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openai-built-an-ai-coding-agent-and-uses-it-to-improve-the-agent-itself

OpenAI built an AI coding agent and uses it to improve the agent itself


“The vast majority of Codex is built by Codex,” OpenAI told us about its new AI coding agent.

With the popularity of AI coding tools rising among software developers, their adoption has begun to touch every aspect of the process, including the improvement of AI coding tools themselves.

In interviews with Ars Technica this week, OpenAI employees revealed the extent to which the company now relies on its own AI coding agent, Codex, to build and improve the development tool. “I think the vast majority of Codex is built by Codex, so it’s almost entirely just being used to improve itself,” said Alexander Embiricos, product lead for Codex at OpenAI, in a conversation on Tuesday.

Codex, which OpenAI launched in its modern incarnation as a research preview in May 2025, operates as a cloud-based software engineering agent that can handle tasks like writing features, fixing bugs, and proposing pull requests. The tool runs in sandboxed environments linked to a user’s code repository and can execute multiple tasks in parallel. OpenAI offers Codex through ChatGPT’s web interface, a command-line interface (CLI), and IDE extensions for VS Code, Cursor, and Windsurf.

The “Codex” name itself dates back to a 2021 OpenAI model based on GPT-3 that powered GitHub Copilot’s tab completion feature. Embiricos said the name is rumored among staff to be short for “code execution.” OpenAI wanted to connect the new agent to that earlier moment, which was crafted in part by some who have left the company.

“For many people, that model powering GitHub Copilot was the first ‘wow’ moment for AI,” Embiricos said. “It showed people the potential of what it can mean when AI is able to understand your context and what you’re trying to do and accelerate you in doing that.”

A place to enter a prompt, set parameters, and click

The interface for OpenAI’s Codex in ChatGPT. Credit: OpenAI

It’s no secret that the current command-line version of Codex bears some resemblance to Claude Code, Anthropic’s agentic coding tool that launched in February 2025. When asked whether Claude Code influenced Codex’s design, Embiricos parried the question but acknowledged the competitive dynamic. “It’s a fun market to work in because there’s lots of great ideas being thrown around,” he said. He noted that OpenAI had been building web-based Codex features internally before shipping the CLI version, which arrived after Anthropic’s tool.

OpenAI’s customers apparently love the command line version, though. Embiricos said Codex usage among external developers jumped 20 times after OpenAI shipped the interactive CLI extension alongside GPT-5 in August 2025. On September 15, OpenAI released GPT-5 Codex, a specialized version of GPT-5 optimized for agentic coding, which further accelerated adoption.

It hasn’t just been the outside world that has embraced the tool. Embiricos said the vast majority of OpenAI’s engineers now use Codex regularly. The company uses the same open-source version of the CLI that external developers can freely download, suggest additions to, and modify themselves. “I really love this about our team,” Embiricos said. “The version of Codex that we use is literally the open source repo. We don’t have a different repo that features go in.”

The recursive nature of Codex development extends beyond simple code generation. Embiricos described scenarios where Codex monitors its own training runs and processes user feedback to “decide” what to build next. “We have places where we’ll ask Codex to look at the feedback and then decide what to do,” he said. “Codex is writing a lot of the research harness for its own training runs, and we’re experimenting with having Codex monitoring its own training runs.” OpenAI employees can also submit a ticket to Codex through project management tools like Linear, assigning it tasks the same way they would assign work to a human colleague.

This kind of recursive loop, of using tools to build better tools, has deep roots in computing history. Engineers designed the first integrated circuits by hand on vellum and paper in the 1960s, then fabricated physical chips from those drawings. Those chips powered the computers that ran the first electronic design automation (EDA) software, which in turn enabled engineers to design circuits far too complex for any human to draft manually. Modern processors contain billions of transistors arranged in patterns that exist only because software made them possible. OpenAI’s use of Codex to build Codex seems to follow the same pattern: each generation of the tool creates capabilities that feed into the next.

But describing what Codex actually does presents something of a linguistic challenge. At Ars Technica, we try to reduce anthropomorphism when discussing AI models as much as possible while also describing what these systems do using analogies that make sense to general readers. People can talk to Codex like a human, so it feels natural to use human terms to describe interacting with it, even though it is not a person and simulates human personality through statistical modeling.

The system runs many processes autonomously, addresses feedback, spins off and manages child processes, and produces code that ships in real products. OpenAI employees call it a “teammate” and assign it tasks through the same tools they use for human colleagues. Whether the tasks Codex handles constitute “decisions” or sophisticated conditional logic smuggled through a neural network depends on definitions that computer scientists and philosophers continue to debate. What we can say is that a semi-autonomous feedback loop exists: Codex produces code under human direction, that code becomes part of Codex, and the next version of Codex produces different code as a result.

Building faster with “AI teammates”

According to our interviews, the most dramatic example of Codex’s internal impact came from OpenAI’s development of the Sora Android app. According to Embiricos, the development tool allowed the company to create the app in record time.

“The Sora Android app was shipped by four engineers from scratch,” Embiricos told Ars. “It took 18 days to build, and then we shipped it to the app store in 28 days total,” he said. The engineers already had the iOS app and server-side components to work from, so they focused on building the Android client. They used Codex to help plan the architecture, generate sub-plans for different components, and implement those components.

Despite OpenAI’s claims of success with Codex in house, it’s worth noting that independent research has shown mixed results for AI coding productivity. A METR study published in July found that experienced open source developers were actually 19 percent slower when using AI tools on complex, mature codebases—though the researchers noted AI may perform better on simpler projects.

Ed Bayes, a designer on the Codex team, described how the tool has changed his own workflow. Bayes said Codex now integrates with project management tools like Linear and communication platforms like Slack, allowing team members to assign coding tasks directly to the AI agent. “You can add Codex, and you can basically assign issues to Codex now,” Bayes told Ars. “Codex is literally a teammate in your workspace.”

This integration means that when someone posts feedback in a Slack channel, they can tag Codex and ask it to fix the issue. The agent will create a pull request, and team members can review and iterate on the changes through the same thread. “It’s basically approximating this kind of coworker and showing up wherever you work,” Bayes said.

For Bayes, who works on the visual design and interaction patterns for Codex’s interfaces, the tool has enabled him to contribute code directly rather than handing off specifications to engineers. “It kind of gives you more leverage. It enables you to work across the stack and basically be able to do more things,” he said. He noted that designers at OpenAI now prototype features by building them directly, using Codex to handle the implementation details.

The command line version of OpenAI codex running in a macOS terminal window.

The command line version of OpenAI codex running in a macOS terminal window. Credit: Benj Edwards

OpenAI’s approach treats Codex as what Bayes called “a junior developer” that the company hopes will graduate into a senior developer over time. “If you were onboarding a junior developer, how would you onboard them? You give them a Slack account, you give them a Linear account,” Bayes said. “It’s not just this tool that you go to in the terminal, but it’s something that comes to you as well and sits within your team.”

Given this teammate approach, will there be anything left for humans to do? When asked, Embiricos drew a distinction between “vibe coding,” where developers accept AI-generated code without close review, and what AI researcher Simon Willison calls “vibe engineering,” where humans stay in the loop. “We see a lot more vibe engineering in our code base,” he said. “You ask Codex to work on that, maybe you even ask for a plan first. Go back and forth, iterate on the plan, and then you’re in the loop with the model and carefully reviewing its code.”

He added that vibe coding still has its place for prototypes and throwaway tools. “I think vibe coding is great,” he said. “Now you have discretion as a human about how much attention you wanna pay to the code.”

Looking ahead

Over the past year, “monolithic” large language models (LLMs) like GPT-4.5 have apparently become something of a dead end in terms of frontier benchmarking progress as AI companies pivot to simulated reasoning models and also agentic systems built from multiple AI models running in parallel. We asked Embiricos whether agents like Codex represent the best path forward for squeezing utility out of existing LLM technology.

He dismissed concerns that AI capabilities have plateaued. “I think we’re very far from plateauing,” he said. “If you look at the velocity on the research team here, we’ve been shipping models almost every week or every other week.” He pointed to recent improvements where GPT-5-Codex reportedly completes tasks 30 percent faster than its predecessor at the same intelligence level. During testing, the company has seen the model work independently for 24 hours on complex tasks.

OpenAI faces competition from multiple directions in the AI coding market. Anthropic’s Claude Code and Google’s Gemini CLI offer similar terminal-based agentic coding experiences. This week, Mistral AI released Devstral 2 alongside a CLI tool called Mistral Vibe. Meanwhile, startups like Cursor have built dedicated IDEs around AI coding, reportedly reaching $300 million in annualized revenue.

Given the well-known issues with confabulation in AI models when people attempt to use them as factual resources, could it be that coding has become the killer app for LLMs? We wondered if OpenAI has noticed that coding seems to be a clear business use case for today’s AI models with less hazard than, say, using AI language models for writing or as emotional companions.

“We have absolutely noticed that coding is both a place where agents are gonna get good really fast and there’s a lot of economic value,” Embiricos said. “We feel like it’s very mission-aligned to focus on Codex. We get to provide a lot of value to developers. Also, developers build things for other people, so we’re kind of intrinsically scaling through them.”

But will tools like Codex threaten software developer jobs? Bayes acknowledged concerns but said Codex has not reduced headcount at OpenAI, and “there’s always a human in the loop because the human can actually read the code.” Similarly, the two men don’t project a future where Codex runs by itself without some form of human oversight. They feel the tool is an amplifier of human potential rather than a replacement for it.

The practical implications of agents like Codex extend beyond OpenAI’s walls. Embiricos said the company’s long-term vision involves making coding agents useful to people who have no programming experience. “All humanity is not gonna open an IDE or even know what a terminal is,” he said. “We’re building a coding agent right now that’s just for software engineers, but we think of the shape of what we’re building as really something that will be useful to be a more general agent.”

This article was updated on December 12, 2025 at 6: 50 PM to mention the METR study.

Photo of Benj Edwards

Benj Edwards is Ars Technica’s Senior AI Reporter and founder of the site’s dedicated AI beat in 2022. He’s also a tech historian with almost two decades of experience. In his free time, he writes and records music, collects vintage computers, and enjoys nature. He lives in Raleigh, NC.

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openai-releases-gpt-5.2-after-“code-red”-google-threat-alert

OpenAI releases GPT-5.2 after “code red” Google threat alert

On Thursday, OpenAI released GPT-5.2, its newest family of AI models for ChatGPT, in three versions called Instant, Thinking, and Pro. The release follows CEO Sam Altman’s internal “code red” memo earlier this month, which directed company resources toward improving ChatGPT in response to competitive pressure from Google’s Gemini 3 AI model.

“We designed 5.2 to unlock even more economic value for people,” Fidji Simo, OpenAI’s chief product officer, said during a press briefing with journalists on Thursday. “It’s better at creating spreadsheets, building presentations, writing code, perceiving images, understanding long context, using tools and then linking complex, multi-step projects.”

As with previous versions of GPT-5, the three model tiers serve different purposes: Instant handles faster tasks like writing and translation; Thinking spits out simulated reasoning “thinking” text in an attempt to tackle more complex work like coding and math; and Pro spits out even more simulated reasoning text with the goal of delivering the highest-accuracy performance for difficult problems.

A chart of GPT-5.2 benchmark results taken from OpenAI's website.

A chart of GPT-5.2 Thinking benchmark results comparing it to its predecessor, taken from OpenAI’s website. Credit: OpenAI

GPT-5.2 features a 400,000-token context window, allowing it to process hundreds of documents at once, and a knowledge cutoff date of August 31, 2025.

GPT-5.2 is rolling out to paid ChatGPT subscribers starting Thursday, with API access available to developers. Pricing in the API runs $1.75 per million input tokens for the standard model, a 40 percent increase over GPT-5.1. OpenAI says the older GPT-5.1 will remain available in ChatGPT for paid users for three months under a legacy models dropdown.

Playing catch-up with Google

The release follows a tricky month for OpenAI. In early December, Altman issued an internal “code red” directive after Google’s Gemini 3 model topped multiple AI benchmarks and gained market share. The memo called for delaying other initiatives, including advertising plans for ChatGPT, to focus on improving the chatbot’s core experience.

The stakes for OpenAI are substantial. The company has made commitments totaling $1.4 trillion for AI infrastructure buildouts over the next several years, bets it made when it had a more obvious technology lead among AI companies. Google’s Gemini app now has more than 650 million monthly active users, while OpenAI reports 800 million weekly active users for ChatGPT.

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disney-invests-$1-billion-in-openai,-licenses-200-characters-for-ai-video-app-sora

Disney invests $1 billion in OpenAI, licenses 200 characters for AI video app Sora

An AI-generated version of OpenAI CEO Sam Altman, seen in a still capture from a video generated by Sora 2.

An AI-generated version of OpenAI CEO Sam Altman seen in a still capture from a video generated by Sora 2. Credit: OpenAI

Under the new agreement with Disney, Sora users will be able to generate short videos using characters such as Mickey Mouse, Darth Vader, Iron Man, Simba, and characters from franchises including Frozen, Inside Out, Toy Story, and The Mandalorian, along with costumes, props, vehicles, and environments.

The ChatGPT image generator will also gain official access to the same intellectual property, although that information was trained into these AI models long ago. What’s changing is that OpenAI will allow Disney-related content generated by its AI models to officially pass through its content moderation filters and reach the user, sanctioned by Disney.

On Disney’s end of the deal, the company plans to deploy ChatGPT for its employees and use OpenAI’s technology to build new features for Disney+. A curated selection of fan-made Sora videos will stream on the Disney+ platform starting in early 2026.

The agreement does not include any talent likenesses or voices. Disney and OpenAI said they have committed to “maintaining robust controls to prevent the generation of illegal or harmful content” and to “respect the rights of individuals to appropriately control the use of their voice and likeness.”

OpenAI CEO Sam Altman called the deal a model for collaboration between AI companies and studios. “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences,” Altman said.

From adversary to partner

Money opens all kinds of doors, and the new partnership represents a dramatic reversal in Disney’s approach to OpenAI from just a few months ago. At that time, Disney and other major studios refused to participate in Sora 2 following its launch on September 30.

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a-new-open-weights-ai-coding-model-is-closing-in-on-proprietary-options

A new open-weights AI coding model is closing in on proprietary options

On Tuesday, French AI startup Mistral AI released Devstral 2, a 123 billion parameter open-weights coding model designed to work as part of an autonomous software engineering agent. The model achieves a 72.2 percent score on SWE-bench Verified, a benchmark that attempts to test whether AI systems can solve real GitHub issues, putting it among the top-performing open-weights models.

Perhaps more notably, Mistral didn’t just release an AI model, it released a new development app called Mistral Vibe. It’s a command line interface (CLI) similar to Claude Code, OpenAI Codex, and Gemini CLI that lets developers interact with the Devstral models directly in their terminal. The tool can scan file structures and Git status to maintain context across an entire project, make changes across multiple files, and execute shell commands autonomously. Mistral released the CLI under the Apache 2.0 license.

It’s always wise to take AI benchmarks with a large grain of salt, but we’ve heard from employees of the big AI companies that they pay very close attention to how well models do on SWE-bench Verified, which presents AI models with 500 real software engineering problems pulled from GitHub issues in popular Python repositories. The AI must read the issue description, navigate the codebase, and generate a working patch that passes unit tests. While some AI researchers have noted that around 90 percent of the tasks in the benchmark test relatively simple bug fixes that experienced engineers could complete in under an hour, it’s one of the few standardized ways to compare coding models.

At the same time as the larger AI coding model, Mistral also released Devstral Small 2, a 24 billion parameter version that scores 68 percent on the same benchmark and can run locally on consumer hardware like a laptop with no Internet connection required. Both models support a 256,000 token context window, allowing them to process moderately large codebases (although whether you consider it large or small is very relative depending on overall project complexity). The company released Devstral 2 under a modified MIT license and Devstral Small 2 under the more permissive Apache 2.0 license.

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meta-offers-eu-users-ad-light-option-in-push-to-end-investigation

Meta offers EU users ad-light option in push to end investigation

“We acknowledge the European Commission’s statement,” said Meta. “Personalized ads are vital for Europe’s economy.”

The investigation took place under the EU’s landmark Digital Markets Act, which is designed to tackle the power of Big Tech giants and is among the bloc’s tech regulations that have drawn fierce pushback from the Trump administration.

The announcement comes only days after Brussels launched an antitrust investigation into Meta over its new policy on artificial intelligence providers’ access to WhatsApp—a case that underscores the commission’s readiness to use its powers to challenge Big Tech.

That upcoming European probe follows the launch of recent DMA investigations into Google’s parent company Alphabet over its ranking of news outlets in search results and Amazon and Microsoft over their cloud computing services.

Last week, the commission also fined Elon Musk’s X 120 million euros for breaking the bloc’s digital transparency rules. The X sanction led to heavy criticism from a wide range of US government officials, including US Secretary of State Marco Rubio who said the fine is “an attack on all American tech platforms and the American people by foreign governments.”

Andrew Puzder, the US ambassador to the EU, said the fine “is the result of EU regulatory over-reach” and said the Trump administration opposes “censorship and will challenge burdensome regulations that target US companies abroad.”

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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in-comedy-of-errors,-men-accused-of-wiping-gov-databases-turned-to-an-ai-tool

In comedy of errors, men accused of wiping gov databases turned to an AI tool

Two sibling contractors convicted a decade ago for hacking into US State Department systems have once again been charged, this time for a comically hamfisted attempt to steal and destroy government records just minutes after being fired from their contractor jobs.

The Department of Justice on Thursday said that Muneeb Akhter and Sohaib Akhter, both 34, of Alexandria, Virginia, deleted databases and documents maintained and belonging to three government agencies. The brothers were federal contractors working for an undisclosed company in Washington, DC, that provides software and services to 45 US agencies. Prosecutors said the men coordinated the crimes and began carrying them out just minutes after being fired.

Using AI to cover up an alleged crime—what could go wrong?

On February 18 at roughly 4: 55 pm, the men were fired from the company, according to an indictment unsealed on Thursday. Five minutes later, they allegedly began trying to access their employer’s system and access federal government databases. By then, access to one of the brothers’ accounts had already been terminated. The other brother, however, allegedly accessed a government agency’s database stored on the employer’s server and issued commands to prevent other users from connecting or making changes to the database. Then, prosecutors said, he issued a command to delete 96 databases, many of which contained sensitive investigative files and records related to Freedom of Information Act matters.

Despite their brazen attempt to steal and destroy information from multiple government agencies, the men lacked knowledge of the database commands needed to cover up their alleged crimes. So they allegedly did what many amateurs do: turned to an AI chat tool.

One minute after deleting Department of Homeland Security information, Muneep Akhter allegedly asked an AI tool “how do i clear system logs from SQL servers after deleting databases.” Shortly afterward, he queried the tool “how do you clear all event and application logs from Microsoft windows server 2012,” prosecutors said.

The indictment provides enough details of the databases wiped and information stolen to indicate that the brothers’ attempts to cover their tracks failed. It’s unclear whether the apparent failure was due to the AI tool providing inadequate instructions or the men failing to follow them correctly. Prosecutors say they also obtained records of discussions between the men in the hours or days following, in which they discussed removing incriminating evidence from their homes. Three days later, the men allegedly wiped their employer-issued laptops by reinstalling the operating system.

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maximum-severity-vulnerability-threatens-6%-of-all-websites

Maximum-severity vulnerability threatens 6% of all websites

“I usually don’t say this, but patch right freakin’ now,” one researcher wrote. “The React CVE listing (CVE-2025-55182) is a perfect 10.”

React versions 19.0.1, 19.1.2, or 19.2.1 contain the vulnerable code. Third-party components known to be affected include:

  • Vite RSC plugin
  • Parcel RSC plugin
  • React Router RSC preview
  • RedwoodSDK
  • Waku
  • Next.js

According to Wiz and fellow security firm Aikido, the vulnerability, tracked as CVE-2025-55182, resides in Flight, a protocol found in the React Server Components. Next.js has assigned the designation CVE-2025-66478 to track the vulnerability in its package.

The vulnerability stems from unsafe deserialization, the coding process of converting strings, byte streams, and other “serialized” formats into objects or data structures in code. Hackers can exploit the insecure deserialization using payloads that execute malicious code on the server. Patched React versions include stricter validation and hardened deserialization behavior.

“When a server receives a specially crafted, malformed payload, it fails to validate the structure correctly,” Wiz explained. “This allows attacker-controlled data to influence server-side execution logic, resulting in the execution of privileged JavaScript code.”

The company added:

In our experimentation, exploitation of this vulnerability had high fidelity, with a near 100% success rate and can be leveraged to a full remote code execution. The attack vector is unauthenticated and remote, requiring only a specially crafted HTTP request to the target server. It affects the default configuration of popular frameworks.

Both companies are advising admins and developers to upgrade React and any dependencies that rely on it. Users of any of the Remote-enabled frameworks and plugins mentioned above should check with the maintainers for guidance. Aikido also suggests admins and developers scan their codebases and repositories for any use of React with this link.

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microsoft-drops-ai-sales-targets-in-half-after-salespeople-miss-their-quotas

Microsoft drops AI sales targets in half after salespeople miss their quotas

Microsoft has lowered sales growth targets for its AI agent products after many salespeople missed their quotas in the fiscal year ending in June, according to a report Wednesday from The Information. The adjustment is reportedly unusual for Microsoft, and it comes after the company missed a number of ambitious sales goals for its AI offerings.

AI agents are specialized implementations of AI language models designed to perform multistep tasks autonomously rather than simply responding to single prompts. So-called “agentic” features have been central to Microsoft’s 2025 sales pitch: At its Build conference in May, the company declared that it has entered “the era of AI agents.”

The company has promised customers that agents could automate complex tasks, such as generating dashboards from sales data or writing customer reports. At its Ignite conference in November, Microsoft announced new features like Word, Excel, and PowerPoint agents in Microsoft 365 Copilot, along with tools for building and deploying agents through Azure AI Foundry and Copilot Studio. But as the year draws to a close, that promise has proven harder to deliver than the company expected.

According to The Information, one US Azure sales unit set quotas for salespeople to increase customer spending on a product called Foundry, which helps customers develop AI applications, by 50 percent. Less than a fifth of salespeople in that unit met their Foundry sales growth targets. In July, Microsoft lowered those targets to roughly 25 percent growth for the current fiscal year. In another US Azure unit, most salespeople failed to meet an earlier quota to double Foundry sales, and Microsoft cut their quotas to 50 percent for the current fiscal year.

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openai-ceo-declares-“code-red”-as-gemini-gains-200-million-users-in-3-months

OpenAI CEO declares “code red” as Gemini gains 200 million users in 3 months

In addition to buzz about Gemini on social media, Google is quickly catching up to ChatGPT in user numbers. ChatGPT has more than 800 million weekly users, according to OpenAI, while Google’s Gemini app has grown from 450 million monthly active users in July to 650 million in October, according to Business Insider.

Financial stakes run high

Not everyone views OpenAI’s “code red” as a genuine alarm. Reuters columnist Robert Cyran wrote on Tuesday that OpenAI’s announcement added “to the impression that OpenAI is trying to do too much at once with technology that still requires a great deal of development and funding.” On the same day Altman’s memo circulated, OpenAI announced an ownership stake in a Thrive Capital venture and a collaboration with Accenture. “The only thing bigger than the company’s attention deficit is its appetite for capital,” Cyran wrote.

In fact, OpenAI faces an unusual competitive disadvantage: Unlike Google, which subsidizes its AI ventures through search advertising revenue, OpenAI does not turn a profit and relies on fundraising to survive. According to The Information, the company, now valued at around $500 billion, has committed more than $1 trillion in financial obligations to cloud computing providers and chipmakers that supply the computing power needed to train and run its AI models.

But the tech industry never stands still, and things can change quickly. Altman’s memo also reportedly stated that OpenAI plans to release a new simulated reasoning model next week that may beat Gemini 3 in internal evaluations. In AI, the back-and-forth cycle of one-upmanship is expected to continue as long as the dollars keep flowing.

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hp-plans-to-save-millions-by-laying-off-thousands,-ramping-up-ai-use

HP plans to save millions by laying off thousands, ramping up AI use

HP Inc. said that it will lay off 4,000 to 6,000 employees in favor of AI deployments, claiming it will help save $1 billion in annualized gross run rate by the end of its fiscal 2028.

HP expects to complete the layoffs by the end of that fiscal year. The reductions will largely hit product development, internal operations, and customer support, HP CEO Enrique Lores said during an earnings call on Tuesday.

Using AI, HP will “accelerate product innovation, improve customer satisfaction, and boost productivity,” Lores said.

In its fiscal 2025 earnings report released yesterday, HP said:

Structural cost savings represent gross reductions in costs driven by operational efficiency, digital transformation, and portfolio optimization. These initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures undertaken by HP, which HP expects to be sustainable in the longer-term.

AI blamed for tech layoffs

HP’s announcement comes as workers everywhere try to decipher how AI will impact their future job statuses and job opportunities. Some industries, such as customer support, are expected to be more disrupted than others. But we’ve already seen many tech layoffs tied to AI.

Salesforce, for example, announced in October that it had let go of 4,000 customer support employees, with CEO Marc Benioff saying that AI meant “I need less heads.” In September, US senators accused Amazon of blaming its dismissal of “tens of thousands” of employees on the “adoption of generative AI tools” and then replacing the workers with over 10,000 foreign H-1B employees. Last month, Amazon announced it would lay off about 14,000 people to focus on its most promising projects, including generative AI. Last year, Intuit said it would lay off 1,800 people and replace them with AI-focused workers. Klarna and Duolingo have also replaced significant numbers of workers with AI. And in January, Meta announced plans to lay off 5 percent of its workforce as it looks to streamline operations and build its AI business.

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crypto-hoarders-dump-tokens-as-shares-tumble

Crypto hoarders dump tokens as shares tumble

“It was inevitable,” said Jake Ostrovskis, head of OTC trading at Wintermute, referring to the sell-off in digital asset treasury stocks. “It got to the point where there’s too many of them.”

Several companies have begun selling their crypto stockpiles in an effort to fund share buybacks and shore up their stock prices, in effect putting the crypto treasury model into reverse.

North Carolina-based ether holder FG Nexus sold about $41.5 million of its tokens recently to fund its share buyback program. Its market cap is $104 million, while the crypto it holds is worth $116 million. Florida-based life sciences company turned ether buyer ETHZilla recently sold about $40 million worth of its tokens, also to fund its share buyback program.

Sequans Communications, a French semiconductor company, sold about $100 million of its bitcoin this month in order to service its debt, in a sign of how some companies that borrowed to fund crypto purchases are now struggling. Sequans’ market capitalization is $87 million, while the bitcoin it holds is worth $198 million.

graph of crypto prices

Credit: LSEG

Georges Karam, chief executive of Sequans, said the sale was a “tactical decision aimed at unlocking shareholder value given current market conditions.”

While bitcoin and ether sellers can find buyers, companies with more niche tokens will find it more difficult to raise money from their holdings, according to Morgan McCarthy. “When you’ve got a medical device company buying some long-tail asset in crypto, a niche in a niche market, it is not going to end well,” he said, adding that 95 percent of digital asset treasuries “will go to zero.”

Strategy, meanwhile, has doubled down and bought even more bitcoin as the price of the token has fallen to $87,000, from $115,000 a month ago. The firm also faces the looming possibility of being cut from some major equity indices, which could heap even more selling pressure on the stock.

But Saylor has brushed off any concerns. “Volatility is Satoshi’s gift to the faithful,” he said this week, referring to the pseudonymous creator of bitcoin.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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uk-government-will-buy-tech-to-boost-ai-sector-in-$130m-growth-push

UK government will buy tech to boost AI sector in $130M growth push

“Our particular strengths as a country lie in areas like life sciences, financial services, the defense sector, and the creative sector. And where we will really lead the world is where we can use the power of AI in those sectors,” Kendall told the Financial Times.

The plans came as part of a wider AI package designed to upgrade Britain’s tech infrastructure and convince entrepreneurs and investors that Labour is backing the sector ahead of next week’s Budget, which is expected to raise taxes on the wealthy.

The UK has sought to attract investment from US AI companies such as OpenAI and Anthropic.

The government has signed several “strategic partnerships” with American groups in a bid to attract foreign investment in UK AI infrastructure and talent, in exchange for adopting their technology in the public sector.

Sue Daley, of lobby group TechUK, said the plan showed “real ambition” but warned: “Advanced market commitments of this kind must be designed carefully to avoid unintentionally distorting competition.”

The government also announced that James Wise, a venture capitalist at Balderton, would chair the government’s 500 million pound sovereign AI unit, which has been set up to back AI startups alongside the British Business Bank.

Additional reporting by Ivan Levingston.

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