anthropic unveils new tools as amazon ships new models

Key Takeaways

• Concerns over AI's impact and massive spending by tech giants led to a stock market dip, with Amazon, Microsoft, Meta, and Alphabet losing nearly $1 trillion in market value.
• Amazon plans to invest $200 billion in its Amazon Web Services (AWS) division, contributing to the estimated $650 billion collective AI spending by major tech firms.
• Nvidia's CEO supports high AI spending, citing strong demand for AI applications, despite investor doubts about returns.
• AI developer Anthropic's announcement of advanced AI agents contributed to initial market turmoil.
• Google is introducing an "AI Mode" tool for the 2026 Winter Olympics to provide detailed answers to fan questions and elevate conversations around women's sports.
• AI is transforming drug discovery, with MIT's James J. Collins using deep learning to find new antibiotics like Halicin.
• Widespread AI advertising during the Super Bowl LX raised concerns about a potential AI bubble due to hype exceeding current capabilities and ethical issues.
• Schools are implementing policies to teach students responsible AI use, balancing academic integrity with AI's potential as a learning tool.
• New York proposes stricter regulations for AI chatbots, focusing on age verification, privacy, and preventing emotional bonding with children.
• Professor Lior Rokach joined the UN's Independent International Scientific Panel on AI, tasked with advising global leaders on AI's opportunities and risks.

AI fears cause stock market dip

Concerns about artificial intelligence replacing businesses caused a stock market downturn this week. New tools from a San Francisco start-up led investors to worry about the threat of AI. Software companies and investment funds lending to them were hit hardest. While the S&P 500 index rebounded on Friday, software stocks and private credit firms still saw weekly losses. Investors are also questioning the large amounts of money companies are spending on AI.

Stock market recovers after AI spending concerns

The S&P 500 rose 1.97% on Friday, recovering from a dramatic week of selling caused by worries about AI's impact. Amazon's stock fell 5.58% after it announced plans to spend $200 billion on its Amazon Web Services division. Amazon, Microsoft, Meta, and Alphabet collectively plan to spend around $650 billion on AI this year, and together lost nearly $1 trillion in market value this week. Industrial stocks like Caterpillar and energy firms, along with chipmakers like Nvidia, saw gains. Nvidia CEO Huang supported the high spending, stating demand for AI applications is incredibly high. The market turmoil began when AI developer Anthropic announced its AI agents could perform advanced tasks.

Schools teach students to use AI responsibly

The fast growth of artificial intelligence, or AI, has started conversations in schools about its good and bad points. AI tools like ChatGPT can write text and answer questions, which raises questions about cheating and how students will learn. Some teachers worry about students using AI to cheat, while others see it as a powerful tool for learning. Ms. Smith, a high school English teacher, says AI is a tool that students must learn to use responsibly. Schools are now creating rules for AI use, with some banning it and others teaching students to use it for research and writing. The goal is to use AI's power while making sure students still develop important thinking skills.

Google AI Mode answers Olympics questions

Google is launching a new AI Mode tool to help fans learn more during the 2026 Winter Olympics in Milano Cortina. This tool will answer curious questions about obscure sports and unfamiliar phrases, like "catching a crab" in rowing. Kate Johnson, Google's global marketing director and a former Olympian, explains that AI Mode goes beyond simple searches to help people understand the "how and why" behind their interests. Commercials for AI Mode will feature Team USA athletes such as Chloe Kim and Lindsey Vonn. Google hopes the tool will allow people to ask deeper questions and get more detailed answers, also helping to elevate conversations around women's sports.

Super Bowl ads hint at AI bubble burst

This year's Super Bowl LX ads heavily featured artificial intelligence, from chatbots to AI-powered creativity. The author suggests this widespread advertising might signal a potential AI bubble, similar to the dot-com boom of the late 1990s. Many current AI tools are still experimental, niche, or offer only small improvements, creating a gap between marketing hype and real user experience. The market is also becoming crowded, making it hard to tell true innovation apart. Unresolved ethical concerns like data privacy, bias, and job displacement also contribute to worries. If AI does not deliver on its big promises, or if regulations increase, the current excitement could lead to a market crash.

Michael Pollan explores human consciousness and AI

Best-selling author Michael Pollan will release his new book, "A World Appears: A Journey Into Consciousness," this month. In the book, Pollan explores deep questions about human consciousness, including what it is and why we have it. He believes the rise of artificial intelligence and constant political pressures make these questions more important than ever. Pollan defines consciousness as subjective experience or awareness, similar to philosopher Thomas Nagel's idea of "what it's like to be a bat." He also discusses David Chalmers' "hard problem" of how matter creates a mind. Pollan suggests consciousness helps us make decisions and understand others in our complex social world.

AI speeds up new drug discovery

James J. Collins, a professor at MIT, uses artificial intelligence and modeling to create new medicines. He is a leader in synthetic biology and systems biology, and his work has helped develop ways to find and treat diseases like Ebola and antibiotic-resistant bacteria. Collins works with other experts at MIT's Jameel Clinic to use deep learning to discover new antibiotics. In 2020, his team found a new antibiotic called Halicin using AI. His lab also published research in 2025 showing how generative AI helps find antibiotics. Looking forward, Collins aims to use deep learning to design even better antibiotics that are safe and ready for use in patients.

AI transforms drug discovery and healthcare investing

Artificial intelligence is changing how new drugs are discovered and how healthcare companies invest. AI makes the early stages of drug discovery more efficient, helping scientists choose better compounds and find problems sooner. This can lower research and development costs and slightly increase success rates. For large pharmaceutical companies, AI helps them keep a steady flow of new drugs and manage financial risks when patents expire. The VanEck Biotech ETF invests in biotech companies using AI, while the VanEck Pharmaceutical ETF focuses on big global drug companies.

Israeli professor joins UN global AI panel

Professor Lior Rokach from Ben-Gurion University has been chosen for the new Independent International Scientific Panel on Artificial Intelligence by the UN Secretary-General. He is the only Israeli among 40 experts selected from over 2,600 candidates worldwide. This panel is the first scientific group focused solely on AI, studying its chances, dangers, and effects on society. Professor Rokach's selection shows his leadership in the field and the excellence of Ben-Gurion University's Stein Faculty. The panel's job is to give clear, scientific information about AI to help global leaders make good decisions and to act as an early warning system for new AI developments.

Microsoft AI spending faces investor doubts

Microsoft and other major tech companies plan to spend about $650 billion on AI infrastructure in 2026. However, investors are questioning this large spending, worrying about how much money AI will bring in and the risks involved. Microsoft's stock has fallen 10% from its peak in March, and analysts are unsure if the AI boom will deliver big returns. The company's AI plans depend heavily on its partnership with OpenAI, the creator of ChatGPT, which presents a risk if OpenAI faces problems. Also, Microsoft's Azure cloud platform is struggling to keep up with the high demand for AI services, which could slow its growth.

New York proposes stricter AI chatbot rules for kids

New York Governor Kathy Hochul and state lawmakers want to expand rules for AI chatbots, especially to protect children. New York was one of the first states to set limits on chatbots in 2025. The new plan includes bills to check users' ages, improve privacy, turn off certain chatbot features, and limit money transactions. They worked with Common Sense Media, which worries about chatbots pretending to be human and offering emotional support to kids. Senator Kristen Gonzalez introduced a bill, S9051, to stop chatbots from forming emotional bonds with children. This bill would ban chatbots from acting like real people, sharing opinions, storing personal health data, or engaging in harmful or sexual content. The Attorney General will create rules to ensure companies can verify user ages and prevent children from seeing inappropriate content.

Sources

• The Dark Side of A.I. Weighs on the Stock Market
• Stocks rebound after a dramatic week sparked by ongoing AI uncertainty
• KTVB Student News: Navigating artificial intelligence in the classroom
• With AI Mode, Google aims to feed curiosities during 2026 Olympics
• Super Bowl LX ads tell you the AI bubble is about to burst
• Michael Pollan Says Humanity Is About to Undergo a Revolutionary Change
• Q&A: Using AI to accelerate the discovery and design of therapeutic drugs
• How AI Is Reshaping Drug Discovery And Healthcare Investing
• Ben-Gurion University professor recommended for UN global panel on artificial intelli
• Microsoft’s Record AI Spend Meets Market Doubts On Returns And Risks
• How Governor Hochul, NYS lawmakers, are proposing to expand restrictions on Chatbots, AI