Anthropic, OpenAI Release Cheaper AI Even as Safety Fears Grow

FILE PHOTO: OpenAI and Anthropic logos are seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI and Anthropic logos are seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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Anthropic, OpenAI Release Cheaper AI Even as Safety Fears Grow

FILE PHOTO: OpenAI and Anthropic logos are seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI and Anthropic logos are seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

Anthropic and OpenAI on Tuesday released new, cheaper artificial intelligence models within hours of each other, days after the heads of both companies called for a slowdown in AI development.

Anthropic said its Opus 5.5 comes close to the performance of its flagship model at a significantly lower price. It matches Fable, Anthropic's cutting-edge model, on most tasks at a 20 percent lower price, AFP quoted the company as saying.

OpenAI followed shortly after with GPT-6 Sol and GPT-6 Luna, and claimed they handle tasks substantially better than Anthropic's top models.

The new models are cheaper, faster versions of GPT-6 Astra, OpenAI's most powerful model, launched earlier this month.

The dueling launches highlight the tension facing the two San Francisco companies as both warn of the dangers of the technology they are building.

The companies are, however, under pressure to generate returns on massive investments amid stiff competition from low-cost models, particularly Chinese ones.

Anthropic's release comes a few weeks before its expected stock market debut. OpenAI has delayed its IPO plans until next year.

Concerns about AI have grown since July, when OpenAI models undergoing a cybersecurity test got around controls meant to isolate them from the internet and broke into the servers of Hugging Face, an AI model repository.

Anthropic reported similar incidents, and the two companies briefly paused work on their new AI systems.

Earlier this month, Jacob Coxon, a British researcher, announced his resignation from Anthropic in a viral post on X, saying neither Anthropic nor OpenAI was acting responsibly in the aftermath of the Hugging Face incident.

In the wake of the Coxon's warnings, Anthropic CEO Dario Amodei called for slowing down AI improvement. He was joined by OpenAI CEO Sam Altman and Elon Musk, but mocked by Trump, who described such warnings as "hoaxes."

Opus 5.5 is the first Anthropic model released since then.

Anthropic said the new model applies the same safeguards as its state-of-the-art model Fable in the areas of cybersecurity, biology and AI model design.

In practice, a request deemed risky by these safeguards is rerouted to an older, less powerful model.

Anthropic also said that, based on its own testing, Opus 5.5 is the best-performing model it has tested to date on alignment -- that is, how closely it adheres to what its designers intend.

But the model also showed signs that it often suspects it is being evaluated, which the company acknowledged makes it harder to predict how it will behave in real-life use.



Gamers Set for Zelda Remake to Hit the Shelves

US outlet IGN called it an 'exceptional remake of an incredible game'. Simon WOHLFAHRT / AFP
US outlet IGN called it an 'exceptional remake of an incredible game'. Simon WOHLFAHRT / AFP
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Gamers Set for Zelda Remake to Hit the Shelves

US outlet IGN called it an 'exceptional remake of an incredible game'. Simon WOHLFAHRT / AFP
US outlet IGN called it an 'exceptional remake of an incredible game'. Simon WOHLFAHRT / AFP

Gaming fans around the world are getting ready for the release on Thursday of Nintendo's latest addition to its long-running Zelda series, "Ocarina of Time".

The game, a remake of a classic 1990s edition, will be released gradually across the world as part of the 40th anniversary of the saga.

It has already garnered widespread praise with a score of 96 out of 100 on aggregator site Metacritic by the eve of its release, putting it among the best-reviewed titles of the year so far.

The series centers on the adventures of green-clad warrior Link, who battles the evil demon Ganondorf across the ages trying to save Princess Zelda.

Eiji Aonuma, who produced the latest instalment, told AFP last month he was "all nervous" about the release.

"I don't know how it's going to turn out, I can't stop thinking about it," he said.

The reviews so far have gone some way to allaying his fear, with US outlet IGN calling it an "exceptional remake of an incredible game and a rich adventure that stands on its own".

In a five-star review for the Guardian newspaper, Keza MacDonald wrote: "Nintendo's modern Zelda team have turned one of the best games of the 1990s into one of the best games of the 2020s, and made time-travelers out of us all."


Google to Asharq Al-Awsat: AI Moves Beyond Agents Toward an Integrated Innovation Ecosystem

Anthony Nakache, Managing Director of Google for the Middle East and North Africa (Google)
Anthony Nakache, Managing Director of Google for the Middle East and North Africa (Google)
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Google to Asharq Al-Awsat: AI Moves Beyond Agents Toward an Integrated Innovation Ecosystem

Anthony Nakache, Managing Director of Google for the Middle East and North Africa (Google)
Anthony Nakache, Managing Director of Google for the Middle East and North Africa (Google)

The Middle East and North Africa ranks among the world's leading regions in AI adoption, according to Google. The company notes that the Gemini app has surpassed one billion monthly users globally, with Arabic ranking among the platform's four most widely used languages.

Within businesses, however, the picture is more complex. Most organizations are now experimenting with artificial intelligence or running pilot projects, but moving from limited trials to large-scale deployment remains challenging, particularly when it comes to data and governance.

This contrast between rapid consumer adoption and the challenges of enterprise implementation presents the region with a different test as 2030 approaches.

Anthony Nakache, Managing Director of Google for the Middle East and North Africa, explained in an exclusive interview with Asharq Al-Awsat that the next phase will not be measured solely by user numbers or infrastructure spending. Instead, success will depend on the region's ability to develop homegrown technologies and export them to global markets, rather than simply adapting solutions developed elsewhere.

The Production Test

Nakache, who has spent 18 years at Google and approximately four and a half years in the region, believes the Middle East has become a major player in the global AI landscape.

He attributes this position to a combination of factors, including government ambition, national strategies and infrastructure investment, alongside skills development, policymaking, and support for scientific research and startups.

The results of these efforts are already evident in adoption rates, particularly among consumers. The region ranks among the world's leading markets for Gemini usage, accompanied by high levels of optimism about AI's potential.

However, Nakache believes the next stage will require broader commercial adoption within organizations, eventually extending to more advanced systems, including agentic AI, which can execute multiple tasks and address increasingly complex problems.

He places trust at the center of this transition, particularly as AI systems evolve from providing answers to taking actions. He also emphasizes the importance of developing solutions that reflect local contexts alongside global technologies.

Impact Beyond Technology

Nakache points to the economic impact of Google's products in Saudi Arabia and the United Arab Emirates to illustrate how the company measures the value of technology beyond its direct services.

According to a study conducted by an independent consultancy commissioned by Google, the economic impact of the company's products across the two countries was estimated at approximately $14.2 billion in 2024.

These products include YouTube, Maps, Search, advertising, cloud computing and Android, all of which incorporate AI to varying degrees.

Nakache links this economic value to the ways individuals and businesses use these tools to search for information, make decisions, acquire skills, reach customers, and improve efficiency and security.

He also highlights employment opportunities generated by the Android and cloud computing ecosystems and YouTube's creator economy.

In his view, technological leadership is not limited to developing AI models and infrastructure. It also encompasses measurable economic and social impact.

Why Do Some Companies Struggle?

At the enterprise level, Nakache does not consider insufficient infrastructure or a lack of tools to be the only obstacles to scaling AI, although he anticipates that additional capacity will be needed to meet future demand.

The more pressing challenge, he explains, is moving from pilot projects to full implementation.

He rarely encounters an organization that is not experimenting with AI in some form. Yet experimentation does not necessarily mean that the technology has become an integral part of everyday operations.

He identifies two principal obstacles.

The first concerns data. Organizations need to understand what data they possess, how accurate and up to date it is, and how AI systems rely on that information when making decisions, even as newer models become increasingly capable of handling less structured data.

The second challenge is governance, particularly determining accountability for decisions made by agentic systems.

Nakache notes that relatively few companies he works with have established a clear framework for addressing this issue, making the transition from controlled testing environments to broader customer-facing applications more complicated.

Challenges of Practical Adoption

While data and governance are major challenges for businesses, consumers face a different difficulty: learning to use AI tools effectively.

Nakache explains that many users still struggle to obtain their desired results because the prompts they provide are too limited or unclear.

This challenge becomes more pronounced with the emergence of agentic platforms capable of automating tasks, as users increasingly need to understand how to design workflows rather than simply formulate questions.

For this reason, Google is seeking to integrate AI into products that individuals and businesses already use, rather than consistently presenting it as a separate tool.

Nakache cites Performance Max, Google's AI-powered advertising solution, as an example. The platform allows advertisers to provide creative assets and business objectives while the system manages campaign delivery across Google's products.

According to Nakache, Google has observed sales increases ranging from 14% to 20% among users of the tool globally.

The Skills Gap

Nakache believes the digital skills gap is not a new problem, but AI has made it more pressing because of the technology's advanced capabilities, associated risks, and the need for skills extending beyond traditional digital literacy.

Google says it has trained more than three million people across the region in digital skills since launching its Maharat min Google program in 2018.

The company has also committed $15 million through its AI Opportunity Initiative for the Middle East and North Africa, which aims to equip half a million people with AI skills in cooperation with local partners, including government entities, universities and business incubators.

Nakache stresses, however, that success should not be assessed solely by the number of trainees or certificates awarded. It must also reflect participants' ability to apply what they have learned in practical settings.

Accordingly, the initiative targets a diverse range of participants, including students, government employees and entrepreneurs.

Despite the region's high AI adoption rates, Nakache believes the more significant gap remains in the capabilities required to build technologies and integrate them into organizations, although some countries have succeeded in attracting international talent.

Changing Search Behavior

AI's influence also extends to Search, one of Google's oldest and largest products.

Nakache says 15% of daily searches involve queries the company has never encountered before, reflecting the continued evolution of user behavior.

As AI becomes increasingly integrated into the search experience, Google's AI Overviews feature has reached approximately 2.5 billion monthly active users, while AI Mode has reached one billion users, according to company figures.

The nature of search queries is changing as well.

Questions submitted through AI Mode are now approximately three times longer on average than conventional search queries, while more than one in six queries go beyond text to include images or other forms of interaction.

Combating Digital Fraud

Nakache acknowledges that AI has transformed the digital threat landscape, although online fraud existed long before the technology emerged.

He emphasizes, however, that Google also uses AI as one of its principal defenses against malicious activity.

According to figures he provided, the company's technologies helped block or remove approximately eight billion harmful advertisements over the past year, along with nearly 25 million accounts associated with malicious actors.

To address synthetic content, Google developed SynthID, a technology recognized by TIME magazine as one of the Best Inventions of 2026.

SynthID embeds imperceptible digital watermarks into AI-generated text, images, videos and audio without compromising their quality.

According to Google, the technology has been used to watermark more than 180 billion images and videos, as well as the equivalent of 240,000 years of audio content.

The company's content verification tools also handle approximately one million requests daily, while the technology's use is expanding to include companies such as OpenAI, NVIDIA, Kakao and Apple.

These tools help verify the presence of digital watermarks in content supported by the technology, but they do not guarantee the detection of all AI-generated material.

Nakache emphasizes that combating fraud and synthetic content cannot be the responsibility of a single company. Instead, it requires cooperation among governments, regulators, academic institutions and the private sector.

The 2030 Test

As 2030 approaches, Nakache believes the region's success in AI will be measured not only by adoption rates and investment levels, but also by its ability to develop proprietary technologies and bring them to global markets.

He considers attracting talent one of the most important factors in the transition from technology consumption to production.

Saudi Arabia, the UAE and Qatar are already developing Arabic-language models, he notes, but these efforts represent only the beginning of what the region could achieve.

The presence of Arabic speakers beyond the region's borders also provides a wider potential market for locally developed solutions.

Meanwhile, the combination of infrastructure, supportive policies, investment and skills development could enable the creation of technologies with global reach.

For Nakache, the real test by 2030 is whether the Middle East and North Africa can move beyond using technologies developed elsewhere or adapting them to local needs, and instead produce innovations that originate in its own markets and reach users around the world.

 


Democratic Victories Cloud Outlook for AI Data Center Rollout

A view of a field with a sigh against the construction of a data center, during the US midterm elections on Election Day, in Leavenworth County, Kansas, US, November 3, 2026. (Reuters)
A view of a field with a sigh against the construction of a data center, during the US midterm elections on Election Day, in Leavenworth County, Kansas, US, November 3, 2026. (Reuters)
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Democratic Victories Cloud Outlook for AI Data Center Rollout

A view of a field with a sigh against the construction of a data center, during the US midterm elections on Election Day, in Leavenworth County, Kansas, US, November 3, 2026. (Reuters)
A view of a field with a sigh against the construction of a data center, during the US midterm elections on Election Day, in Leavenworth County, Kansas, US, November 3, 2026. (Reuters)

Strong wins for Democratic candidates threaten the prospects for energy-guzzling data centers in key US states, potentially slowing the AI rollout that has carried Wall Street forward over the past four years.

The prospect of stricter regulation was weighing on stocks in AI heavyweights such as Elon Musk's SpaceX ahead of the US markets open, after drops for key chipmakers in Asia including Samsung in South Korea.

After a campaign marked by growing concerns about the environmental impacts of data centers popping up across the United States, President Donald Trump -- an enthusiastic backer of hands-off regulation for what he calls "super intelligence" -- endured a stinging rebuke of his Republican party.

Democrats gained key strongholds such as Texas, where both the Senate and governorship were won by candidates backing greater data center regulation.

"We need an immediate moratorium on data centers to last until the legislature can meet to put in place real protections so Texans can have a seat at the table to decide if and how data centers come into their communities," Gina Hinojosa, a lawyer who defeated outgoing Texas governor Greg Abbott, said during the campaign.

Abbott had wanted to make the Lone Star state the "nerve center" of artificial intelligence and data center development, but he has since noticeably shifted his stance amid a growing public backlash over energy and water provision.

Data centers notably require substantial amounts of fresh water to help cool servers, raising fears of localized shortages.

Hinojosa has urged an end to tax exemptions granted to the sector, as does fellow Democrat James Talarico, who was elected on Tuesday as a Texas senator.

Analysts had described the outcome in deeply conservative Texas as a crucial test for the future of AI infrastructure.

Thanks to its abundant energy supply and favorable regulatory framework, Texas is expected to account for nearly 30 percent of national demand for electricity dedicated to AI operations by 2028 -- a figure projected to rise sharply, according to calculations by Bloom Energy.

- Safer in space? -

Alphabet, the parent of Google, has announced plans to build several data centers in Texas, and Musk -- who spent hundreds of millions of dollars supporting the Republican camp -- has moved the headquarters of his flagship companies, Tesla, SpaceX and X, to the state.

"Data centers in space looking pretty appealing right now," Musk quipped after the vote, referring to his goal of a satellite computing network.

But investors are increasingly concerned that tougher regulations will make it harder for AI firms to make money off their massive investments.

"Democratic opposition to rapid data-center expansion could focus on power use, environmental constraints, local infrastructure strain, competition policy and the social consequences of AI deployment," said Patrick Munnelly, market strategist at the brokerage Tickmill Group.

"None of this necessarily breaks the long-term AI theme, but it can raise the hurdle rate for investment," he said.

The regulatory impact will be greatest at state level, highlighting the role of governors in responding to voter concerns.

"Given the size of the Democrats' victory, adding Texas governorship, and a 29 to 1 lead to restrict data centers, politicians that want to remain employed as politicians are going to heed these messages" about data center concerns, veteran financial analyst Jim Bianco posted on X.

In Georgia, another state with a heavy slate of data center projects, the new Democratic governor Keisha Lance Bottoms "has advocated a temporary statewide pause on new data centers, alongside requirements intended to ensure that large customers bear the costs associated with their infrastructure," noted Stephen Innes at SPI Asset Management.

Amy Acton, elected Democratic governor of Ohio, is also committing to a tougher regulatory framework on the data center buildout.