Grace Kay and Theo Wayt, writing for the paywalled-with-no-gift-links The Information:

xAI launched an upgraded video model last week, highlighting how it’s pushing ahead with its own visual efforts even as it brings in outside help to compete with rivals in areas like coding. SpaceX also touted the popularity of its AI video tools ahead of its blockbuster IPO. What SpaceX didn’t mention, however, is that much of the consumer demand stems from Grok’s looser content rules, which have made it a major destination for generating pornography and other racy content.

Indeed, two recent xAI employees estimated that well over half of Grok’s overall traffic was driven by pornographic images and videos, adult role-play chats or other NSFW activity. On forums for Grok users, many of the most popular posts are porn. Users can generate visuals in several ways, including picking the video models through the consumer app or tapping them through other Grok products.

Maybe that’s a sustainable business model. But I don’t think it’s what SpaceX hype investors think they’re putting their money into. If they renamed the companies to SpaceXXX and xxxAI it might dampen enthusiasm for the stock, but make more clear what they’re selling.

OpenAI yesterday:

We’re beginning a limited preview of the GPT‑5.6 series: Sol, our flagship model; Terra, a balanced model for everyday work; and Luna, a fast and affordable model. Terra has competitive performance to GPT‑5.5 while being 2× cheaper and Luna brings strong capability at our lowest cost.

GPT‑5.6 Sol launches with our most robust safety stack to date. We strengthened protections for higher-risk activity, sensitive cyber requests, and repeated misuse, and spent multiple weeks finding weaknesses, pressure-testing our system, and hardening it against real-world attacks.

We believe in broad access, and we plan to make GPT‑5.6 Sol, Terra, and Luna generally available in the coming weeks. As part of our ongoing engagement with the U.S. government, we previewed our plans and the models’ capabilities ahead of today’s launch. At their request, we are starting with a limited preview for a small group of trusted partners whose participation has been shared with the government, before releasing more broadly.

Stephanie Palazzolo, reporting for The Information (and posted to X) regarding an internal Q&A hosted by CEO Sam Altman:

The reason for the staggered release, Altman explained: The federal government asked it to do so. Altman said that this was the best path for widely releasing the model as soon as possible, said one of the people. In a Thursday memo, Altman told staff that the government would be “approving access customer by customer during this preview period” for GPT 5.6. He added that he hoped there would be a more general release a “couple of weeks later” if all went well. [...]

Even so, after OpenAI had shared its plans for the limited release with top government officials earlier this week, Altman still received a call from Commerce Secretary Howard Lutnick cautioning the company against launching without receiving approvals from other agencies, according to a person familiar with the call.

It is perfectly reasonable to believe that the U.S. government should have regulatory approval over frontier AI models. It’s absurd to think this should be run by an apparatchik with zero AI expertise like Commerce Secretary Howard Lutnick.

AI regulation should be thoughtful, measured, consistent, objective, and deeply informed. It should not be impulsive, impetuous, petty, uninformed, subjective, inconsistent, and transactional. The latter, however, is what we’re getting.

Reed Albergotti and Ben Smith, reporting last night for Semaphor:

The decision, in a letter sent Friday afternoon to Anthropic, is a major de-escalation in the confrontation between the Trump Administration and one of the world’s most valuable private companies. Two weeks ago the administration imposed export controls on Mythos, leading to a shut down of the model and its cousin Fable 5 after warnings from Amazon and other companies that they could be “jailbroken” for malicious purposes.

The letter is silent on Fable 5, a weaker version of Mythos that was briefly the most powerful AI model widely available to consumers. People close to the talks said they are moving toward releasing Fable as well, though that timeline is unclear. [...]

Lutnick’s letter marks the beginnings of a new regulatory regime that gives the US government control over the release of frontier AI models.

A completely ad hoc policy of “Whatever the White House says, goes” is the makings of a terrible regulatory framework for AI. This would be true no matter who was president at the moment. But it’s particularly disastrous for this administration, which is both utterly transactional and staffed from top to bottom with anti-science know-nothings confident that their “ignorance is just as good as your knowledge”.

Howard Lutnick is making these determinations? I mean come on.

Sean Hollister, writing for The Verge (gift link):

Since the Magnavox Odyssey came out in 1972, game consoles have been built with the same basic goal: to effortlessly play proprietary games on a TV screen. Nintendo, Sony, and Microsoft have spent decades essentially selling the same product. A few consoles could do more, but the formula you know and love remains buy box, plug into TV, insert game, play.

The Steam Machine aims to be something bigger. It’s a vision of a box with fewer restrictions and an almost endless catalog of games — for those willing to spend nearly twice the price of a PlayStation 5.

That’s right. Today, Valve has announced the Steam Machine will start at $1,049 without a gamepad or $1,128 bundled with one, but you aren’t getting a significant boost in performance over the 5.5-year-old Sony PS5 you can still buy today. Even after three price hikes, a vanilla $650 PS5 offers sharper images in Cyberpunk 2077 and Horizon Zero Dawn Remastered in my tests. So how can Valve possibly charge over a grand, you might ask?

It’s because the Steam Machine is, let’s say, a PC-plus. It’s a PC that acts more like a console than any you’ve used before. It’s incredibly cool and quiet, so much smaller than a PS5, surprisingly smooth, and completely navigable with any modern gamepad you own. You don’t need a mouse, keyboard, or even Valve’s own touchpad-equipped Steam Controller to download, launch, or play games. Joysticks do the job.

The price is eye-opening, but that’s the theme across all consumer hardware this year. It’s hard not to root for Valve with its expanding hardware ambitions, but Hollister’s review shows just how far they have to go to achieve “plug it in, insert game, play” simplicity.

This is going to sound cornier than a bucket of Jiffy-Pop, but it is a profound irony that a man with such a big and beautiful figurative heart could have such a lousy literal one.