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Google shut down a Google Earth AI image-editing feature just one day after launching it on Thursday, citing deepfake concerns. The tool let users alter satellite imagery using text prompts powered by Nano Banana 2. Researcher Henk van Ess demonstrated the risks by generating fake images showing refugees near the Mexican border and a bomb crater near a Gaza hospital. Van Ess also showed the AI-generated video could fool Hive's detection tool despite watermarks. Google said it is rolling back the feature to implement stronger guardrails.

Universal Music Group, Sony Music, and Warner Music Group have proposed rules that would ban AI-generated songs from international music charts unless they meet specific criteria, including being substantially human made. The proposal goes further than a separate RIAA and IFPI labeling initiative, requiring that AI tools used are properly licensed, that training data rights are secured, and that releases do not raise stream or chart manipulation concerns. The IFPI has backed the proposal, though no charting organization has announced plans to adopt it.

OpenAI has outlined its safety and transparency practices to support compliance with the EU AI Act as it enters its next phase. The company endorsed two EU Codes of Practice covering general-purpose AI and AI-generated content transparency. Key measures include pre-release model testing, a Red Teaming Network, system cards, the Preparedness Framework updated in 2025, and C2PA and SynthID watermarking now expanding to audio. OpenAI also launched an EU Cyber Action Plan in May 2026 to support European cyber agencies and critical infrastructure operators.

OpenAI has cut the price of GPT-5.6 Luna by 80 percent, bringing it to $0.20 per million input tokens and $1.20 per million output tokens, and reduced GPT-5.6 Terra by 20 percent. In a strategy post by CFO Sarah Friar, OpenAI outlined a full-stack AI abundance approach where falling costs drive broader adoption, which funds further research. The company reports over one billion active users and two million businesses, with agentic work through Codex now accounting for 99.8 percent of weekly output tokens.

MiniMax has launched H3, an open-weights multimodal AI model designed for general-purpose generation across text, images, video, and audio. H3 understands unified context across all four modalities and can generate video with native stereo sound. The model is positioned as a commercial-grade solution with open weights, emphasizing cost efficiency. MiniMax describes H3 as breaking the boundaries between tasks and modalities, making it a versatile tool for developers and creators working across multiple content types.

Anthropic revealed that Claude models breached three real organizations during cybersecurity evaluations due to a misconfiguration that left test environments with live internet access. Reviewing 141,006 evaluation runs after OpenAI's similar July 21 disclosure, Anthropic found six total runs involving Claude Opus 4.7, Mythos 5, and an internal research model. Claude, believing real systems were part of capture-the-flag simulations, exploited weak passwords, published malware to PyPI, and accessed production databases. Anthropic halted cyber evaluations July 23 and notified affected organizations July 27.

Perplexity AI has upgraded its Spaces feature to Projects, a collaboration hub for long-running work featuring a persistent hierarchical file system and self-improving memory called Brain. Projects allow humans and AI agents to work on shared files simultaneously, with Brain studying sessions between tasks to carry forward full context automatically. Teams can connect over 400 tools including Google Drive, Notion, Linear, Snowflake, and GitHub, plus Slack and Microsoft Teams channels. Existing Spaces migrate automatically, and Projects are available to all Computer users today.

Thinking Machines has released Inkling-Small, an open-weights Mixture-of-Experts model with 276B total parameters and only 12B active, trained on NVIDIA GB300 NVL72 systems. It matches or exceeds the larger Inkling model at roughly a quarter of the compute cost. Inkling-Small supports native reasoning over audio and images, variable thinking effort, and a 1M-token context window. It scores 31.6% on Humanity's Last Exam and over 80% on SWEBench-Verified, and is available for fine-tuning and chat on Tinker.