uses parallel thinking techniques, letting Gemini “generate many ideas at once and consider them simultaneously, even revising or combining different ideas over time, before arriving at the best answer.” Its ability to reason through highly complex problems makes Deep Think mode a powerful tool for researchers, Google says, adding that it also excels at coding. Deep Think is available in the Gemini app to subscribers of Google AI Ultra, priced at $250 per month. Continue reading Google Intros Deep Think Reasoning Model for AI Ultra Subs

The $88 billion Microsoft invested in building data centers for artificial intelligence and cloud computing over the past year seems to be paying off with the company reporting quarterly profit of $101 billion for fiscal year 2025, which ended June 30. Quarterly revenue for the April through June period was $76.4 billion, up 18 percent year-over-year, with profit of $27.2 billion, a 24 percent increase. “Cloud and AI is the driving force of business transformation across every industry and sector,” said Microsoft Chairman and CEO Satya Nadella, noting Azure passed $75 billion in revenue for the year, up 34 percent. Continue reading Driven by AI and Cloud, Microsoft Profit Exceeds $100 Billion

Google’s YouTube is adding new age-verification methods designed to protect teens. The streaming video platform is using AI to interpret “a variety of signals” to identify users under 18, regardless of the birthdate used to create the account. If the system identifies a user as a teen, age-appropriate protections will automatically take effect. These include disabling personalized advertising, restricted recommendations, limits on repetitive viewing of certain content and screen-time reminders. If the system incorrectly categorizes a user as under 18, they will have the option to correct the situation with a credit card or a government ID. Continue reading YouTube Deploying AI to Identify and Safeguard U.S. Minors

At the World AI Conference that opened in Shanghai on Saturday, Huawei emerged as China’s best hope for driving a domestic hardware sector for advanced artificial intelligence workloads. There, Huawei debuted its CloudMatrix 384 AI system, powered by 384 of its high-performance processors, the Ascend 910C GPUs. The setup has drawn favorable comparisons to Nvidia’s flagship supercomputing platform, the GB200 NVL72, a rack-scale solution for on-site AI and HPC tasks. Huawei’s new hardware reportedly drew large crowds to its booth, but the company declined to share detailed comments or live benchmarks, suggesting a tightly controlled public presentation. Continue reading Huawei May Challenge Nvidia with Its CloudMatrix AI System

Google has added new AI features to Google Photos and YouTube Shorts. Having previously introduced generative backgrounds, YouTube Shorts now has a photo-to-video feature, as well as a variety of menu-driven effects accessible via the Shorts camera that aim to advance social media or arts project creativity — things like turning line drawings into watercolors, putting a selfie “underwater” or adding a digital twin. And Google Photos, available on just about every Android phone, now also has the ability to turn stills to video. For now, both rely on the Veo 2 video model rather than Veo 3, launched in May. Continue reading Google Photos, YouTube Shorts Offer New AI Creation Tools

Google has added a new AI search tool called Web Guide. A Google Search Labs experiment, Web Guide will “intelligently organize” results pages according to specific aspects of the user’s query. Web Guide implements a custom version of Gemini AI “to better understand both a search query and content on the web” for what Google calls a “more powerful” search that enhances discovery of more on-point but obscure pages. Like AI Mode, a Google Labs experiment launched in March, Web Guide uses a query fan-out technique, “issuing multiple related searches to identify the most relevant results.” Continue reading Web Guide Is Google Search Labs Latest Gemini Experiment

Alphabet reported a 14 percent year-over-year revenue increase to $96.4 billion, propelled largely by growth in the Google Cloud and Google Search divisions. Artificial intelligence had a significant impact across the board, including in spending. Capital expenditure is expected to be roughly $85 billion in 2025, compared to $52.5 billion in 2024. Google Cloud generated $13.6 billion in Q2, up 32 percent from the same period last year. Advertising sales totaled $71.3 billion for the quarter, a 10.4 percent improvement from the year earlier frame. Google Search, which is integral to advertising sales, was up 11.7 percent. Continue reading Q2 Revenue Hits $96B as Google Invests in AI Search, Models

Orlando, Florida-based digital distribution company FreeCast is launching Test Drive Live, a free ad-supported streaming TV (FAST) channel that is also shoppable. The idea is to offer telecoms and ISPs the ability to offer “monetizable video” without requiring substantive infrastructure and hardware investments, FreeCast explains. Test Drive Live will be offered via FreeCast’s own streaming platform and through Roku. The company says that through FreeCast, Test Drive Live will be immediately available on Amazon Fire TV, Google TV, Apple TV, Xbox, iOS, Android, Windows, Mac “and most streaming devices.” Continue reading Test Drive Live: FreeCast Rolls Out Shoppable FAST Channel

Netflix revenue grew to $11.08 billion in Q2, a 16 percent year-over-year increase that helped drive net profit up 46 percent to $3.1 billion. The company’s operating margin rose to 34.1 percent in Q2, a nearly 7-point rise over Q2 2024 that along with 30 percent full-year guidance puts the streamer on par with tech giants such as Apple (31 percent) and Google (32 percent). Although Netflix no longer provides quarterly subscriber updates, the company did share results of its half-year Engagement Report, indicating members watched more than 95 billion hours of Netflix content during the first six months of the year. Continue reading Netflix Records Impressive Q2: Revenue Reaches $11 Billion

OpenAI is adding Google Cloud to its list of global infrastructure providers for ChatGPT after relying exclusively on Microsoft Azure since the chatbot’s 2022 launch until January 2025 when Stargate was announced. Oracle and CoreWeave are also OpenAI cloud providers. Oracle is a Stargate investor, as is Nvidia, which holds a minority interest in CoreWeave. OpenAI has been active as it heads toward a December deadline for transitioning to a for-profit company. Meanwhile, ChatGPT is integrating a payment system to receive commissions on sales it initiates, and yesterday OpenAI launched a new AI agent that can perform complex tasks within a user’s browser. Continue reading OpenAI Contracts Google Cloud and Debuts ChatGPT Agent

The Microsoft Store has an update to Microsoft Copilot that extends the capabilities of Copilot Vision. Rolling out initially to members of the Windows Insider Program, Desktop Share allows Copilot Vision to see a user’s desktop, enabling real-time conversation with the AI app, which will be able to answer questions about what it sees using text or natural language. Copilot Vision “can help analyze content, provide insights, and answer your questions, coaching you through it aloud,” according to Microsoft, offering things like “tips on making improvements to your creative project, help with improving your resume, or guidance while navigating a new game.” Continue reading Microsoft’s Copilot Update Includes Vision AI Screen Sharing

AWS has released a new AI coding tool called Kiro in preview. This IDE for agent apps is described by some as a vibe coding platform. However, AWS says Kiro “goes way beyond,” getting prototypes into production systems with features such as specs and hooks. In fact, Kiro was designed specifically to reduce issues common to vibe coding, the process of creating software using AI agents reacting to natural language prompts. This makes it popular among non-coders, resulting in an often chaotic process that Kiro attempts to professionalize. Available for free during preview, Kiro supports most popular programming languages. Continue reading AWS Kiro Agentic AI Developer Tool Now Free During Preview