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 restructuring


Ubisoft cancels projects and announces restructure in fight to stay competitive

The Guardian

Ubisoft, the video games publisher behind the Assassin's Creed series, has cancelled projects and announced a restructuring that will close several studios as a result of several years of weak results and disappointing sales. Ubisoft, the video games publisher behind the Assassin's Creed series, has cancelled projects and announced a restructuring that will close several studios as a result of several years of weak results and disappointing sales. The video game publisher behind the Assassin's Creed series has cancelled six projects including a remake of Prince of Persia: The Sands of Time as it fights to stay competitive in the global gaming market. Ubisoft announced a sweeping reorganisation and said it would cancel six games, sending its shares to their lowest level in more than a decade on Thursday. Ubisoft is abandoning development of six titles, including a highly anticipated remake of Prince of Persia - a series that dates back to 1989 and received an ill-fated Hollywood adaptation in 2010 - and delaying a further seven. Studios in Halifax, Canada and Stockholm are being closed, with restructuring to follow in other countries, it said.


AI hallucinates because it's trained to fake answers it doesn't know

Science

Earlier today, OpenAI completed a controversial restructuring of its for-profit arm into a public benefit corporation: the latest gust in a whirlwind that has swept up hundreds of billions of dollars of global investment for artificial intelligence (AI) tools. But even as the AI company--founded as a nonprofit, now valued at 500 billion--completes its long-awaited restructuring, a nagging issue with its core offering remains unresolved: hallucinations. Large language models (LLMs) such as those that underpin OpenAI's popular ChatGPT platform are prone to confidently spouting factually incorrect statements. These blips are often attributed to bad input data, but in a preprint posted last month, a team from OpenAI and the Georgia Institute of Technology proves that even with flawless training data, LLMs can never be all-knowing--in part because some questions are just inherently unanswerable. However, that doesn't mean hallucinations are inevitable.


OpenAI Completes Major Reorganization With 135 Billion Microsoft Stake

TIME - Tech

An illustration photo shows the OpenAI logo displayed on a smartphone with the Microsoft logo in the background in Chongqing, China on Aug. 27, 2025. An illustration photo shows the OpenAI logo displayed on a smartphone with the Microsoft logo in the background in Chongqing, China on Aug. 27, 2025. OpenAI has completed a restructuring, dividing itself into a nonprofit and for-profit entity, the company announced on Tuesday. The nonprofit arm, now called the OpenAI Foundation, will have a $130 billion stake in the for-profit enterprise, a public benefit corporation called OpenAI Group PBC. "The OpenAI Foundation and OpenAI Group will work in concert to advance solutions to hard problems and opportunities posed by AI progress," the company said in its blog post announcing the restructuring. "This includes making intelligence a tool that everyone can benefit from, building safe and aligned systems, turbocharging scientific discovery, and strengthening global cooperation and resilience."


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

The Guardian

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. In a complaint to the Charity Commission, a group of current ATI staff raise eight points of concern and say the institute is in danger of collapse due to government threats over its funding. The complaint alleges that the board of trustees, chaired by the former Amazon UK boss Doug Gurr, has failed to fulfil core legal duties such as providing strategic direction and ensuring accountability, with staff alleging a letter of no confidence was delivered last year and not acted upon. A spokesperson for ATI said the Charity Commission had not been in touch with the institute about any complaints that may have been sent to the organisation.


OpenAI Backs Down on Restructuring Amid Pushback

WIRED

OpenAI on Monday announced a proposed restructuring that would give its nonprofit arm ongoing control of ChatGPT and the rest of the startup's AI products. The move is a reversal of an earlier announcement which called for the nonprofit to relinquish its authority to a newly created public-benefit corporation. The proposed company structure has to be approved by the attorney general offices in California and Delaware by early next year. Up to 30 billion in funding from SoftBank and other investors is contingent on this approval. That money is crucial for OpenAI to maintain its position as a leader in generative AI and give higher returns to investors.


OpenAI Wants to Go For-Profit. Experts Say Regulators Should Step In

TIME - Tech

In the latest development in an ongoing struggle over OpenAI's future direction--and potentially the future of artificial intelligence itself--dozens of prominent figures are urging the Attorneys General of California and Delaware to block OpenAI's controversial plan to convert from its unique nonprofit-controlled structure to a for-profit company. In a letter made public April 23, signatories including "AI Godfather" Geoffrey Hinton, Harvard legal professor Lawrence Lessig, and several former OpenAI researchers argue the move represents a fundamental betrayal of OpenAI's founding mission. "The proposed restructuring would eliminate essential safeguards, effectively handing control of, and profits from, what could be the most powerful technology ever created to a for-profit entity with legal duties to prioritize shareholder returns," the letter's authors write. It lands as OpenAI faces immense pressure from the other side: failing to implement the restructure by the end of the year could cost the company 20 billion and hamstring future fundraising. OpenAI was founded in 2015 as a non-profit, with its stated mission being to ensure that artificial general intelligence (AGI) "benefits all of humanity" rather than advancing "the private gain of any person."


Elon Musk-led group makes surprise bid of nearly 100bn for OpenAI

The Guardian

Elon Musk escalated his feud with OpenAI and its CEO Sam Altman on Monday. The billionaire is leading a consortium of investors that announced it had submitted a bid of 97.4bn for "all assets" of the artificial intelligence company to OpenAI's board of directors. The startup, which operates ChatGPT, has been working to restructure itself away from its original non-profit status. OpenAI also operates a for-profit subsidiary, and Musk's unsolicited offer could complicate the company's plans. The Wall Street Journal first reported the proposed bid. "If Sam Altman and the present OpenAI, Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time," said Marc Toberoff, the attorney representing the investors.


Elon Musk's lawsuit against OpenAI may go to trial in part, judge says

Al Jazeera

A United States federal judge has said that parts of Elon Musk's lawsuit against OpenAI to halt its conversion to a for-profit entity might go to trial, adding that the Tesla CEO will have to appear in court and testify. "Something is going to trial in this case," US District Judge Yvonne Gonzalez Rogers in Oakland, California, said early in the court session on Tuesday. "[Elon Musk will] sit on the stand, present it to a jury, and a jury will decide who is right." Rogers was considering Musk's recent request for a preliminary injunction to block OpenAI's conversion before going to trial, the latest move in a grudge match between the world's richest person and OpenAI CEO Sam Altman that is playing out publicly in court. The last time Rogers provided a preliminary injunction was in Epic Games's case against Apple in May 2021.


Contextual Morphogenesis in Large Language Models: A Novel Approach to Self-Organizing Token Representations

Dombrowski, Alistair, Engelhardt, Beatrix, Fairbrother, Dimitri, Evidail, Henry

arXiv.org Artificial Intelligence

Token representations influence the efficiency and adaptability of language models, yet conventional tokenization strategies impose rigid segmentation boundaries that do not adjust dynamically to evolving contextual relationships. The introduction of contextual morphogenesis establishes a self-organizing mechanism that restructures token boundaries based on learned contextual dependencies, allowing embeddings to evolve progressively across iterative processing steps. Empirical evaluations demonstrate that dynamically adjusted tokenization contributes to reductions in perplexity while maintaining representational stability, particularly in linguistically complex domains where static segmentation fails to capture nuanced dependencies. Computational trade-offs associated with self-organizing token structures indicate that additional processing overhead remains within feasible limits, provided that optimization strategies account for segmentation update efficiency. Comparative assessments across different linguistic corpora suggest that adaptive tokenization preserves interpretability while improving alignment with contextual cues, reinforcing the potential of morphogenetic segmentation mechanisms to refine predictive accuracy. Stability analyses confirm that evolving token structures maintain consistent segmentation behaviors across varied text distributions, ensuring that representational adaptations remain linguistically coherent. The effectiveness of contextual morphogenesis in refining structural stability and predictive performance highlights its viability as an alternative to traditional tokenization methods. Further analysis of computational efficiency considerations suggests that hybrid strategies integrating both static and dynamic segmentation techniques may offer a balanced approach to optimizing representational flexibility while maintaining inference efficiency.


OpenAI raises 6.6bn in funding, is valued at 157bn

The Guardian

OpenAI has raised 6.6bn ( 5bn) in a funding round that values the artificial intelligence business at 157bn, with chipmaker Nvidia and Japanese group SoftBank among its investors. The San Francisco-based startup, responsible for the ChatGPT chatbot, did not give details of a reported restructuring that will transform it into a for-profit business. The funding round was led by Thrive Capital, a US venture capital fund, and other backers include MGX, an Abu Dhabi-backed investment firm. OpenAI's post-fundraising valuation puts it on a par with Uber, although it remains far below the 3tn level of its biggest backer of recent years, Microsoft, which also joined the fundraising. Other investors included Nvidia, a dominant player in the market for the chips that train and operate AI models, and Softbank, which counts the UK chip designer Arm among its investments.