[AI WEEKLY NEWS RUNDOWN] The $25B Terafab, the Mythos Leak, and the Death of Sora (March 22-29, 2026)

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🚀 Welcome to the AI Unraveled Weekly Recap. This week, the industry reached its “Hardware Inflection.” We track the multi-billion dollar shift into custom silicon, the geopolitical legal war over Anthropic, and the death of the generative video hype cycle.

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In This Weekly Recap:

• The Hardware Pivot: Elon Musk’s $25B Terafab and Arm’s debut “AGI CPU.”

• Claude Mythos: Deconstructing the leaked “Capybara” tier model and its cyber-offensive risks.

• Apple’s iOS 27 Siri: The move from exclusive partner to AI “Storefront.”

• Meta TRIBE v2: Simulating 70,000 brain regions to replace expensive medical scans.

• The 2029 Quantum Cliff: Why Google is racing to move the world to post-quantum cryptography.

  

• The Death of Sora: Why the Disney deal died and why OpenAI is killing “side quests.”

• Zuck’s AI Chief of Staff: Mark Zuckerberg’s personal agentic move to bypass Meta’s corporate layers.

Strategic Signal: Vertical Integration and the Action-Hardware Link. Credits: Created and produced by Etienne Noumen.

Keywords: Elon Musk Terafab, Claude Mythos Leak, Meta TRIBE v2, Arm AGI CPU, Amazon Fauna Robotics, Apple iOS 27 Siri, Google 2029 Quantum, OpenAI Sora Shutdown, Jensen Huang AGI, DjamgaMind, AI Unraveled.

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⚗️ PRODUCTION NOTE: We Practice What We Preach.

AI Unraveled is produced using a hybrid “Human-in-the-Loop” workflow.

Meta AI model predicts human brain reactions

• Meta’s FAIR lab built an AI model called TRIBE v2 that predicts how the human brain reacts to images, sounds, and speech, often matching the typical brain response better than any single person’s fMRI scan.

• TRIBE v2 was trained on over 1,000 hours of fMRI data from 720 subjects and predicts brain maps with 70,000 voxels, a huge jump from TRIBE v1, which covered just four subjects and 1,000 voxels.

• The model still has significant limitations: fMRI only tracks blood flow with a seconds-long delay, three sensory channels are missing, and it treats the brain as a passive receiver without modeling decisions or actions.

Meta plans Ray-Ban smart glasses for prescription wearers

• Meta is preparing to release new Ray-Ban smart glasses built specifically for people who already wear prescription lenses, according to a report from Bloomberg.

• FCC filings for two models called “Scriber” and “Blazer” show they are production units with Wi-Fi 6 UNII-4 band support, which could enable faster data transfers and livestreaming.

• The new glasses would be sold through traditional prescription eyewear channels, though it remains unclear how their design will differ from existing Ray-Ban Meta models beyond the prescription focus.

Yahoo launches AI answer engine Scout

• Yahoo has launched Scout, an AI-powered answer engine now available to its 250 million U.S. users, aiming to simplify online search and deliver more personal results tied to each person’s interests.

• CEO Jim Lanzone, who took over after Apollo Global Management bought Yahoo for $5 billion in 2021, has been cutting dysfunctional parts and overhauling services like email and fantasy sports.

  Smartphone 101 - Pick a smartphone for me - android or iOS - Apple iPhone or Samsung Galaxy or Huawei or Xaomi or Google Pixel
  

• Scout runs on AI technology licensed from Anthropic and will compete against Google’s Gemini, OpenAI’s ChatGPT, Anthropic’s Claude, and the answer engine Perplexity in a crowded market.

Judge blocks Pentagon from blacklisting Anthropic

• A federal judge ordered the Trump administration to reverse its decision labeling Anthropic a “supply chain risk” and blocked the Pentagon from forcing federal agencies to cut ties with the company.

• The conflict started when Anthropic tried to enforce limits on government use of its AI models, including bans on autonomous weapons systems and mass surveillance, which the Pentagon rejected.

• Judge Rita F. Lin said the government’s orders appeared to be “an attempt to cripple Anthropic” and ruled they had violated the company’s free speech protections under the law.

Anthropic data leak reveals Claude Mythos AI model

• A data leak from Anthropic’s content management system revealed that the company is testing a new AI model called Claude Mythos, which it describes as the most capable model it has built.

• The leaked draft blog post says Mythos belongs to a new “Capybara” tier that is larger and more expensive than Opus, with dramatically higher scores in coding, reasoning, and cybersecurity.

• Anthropic says the model is “currently far ahead of any other AI model in cyber capabilities” and plans to release it first to defenders so they can harden their code against AI-driven exploits.

Apple plans to open Siri to rival AI assistants in iOS 27

• Apple reportedly plans to let rival AI services like Google’s Gemini and Anthropic’s Claude plug directly into Siri through a new Extensions system in iOS 27, ending ChatGPT’s exclusive access.

• Rather than building the best AI assistant itself, Apple is turning Siri into a storefront where every chatbot competes, and Apple collects its standard App Store commission on subscriptions.

• OpenAI loses its exclusive Siri position, while AI companies face a prisoner’s dilemma: accept Apple’s 30% cut or stay invisible on 1.2 billion active iPhones.

Wikipedia bans AI-generated articles

• Wikipedia editors overwhelmingly voted 40 to 2 to ban the use of LLMs to generate or rewrite article content, updating earlier, vaguer language that only discouraged creating new articles from scratch.

• The new policy still allows editors to use LLMs for suggesting basic copyedits to their own writing, as long as a human reviews the changes and the LLM does not introduce content of its own.

  
  
  

• The policy warns that LLMs can go beyond what editors ask and change the meaning of text so that it no longer matches the sources cited, which is why caution is required.

OpenAI pauses erotic chatbot plans indefinitely

• OpenAI has paused its plans to launch an erotic “adult mode” for ChatGPT indefinitely, confirming to the Financial Times that it is shifting focus toward its core products instead.

• The company wants more time to research the potentially harmful effects of sexually explicit chats and the emotional attachments they may create, while investors also weren’t excited about the project.

• This is the second major product OpenAI pulled back this week, after discontinuing its Sora AI video-generation app to redirect compute power to other higher-priority projects going forward.

Apple may build smaller AI models from Gemini

• Apple has gained full access to Google’s Gemini model and plans to distill it into smaller models that can run directly on Apple devices without an internet connection.

• The distillation process works by feeding Gemini’s high-quality answers and reasoning information into smaller, cheaper models that learn its internal computations while requiring less computing power.

• Apple is building a smarter, chatbot version of Siri for iOS 27 using Gemini, but has hit issues because Gemini was tuned for chatbot and coding tasks that don’t always match Apple’s needs.

Quantum computers could break encryption by 2029, warns Google

• Google published a formal plan to move all of its infrastructure to post-quantum cryptography by 2029, warning that quantum computers capable of breaking current encryption may arrive sooner than expected.

• The company highlighted “harvest now, decrypt later” attacks as an already active threat, where bad actors steal encrypted data today planning to unlock it once quantum machines become powerful enough.

• Over 6.8 million Bitcoin sitting in vulnerable addresses could eventually be at risk, but Bitcoin developers have started work on quantum-resistant upgrades through BIP 360, a new address format proposal.

Google TurboQuant cuts AI memory use by 6x

• Google Research announced TurboQuant, a new compression algorithm that can reduce AI working memory — known as the KV cache — by at least 6x without losing performance or accuracy.

• The method combines two techniques called PolarQuant and QJL, using vector quantization to clear cache bottlenecks, and the team plans to present their findings at ICLR 2026 next month.

• TurboQuant is still a lab breakthrough and only targets inference memory, not training, so it wouldn’t solve the wider RAM shortages even if successfully deployed in real-world systems.

Reddit to require human verification for suspicious accounts

• Reddit will now force accounts flagged for suspicious behavior to verify they are human, using passkeys, biometrics, and bot labeling as the platform removes around 100,000 automated accounts every day.

• CEO Steve Huffman said passkeys serve as a baseline check but cannot prove individuality, while biometric options like World ID’s iris-scanning and Face ID offer stronger proof but raise privacy concerns.

• Co-founder Alexis Ohanian expressed skepticism about selling face-scanning to Redditors, highlighting tension between the platform’s pseudonymous culture and the technical demands of proving personhood at scale.

OpenAI shuts down Sora after 6 months

• OpenAI said on Tuesday it is shutting down its TikTok-like Sora social video app after just six months, without giving a reason or a timeline for when it will officially be discontinued.

• The app peaked at about 3,332,200 downloads in November but dropped to 1,128,700 by February, earning only around $2.1 million from in-app purchases during its entire lifetime.

• The shutdown also kills a $1 billion Disney licensing deal that would have let Sora generate videos featuring Disney, Marvel, Pixar, and Star Wars characters, though no money apparently changed hands.

Arm releases first in-house chip, with Meta as debut customer

• Arm Holdings has released its first in-house chip, the Arm AGI CPU, after nearly 36 years of only licensing its designs to companies like Nvidia and Apple, with Meta as its debut customer.

• The Arm AGI CPU is a production-ready processor built for running inference in AI data centers, developed using the Arm Neoverse family of CPU IP cores through a partnership with Meta.

• Arm started developing the chips back in 2023, and they are already ready to order, marking a historic shift from exclusively licensing designs to now competing alongside many of its partners.

Amazon acquires ‘approachable’ humanoid maker Fauna Robotics

• Amazon has acquired Fauna Robotics, a startup that makes “approachable” humanoid robots designed for consumers and businesses, though the companies did not share the financial terms of the deal.

• Fauna Robotics was founded in 2024 by former Meta and Google engineers and earlier this year launched Sprout, a $50,000 bipedal robot standing 3.5 feet tall and weighing 50 lbs.

• Fauna’s roughly 50 employees will join Amazon in New York City, and the company will continue to operate as Fauna Robotics under Amazon, according to CEO Rob Cochran.

Trump appoints tech CEOs to White House council

• President Trump has appointed CEOs from Meta, NVIDIA, Dell, Oracle, and AMD, along with Google co-founder Sergey Brin and venture capitalist Marc Andreessen, to a White House science and technology advisory council.

• The President’s Council of Advisors on Science and Technology currently has 13 members, co-chaired by White House AI and cryptocurrency czar David Sacks and Trump’s science advisor Michael Kratsios, with room to grow to 24.

• Several of these tech leaders have direct financial ties to Trump, including donations to his inauguration, funding construction of his White House ballroom, and business deals like Oracle’s backing of the TikTok takeover.

Anthropic lets Claude control your Mac to complete tasks

• Anthropic announced that Claude can now take control of your Mac to complete tasks like sending files, clicking around your screen, and typing — if you subscribe to Claude Pro or Max.

• Claude connects to apps like Google Calendar or Slack, but when no connector exists, it manually operates your computer by scrolling, clicking, and typing, always asking for permission first.

• Anthropic warns the feature is new and may contain errors, suggests avoiding apps that handle sensitive data, and says some of those apps are disabled by default as a safeguard.

Jensen Huang claims AGI has already been achieved

• NVIDIA CEO Jensen Huang told Lex Fridman on his podcast that he believes AGI has already been achieved, pointing to agentic tools that could theoretically build and run a viral app.

• The claim matters because OpenAI’s partnership with Microsoft includes escape clauses tied to AGI, though their contract defines it as an AI model generating $100 billion in profit.

• Microsoft has been preparing for a possible split by restructuring its AI division to focus on its own models, while tensions grow over OpenAI’s latest funding round and competing partnerships.

OpenAI flags Microsoft dependence as IPO risk

• OpenAI identified its heavy reliance on Microsoft as a business risk in a financial document shared with investors, noting that Microsoft provides “a substantial portion” of its financing and compute.

• The document also flagged risks including a global chip shortage, potential disruption to Taiwan Semiconductor Manufacturing Company from regional conflict, and roughly $665 billion in compute spend commitments through 2030.

• OpenAI disclosed at least 14 lawsuits from ChatGPT users or families blaming its products for mental illness leading to suicide or injury, plus three separate lawsuits from Elon Musk or xAI.

Musk unveils $25B Terafab chip factory

• Elon Musk announced plans to build a chip factory called Terafab, a joint project between Tesla and SpaceX, with an estimated cost of $25 billion near Tesla’s Austin headquarters.

• Musk said semiconductor manufacturers aren’t making chips fast enough for his companies’ artificial intelligence and robotics needs, so he decided to build the facility himself.

• The factory aims to produce chips supporting 100 to 200 gigawatts of computing power per year on Earth and a terawatt in space, though Musk gave no timeline.

Zuckerberg builds an AI agent to help him run Meta

• Mark Zuckerberg is reportedly building a personal AI agent to help him run Meta, mainly by speeding up information retrieval without going through multiple layers of people or teams.

• Meta employees are already using agentic tools like MyClaw for accessing work files and chat logs, and Second Brain, built on Anthropic’s Claude, which is described internally as an “AI chief of staff.”

• The push comes as Meta tries to compete with AI-native startups that have smaller teams, and a separate Reuters report claims the company may be planning layoffs affecting up to 20% of its workforce.

ChatGPT’s first advertisers can’t prove ads work

• OpenAI’s first advertising partners — WPP, Omnicom, and Dentsu — are struggling to prove that ChatGPT ads actually work, with click-through rates running nearly 7x below Google search benchmarks.

• One brand’s click-through rate on ChatGPT ads hit just 0.91% compared to Google’s 6.4%, and a separate advertiser spent only 3% of a $250,000 budget after several weeks.

• Measurement tools are also broken — a reporting glitch in OpenAI’s Ad Manager blocks advertisers from seeing their own data, making it impossible to optimize campaigns or justify continued spend.

What Else Happened in AI this week from March 22nd to March 29th 2026?

Number of AI chatbots ignoring human instructions increasing, study says.[LINK]

Mistral releases a new open source model for speech generation.[LINK]

Google employees have a new AI tool called ‘Agent Smith.’ It’s so popular that access got restricted.[LINK]

UnitedHealthcare Unveils AI Compaanion to Improve Navigation.[LINK]

Google rolled out Gemini 3.1 Flash Live, a new voice AI with upgrades in speed, task completion, and realism, to power convos across Search, Gemini Live, and its API.

Mistral released Voxtral TTS, a lightweight voice AI that clones any speaker from a 3-second clip and generates natural-sounding speech across 9 languages.

OpenAI has reportedly shelved its planned erotic chatbot mode indefinitely after pushback from staff and investors.

Novo Nordisk is deploying AI agents across clinical trial ops, with the pharma giant saying the tech is trimming approval timelines and reducing the need for contractors.

Suno launched v5.5 of its AI music generator, adding voice cloning, custom model tuning, and personalized style learning for Pro subscribers.

Cohere released Transcribe, a free open-source speech recognition model that tops HuggingFace’s accuracy leaderboard across 14 languages — taking the No. 1 spot.

OpenAI is raising another $10B to push its record funding round past $120B, with Microsoft, a16z, and T. Rowe Price joining the round.

Google upgraded its music AI model to generate full 3-minute songs with intros, verses, and choruses, with Lyria 3 Pro rolling out in Gemini, Vertex AI, and Google Vids.

Bret Taylor’s Sierra introduced Ghostwriter, an AI agent that builds other AI agents — letting companies create customer service bots across voice, chat, and 30+ languages.