IBM's AI and Quantum Bets, Apple AI Shake-Up, OpenAI Code Red, AI Productivity, Next AI Frontiers...

In a sweeping interview with The Verge, IBM CEO Arvind Krishna offered a candid assessment of the current AI landscape, likening today’s generative AI boom to the early days of the dotcom and fiber infrastructure buildouts. Krishna argued the industry is experiencing a period of over-investment and hype, particularly in consumer AI, but emphasized that IBM remains focused on enterprise applications and foundational bets like quantum computing. He predicted a 10% near-term job displacement due to AI, but stressed that the real productivity unlock will come from augmenting, not replacing, human workers. Krishna also cast doubt on AGI being achieved through current LLM approaches, advocating for deeper research and a fusion of knowledge-based systems, and highlighted IBM’s commitment to open-source, hybrid-cloud, and long-term R&D as differentiators in the next technological wave. The Verge

OpenAI CEO Sam Altman has reportedly declared a “code red” as the company scrambles to maintain its lead in the generative AI race, according to The Verge, The Wall Street Journal, and The Information. Facing robust competition from Google’s Gemini 3 and Anthropic, OpenAI is pausing several planned features—including ads and shopping agents—to focus on improving ChatGPT’s speed, reliability, and personalization. The urgency reflects both the narrowing technological gap and the immense capital outlays required to sustain growth in the sector. The Verge

Apple has appointed Amar Subramanya—a veteran of both Google and Microsoft—as its new vice president of AI, replacing John Giannandrea, who will retire in 2026. As reported by Engadget, The Guardian, Financial Times, and others, the move comes as Apple faces criticism for lagging behind rivals in deploying generative AI, particularly in voice assistant technology. Subramanya will oversee Apple’s foundational models, ML research, and AI safety, reporting to Craig Federighi. Analysts note that reinvigorating Apple’s AI capabilities and catching up with competitors will be immediate challenges for the new leadership. Engadget Financial Times The Guardian

Runway’s latest Gen-4.5 text-to-video model is gaining attention for its “cinematic and highly realistic outputs,” outperforming previous models from both Google and OpenAI on key benchmarks. CNBC notes that Gen-4.5 enables high-definition video creation from written prompts, while The Verge highlights its improved physical accuracy and prompt adherence. Despite some persistent issues—such as occasional object permanence lapses—industry observers see text-to-video AI as quickly approaching a point where generated content is nearly indistinguishable from real footage, raising both creative possibilities and new ethical questions. CNBC The Verge

Tech Radar reports that DeepSeek has released new open-source AI models that rival GPT-5 in performance but at significantly lower cost. This move is expected to intensify competition in the global AI model landscape, giving organizations more flexible, affordable alternatives to proprietary solutions from dominant players like OpenAI and Google. Tech Radar

Nvidia is taking a $2 billion stake in Synopsys as part of an expanded partnership to accelerate AI-driven engineering solutions, according to CNBC. Synopsys will leverage Nvidia’s AI platform to enhance computer-modeled design across industries, underscoring how leading chipmakers are doubling down on ecosystem plays to reinforce their dominance in both AI and compute infrastructure. CNBC CNBC

TechCrunch reveals that Amazon’s AI-powered chatbot Rufus had a dramatic impact on Black Friday sales: US sessions involving Rufus saw a 100% increase in conversion rates, compared to only 20% when the chatbot wasn’t used. This highlights the growing commercial impact of AI agents in retail and customer engagement. TechCrunch

Tom’s Hardware reports that Alchip and Ayar Labs have demonstrated the industry’s first TSMC COUPE-based optical connectivity solution, enabling fabless chip designers to integrate optical I/O into next-generation AI chips with greater ease. This silicon photonics advance is expected to address bandwidth and energy efficiency challenges in AI data centers, paving the way for more scalable and powerful AI hardware. Tom's Hardware

A CNBC investigation details how the AI infrastructure buildout—driven by surging demand for GPUs and specialized chips—is creating component shortages that are now affecting consumer electronics pricing. The scramble for AI chips is not only impacting cloud providers and data centers but also rippling into the broader tech ecosystem, with potential consequences for device affordability and innovation cycles. CNBC

A new study by Anthropic, as cited by Zdnet, estimates that AI tools like Claude can boost labor productivity by an annual rate of 1.8% over the next decade—double the current US growth rate. The research, based on analysis of 100,000 anonymized user conversations, found that AI reduces task completion times by roughly 80%, offering a data-driven glimpse into AI’s potential macroeconomic impact if adoption and effective use continue to spread. Zdnet

A joint analysis by MIT Technology Review and the Financial Times explores the “economic singularity” debate, noting that while AI coding assistants are revolutionizing some jobs, most businesses still see little ROI from their AI investments. They argue that the lag is typical of disruptive technologies, with productivity gains often following only after organizational and infrastructure adaptation. Caution remains, however, as some economists warn that productivity boosts from generative AI may be more modest and slower to materialize than optimists expect—especially if AI is used primarily for cost-cutting rather than job creation and augmentation. MIT Technology Review Financial Times

Harvard Business Review examines the growing movement to integrate data, analytics, and AI leadership at the highest organizational levels. As AI adoption accelerates, companies are rethinking traditional boundaries between business and technology roles, with a new breed of executive expected to drive enterprise-wide value from AI and data initiatives as part of broader digital transformation strategies. Harvard Business Review