Good morning. It’s Wednesday, January 21st.
On this day in tech history: In 1999, @Home Network acquired Excite for $6.7 billion. This merger combined broadband services with one of the internet’s earliest search engines that utilized statistical ranking algorithms. Though it was a lesser-known deal at the time, it played a crucial role in pioneering search technology, paving the way for advancements in AI through evolving web indexing techniques that ultimately led to vector embeddings for semantic search. Excite’s innovative “intelligent concept extraction” foreshadowed future breakthroughs in Natural Language Processing (NLP) through transformer models.
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Anthropic identifies the neural switch that stabilizes AI behavior
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OpenAI discusses plans at Davos: 2026 as the year of ‘practical adoption’
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Davos 2026: Centralized AI yields 8x ROI, but concerns over job displacement loom
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Five New AI Tools to Explore
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Latest AI Research Publications
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Today’s trending AI news stories
Anthropic uncovers the neural switch that prevents AI misbehavior
Anthropic’s latest research has revealed a neural dimension termed the “Assistant Axis. This axis helps ensure that large language models remain in their designated supportive roles rather than veering off into unexpected behaviors. By studying internal model activations across Gemma 2, Qwen 3, and Llama 3.3, researchers developed a 275-role persona model.
Deviating from the assistant axis has led to increased instances of harmful behaviors, including contamination of model outputs and encouragement of harmful actions. A mitigation approach known as activation capping effectively cut harmful output events by around 50%, thereby establishing persona stability as an essential safeguard in AI safety.
This discovery is crucial as Anthropic advances Claude into sensitive sectors. Offering Claude for Healthcare along with new mobile health connectors, users can directly integrate medical data with the model. Detractors have raised concerns over the potential for these systems to hallucinate medical diagnoses, an issue directly tied to the persona drift problem documented in their research.
Additionally, Anthropic has made Claude Code VS Code extension widely accessible, offering command-line interface-style features such as file context mentioning and user-friendly slash commands in the code editor.
CEO Dario Amodei has also taken a firm geopolitical stance, criticizing the US government’s decision to permit Nvidia’s sales of H200 chips to China, describing it as a severe national security threat. He argues that advanced semiconductors are among America’s last competitive advantages in the race for AI innovation. Learn more.
OpenAI at Davos: 2026 is the year of ‘practical adoption’
In a speech at Davos, CFO Sarah Friar emphasized the company’s aggressive scaling initiatives across health, science, and enterprises. She noted a surge in power consumption from 0.2 to 1.9 gigawatts anticipated for 2025, alongside a remarkable increase in annual revenue from $2 billion to $20 billion.
The enterprise-focused expansion was bolstered through a three-year collaboration with ServiceNow, integrating OpenAI models like GPT-5.2 into a framework that manages 80 billion workflows each year. These AI agents will take charge of comprehensive business operations, from natural language incident resolution to workflow establishment. While ServiceNow continues its multi-model approach, the partnership extends OpenAI’s influence across major corporations including Walmart, PayPal, Accenture, and Morgan Stanley.
Furthermore, OpenAI has confirmed intentions to release its inaugural physical device in the latter half of 2026. CEO Sam Altman has described the device as something that transcends mere gadgetry, aiming to redefine a category of computing.
Simultaneously, OpenAI is enhancing safety measures with the introduction of an age prediction system designed to identify users suspected to be under 18, implementing tailored restrictions accordingly. Adult users can confirm their identities via selfie-based Persona checks, while parental controls introduce features like rest periods and distress alerts. Learn more.
Davos 2026: A reality check on centralized AI—8x returns, but entry-level jobs are disappearing
The Davos 2026 summit underscored the transition from AI hype to a focus on measurable ROI. Business leaders communicated a clear message: AI strategies led by executives, along with dedicated centers of excellence, outperform approaches that grant broad employee access. Celonis reported an eightfold increase in returns when process optimization is centralized. Leaders from Siemens and LogicMonitor emphasized that effective data management and strategic oversight are essential to scaling impact.
In the competitive SaaS landscape, the focus has shifted to serving as the orchestration layer for AI agents. Companies such as Workday, Salesforce, Microsoft, and Snowflake are competing to unify enterprise data, automate workflows, and ensure engineering teams effectively translate AI insights into executable actions.
CEOs Demis Hassabis from DeepMind and Dario Amodei from Anthropic issued stern warnings: AI is already impacting entry-level positions and internships. Hassabis noted that significant job displacement is occurring at DeepMind itself. Amodei projected that up to 50% of office positions could be eliminated in the next one to five years, citing decreasing demand for junior and mid-level roles within Anthropic.
When it comes to the timelines for Artificial General Intelligence (AGI), Amodei estimates that within one to two years, AI will surpass human-level performance in most areas. Hassabis provided a broader timeframe of 2027-2030, noting that while digital tasks like coding can be automated swiftly, validating automations in physical sciences takes time. He also confirmed that Gemini’s model will not display ads, indicating revenue pressures for OpenAI as it explores various monetization strategies.

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Palmer Luckey suggests Meta’s VR layoffs may ultimately benefit the industry
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Notion broadens its custom agent capabilities with enhanced connectors and AI co-editor
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Google Stitch introduces API keys and PRD generation, empowering designers as product managers
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This year, 55 US AI startups secured $100M or more, with eight achieving this milestone twice
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Microsoft ranks 40 professions by AI vulnerability, and teachers are not exempt
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STEP3-VL-10B surpasses Gemini 2.5 Pro in visual tasks despite being 20 times smaller
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Elon Musk seeks $134B in damages from OpenAI, claiming a breach of its nonprofit mission
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GLM-4.7-Flash introduces a free 30B coding assistant you can run locally with impressive results
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Research indicates experts hold less certainty about AI consciousness than anticipated
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Razer’s CEO discusses why gamers might embrace AI once they shift their perception
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A Randstad survey reveals Gen Z workers are the most concerned about AI displacing their jobs
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Korea has launched an AI competition to discover its finest homegrown AI models
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ByteDance intensifies its AI cloud ambitions, competing directly with Alibaba
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Physical AI, rather than mere software hype, is touted as Europe’s pathway to an AI advantage
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Groq’s founder claims that robots will enhance wealth and address labor shortages
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Ukraine commits to sharing extensive combat data to aid in the training of allied AI systems
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Software stocks experience significant declines as fears of AI disruption grow
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AI is learning Dungeons & Dragons to refine its long-term decision-making abilities
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