01
BBC Technology ↗
A US defense official told the BBC the Department of Defense is no longer using Anthropic's AI tools, though sources say Claude was in use as recently as last week, including in military operations against Iran. The Pentagon labelled Anthropic a supply chain risk in February after the company refused to remove safety guardrails, including limits on mass surveillance of Americans and fully autonomous weapons. It was the first time a US company received that designation, and agencies were given roughly six months to phase out the technology.
02
The Verge ↗
OpenAI will add an invisible, machine-readable watermark to eligible ChatGPT and Codex text output for users in the European Union over the coming weeks, to comply with the EU AI Act's requirement that generated text be identifiable. API customers worldwide can opt in, and detection access is starting with researchers. OpenAI says its watermarking matched or exceeded rival approaches such as Google DeepMind's text watermark, while cautioning that text watermarking and detection remain early technologies with significant limitations.
03
Fortune AI ↗
Reflection AI, founded by two former Google DeepMind researchers, released Beam, a 501 billion parameter open-weight model it pitches as America's answer to Chinese open-source AI. The company says Beam excels at coding and agentic tasks, scores close to leading Chinese open models, and runs on three to four times less compute than comparable Western open models. Valued at $25 billion, Reflection has a $6.3 billion compute deal with SpaceX, supply agreements with the US Department of Energy and Department of War, and is already training a larger successor.
04
Financial Times Tech ↗
Groq employees and stockholders have sued over Nvidia's $20 billion licensing and acqui-hire deal, alleging they were left out and squeezed out with a lowball price. The late-2025 transaction gave Nvidia a non-exclusive license to Groq's inference chip technology and brought over CEO Jonathan Ross and most of the startup's engineers, while Groq stayed formally independent. The suit adds to existing pressure on the deal, which the Justice Department and Senators Elizabeth Warren and Richard Blumenthal are already probing over whether it was structured to avoid antitrust review.
05
Bloomberg Technology ↗
Schneider Electric agreed to buy industrial software firm PTC in a roughly $23 billion cross-border deal, the largest acquisition in the French company's history. The move is a strategic push into industrial software and AI, building on Schneider's $3.1 billion purchase of industrial AI firm Cognite announced in June. Analysts note the bet on software also leaves Schneider's stock more exposed to the risk of AI disruption.
06
Bloomberg Technology ↗
Elon Musk confirmed that TSMC and his companies are discussing a possible chipmaking partnership tied to Terafab, the giant semiconductor fab project Tesla and SpaceX are building in Texas. A deal could make TSMC a direct supplier to Tesla, SpaceX and xAI, which Musk says need far more chips than his existing partners Samsung, TSMC and Micron can expand to supply. The Terafab project carries an initial planned spend of around $55 billion, and no formal agreement has been announced.
07
TechRepublic ↗
Federal prosecutors charged Greg Lui, 38, owner of City of Industry based Earthmade Computer, with smuggling more than $300 million in export-controlled AI servers containing US-made GPUs to China. The servers were allegedly routed through Malaysia and Singapore on falsified paperwork between 2023 and 2024, with the company receiving over $176 million from two Malaysian freight forwarders. Lui faces counts of export control conspiracy, outbound smuggling and money laundering conspiracy, carrying up to 20 years in prison.
08
Financial Times Tech ↗
Norway's government will propose a temporary ban on using AI glasses in selected public places such as parks, beaches, schools and kindergartens, making it the first country to move toward such a restriction. The Ministry of Digitalisation said it will also appoint an expert group to advise on permanent rules for body-worn cameras that can record bystanders. The move follows privacy concerns over devices like Meta's smart glasses, which Oslo already banned from its schools last month.
09
TechCrunch AI ↗
Google paused its Open Source Software Vulnerability Rewards Program as of October 1, citing a significant rise in automated submissions, the vast majority of which were not valid. Engineers and open source maintainers had been swamped by AI-generated reports containing hallucinated or bogus findings. Google expects to provide an update in the first quarter of 2027 and is pointing researchers to its other bug bounty programs in the meantime.
10
Unite. AI ↗
Nolla Health's Nolla Derm app is now issuing AI-generated initial acne prescriptions to Utah adults with mild to moderate acne, the first time a US state regulator has authorized AI to write a new prescription rather than a refill. The pilot runs under a regulatory relief agreement with Utah's Office of Artificial Intelligence Policy and costs $4.99 a month, with the AI analyzing facial photos to prescribe treatments such as tretinoin and adapalene. Physicians must approve every prescription for the first four weeks before oversight shifts to weekly and then monthly review, and higher-risk patients are automatically screened out.