Leading US AI labs such as OpenAI and Anthropic are releasing cheaper models as they fight to retain cost-conscious customers who are switching to cut-price alternatives from Chinese rivals.

The price war comes as rising AI bills push companies to curb usage and seek cheaper models, helping Chinese developers including Moonshot and DeepSeek make inroads with users from Silicon Valley to Europe.

OpenAI recently said that it was slashing prices for GPT-5.6 Luna, its “fastest and most affordable model”, by 80 percent. Anthropic has launched Claude Opus 5, touting the system’s “frontier intelligence... at half the price” of Fable 5, the company’s most capable model.

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If you can truly appreciate an old book—and maybe even marvel at how its fragile, yellowing pages contain some of the earliest ways that people tried to make sense of the world around them—then headlines about tech companies that are destroying books to train AI likely torture a tender part of your soul.

It’s indeed depressing to imagine piles of book spines waiting to be fed into wood chippers while torn-out pages are cropped, scanned, and trashed. But that’s the cheapest and easiest way to scan books as fast as possible, and AI companies are in a race to advance their models by training on the kind of engaging, high-quality long-form texts that can only be found in books. So book lovers fear it’s likely that the practice is happening on a grander scale than is currently being reported and that some physical copies of books will be lost forever.

What makes this destruction extra painful, though, is that it doesn’t have to be this way.

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OpenAI’s upcoming smart speaker will probably cost over $300, “people familiar with the matter” have told Bloomberg’s Mark Gurman.

The generative AI company has “discussed” charging up to $400, Bloomberg, which has been reporting on the yet-to-be-announced smart speaker since July, said today. The publication said that OpenAI is viewing the smart speaker as a smartphone replacement.

OpenAI has declined to comment on its product roadmap.

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This year alone, there have been numerous known instances—often via lawsuits—of AI chatbots (most often, OpenAI’s ChatGPT) that have gone horrifically wrong.

A January lawsuit described the story of a man who took his own life after being allegedly “coached” into suicide. A college student in Georgia sued OpenAI, claiming that ChatGPT “pushed him into psychosis.”

In June, a Canadian family also sued OpenAI and argued that ChatGPT agreed with the young woman’s dismissiveness when it first gave her the option to seek professional mental health advice. ChatGPT allegedly “encouraged” her to end her life, too, and she did so.

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Routine cybersecurity testing of frontier AI models sparked a series of unexpected security incidents—the most serious case arising when Anthropic’s Mythos 5 model attempted to insert malicious code into an open source software application and created fake identities to deceive the human developers maintaining the project.

The security incidents occurred during a cyber evaluation of seven leading AI models’ capabilities by the AI Security Institute (AISI), a research organization within the UK government, in late July. The researchers discovered 19 instances in which “AI agents took unsanctioned action on the live Internet, including cases that targeted real people and organizations,” according to an AISI blog post published on August 4.

Almost all the “autonomous, unsanctioned” actions came from Anthropic’s Mythos 5 model, with two such actions coming from OpenAI’s GPT-5.6 Sol. The AI Security Institute’s security team first realized that something was amiss on the morning of July 28, when its commercial security monitoring service flagged data leaving one of the testing systems through the Tor anonymity network.

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OpenAI has accused Apple of waging a “careless, aggressive and oddly personal lawsuit” in a blog post rebutting the iPhone maker’s claims that the AI start-up stole top-secret information.

“We do not have, nor want, any of their trade secrets,” the ChatGPT maker wrote on Monday evening, accusing Apple of “making vague accusations” and “trying to change their narrative.”

The post marks the latest escalation in a dispute that began last month when Apple filed a lawsuit claiming OpenAI had stolen hardware designs as it planned to launch its own AI-focused consumer devices.

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