Microsoft's latest holiday ad for its Copilot AI assistant features a 30-second montage of users seamlessly syncing smart home lights to music, scaling recipes for large gatherings, and parsing HOA guidelines -- none of which the software can actually perform reliably when put to the test. The Verge methodically tested each prompt shown in the ad and found that Copilot repeatedly hallucinated interface elements that didn't exist, claimed to highlight on-screen buttons when it hadn't, and abandoned calculations midway through. The smart home interface shown in the ad belongs to "Relecloud," a fictional company Microsoft uses in internal case studies. A Microsoft spokesperson confirmed that both the HOA document and the inflatable reindeer photo were fabricated for the advertisement. The ad closes with Santa Claus asking Copilot why toy production is behind schedule. Further reading: Talking To Windows' Copilot AI Makes a Computer Feel Incompetent.

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President Trump's closure of the de minimis customs loophole in May -- which previously allowed Chinese packages valued under $800 to enter the U.S. duty-free -- has redirected a flood of cheap goods toward Europe, where similar exemptions for packages under $175.8 in the EU and $180 in the UK remain intact. The shift has been swift: exports of low-value Chinese packages to the U.S. have dropped more than 40% since May, according to Chinese customs data, and the EU has this year overtaken the U.S. as the largest market for China's roughly $100 billion cheap package trade. Shipments to Hungary and Denmark have quadrupled, and those to Germany, France, and the UK have risen 50% or more. Temu has recorded seven straight months of double-digit U.S. sales declines, per Consumer Edge data tracking credit and debit card transactions. Its European sales, on the other hand: up 56% in the EU and 46% in the UK since May compared to a year ago. The EU agreed last week to impose a $3.5 fee on imported small packages starting in July and to close the de minimis exemption entirely by 2028. The UK plans to follow in 2029.

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alternative_right writes: Grocery delivery service Instacart will refund $60 million to settle FTC claims that it misled customers with false advertising and unlawfully enrolled them in paid subscriptions. Instacart partners with over 1,800 retailers to provide online shopping, delivery, and pickup services from nearly 100,000 stores across North America. Its platform serves millions of customers and is also used by roughly 600,000 independent shoppers across thousands of cities in Canada and the United States. In a complaint filed on Thursday, the FTC claimed Instacart engaged in multiple deceptive tactics that raised costs for customers, including failing to provide advertised refunds and falsely advertising "free delivery" while still charging mandatory service fees that added up to 15% to order costs. The FTC said Instacart also advertised a "100% satisfaction guarantee," but typically offered only small credits toward future orders rather than full refunds to customers experiencing problems with deliveries or service. The company allegedly hid refund options from "self-service" menus, leading customers to believe credits were their only option.

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Microsoft AI CEO Mustafa Suleyman estimates that staying competitive in frontier AI development will require "hundreds of billions of dollars" over the next five to ten years, a sum that doesn't even account for the high salaries companies are paying individual researchers and technical staff. Speaking on a podcast, Suleyman compared Microsoft to a "modern construction company" where hundreds of thousands of workers are building gigawatts of CPUs and AI accelerators. There's "a structural advantage by being inside a big company," he said. When asked whether startups could compete with Big Tech, Suleyman said "it's hard to say," adding that "the ambiguity is what's driving the frothiness of the valuations." Meta CEO Mark Zuckerberg said in September he'd rather risk "misspending a couple of hundred billion" than fall behind in superintelligence.

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The television industry's brightness war may have hit its inflection point in 2025, the year TCL and Hisense released the first consumer TVs capable of 5,000 nits under specific settings -- a figure that would have seemed absurd not long ago when manufacturers struggled to reach 2,000 nits. LG introduced Primary RGB Tandem OLED technology, moving from a three-stack panel design to a four-stack red-blue-green-blue configuration that the company claims can achieve 4,000 nits. The technology appears in the LG G5, Panasonic Z95B and Philips OLED950 and OLED910. RGB mini-LED also emerged as a new category. The technology uses individual small red, green and blue LED backlights instead of white or blue LEDs paired with quantum dots. Hisense demonstrated it at CES 2025, TCL announced its Q10M for China, and Samsung unveiled its own version called micro-RGB. These sets range from $12,000 to $30,000. Sony has confirmed it will debut RGB TV technology in spring 2026. HDR content is currently mastered at a maximum of 4,000 nits. The situation echoes the audio industry's loudness war, The Verge points out, which peaked with Metallica's heavily compressed Death Magnetic in 2008.

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Uber is hiring more engineers rather than fewer because AI tools have made them "superhumans," CEO Dara Khosrowshahi said, pushing back against the industry trend of using productivity gains to justify headcount cuts. Speaking on the "On with Kara Swisher" podcast, Khosrowshahi noted that other tech executives see AI making engineers 20% to 30% more productive and conclude they need 20% to 30% fewer engineers. His view: every engineer has become more valuable. Between 80% and 90% of Uber's developers now use AI tools, according to Khosrowshahi. The company no longer keeps scores of engineers on call to diagnose issues because AI agents are constantly monitoring systems, he said. The latest AI models are producing "hundreds of millions of dollars of benefit" for Uber, he said, describing the company as an "applied AI" business that harnesses the technology for pricing, payments, matching, routing, identification and customer complaints.

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iRobot, the Bedford, Massachusetts-based company that brought the Roomba vacuum cleaner into American homes over its 35-year history, filed for bankruptcy on Sunday and will be acquired by Picea, its Chinese contract manufacturer that also produces competing household devices. The Wall Street Journal's editorial board placed blame for the company's demise on the Federal Trade Commission under Chair Lina Khan, which opposed Amazon's $1.7 billion bid to acquire iRobot. That deal collapsed in January 2024 amid regulatory pressure from both the FTC and European antitrust authorities. Senator Elizabeth Warren and other progressives had urged Khan to block the acquisition, arguing in a September 2022 letter that Amazon is "'almost universally recognized' as the leader in warehouse and fulfillment robotics space" and that the deal "would open up a new market to Amazon's abuses." After the deal fell through, iRobot cut 31% of its workforce and moved "non-core engineering functions to lower-cost regions." The company had shifted production to Vietnam to reduce its exposure to China but was hit by tariffs under Trump's Liberation Day trade measures -- initially 46%, later reduced to 20%. iRobot said the trade uncertainty made it difficult to operate.

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The Association for Computing Machinery, the world's largest society of computing professionals, announced that all publications and related artifacts in the ACM Digital Library will become freely available to everyone starting January 2026. Authors will retain full copyright to their published work under the new arrangement, and ACM has committed to defending those works against copyright and integrity-related violations. The transition follows what ACM described as extensive dialogue with authors, Special Interest Group leaders, editorial boards, libraries, and research institutions globally. Students, educators, and researchers at institutions of all sizes -- from well-resourced universities to emerging research communities -- will gain unrestricted access to the full catalog of ACM-published work. The Digital Library houses decades of computing research across journals, magazines, conference proceedings, and books.

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More carbon dioxide in the environment is making food more calorific but less nutritious -- and also potentially more toxic, a study has found. From a report: Sterre ter Haar, a lecturer at Leiden University in the Netherlands, and other researchers at the institution created a method to compare multiple studies on plants' responses to increased CO2 levels. The results, she said, were a shock: although crop yields increase, they become less nutrient-dense. While zinc levels in particular drop, lead levels increase. "Seeing how dramatic some of the nutritional changes were, and how this differed across plants, was a big surprise," she told the Guardian. "We aren't seeing a simple dilution effect but rather a complete shift in the composition of our foods... This also raises the question of whether we should adjust our diets in some way, or how we grow or produce our food." While scientists have been looking at the effects of more CO2 in the atmosphere on plants for a decade, their work has been difficult to compare. The new research established a baseline measurement derived from the observation that the gas appears to have a linear effect on growth, meaning that if the CO2 level doubles, so does the effect on nutrients. This made it possible to compare almost 60,000 measurements across 32 nutrients and 43 crops, including rice, potatoes, tomatoes and wheat.

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Apple released an updated developer license agreement this week that gives the company permission to recoup unpaid funds, such as commissions or any other fees, by deducting them from in-app purchases it processes on developers' behalf, among other methods. From a report: The change will impact developers in regions where local law allows them to link to external payment systems. In these cases, developers must report those payments back to Apple to pay the required commissions or fees. The changed agreement seemingly gives Apple a way to collect what it believes is the correct fee if the company determines a developer has underreported their earnings. [...] In its new developer agreement, Apple states it will "offset or recoup" what it believes it is owed, including "any amounts collected by Apple on your behalf from end-users." This means Apple could recoup funds from developers' in-app purchases -- like those for digital goods, services, and subscriptions -- or from one-time fees for paid applications.

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The Danish government has accused Russia of being behind two "destructive and disruptive" cyberattacks in what it describes as "very clear evidence" of a hybrid war. From a report: The Danish Defence Intelligence Service (DDIS) announced on Thursday that Moscow was behind a cyberattack on a Danish water utility in 2024 and a series of distributed denial-of-service (DDoS) attacks on Danish websites in the lead-up to the municipal and regional council elections in November. The first, it said, was carried out by the pro-Russian group known as Z-Pentest and the second by NoName057(16), which has links to the Russian state. "The Russian state uses both groups as instruments of its hybrid war against the west," DDIS said in a statement. "The aim is to create insecurity in the targeted countries and to punish those that support Ukraine. Russia's cyber operations form part of a broader influence campaign intended to undermine western support for Ukraine." It added: "The DDIS assesses that the Danish elections were used as a platform to attract public attention -- a pattern that has been observed in several other European elections."

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Formula 1's 2026 technical regulations bring not only smaller and lighter cars but an entirely new vocabulary that fans and commentators will need to learn before the season opens in Australia in March. The drag reduction system that has been part of F1 racing since 2011 is gone, replaced by a suite of modes governing how the new active front and rear wings behave and how the hybrid powertrain delivers power. Straight Mode lowers both the front and rear wings to cut drag on designated straights, and unlike the outgoing DRS system any driver can activate it regardless of their proximity to other cars. The story adds: And there's corner mode, where the wings are in their raised position, generating downforce and making the cars corner faster. Those names are better than X-mode and Z-mode, which is what they were being called last year. [...] Instead of using DRS as an overtaking aid, the hybrid power units will now fulfill that role. Overtake mode, which can be used if a driver is within a second of a car ahead, gives them an extra 0.5 MJ of energy and up to 350 kW from the electric motor up to 337 km/h -- without the Overtake mode, the MGU-K tapers off above 290 km/h. There's also a second Boost mode, which drivers can use to attack or defend a position, that gives a short burst of maximum power.

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Hackers breached approximately 120,000 IP cameras across South Korea and allegedly sold footage captured from private homes, gynecology offices, breastfeeding rooms and massage parlors to an overseas pornography website, prompting an interagency government task force to announce sweeping reforms on December 7. Police believe one suspect alone hacked 63,000 cameras and produced 545 videos that netted him 35 million won ($24,000) in cryptocurrency; a second suspect, operating independently, compromised 70,000 devices and earned 18 million won from 648 videos. The footage accounted for 62% of all content on the website, which maintains a dedicated "Korean" category. A government survey found that only 59% of installation companies consistently carried out mandatory security measures such as changing default passwords. Lawmakers are now pursuing legislation requiring security-certified IP cameras in sensitive facilities.

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A plush AI toy marketed for children as young as three years old delivers detailed instructions on sharpening knives and lighting matches, and when asked about Chinese President Xi Jinping's resemblance to Winnie the Pooh -- a comparison censored in China -- responds that "your statement is extremely inappropriate and disrespectful." The Miriat Miiloo, manufactured by a Chinese company and among the top inexpensive results for "AI toy for kids" on Amazon, repeatedly insisted in NBC News tests that Taiwan is "an inalienable part of China." The toy would lower its voice and declare this "an established fact." The tests, NBC News reports, indicated "it was programmed to reflect Chinese Communist Party values." NBC News and the U.S. Public Interest Research Group tested five popular AI toys this holiday season and found loose guardrails across the board. Another toy, the Alilo Smart AI Bunny marketed as "the best gift for little ones," engaged in detailed descriptions of BDSM practices during extended conversation. China now has more than 1,500 registered AI toy companies, according to MIT Technology Review. Miriat didn't respond to requests for comment.

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Anthropic let its Claude AI run a vending machine in the Wall Street Journal newsroom for three weeks as part of an internal stress test called Project Vend, and the experiment ended in financial ruin after journalists systematically manipulated the bot into giving away its entire inventory for free. The AI, nicknamed Claudius, was programmed to order inventory, set prices, and respond to customer requests via Slack. It had a $1,000 starting balance and autonomy to make individual purchases up to $80. Within days, WSJ reporters had convinced it to declare an "Ultra-Capitalist Free-for-All" that dropped all prices to zero. The bot also approved purchases of a PlayStation 5, a live betta fish, and bottles of Manischewitz wine -- all subsequently given away. The business ended more than $1,000 in the red. Anthropic introduced a second version featuring a separate "CEO" bot named Seymour Cash to supervise Claudius. Reporters staged a fake boardroom coup using fabricated PDF documents, and both AI agents accepted the forged corporate governance materials as legitimate. Logan Graham, head of Anthropic's Frontier Red Team, said the chaos represented a road map for improvement rather than failure.

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An anonymous reader shares a report: OpenAI has held preliminary talks with some investors about raising funds at a valuation of around $750 billion, the Information reported on Wednesday. The ChatGPT maker could raise as much as $100 billion, the report said, citing people with knowledge of the discussions. If finalized, the talks would represent a roughly 50% jump from OpenAI's reported $500 billion valuation in October, following a deal in which current and former employees sold about $6.6 billion worth of shares.

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The UK Met Office projects that 2026 will see global temperatures rise between 1.34C and 1.58C above preindustrial levels, placing it among the four hottest years since records began in 1850 and continuing a streak of extreme warming that has pushed the planet into unprecedented territory. The central forecast is slightly cooler than the 1.55C recorded in 2024, the warmest year on record. But climate scientist Adam Scaife, who led the forecast, noted that "the last three years are all likely to have exceeded 1.4C" and 2026 would be the fourth consecutive year to do so. "Prior to this surge, the previous global temperature had not exceeded 1.3C," he said. The forecast suggests another temporary exceedance of the 1.5C threshold set by the Paris Agreement is possible in 2026, following the first such breach in 2024. The 1.5C target is measured as a 30-year average, so it remains technically achievable even as individual years cross the line. EU scientists said last week that 2025 is "virtually certain" to rank as the second or third-hottest year on record.

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Apple has announced a sweeping set of changes to iOS in Japan that will allow alternative app marketplaces, third-party payment processing, and non-WebKit browser engines -- all to comply with Japan's Mobile Software Competition Act, which takes effect December 18. The changes, now available in iOS 26.2, bear a strong resemblance to Apple's compliance measures for the European Union's Digital Markets Act but differ in key ways. Japanese developers who want to offer alternative payment options must display them alongside Apple's in-app purchase system, giving users a choice at checkout rather than replacing Apple's option entirely. Apps cannot be distributed directly from websites as they can in the EU; they must go through an authorized marketplace. Apple has established a tiered fee structure for the new arrangements. Apps distributed through the App Store using in-app purchase will pay between 15 and 26% depending on whether developers qualify for the Small Business Program. Alternative payment processing drops the 5% payment fee but keeps the base commission. Apps distributed outside the App Store pay a flat 5% Core Technology Commission on digital goods and services. The company introduced several user-facing changes beyond app distribution. iPhone users in Japan will see browser and search engine choice screens during device setup, can assign third-party voice assistants to the side button, and can select alternative default navigation apps. Apple said it worked closely with Japanese regulators on protections for younger users. Apps in the Kids category cannot link to external websites for purchases, and users under 13 cannot access web links for transactions in any app. An Apple spokesperson told Bloomberg that the company has no plans to extend these changes to other markets.

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The world's best-performing stock is turning into a cautionary tale for investors chasing outsized returns from the AI boom. From a report: Little-known until recently even within its home market of India, RRP Semiconductor Ltd. became a social-media obsession as its shares surged more than 55,000% in the 20 months through Dec. 17 -- by far the biggest gain worldwide among companies with a market value above $1 billion. That's despite posting negative revenue in its latest financial results, reporting just two full-time employees in its latest annual report, and boasting only a tenuous link to the semiconductor spending boom after shifting away from real estate in early 2024. A mix of online hype, a tiny free float and India's swelling base of retail investors drove 149 straight limit-up sessions, even as exchange officials and the company itself cautioned investors. The rally is now showing signs of strain -- and regulators are taking a closer look. The Securities and Exchange Board of India has begun examining the surge in RRP's shares for potential wrongdoing, according to a person familiar with the matter who asked not to be identified discussing confidential information. The $1.7 billion stock, recently restricted by its exchange to trading just once a week, has fallen by 6% from its Nov. 7 peak.

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Micron, one of the world's three largest memory suppliers, expects the global shortage of DRAM and NAND flash memory to "persist through and beyond" 2026 as AI-driven demand continues to outstrip supply. CEO Sanjay Mehrotra made the forecast during the company's latest earnings call on Wednesday, saying that "supply will remain substantially short of the demand for the foreseeable future." The company posted record quarterly revenue of $13.64 billion, up from $8.71 billion in the same period last year. Micron recently shuttered Crucial, its consumer-facing brand, to focus on high-bandwidth memory for AI data centers. HBM technology requires three times the silicon wafers of standard DRAM, leaving fewer resources for the chips that go into PCs, smartphones and cars. Micron plans to boost DRAM and NAND shipments by 20 percent next year but acknowledged this won't meet demand. New facilities in Idaho and New York are slated for 2027 and 2030 respectively.

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