AI is accelerating on every front. This week alone we saw Anthropic push the limits of agentic AI with a major model upgrade, OpenAI, the company behind ChatGPT shatters records with a $500 billion valuation, and Big Tech test new ways to capture audiences through AI-generated video.
At the same time, Meta reignited privacy debates by confirming it will mine chatbot conversations to fuel ads, drawing criticism from advocates and users alike.
The mix of breakthroughs and backlash this week seem to be par for the course as AI continues to integrate within our lives. From social media to workflows, it’s reshaping business models, challenging cultural norms and forcing important questions about ethics, privacy and trust. Here’s what stood out this week.
Anthropic upgrades Claude Sonnet 4.5
Anthropic rolled out Claude Sonnet 4.5, its most capable model yet for developers. The update introduces smarter reasoning, stronger memory tools and the ability to run multi-hour tasks (up to 30 hours!) without constant resets.
A new VS Code extension and enhanced terminal support make it clear Anthropic is leaning into practical, developer-first features. I put it to the test to see how Claude 4.5 compares to ChatGPT, and the results were startling. This is a step forward for agentic AI, where models can handle complicated tasks with less human oversight.
OpenAI becomes the world’s most valuable startup
OpenAI reached a stunning $500 billion valuation after a secondary share sale to investors including SoftBank and T. Rowe Price. The company earned $4.3 billion in revenue in the first half of 2025, already outpacing all of last year.
The ChatGPT maker now ranks above many public tech giants; a sign of how central AI has become to investor confidence.
AI video heats up with OpenAI’s Sora vs. Meta’s Vibes
Speaking of OpenAI, this week the company launched Sora 2, an iOS app that generates short, TikTok-style videos with synchronized audio and “cameo” features. However, those interested in trying it may have to wait, especially if they aren’t a higher-tier paying subscriber. There is a waitlist as OpenAI rolls out the new video generator.
Just a day later, Meta responded with its own AI video app, Vibes. AI-generated video is already shaping how users interact on social media for entertainment purposes, but it also raises serious privacy questions about deepfakes and copyright infringement.
Meta sparks privacy backlash over ad targeting
For those who use Meta platforms such as Facebook, Instagram or WhatsApp, beware that starting December 16, the company Meta will start using conversations from its AI chatbots to target ads.
Without the ability to completely opt out, there has been pushback from users and critics alike. Actor and entrepreneur Joseph Gordon-Levitt criticized the move, warning about the risks of mining kids’ private chats. This move raises alarms over how much control users really have, especially on such popular, everyday platforms.
The takeaway
This week’s headlines show AI advancing on two parallel tracks: breakthroughs that expand what the technology can do, and controversies that question how it should be used.
Claude Sonnet 4.5 points toward a future of autonomous agents doing real work for hours at a time, while OpenAI’s $500B milestone confirms investors see AI as the next great platform shift.
At the same time, the battle over AI-generated video and Meta’s ad-targeting decision highlight the cultural, ethical and privacy dilemmas that will only grow as AI becomes embedded in daily life.
Hard to believe this has all happened in a week, but knowing how fast AI is evolving, it’s almost certain that next week will bring an entirely new set of breakthroughs.
Follow Tom’s Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button!
More from Tom’s Guide