The evening briefing.
Today across AI and tech: Microsoft cuts thousands of jobs, Alibaba bans Anthropic AI, and Google updates Android backup storage policies.
Corporate AI Policy. Alibaba's ban on Anthropic's Claude Code due to a "distillation attack" accusation highlights growing corporate caution around AI security. Meanwhile, Google has begun counting all Android backup data towards storage caps and is now using uploaded search media to train its AI, raising user privacy questions. Apple also introduced a new popup to notify users when AI features send data to Google Cloud for processing, emphasizing transparency in data handling.
AI's Impact on Workforce. The evolving AI landscape continues to reshape corporate structures, with Microsoft cutting 4,800 jobs and planning to spin off four Xbox gaming studios amid shrinking revenue. This follows a broader trend where AI is cited as a factor in tech layoffs. Concurrently, Samsung's significant AI windfall is reportedly creating internal divisions, as bonuses for its chip division workers far outpace those in consumer tech, highlighting disparities within companies benefiting from the AI boom.
Frontier AI & Compute. Significant strides are being made in AI model development and infrastructure. Tencent released Hy3, an open-source model with a mixture-of-experts architecture, claiming it matches larger models while halving hallucination rates. Nvidia is also addressing challenges in large-scale LLM training, focusing on enhancing "goodput" with nonuniform tensor parallelism to improve efficiency across thousands of GPUs. These efforts underscore the continuous push for more powerful and efficient AI systems.
AI Governance & On-Device AI. Regulatory bodies are increasingly active, with Illinois introducing new measures targeting AI companies, signaling a growing trend in state-level AI governance. In a related development, Microsoft, Google, and Cloudflare have set 2029 as a new post-quantum cryptography deadline, emphasizing the urgency of preparing for future security threats. On the consumer front, Apple's iOS 27 beta 3 now allows users to fine-tune Siri's sound, enhancing the personalized on-device AI experience.
Microsoft cuts 4,800 jobs, as Xbox unit downsizes and plans to spin off four gaming studios
Microsoft is cutting 4,800 jobs across its commercial business and Xbox gaming group, where revenue has been shrinking. The company also plans to spin off four gaming studios from its Xbox unit.
Alibaba bans Anthropic AI for employees after 'distillation attack' accusation
Chinese e-commerce giant Alibaba has placed Anthropic's Claude Code on a high-risk software list, banning its use by employees. This action follows an accusation of a "distillation attack" against the AI model.
Google will now count all Android backup data toward your storage cap
Google has announced that all Android backup data will now count toward users' storage caps. This change will affect how much free space users have available in their Google accounts.
Apple Watch accounted for nearly all Edge AI smartwatch shipments in Q1 2026
A Counterpoint Research report indicates that global shipments of Edge AI-capable smartwatches grew 70% year over year in Q1 2026. Apple accounted for approximately 90% of these total shipments with its Apple Watch.
Enhancing Goodput in Large-Scale LLM Training with Nonuniform Tensor Parallelism
Nvidia is addressing infrastructure challenges in massive LLM training by introducing Reverse Direct Preference Optimization (rDPO). This novel technique aims to enhance "goodput" and reduce the impact of interruptions across thousands of GPUs.
A new study just debunked the biggest fear about AI and open source
A recent study has challenged the common fear that AI could negatively impact open source development. The research suggests that coding agents do not necessarily take over beginner-friendly issues, allowing newcomers to still contribute.
Illinois Drops the Hammer on AI Companies
Illinois has introduced new regulations targeting AI companies, indicating a proactive stance on AI governance at the state level. Governor Pritzker is taking a firm approach to oversight in the AI sector.
Boffins bet on quantum computers, AI supers to solve fusion fuel dilemma
Researchers from the Department of Energy, Cleveland Clinic, and IBM are using quantum computers and AI supercomputers to simulate molten salts. Their goal is to solve the fusion fuel dilemma, specifically in the pursuit of tritium.
Microsoft, Google and Cloudflare just made 2029 the new quantum deadline
Microsoft, Google, and Cloudflare have collectively established 2029 as a new deadline for post-quantum cryptography. This move underscores the industry's commitment to addressing future security challenges posed by quantum computing.
Samsung’s AI Windfall Is Splitting Its Own Workforce in Two
Samsung's significant AI-driven profits are reportedly causing a rift within its workforce. Workers in the consumer tech division are protesting the large bonuses being collected by the chip division this year.
iOS 27 beta 3 lets users fine-tune how Siri sounds
With the release of iOS 27 beta 3, Apple is introducing new controls that allow users to fine-tune how the new Siri AI sounds. Users can now adjust Siri's speaking pace and expressivity for a more personalized experience.
Apple adds new popup for AI features that send data to Google Cloud
Apple has implemented a new popup notification in iOS 27 and iOS 26 to inform users when AI features send data to Google Cloud servers. This notification also requests user permission for the data transfer.
Google now uses your uploaded search media to train AI
Google has updated its policies to include the use of uploaded search media for training its AI models. Users can adjust their settings to opt out of this new AI-training method.
Tencent releases Hy3 open-source model that allegedly matches models up to five times its active size
Tencent has launched Hy3, an open-source language model with 295 billion parameters built on a mixture-of-experts architecture. The company claims Hy3 matches models two to five times its size while reducing its hallucination rate by half.