FirstFT: OpenAI claims it has overtaken Anthropic with its latest AI model

Good morning, happy Friday and welcome to FirstFT. In today’s newsletter:

• OpenAI claims lead over Anthropic
• Yen surges as traders bet on Japan rate rises
• How AI can put out its PR dumpster fire

OpenAI claims lead over Anthropic

Yen surges as traders bet on Japan rate rises

How AI can put out its PR dumpster fire

OpenAI has released its latest AI model, which it called “the world’s most intelligent”, as the ChatGPT maker aims to retake the lead from arch-rival Anthropic ahead of a planned public listing.

The $852bn start-up said GPT-6 Astra was market-leading in software engineering, science and cyber security — an increasingly critical field following multiple high-profile breaches in recent weeks.

The bullish launch for Astra marks OpenAI’s effort to signal that it believes it has regained the technical lead from Anthropic. Greg Brockman, OpenAI’s president, said the new model “represents a generational leap in capability” and that it could be defined as artificial general intelligence — roughly defined as a point at which AI tools surpass human capabilities across a range of cognitive tasks.

“Everyone has a different definition of AGI . . . it’s a grey, fuzzy thing. But I think when we look back people will think it’s about this time and about this model,” Brockman said.

OpenAI has previously framed AGI as a concrete milestone in the development of AI, writing “AGI clauses” into multibillion-dollar investment agreements with Microsoft and Amazon. Brockman said yesterday that AGI now represented “more of a mission concept or a spiritual concept”.

Astra will initially be rolled out to a small group of businesses to allow time for them to address cyber security concerns before becoming widely available “over the coming days”. The FT’s George Hammond has more details.

• More AI news: Nvidia agreed to buy AI model platform Hugging Face for $13bn, in the latest step by the $5.4tn chip giant to use its financial might to accelerate the technology’s boom while exerting greater control over the industry.

More AI news: Nvidia agreed to buy AI model platform Hugging Face for $13bn, in the latest step by the $5.4tn chip giant to use its financial might to accelerate the technology’s boom while exerting greater control over the industry.

Here’s what else we’re keeping tabs on today and over the weekend:

• Economic data: The Philippines reports inflation figures for August.
• Oil markets: Opec+ holds its monthly meeting on Sunday.

Economic data: The Philippines reports inflation figures for August.

Oil markets: Opec+ holds its monthly meeting on Sunday.

Five more top stories

1. The Japanese yen surged yesterday as traders watched for signs of intervention and increased their bets on more aggressive rate rises by the central bank this year. Japan also successfully sold a tranche of 30-year government bonds, helping to ease investor fears after a sell-off this week in global bond markets that had pushed big economies’ borrowing costs to their highest in years.

• US monetary policy: A top Federal Reserve official said he would be “inclined” to keep interest rates on hold, highlighting divisions among the US central bank’s rate setters as they prepare for a crucial vote this month.

US monetary policy: A top Federal Reserve official said he would be “inclined” to keep interest rates on hold, highlighting divisions among the US central bank’s rate setters as they prepare for a crucial vote this month.

2. Volkswagen said it will launch a sweeping overhaul that will see the German carmaker slash up to 50,000 jobs and could lead to plant closures. The group told investors that the restructuring would be “the most far-reaching transformation programme” in its history.

3. Shein shares tumbled as much as 10 per cent on the third day of trading following its Hong Kong listing in a turbulent debut for the fast-fashion online retailer. The China-founded group’s stock fell as low as HK$41.24 (US$5.25) yesterday, down from the listing price of HK$48.56. “Basically it’s a disaster,” said Alicia Garcia-Herrero, chief economist for Asia-Pacific at Natixis.

4. A star trader at Ken Griffin’s Citadel hedge fund, whose team made billions of dollars trading natural gas during Russia’s invasion of Ukraine, is stepping down amid the most volatile period for the asset class in years. Chris Foster had been in the role for nearly two decades.

5. Venezuelan opposition leader María Corina Machado said the country’s people were feeling “sadness, anger and unease” at a new energy agreement between Washington and Caracas but stopped short of directly criticising Donald Trump’s administration. Under the agreement reached last week, the Pentagon will take a 35 per cent stake in a Venezuelan oil company.

Fantasy M&A: the recipe for a European champion

The EU unveiled new merger guidelines this year designed to ease the way for the continent’s largest companies to combine forces and compete with US and Chinese rivals. Encompassing strategic sectors ranging from tech to defence, here are seven dream combinations to create European titans drawn from an FT survey of executives, M&A bankers, lawyers and PR firms.

We’re also reading . . .

• Cuban cigars: With Chinese-Cambodian tycoon Chen Zhi as an investor, Cohibas became ultra-luxury symbols — then things came crashing down for the billionaire.
• AI’s PR problem: Trust in the industry is in tatters. Robert Armstrong offers five ideas on how to rescue its reputation.
• ‘Fever dream’: On Pattaya’s notorious Walking Street in Thailand, American sailors peered into go-go bars and drinking joints after more than nine months at sea aboard the USS Abraham Lincoln.

Cuban cigars: With Chinese-Cambodian tycoon Chen Zhi as an investor, Cohibas became ultra-luxury symbols — then things came crashing down for the billionaire.

AI’s PR problem: Trust in the industry is in tatters. Robert Armstrong offers five ideas on how to rescue its reputation.

‘Fever dream’: On Pattaya’s notorious Walking Street in Thailand, American sailors peered into go-go bars and drinking joints after more than nine months at sea aboard the USS Abraham Lincoln.

Map of the day

The port of Jebel Ali has helped transform Dubai from a regional trading centre into one of the world’s great commercial hubs. But the US-Israeli war with Iran has exposed its vulnerability, as shipping disruption in the Strait of Hormuz stifles operations at the strategically critical site.

Take a break from the news . . .

Should we be cooking and consuming more food with blood? A number of chefs and food writers believe so for reasons to do with taste, sustainability and nutrition, writes food columnist Ajesh Patalay.