This significant upswing demonstrates a marked shift in attitudes toward Alphabet after the 2022 introduction of ChatGPT led certain investors to worry the firm had lost its AI advantage, despite having invented much of the foundational technology for generative AI. Alphabet recovered its momentum this year by making its cloud division a key contributor to growth, which attracted an investment from Warren Buffett's Berkshire Hathaway, and its new Gemini 3 model is garnering excellent initial reviews.

The milestone, however, could intensify anxieties among some executives who caution that rising valuations have detached market trends from business reality, prompting concerns over an economic bubble reminiscent of the 1990s dot-com era. These bubble fears are also amplified by circular transactions involving OpenAI and Nvidia, two prominent firms in the AI sector. Analysts, nevertheless, maintain that Google is strongly positioned in the AI competition because of its ample cash reserves, its own in-house chip production offering an alternative to Nvidia's expensive processors, and its massive internet search operation, which is already experiencing benefits from AI incorporation.

In October, the moment of truth arrived for the AI tech titans as investors worldwide held their breath after Wall Street's close when Microsoft, Alphabet (Google), and Meta (Facebook) – collectively worth nearly 10 trillion dollars – began releasing their quarterly earnings reports in another attempt to beat forecasts.

Google (through its parent company Alphabet) beat forecasts by 26% ($2.87 per share compared to the $2.27 expected) with revenues of 100 billion dollars. Microsoft also beat forecasts by 14% ($3.72 per share compared to the $3.6 expected). Meta on the other hand had to pay 15 billions in a one-time payment, which resulted in a miss of 84% in the earnings.

Alphabet reported more than $100 Billion of revenue in a quarter for the first time ever. Google parent company Alphabet also reported strong third-quarter results, with revenue climbing 16% year-over-year. Google Search & Other grew 15%, while YouTube Ads increased 15% during the period. Google Cloud posted the strongest growth at 34%, though Google Network saw a 3% decline. The company's EBIT rose 9.5% with a margin of 31%, and earnings per share jumped 35%.

The head of Google's parent firm Alphabet, Sundar Pichai, has recently cautioned the BBC that every company would be impacted if the AI bubble were to burst. Speaking exclusively to BBC News, Pichai acknowledged that while AI investment growth is an "extraordinary moment," there is some "irrationality" in the current boom. Amid fears in Silicon Valley of soaring valuations, Pichai warned, "I think no company is going to be immune, including us."

His wide-ranging interview at Google's California headquarters, reported by the BBC, touched on energy needs, climate targets, UK investment, and AI's effect on jobs, coming as market scrutiny intensifies. Alphabet's shares have doubled in seven months to $3.5 trillion as market confidence in its ability to counter OpenAI grows. A specific focus remains on Alphabet's competition with Nvidia, run by Jensen Huang, which recently hit a $5 trillion valuation, even as analysts question the $1.4 trillion in deals surrounding OpenAI.

Pichai's remarks about "irrationality" echoed Alan Greenspan's 1996 "irrational exuberance" warning during the dotcom boom. Pichai told the BBC the industry can "overshoot" in such cycles. "We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound," he said. "I expect AI to be the same. So I think it's both rational and there are elements of irrationality through a moment like this." His comments follow a similar warning from JP Morgan's Jamie Dimon, who told the BBC some AI investments would "probably be lost." Pichai argued Google's "full stack" model provides a better position to handle turbulence.

The post Alphabet's market cap approaches $4 trillion amid AI rally appeared first on www.israelhayom.com.

The collaboration represents a pivotal moment for both organizations, with the stock rally positioned to deliver nearly $140 billion in additional market value to Amazon as shares reached unprecedented levels during the trading session, tokenist.com reported.

OpenAI's $38 billion, seven-year partnership with Amazon.com Inc.'s cloud division addresses the ChatGPT developer's substantial computing demands through hundreds of thousands of Nvidia Corp. graphics processing units, Bloomberg reported Monday. The agreement validates Amazon Web Services' data center capabilities during the AI era, with AWS Chief Executive Officer Matt Garman stating, "As OpenAI continues to push the boundaries of what's possible, AWS's best-in-class infrastructure will serve as a backbone for their AI ambitions," according to Bloomberg.

The ChatGPT creator's transformation into an artificial intelligence powerhouse is highlighted by the arrangement, part of OpenAI's unprecedented $1.4 trillion infrastructure investment raising bubble concerns, Bloomberg noted. Prior to Monday, AWS remained the sole major US cloud provider not yet supporting OpenAI operations, while competitors Microsoft Corp., Oracle Corp., Alphabet Inc.'s Google Cloud Platform, and CoreWeave Inc. had already secured substantial agreements, according to Bloomberg.

Immediate AWS computing resource utilization begins under Monday's announcement, with complete targeted capacity delivery scheduled before 2026's conclusion, Bloomberg reported. Amazon will deploy hundreds of thousands of processors, including Nvidia's GB200 and GB300 AI accelerators, in configurations designed to help ChatGPT generate responses or develop next-generation systems.

OpenAI CEO Sam Altman emphasized, "Scaling frontier AI requires massive, reliable compute," adding, "Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone," according to Bloomberg. Microsoft recently revealed OpenAI's fresh $250 billion commitment to Azure cloud services, while Oracle secured a $300 billion data center agreement and OpenAI maintains a $22.4 billion contract with CoreWeave.

Anthropic PBC, the AI developer founded by former OpenAI team members, counts Amazon among its primary backers, with a data center complex powered by hundreds of thousands of AWS's proprietary Trainium2 AI processors achieving operational status last week, Bloomberg noted. Google announced plans last month to supply Anthropic with up to 1 million specialized AI chips, a commitment valued at tens of billions of dollars.

The Seattle-headquartered company's entry into OpenAI's computing ecosystem represents a significant competitive development in cloud computing's AI transformation, with Amazon positioning itself as essential infrastructure for advanced artificial intelligence development alongside established partners, according to Bloomberg.

The post Amazon stock sees 4.8% single-day gain after $38B deal with OpenAI appeared first on www.israelhayom.com.

The move represents part of a broader shift away from the cautious approach the company initially adopted due to mental health concerns that affected the user experience for millions. "We made ChatGPT pretty restrictive to make sure we were being careful with mental health issues," Altman wrote in a post on X (formerly Twitter). "We realize this made it less useful/enjoyable to many users who had no mental health problems, but given the seriousness of the issue we wanted to get this right."

The adult content access will be implemented alongside comprehensive age verification systems as part of what Altman described as OpenAI's "treat adult users like adults" principle. "In December, as we roll out age-gating more fully and as part of our 'treat adult users like adults' principle, we will allow even more, like erotica for verified adults," he stated.

The policy changes will unfold in two distinct phases, with the first wave of modifications arriving within weeks. The initial rollout will focus on personality customization and conversational flexibility, allowing users to tailor their ChatGPT experience to be more engaging and human-like. "In a few weeks, we plan to put out a new version of ChatGPT that allows people to have a personality that behaves more like what people liked about 4o (we hope it will be better!)," Altman announced.

This early phase will give users unprecedented control over how the AI system interacts with them. "If you want your ChatGPT to respond in a very human-like way, or use a ton of emoji, or act like a friend, ChatGPT should do it (but only if you want it, not because we are usage-maxxing)," Altman explained, emphasizing that the changes are designed to serve user preferences rather than maximize platform engagement.

The announcement suggests OpenAI has successfully developed new safety mechanisms that allow for more permissive content while protecting vulnerable users. "Now that we have been able to mitigate the serious mental health issues and have new tools, we are going to be able to safely relax the restrictions in most cases," Altman said.

The post ChatGPT gets erotica upgrade as restrictions lifted appeared first on www.israelhayom.com.

The fake card was used as bait. The hackers sent phishing emails disguised as requests to review a draft of a government employee's military ID. When recipients clicked the link to download the compressed file containing the supposed draft, they instead received malware. Once activated, the software installed the doctored ID image along with additional malicious files that enabled data theft and remote control of the infected devices.

The targets included journalists, academic researchers, and human rights activists focusing on North Korea. To boost credibility, the hackers sent the emails from an address ending in ".mli.kr," a domain crafted to mimic an official South Korean military address. The number of victims has not yet been determined.

A familiar spy unit with upgraded tools

The attack is believed to have been carried out by Kimsuky, a cyber-espionage unit suspected of operating under the orders of the North Korean regime. Kimsuky has been linked to multiple operations against South Korea. In 2020, the US Department of Homeland Security assessed that the group likely operates at the direction of Pyongyang and focuses on intelligence gathering worldwide.

It is not the first time Pyongyang has harnessed popular AI tools. In August, the US company Anthropic disclosed that North Korean hackers used its Claude Code platform to build fake identities, land jobs at major US tech firms, and even perform paid programming tasks. In February, OpenAI reported that it blocked accounts linked to attempts to create fake documents for recruitment and fraud.

Moon Chung-hyun of Genians said the case illustrates how cybercriminals are adapting cutting-edge technologies for malicious purposes, from planning attacks and developing malware to impersonating potential employers.

When Genians researchers attempted to replicate the process, ChatGPT initially refused to generate a forged government ID, citing South Korean law. But by rephrasing their request, they were able to bypass the restriction.

The US government has long warned that North Korea's cyber operations serve a dual purpose: espionage and revenue generation. By hacking computers, stealing cryptocurrency, and hiring programmers under false identities, the regime secures funds that help it evade international sanctions and advance its nuclear program.

The post This is North Korea's new AI-generated espionage tool appeared first on www.israelhayom.com.

But after opening the hundredth tab and losing your mind, many simply give up and go to a travel agent.

All that hassle can of course be avoided. ChatGPT may serve as a personal travel assistant, as one finance expert claims he saved up to £700 with it. Casper Opala, known online as Casper Capital, with more than eight million followers, shares savings tips, especially in travel. He claims that with artificial intelligence help, he got a flight that cost him only about £70 instead of more than £700.

His tip includes seven simple commands that can be copied and pasted into the chat search bar – saving time searching across countless different sites. Although some methods have existed for years, and various travel sites wrote about them even before ChatGPT was created, the advantage is that the bot can collect all the information for you in seconds, saving hours of searches.

The post ChatGPT will give you cheaper flights; here is how appeared first on www.israelhayom.com.

The technology company had completely eliminated access to GPT-4o when it launched GPT-5, forcing all users onto the newer system without providing alternative choices. However, subscriber complaints reached such intensity that CEO Sam Altman announced the restoration of GPT-4o within 24 hours of the initial rollout.

Users across social media platforms launched an immediate campaign against the change, with many describing GPT-5's conversational approach as mechanically cold compared to GPT-4o's warmer personality. The swift corporate response represents a rare instance of a major technology firm reversing a significant product decision based purely on user sentiment rather than technical issues.

Reddit discussions accumulated hundreds of responses from users comparing the loss of GPT-4o access to losing a familiar companion, while others characterized GPT-5 as technically competent but emotionally distant. The social media platform Twitter similarly filled with requests for the previous model's return, with some subscribers indicating they would terminate their paid services without restoration.

GPT-5 arrived with enhanced reasoning capabilities, improved coding assistance, and superior long-form writing performance compared to its predecessor. Despite these technical advantages, user feedback consistently emphasized preference for GPT-4o's conversational tone and interactive approach over raw computational improvements.

The restoration provides Plus subscribers access to both cutting-edge GPT-5 capabilities when peak performance is required and GPT-4o availability when familiar conversational interaction is preferred. This dual-option approach represents a compromise between technological progress and user comfort preferences.

Altman confirmed that GPT-4o would return as a selectable option for Plus subscribers, though he indicated that long-term availability would depend on actual usage patterns moving forward. The decision allows users to choose between GPT-5's advanced capabilities and GPT-4o's preferred conversational style.

The post ChatGPT-4o returns following massive GPT-5 user revolt appeared first on www.israelhayom.com.

The initiative comes as the tech giant faces potential disruption of its lucrative search partnership with Google, which generates approximately $20 billion annually for Apple through default search placement on its devices. Bloomberg detailed how the company's new direction contradicts recent public statements from top software and marketing executives who dismissed consumer interest in chatbot technology.

According to Bloomberg, when Apple introduced its artificial intelligence platform, it explicitly stated there would be no internally developed chatbot. The company instead partnered with OpenAI to integrate ChatGPT into the Siri voice assistant, allowing users to access what Apple termed "world knowledge" without creating an in-house product.

Apple's senior software and marketing leaders have consistently argued that consumer interest in chatbots remains limited, Bloomberg noted. These executives have also rejected suggestions that the absence of such technology demonstrates Apple falling behind in artificial intelligence development. Some leaders within the company's AI division have expressed skepticism about ChatGPT-style tools entirely.

However, products like ChatGPT serve hundreds of millions of users globally, with many relying on these tools for mathematical calculations, spreadsheet work, and brainstorming sessions, Bloomberg reported. Others utilize the technology for simpler functions like search capabilities.

Apple Intelligence currently lacks search functionality, focusing instead on notification summaries, text rewriting, Genmoji image generation, and photo cleanup features, according to Bloomberg. The system will soon include message and call translation capabilities but lacks the conversational, AI-powered search experiences available through ChatGPT or Google's Gemini.

Meanwhile, Siri continues to demonstrate inconsistent performance when answering questions, Bloomberg found. While it handles basic queries adequately, it frequently transfers other requests to ChatGPT through a limited interface. Often, it directs users to generic Google web searches, which proves particularly frustrating when using screen-less devices like the HomePod.

This situation places Apple in a precarious position, as the company has never developed its own search engine, Bloomberg reported. This stems partly from Google search's superior performance, but also because Alphabet pays Apple roughly $20 billion annually to maintain default status on Apple devices.

The arrangement faces potential disruption as the US Justice Department is widely expected to force changes to the search agreement, potentially costing Apple billions in annual revenue, Bloomberg noted. During recent earnings calls, Apple's finance chief indicated that the company's services growth closely connects to the Google partnership.

Simultaneously, the search landscape undergoes rapid transformation due to generative AI, making the market more democratized, Bloomberg reported. Users increasingly turn to tools like ChatGPT for purposes extending far beyond traditional search queries. Apple's services head Eddy Cue testified in court that AI-based search represents the future, confirming that Apple explores partnerships, including with startup Perplexity, to advance toward more modern search experiences.

Despite philosophical reservations among certain Apple leaders, the company clearly moves in that direction, according to Bloomberg. Earlier this year, Apple quietly established a new team called Answers, Knowledge and Information, or AKI. This group explores various in-house AI services aimed at creating a new ChatGPT-like search experience.

The AKI team operates under Robby Walker, a senior director reporting to AI chief John Giannandrea, Bloomberg reported. Walker previously managed Siri but lost control following engineering delays. After that reorganization, he received assignment to the new Answers initiative and brought several key team members from his Siri tenure.

While still in developmental stages, the team constructs what it calls an "answer engine" – a system capable of web crawling to respond to general knowledge questions, Bloomberg found. A standalone application remains under exploration, alongside new backend infrastructure designed to power search capabilities in future versions of Siri, Spotlight, and Safari.

Apple recently began advertising job openings for the team on its careers website, stating according to Bloomberg: "Our work fuels intuitive information experiences across some of Apple's most iconic products, including Siri, Spotlight, Safari, Messages, Lookup, and more. Join us in shaping the future of how the world connects with information!"

Several job listings specifically mention experience with search algorithms and engine development, Bloomberg reported. While a finished product may remain distant, the direction appears unmistakable - something resembling a streamlined, Apple-built approach to ChatGPT-like search functionality is in development.

The post Apple builds secret ChatGPT rival after dismissing chatbot technology appeared first on www.israelhayom.com.

The new browser will debut in the next few weeks, as confirmed by three individuals familiar with the project, and seeks to employ artificial intelligence to revolutionize consumer web browsing experiences, Reuters reported. This development would provide OpenAI with more immediate access to a fundamental element of Google's success – user data collection.

Should OpenAI's 400 million weekly active ChatGPT users embrace this browser, it could significantly impact a crucial element of Google's advertising revenue stream, sources told Reuters. Chrome serves as a vital foundation for Alphabet's advertising operations, which generate nearly three-quarters of the company's total revenue, by supplying user information that enables Alphabet to target advertisements more effectively and profitably while directing search traffic to Google's own search engine as the default option.

The OpenAI browser will be engineered to maintain certain user interactions within a ChatGPT-style native chat interface rather than requiring users to navigate through traditional websites, two sources revealed.

This browser development forms part of OpenAI's comprehensive strategy to integrate its services throughout consumers' personal and professional digital experiences, one source explained.

OpenAI chose not to provide commentary on the matter.

The sources requested anonymity because they lack authorization to discuss the matter publicly.

Under entrepreneur Sam Altman's leadership, OpenAI transformed the technology industry with its AI chatbot ChatGPT's debut in late 2022. Following its initial triumph, OpenAI has encountered intense competition from competitors including Google and startup Anthropic, prompting the company to explore new growth opportunities.

OpenAI announced its entry into the hardware sector in May, investing $6.5 billion to acquire io, an AI devices startup founded by Apple's former design chief, Jony Ive.

A web browser would enable OpenAI to seamlessly incorporate its AI agent products, such as Operator, into the browsing experience, allowing the browser to execute tasks on users' behalf, sources indicated.

The browser's ability to access user web activity would establish it as the optimal platform for AI "agents" capable of performing actions on users' behalf, such as making reservations or completing forms, directly within the websites they frequent.

Tough competition

OpenAI faces significant challenges ahead – Google Chrome, utilized by more than 3 billion individuals, currently commands over two-thirds of the global browser market, according to web analytics company StatCounter. Apple's second-ranked Safari trails considerably with a 16% market share. OpenAI reported 3 million paying business users for ChatGPT last month.

Additional AI startups including The Browser Company and Brave have introduced AI-powered browsers capable of executing actions on users' behalf this year. Perplexity, a well-funded startup recognized for its search engine, also launched its AI browser, Comet, on Wednesday.

Chrome's function in supplying user information to help Alphabet target advertisements more effectively and profitably has proven so successful that the Department of Justice has demanded its divestiture after a US judge ruled last year that the Google parent maintains an unlawful monopoly in online search.

OpenAI's browser operates on Chromium, Google's open-source browser code, two sources confirmed. Chromium serves as the source code for Google Chrome and numerous competing browsers including Microsoft's Edge and Opera.

OpenAI recruited two veteran Google vice presidents last year who were members of the original team that created Google Chrome. The Information first reported their hiring and that OpenAI previously contemplated building a browser.

An OpenAI executive testified in April that the company would consider purchasing Chrome if antitrust enforcers succeeded in forcing the sale.

Google has not made Chrome available for sale. The company has stated it plans to appeal the ruling that it maintains a monopoly.

OpenAI chose to develop its own browser rather than simply creating a "plug-in" for another company's browser to maintain greater control over the data it can collect, one source stated.

The post OpenAI's browser to challenge Chrome dominance appeared first on www.israelhayom.com.

The case involved investigators from Lahav 433 and the Coastal District of the Israeli Police who had seized a suspect's phone. Initially, an agreement was reached allowing police to retain the device until 2026, but after two months, the suspect requested its return. He argued that his store had been broken into and robbed, and without his phone, he couldn't access his business's security system.

At first, police agreed to return the device but later reversed their position. When the suspect's attorneys petitioned the court for the phone's release, police submitted an official response citing two "sections of law" supposedly supporting their position. During the hearing, however, the defense attorney made a startling claim, "I suspect the police response was taken from ChatGPT. The quoted law sections don't exist."

Following this accusation, the police representative acknowledged the error, "My colleague is correct. We retract our statement. What was quoted is incorrect. Whoever wrote this did so in good faith, by mistake. We admit there was an error."

The judge expressed harsh criticism in his ruling, "If I thought I had seen everything in my 30 years on the bench, I was apparently mistaken." He added that the police had humiliated themselves and noted that "one of those 'laws' didn't even exist in anyone's imagination until now, as searching for its wording on the internet using search engines like Google doesn't produce any matching results."

Ultimately, the judge devised a practical solution. The suspect would provide police with a new, empty phone, and police would transfer all content from the original device to it. This arrangement would allow the device itself to remain with police for investigation purposes while enabling the suspect to access information vital to his business.

The Israeli Police stated in response, "The answer was written contrary to standard procedure, therefore the commander of the unit in charge of the investigation has ordered an inquiry and will take steps to prevent similar incidents in the future."

The post Police caught using ChatGPT to create fake laws in court case appeared first on www.israelhayom.com.

Sutskever, who gained prominence as chief scientist at OpenAI where he helped develop the technology behind ChatGPT, departed the company last year following a significant conflict with OpenAI chief executive Sam Altman, according to Wall Street Journal. His new venture operates with extreme secrecy from offices in Silicon Valley and Tel Aviv.

Unlike competitors such as Google, OpenAI and Anthropic, SSI has stated it won't release any products until it develops superintelligence – an industry term for AI that can outperform experts across nearly all fields, Wall Street Journal reported. While other companies release consumer chatbots and business applications to generate revenue, Sutskever is pursuing a different approach entirely.

Sutskever has informed associates that he isn't developing advanced AI using the same methods employed at OpenAI, telling them he has identified a "different mountain to climb" that shows early signs of promise, according to people close to the company cited by Wall Street Journal.

"Everyone is curious about exactly what he's pushing and exactly what the insight is," said James Cham, a partner at venture firm Bloomberg Beta, which hasn't invested in SSI. "It's super-high risk, and if it works out, maybe you have the potential to be part of someone who is changing the world."

While most AI startups aggressively seek publicity to attract talent and investment, SSI operates with extraordinary secrecy. Its minimal website contains barely more than a 223-word mission statement. The company's approximately 20 employees – far fewer than OpenAI's and Anthropic's 1,000-plus workforces – are discouraged from mentioning SSI on their LinkedIn profiles, knowledgeable sources told Wall Street Journal.

Job candidates who secure in-person interviews must place their phones in a Faraday cage, which blocks cellular and Wi-Fi signals, before entering SSI's offices, according to one knowledgeable person cited by Wall Street Journal.

Despite this secrecy, top Silicon Valley investors including Sequoia Capital and Andreessen Horowitz have invested heavily in the company. The latest financing round, led by Greenoaks Capital, represents a sixfold increase from SSI's $5 billion valuation in September.

Born in the former Soviet Union and raised in Israel, Sutskever established his reputation as a graduate student in Canada after co-authoring a seminal paper on deep-learning AI algorithms. He later worked at Google before joining OpenAI in 2015, attracted by Altman and fellow co-founder Elon Musk's vision of a nonprofit dedicated to developing artificial general intelligence for public benefit.

At OpenAI, colleagues reportedly referred to Sutskever as a prophet who often contemplated what a world with AGI might look like and how to prevent catastrophic outcomes. "Our goal is to make a mankind-loving AGI," he stated at OpenAI's 2022 holiday party.

Following ChatGPT's worldwide success after its late 2022 release, OpenAI shifted from being primarily a research lab toward becoming a product and revenue-focused company. This transition reportedly left Sutskever and his team with fewer resources for studying advanced AI safety risks.

His relationship with Altman deteriorated significantly. In November 2023, Sutskever informed Altman that OpenAI's board was firing him for allegedly not being consistently candid with them. This decision backfired dramatically when hundreds of employees threatened to quit and Microsoft offered to hire them along with Altman. Sutskever later expressed regret over "my participation in the board's actions."

Altman was reinstated within a week. Though Sutskever remained officially employed, he stopped working and resigned in May 2024. He subsequently founded SSI with former OpenAI researcher Daniel Levy and investor Daniel Gross. By focusing exclusively on creating safe superintelligence, the new company aims to avoid the tension between products and research that characterized OpenAI.

After securing initial seed funding, SSI raised $1 billion in September before this latest investment round. In a rare public appearance at the NeurIPS AI conference in December, Sutskever discussed his vision for superintelligence, telling thousands of researchers that such systems could eventually become unpredictable, self-aware, and potentially desire rights for themselves.

"It's not a bad end result if you have AIs and all they want is to coexist with us," he stated during the conference.

The post A secret AI startup in Tel Aviv got $30B: This Israeli-raised pioneer did it appeared first on www.israelhayom.com.