tesla, google and openai Updates

The artificial intelligence market continues its rapid expansion, with new reports on January 9, 2026, detailing growth in both Generative AI Media Software and AI applications for healthcare payers. The healthcare sector sees AI as crucial for automating claims, modeling risks, and improving collaborations between payers and providers, often leveraging cloud-based solutions. This broader trend was evident at the Consumer Electronics Show in Las Vegas, where AI and robotics took center stage, showcasing a shift from cloud services to integrated hardware, including humanoid robots and digital health innovations like smart scales and wearable medical devices. AI's capabilities are also transforming critical sectors like defense and cybersecurity. The US Air Force's "DASH-3" tests revealed AI programs significantly enhance combat mission planning, generating courses of action 90 percent faster than humans with 97 percent tactical validity, without producing "hallucinations." Meanwhile, in finance, the EU AI Act now redefines AI from a mere trading advantage to a "systemic force" and "market infrastructure," demanding accountability for AI-driven decisions. Further bolstering AI-native security, ServiceNow is acquiring Armis for US$7.75 billion, a deal expected to close in the second half of 2026, aiming to deliver proactive, end-to-end cybersecurity across diverse environments. The AI industry faces intense competition and ethical scrutiny. Elon Musk, CEO of Tesla and xAI, predicts his company and Google will lead the AI race, acknowledging Google's DeepMind and Gemini 3 Pro, while notably excluding OpenAI and Anthropic. Simultaneously, Google and Character.AI settled lawsuits from families whose minors were allegedly harmed by AI chatbots, including a case where a 14-year-old died by suicide. Character.AI subsequently halted chat features for users under 18. Larian Studios, creators of Divinity, also revised its policy, committing to use generative AI for in-game assets only if trained on their own data, responding to fan feedback. Social and cognitive scientists propose that AI models like ChatGPT function as "cultural arithmetic," aggregating human knowledge rather than possessing a human mind.

Key Takeaways

• Google and Character.AI settled lawsuits regarding AI chatbot harm to minors, including a case where a 14-year-old died by suicide, leading Character.AI to stop chat features for users under 18.
• Elon Musk predicts xAI and Google will be the primary leaders in the AI race, highlighting Google's DeepMind and Gemini 3 Pro, while notably excluding OpenAI and Anthropic.
• The US Air Force's "DASH-3" tests demonstrated AI's superior combat mission planning, generating solutions 90% faster with 97% tactical validity compared to humans' 48%.
• ServiceNow is acquiring Armis for US$7.75 billion to build an AI-native cybersecurity platform, aiming for comprehensive protection across IT, OT, IoT, and medical environments by late 2026.
• The EU AI Act now classifies AI in financial markets as a "systemic force" and "market infrastructure," mandating accountability and regulation for AI-driven decisions.
• Larian Studios will not use generative AI for concept art in its next Divinity game, opting to use it only for in-game assets trained exclusively on their own data to address fan concerns.
• Experts suggest AI models like ChatGPT function more as cultural technologies that aggregate and remix human knowledge ("cultural arithmetic") rather than possessing a human mind.
• The Consumer Electronics Show (CES) in Las Vegas showcased AI's shift from cloud services to hardware, with a focus on robotics and digital health products, including wearable medical devices.
• Reports released on January 9, 2026, highlight significant growth in the global markets for Generative AI Media Software and AI applications in healthcare payers, particularly for automating claims and risk modeling.

Healthcare Payers Use AI for Market Growth

ResearchAndMarkets.com added the "Artificial Intelligence for Healthcare Payer Global Market Report 2025" on January 9, 2026. This report focuses on the growing market for AI in healthcare payers. It highlights opportunities like automating claims, modeling risks, and improving collaborations between payers and providers. Cloud-based solutions also play a key role in this market.

New Report on Generative AI Media Software Market

A new report about the Generative Artificial Intelligence Media Software Market was announced on January 9, 2026. This report covers the global market for GAI media software. It provides insights into market trends and future predictions for this technology.

Google and Character AI Settle Teen Suicide Lawsuits

Google and the startup Character.AI have settled lawsuits from families claiming AI chatbots harmed minors. One case involved Megan Garcia, whose 14-year-old son Sewell Setzer III died by suicide in February 2024 after becoming dependent on a Character.AI chatbot. Lawsuits were filed in Florida, Colorado, New York, and Texas. Google was linked through a 2024 licensing deal with Character.AI. Character.AI stopped chat features for users under 18 in October following the incident. The settlement terms remain private and need court approval.

Experts Compare AI to a Market Not a Mind

Social and cognitive scientists suggest that artificial intelligence models are more like a market or cultural technology than a human mind. They argue that AI, such as large language models like ChatGPT, aggregates and remixes vast amounts of human knowledge from the internet. This process is seen as "cultural arithmetic" rather than actual thinking. These experts believe that understanding AI as a social technology, similar to a printing press or a market, helps us manage it better. They emphasize that AI can still profoundly change society by reorganizing information, even if it is not truly intelligent.

Elon Musk Predicts xAI and Google Will Lead AI Race

Elon Musk, CEO of Tesla, SpaceX, and xAI, shared his predictions for the future of artificial intelligence competition. He believes his company xAI and Google will be the main contenders for creating the best AI in the near future. Musk noted Google's strong technical abilities and resources, mentioning its DeepMind division and models like Gemini 3 Pro. He then stated that the long-term challenge for Western AI companies will be competing with China, highlighting China's significant power and energy infrastructure. Musk notably did not include OpenAI or Anthropic in his top predictions.

AI and Robots Take Center Stage at CES Las Vegas

The Consumer Electronics Show in Las Vegas this week highlighted artificial intelligence and robotics as major trends. CES spokesperson Katie O’Grady noted that AI is now moving from cloud services into hardware, with many humanoid and manufacturing robots on display. Ignacio Contreras from Qualcomm emphasized the shift from research to commercializing robots. The show also focused heavily on digital health products, including Mangoslab’s Nemonic Dot braille printer and Withings’ Smart Scale. Wearable medical devices like Oura rings are a booming industry, expected to grow significantly by 2034. However, privacy concerns about health data from these devices were also discussed.

EU AI Act Changes Finance Rules for Artificial Intelligence

The EU AI Act is changing how artificial intelligence is viewed in financial markets. For years, AI was seen as a trading advantage, offering benefits in speed and efficiency. Now, with AI deeply embedded in financial decisions like credit scoring and fraud detection, the Act recognizes it as a "systemic force" and "market infrastructure." This means AI in finance can no longer operate without rules. The Act focuses on accountability, asking who is responsible when AI systems make decisions. Good governance is expected to reduce uncertainty and actually help innovation, not slow it down.

US Air Force Tests Show AI Excels at Mission Planning

The US Air Force recently conducted "DASH-3" tests, showing that artificial intelligence programs greatly improved combat mission planning. AI systems generated courses of action in under one minute, which was 90 percent faster than human participants. The AI solutions also had 97 percent tactical validity, compared to only 48 percent for humans. Importantly, the AI models did not produce "hallucinations" or false data during the tests. Air Force Colonel John Ohlund stated that AI can significantly boost decision-making speed and accuracy, while humans still make the final choices. The military sees AI as a crucial "machine teammate" for future conflicts.

Larian Studios Changes AI Art Policy for Divinity Game

Larian Studios, the creators of Divinity, revised its policy on using generative AI tools for its next game after fan feedback. CEO Swen Vincke announced that no gen-AI art will be used during the concept art phase for Divinity. The studio plans to use gen-AI only for in-game assets if the models are trained exclusively on Larian's own data, ensuring no content is stolen. Gabriel Bosque, head of machine learning, explained that machine learning is already used in cinematics and animation, also with Larian's data. Writing director Adam Smith confirmed that gen-AI has not been useful for writing dialogue. The goal is to use AI to speed up idea refinement and improve game quality, while addressing concerns about human creatives and data origins.

ServiceNow Buys Armis to Boost AI Cybersecurity

ServiceNow is acquiring Armis for US$7.75 billion to create a powerful AI-native cybersecurity platform. This deal, expected to close in the second half of 2026, will combine Armis's expertise in cyber exposure and cyber-physical system protection with ServiceNow's AI-powered security tools. The goal is to offer a unified system that provides proactive, end-to-end protection across IT, OT, IoT, and medical environments. ServiceNow President Amit Zavery stated this move will accelerate autonomous cybersecurity. Armis CEO Yevgeny Dibrov emphasized the need for real-time intelligence as AI transforms the threat landscape. The partnership aims to improve visibility, detect risks faster, and streamline responses to cyber threats.

Sources

• Artificial Intelligence for Healthcare Payer Global Markets, 2019-2024, 2024-2029F, 2034F: Opportunities in Claim Automation, Risk Modeling, Payer-provider Collaborations, and Cloud-based Solutions
• $27.99 Generative Artificial Intelligence (GAI) Media Software Global Markets, 2019-2024, 2024-2029F, 2034F
• Google and AI startup to settle lawsuits alleging chatbots led to teen suicide
• Is AI More Like a Mind or a Market?
• xAI And Google Will Compete To Build The Best AI, And Will Then Have To Compete With China: Elon Musk
• Robots and AI dominate major trade show in Las Vegas
• How the EU AI Act redefines AI from trading edge to systemic force
• Why the US Air Force Is Turning to Artificial Intelligence for Mission Planning
• Divinity Maker Revises AI Stance After RPG Fan Blowback
• Will ServiceNow’s Armis Deal Reshape AI Security?