IN TODAY’S NEWSLETTER:

• Musk jabs at OpenAI, says Grok 4 Heavy 'smarter 2 weeks ago' than newly launched GPT-5
  - Small business AI adoption jumps to 68% as owners plan significant workforce growth in 2025
  - McDonald's plans AI expansion to streamline customer orders, executive says

TECH TENSIONS: Elon Musk escalated tensions in the critical artificial intelligence race Thursday, asserting his most advanced AI model, Grok 4 Heavy, was already outperforming OpenAI’s newly launched GPT-5 two weeks ago.

BOT BOOM: Small business owners are rapidly adopting artificial intelligence to power their growth, with many saying it will lead to more job opportunities this year, according to a Goldman Sachs survey.

POCKET GENIUS: OpenAI unveiled GPT-5 on Thursday, calling it a significant upgrade from its predecessors and a major step forward in building the capabilities of large language models. 

AI-DOCTORED PHOTOS: Airbnb has reportedly apologized to a woman after the host of a Manhattan apartment where she stayed used artificial intelligence to doctor images of the home, saying she caused thousands of dollars in damage. 

RED THREAT: The U.S. is the global leader in artificial intelligence, but a new report shows China is rapidly expanding its development.

TECH UPGRADE: McDonald’s is ramping up its use of artificial intelligence to streamline customer orders and sharpen its business operations, with plans to "double down" on AI investments by 2027, a senior executive said on Friday, according to Reuters. 

DIGITAL DANGER ZONE: Artificial intelligence is no longer just a tool for homework or simple tasks. Today, many teens use AI-powered companions for emotional support, advice and even simulated relationships. These apps simulate conversation in ways that feel deeply personal and, for some teens, deeply real.

'WIDESPREAD ADOPTION': The federal government is stepping into the future and embracing artificial intelligence, specifically ChatGPT, across its agencies, which proponents say will streamline productivity while solidifying President Donald Trump's pledge to keep the U.S. in the driver's seat of the cutting-edge technology, Fox News Digital exclusively learned.

MICROCHIP MISCONDUCT: Two Chinese nationals — one of them an illegal immigrant — were arrested for allegedly shipping tens of millions of dollars’ worth of sensitive microchips used in artificial intelligence applications to China, the Justice Department announced Tuesday.

'GHOULISH': Former CNN anchor Jim Acosta was slammed on social media after he posted a clip of his "interview" with an artificially animated avatar of deceased teenager Joaquin Oliver to promote a gun control message on Monday.

HIDDEN TECH DANGER: Artificial intelligence is getting smarter. But it may also be getting more dangerous. A new study reveals that AI models can secretly transmit subliminal traits to one another, even when the shared training data appears harmless. Researchers showed that AI systems can pass along behaviors like bias, ideology, or even dangerous suggestions. Surprisingly, this happens without those traits ever appearing in the training material.

ROCK STAR BACKLASH: Rod Stewart is catching some heat after sharing an AI-generated tribute to Ozzy Osbourne during his "One Last Time" tour.

SPEECH POLICE STATE: The Trump administration has been on a monthslong campaign railing against what it says are draconian censorship regulations in Europe that have not only stifled free speech, but have also served as another roadblock amid the artificial intelligence evolution. 

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