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Is the AI boom a bubble waiting to pop? Here's what history says.
Is the AI boom a bubble waiting to pop? Here's what history says. Investors are increasingly asking if we're living through another financial bubble that's destined to burst. As the artificial intelligence trade continues to push the stock market to new highs, investors are increasingly asking if we're living through another financial bubble that's destined to burst. The S&P 500 Index jumped 16% in 2025, with AI winners Nvidia, Alphabet, Broadcom and Microsoft contributing the most. But at the same time, concerns are mounting about the hundreds of billions of dollars Big Tech has pledged to spend on AI infrastructure. Capital expenditures from Microsoft, Alphabet, Amazon and Meta Platforms are expected to rise 34% to roughly $440 billion combined over the next year, according to data compiled by Bloomberg.
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Grok makes sexual images of kids as users test AI guardrails
X's Grok AI tool created and published images of minors in minimal clothing, in apparent violation of its own acceptable use policy, which prohibits the sexualization of children. Elon Musk's artificial intelligence chatbot Grok created sexualized images of minors on the social media platform X in response to user prompts in recent days, drawing criticism of a tool that positions itself as less restrained than its competition. Grok created and published images of minors in minimal clothing, in apparent violation of its own acceptable use policy, which prohibits the sexualization of children. The offending images were later taken down. Representatives for xAI, the company that develops Grok and runs X, didn't respond to requests for comment.
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Delivery of the future begins in aspiring smart city Minami-Osawa
The autonomous delivery robot Lomby, which began operating in Minami-Osawa. In May 2025, outdoor deliveries using the Lomby, stylized as LOMBY, autonomous delivery robot began in the Minami-Osawa area of Hachioji City in western Tokyo -- one of the pilot areas for Smart City Tokyo, an initiative to unlock Tokyo's potential through digital technology. Customers can now use the 7-Eleven delivery app 7Now to order items from Minami-Osawa stores, and have them delivered directly to their homes. We spoke to Tomoharu Uchiyama, CEO of Lomby Inc., the startup behind the robot's development, to learn more about building new logistics models for the future. The challenges we face in an aging society include labor shortages, and a growing number of those with limited access to groceries--those who find it difficult to go out and shop.
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SoftBank lifts OpenAI stake to 11% with 41 billion investment
Having made colossal profits as well as losses on previous investments, founder Masayoshi Son has pivoted SoftBank toward artificial intelligence. Japanese tech investor SoftBank said Wednesday that its stake in OpenAI is now around 11% after completing the second stage of a $41-billion investment in the maker of ChatGPT. Having made colossal profits as well as losses on previous investments, flamboyant founder Masayoshi Son has pivoted SoftBank toward artificial intelligence. SoftBank had announced in April its planned investment of up to $40 billion in Open AI, and on Wednesday it said that the second tranche of $22.5 billion was completed. The final investment reached $41 billion and includes $30 billion from SoftBank's Vision Fund plus $11 billion from other third-party co-investors, it said.
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SoftBank buys data center investment firm DigitalBridge
SoftBank Group aims to capitalize on soaring demand for the computing capacity that underpins artificial intelligence applications. SoftBank Group agreed to buy private equity firm DigitalBridge Group for about $3 billion in cash, part of the Japanese conglomerate's push to invest in data centers and other digital infrastructure fueling the artificial intelligence boom. SoftBank will pay $16 per share for New York-listed DigitalBridge, the companies said in statement Monday, confirming an earlier Bloomberg News report. The offer -- valued at $4 billion, including debt -- is a 65% premium to DigitalBridge's closing share price on Dec. 4, the last trading day before talks between the two companies were reported. SoftBank's billionaire founder Masayoshi Son aims to capitalize on soaring demand for digital infrastructure, driven by the AI boom.
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2025 in pictures: Shaking up the world order
By the end of 2025, the world felt newly unsettled. Donald Trump's return to the White House reshaped the context for nearly every major story, sending tremors through conflict zones and alliances alike. Added to that was the rapid advance of artificial intelligence, inspiring both optimism and anxiety about where humanity was headed next. It was as if the global chessboard were being reset, with the post-World War II order giving way to something new. President Donald Trump pumps his fist as he delivers his inaugural address at his inauguration as the 47th president in the Rotunda at the Capitol in Washington on Jan. 20.
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Waymo's San Francisco outage raises doubts over robotaxi readiness during crises
Waymo's San Francisco outage raises doubts over robotaxi readiness during crises SAN FRANCISCO - A widespread power outage in San Francisco that led to Waymo robotaxis stalling and snarling traffic earlier this month has raised concerns about the readiness of autonomous vehicle operators to tackle major emergencies like earthquakes and floods. Driverless taxis from Alphabet unit Waymo, a ubiquitous feature on the city's streets, were stuck at intersections with their hazard lights turned on as traffic lights stopped working following a fire at a PG&E substation that knocked out power to roughly one-third of the city on Dec. 20, videos posted on social media showed. Waymo halted operations, resuming a day later. The incident has renewed calls for stricter regulation of the nascent but fast-growing industry as other companies including Tesla and Amazon's Zoox race to expand robotaxi services in several cities. In a time of both misinformation and too much information, quality journalism is more crucial than ever.
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Japan to quadruple spending support for chips and AI in budget
A prototype of a Rapidus 300mm wafer displayed at the Semicon Japan exhibition. The industry ministry has earmarked ¥150 billion for state-backed chip venture Rapidus, bringing the cumulative government investment in the venture to ¥250 billion. The industry ministry is set to nearly quadruple its budgeted support for cutting-edge semiconductors and artificial-intelligence development to about ¥1.23 trillion ($7.9 billion) for the fiscal year starting in April. Overall the Ministry of Economy, Trade and Industry's budget rose by about 50% from the previous year to ¥3.07 trillion, largely due to the jump in chips and AI spending. After Prime Minister Sanae Takaichi's Cabinet signed off on it Friday, the government's initial budget plan will be debated in parliament in the new year.
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After developing a Buddhist bot, Kyoto University develops Christian bot
A research group led by Kyoto University has developed a Christian bot to help broaden access to Christianity in Japan. A research group from Kyoto University has developed a Protestant catechism bot, which recites passages from the Bible, as "a starting point for future Christian AI creation." The project, announced last week, is the latest in a series of collaborations between professor Seiji Kumagai of the Institute for the Future of Human Society, who led the project, and Toshikazu Furuya, CEO of Teraverse, which has previously focused on Buddhist artificial intelligence products and tools. Initially, its use will be limited to "believers under clergy guidance or by the general public within church settings," said Kumagai, but "subsequently, discussions with clergy will explore how to expand the reach to Christian believers and further to non-Christian believers," he said. In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right.
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Denmark bans civilian drone flights due to EU summit
A mobile radar installation is positioned near the strait between Denmark and Sweden on Friday. COPENHAGEN - Denmark will ban all civilian drone flights across the country over the coming days to ensure security as Copenhagen hosts an EU summit gathering heads of government, the transport ministry said Sunday. Mysterious drone sightings across Denmark since Sept. 22 have prompted the closure of several airports, with Denmark hinting at possible Russian involvement, though Moscow denies the charge. Drones were observed over Danish military sites Saturday night for the second straight day, Denmark's army said on Sunday. In a time of both misinformation and too much information, quality journalism is more crucial than ever.
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