SpaceX secures option to buy AI startup Cursor for $60bn or partner for $10bn

Cursor is aSilicon Valley startup using AI to automate coding as Elon Musk’s firm seeks foothold in the AI market

SpaceX said it has secured an option to either acquire code-generation startup Cursor for $60bn later this year, or pay $10bn for their new partnership, as it pushes deeper into the lucrative market for AI developer tools.

Along with OpenAI and Anthropic, Cursor is one of several Silicon Valley startups that has drawn waves of developers by using artificial intelligence to automate coding, a business where AI companies have found early commercial traction.

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Anthropic keeps latest AI tool out of public’s hands for fear of enabling widespread hacking

AI company says purpose of its Claude Mythos model is to bolster defenses against hacking in common applications

Anthropic on Tuesday said its yet-to-be-released artificial intelligence model called Claude Mythos has proven keenly adept at exposing software weaknesses.

Mythos has laid bare thousands of vulnerabilities in commonly used applications for which no patch or fix exists, prompting the San Francisco-based AI startup to form an alliance with cybersecurity specialists to bolster defenses against hacking and withhold wide distribution.

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UK’s leading AI research institute told to make ‘significant’ changes

Alan Turing Institute told by funder to offer better strategy and more value for money after board was reminded of legal duties by watchdog

The UK’s leading AI research institute has been told to make “significant” changes by its main source of taxpayer funding.

The Guardian revealed last week that the board of the Alan Turing Institute was reminded of its legal duties by the charity watchdog after a whistleblower complaint.

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Senior European journalist suspended over AI-generated quotes

Mediahuis suspends Peter Vandermeersch, who says he ‘fell into trap of hallucinations’, after investigation by newspaper where he was once editor-in-chief

The publisher of the Dutch newspaper De Telegraaf and the Irish Independent has suspended one of its senior journalists after he admitted using AI to “wrongly put words into people’s mouths”.

Peter Vandermeersch, the former head of the Irish operations at Mediahuis, said he “fell into the trap of hallucinations” – the term for AI-generated errors – when using the technology.

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‘Invasive’ AI-led mass surveillance in Africa violating freedoms, warn experts

Countries across the continent have spent more than $2bn on Chinese tracking technology that is not ‘necessary or proportionate’, new report finds

The rapid expansion of AI-powered mass-surveillance systems across Africa is violating citizens’ right to privacy and having a chilling effect on society, according to experts on human rights and emerging technologies.

At least $2bn (£1.5bn) has been spent by 11 African governments on Chinese-built surveillance technology that recognises faces and monitors movements, according to a new report by the Institute of Development Studies, which warns that national security is being used to justify implementing these systems with little regulation.

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Treasury calls in Blair thinktank to advise on using AI across public services

Tech equity campaigners compare move to ‘inviting in foxes to consult on the future of the henhouse’

Ministers have called in Tony Blair’s thinktank and private tech companies to guide them on deploying AI across the UK government in a move campaigners compared to “inviting in foxes to consult on the future of the henhouse”.

James Murray, chief secretary to the Treasury, chaired a meeting on Wednesday with the director of AI at the Tony Blair Institute for Global Change (TBI), the chair of IBM and senior executives at AI companies including Faculty AI, now part of Accenture, and Dex Hunter-Torricke, a former communications adviser at Google, Facebook and Elon Musk’s Space X.

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Matthew McConaughey and Michael Caine sign voice deal with AI company

The voices of the Oscar-winning actors can now be used to create AI-generated versions in a new deal with ElevenLabs

Oscar-winning actors Matthew McConaughey and Michael Caine have both signed a deal with the AI audio company ElevenLabs.

The New York-based company can now create AI-generated versions of their voices as part of a bid to solve a “key ethical challenge” in the artificial intelligence industry’s alliance with Hollywood.

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Data centers meet resistance over environmental concerns as AI boom spreads in Latin America

An expert describes how communities in some of the world’s driest areas are demanding transparency as secretive governments court billions in foreign investment

This Q&A originally appeared as part of The Guardian’s TechScape newsletter. Sign up for this weekly newsletter here.

The data centers that power the artificial intelligence boom are beyond enormous. Their financials, their physical scale, and the amount of information contained within are so massive that the idea of stopping their construction can seem like opposing an avalanche in progress.

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Microsoft reports strong earnings as Azure hit by major outage

Tech giant reports earnings of $3.72 per share day after deal with OpenAI pushed value of company to more than $4tn

Microsoft blew off concerns of overspending on AI on Wednesday, reporting elevated earnings even as it faced an outage of its cloud computing service, Azure, and its office software suite, 365. The strong earnings report comes a day after a deal with OpenAI pushed the value of tech giant to more than $4tn.

After its Xbox and investor relations pages went down, the company issued a statement that said: “We are working to address an issue affecting Azure Front Door that is impacting the availability of some services.”

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Google parent Alphabet beats forecasts with first $100bn quarter

Strong demand for ads and cloud services powered tech giant’s growth as it makes multibillion-dollar AI investment

Google’s parent company, Alphabet, displayed steady growth in its core advertising business and cloud computing division as it reported third-quarter earnings on Wednesday, beating Wall Street estimates as it reported its first quarter of $100bn in revenue.

The company thrilled Wall Street – shares rose in after-hours trading – even as it announced that it would spend billions more than previously predicted. Alphabet raised its capital expenditure guidance in financial filings, declaring it would spend between $91bn and $93bn in the upcoming year, nearly all of it on infrastructure like datacenters to support artificial intelligence products, which are becoming an integral part of the company’s business. That estimate is up from an original declaration of $75bn in February and a revised figure of $85bn announced in July.

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Canadian man fined for submitting AI hallucinations as part of legal defense

Jean Laprade ordered to pay $3,500 in legal saga of ‘hijacked planes’, Interpol red alerts and ‘inappropriate use’ of AI

A Quebec man has been ordered to pay C$5,000 (US$3,562) for submitting artificial intelligence hallucinations as part of his legal defense, a move the judge warned was “highly reprehensible” and threatened to undermine integrity in the legal system.

Justice Luc Morin of Quebec superior court levied the fine on Jean Laprade in a decision released on 1 October, capping a legal saga the judge said “contains several elements worthy of a successful movie script”, including a “hijacked plane passing through several complacent airports”, Interpol red alerts and the “inappropriate use of artificial intelligence” by Laprade.

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Chip giant Nvidia to take $5bn stake in Intel and collaborate on products

Deal gives Intel a lifeline as firms team up on AI data centers and PC chips after Trump stake sparks market surge

Nvidia, the world’s leading chipmaker, announced plans to invest $5bn in Intel and collaborate with the struggling semiconductor company on products.

One month after the Trump administration confirmed it had taken a 10% stake in Intel – the latest extraordinary intervention by the White House in corporate America – Nvidia said it would team up with the firm to work on custom data centers that form the backbone of artificial intelligence (AI) infrastructure, as well as personal computer products.

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Italy first in EU to pass comprehensive law regulating use of AI

Legislation limits child access and imposes prison terms for damaging use of artificial intelligence

Italy has become the first country in the EU to approve a comprehensive law regulating the use of artificial intelligence, including imposing prison terms on those who use the technology to cause harm, such as generating deepfakes, and limiting child access.

Giorgia Meloni’s rightwing government said the legislation, which aligns with the EU’s landmark AI Act, is a decisive move in influencing how AI is used across Italy.

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Billion-dollar coffins? New technology could make oceans transparent and Aukus submarines vulnerable

Quantum sensing, satellite tracking and AI are part of an accelerating arms race in detection that should prompt a re-evaluation of Australia’s defence strategy

Military history is littered with the corpses of apex predators.

The Gatling gun, the battleship, the tank. All once possessed unassailable power – then were undermined, in some cases wiped out, by the march of new technology.

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AI tool that speeds up patient discharges trialled by NHS

Pilot at London trust aims to reduce paperwork and free up doctors, as UK brings AI to public services

An artificial intelligence tool designed to speed up the discharge of patients is being trialled at a hospital trust in London.

The platform completes documents needed to send fit patients home, potentially saving hours of delays and freeing up beds.

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Staff at UK’s top AI institute complain to watchdog about its internal culture

Whistleblowing complaint warns Alan Turing Institute is in danger of collapse due to government threats over funds

Staff at the UK’s leading artificial intelligence institute have raised concerns about the organisation’s governance and internal culture in a whistleblowing complaint to the charity watchdog.

The Alan Turing Institute (ATI), a registered charity with substantial state funding, is under government pressure to overhaul its strategic focus and leadership after an intervention last month from the technology secretary, Peter Kyle.

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OpenAI takes on Meta and DeepSeek with free and customisable AI models

Developer of ChatGPT says new tools will be ‘for wide benefit’, echoing announcement by Mark Zuckerberg

OpenAI is taking on Mark Zuckerberg’s Meta and Chinese rival DeepSeek by launching its own freely available artificial intelligence models.

The ChatGPT developer has announced two “open weight” large language models, which are free to download and can be customised by developers.

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‘We didn’t vote for ChatGPT’: Swedish PM under fire for using AI in role

Tech experts criticise Ulf Kristersson as newspaper accuses him of falling for ‘the oligarchs’ AI psychosis’

The Swedish prime minister, Ulf Kristersson, has come under fire after admitting that he regularly consults AI tools for a second opinion in his role running the country.

Kristersson, whose Moderate party leads Sweden’s centre-right coalition government, said he used tools including ChatGPT and the French service LeChat. His colleagues also used AI in their daily work, he said.

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ChatGPT launches study mode to encourage ‘responsible’ academic use

Tool gives guidance rather than serving up complete essays or answers, amid rising AI misuse at universities

ChatGPT is launching a “study mode” to encourage responsible academic use of the chatbot, amid rising cases of misuse of artificial intelligence tools at universities.

The feature, which can be accessed via the chatbot’s tools button, can walk users through complex subjects in a step-by-step format akin to an unfolding academic lesson.

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China calls for global AI cooperation days after Trump administration unveils low-regulation strategy

Chinese premier warns at global conference AI development must be weighed against security risks, urges ‘further consensus from the entire society’

Chinese premier Li Qiang has proposed establishing an organisation to foster global cooperation on artificial intelligence, calling on countries to coordinate on the development and security of the fast-evolving technology, days after the US unveiled plans to deregulate the industry.

Speaking at the annual World Artificial Intelligence Conference (WAIC) in Shanghai, Li called AI a new engine for growth, adding that governance is fragmented and emphasising the need for more coordination between countries to form a globally recognised framework for AI.

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