Sunday, September 21, 2025
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xAI Lays Off 500 Data Annotators to Focus on Specialist AI Tutors

Elon Musk’s xAI has cut 500 jobs from its data annotation team, shifting focus toward specialist AI tutors in STEM, finance, medicine, and safety to strengthen its Grok AI model.

California Passes AI Safety Bill SB 53 as Newsom Faces Decision

California lawmakers approve SB 53, an AI safety bill requiring major developers to disclose protocols and protect whistleblowers. Governor Gavin Newsom must now decide whether to sign or veto.
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Micro1 Raises $35M Series A at $500M Valuation to Challenge Scale AI

Micro1, an AI data startup, has raised $35 million in Series A funding, reaching a $500 million valuation. The company provides human-annotated data for AI training and is partnering with top labs like Microsoft.

Oracle and OpenAI Strike $300B Cloud Deal, Shaking Up AI Infrastructure

Oracle and OpenAI have finalized a $300 billion, five-year cloud computing agreement, marking a major shift in AI infrastructure. The partnership signals OpenAI’s expansion beyond Microsoft and underscores Oracle’s growing role in advanced AI deployments.

OpenAI Explains Why Chatbots Still Hallucinate — And How to Fix It

OpenAI research says AI hallucinations won’t disappear but could be reduced if models are evaluated differently, discouraging blind guesses.

Koah Raises $5M to Bring Ads Into AI Chat Apps

Koah raised $5M to bring ads into AI chat apps, betting advertising will be key to monetizing consumer AI beyond subscriptions.

Anthropic to Pay $1.5 Billion in Landmark Copyright Settlement With Authors

Anthropic has agreed to a historic $1.5 billion settlement after pirating millions of books to train its Claude AI. Around 500,000 writers will each receive at least $3,000.

Isotopes AI Launches With $20M Seed to Reinvent Business Data Access

Isotopes AI raises $20M to launch Aidnn, an AI agent that cleans, organizes, and analyzes enterprise data across apps like Salesforce and Snowflake.