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Welcome to The Prompt by Kuro House, your daily AI update. Today, we’ve got major moves from Jack Dorsey, Anthropic, Google, and OpenAI. Let’s dive into the latest product launches, corporate shifts, and some high-stakes standoffs shaping the AI landscape.
Jack Dorsey just made a bold move by cutting nearly half of Block’s workforce, over 4,000 jobs gone. This news comes from TechCrunch, which reports the payments giant is shrinking from more than 10,000 employees to under 6,000. Dorsey frames this as a proactive step to embrace AI-driven automation with smaller, more talented teams moving faster. Investors loved it, pushing Block’s stock up more than 24% after hours. He also warned that many companies will follow suit within a year, preferring to make cuts on their own terms rather than reactively.
Anthropic is standing its ground against the Pentagon’s demands for unrestricted AI access. The Verge reports that CEO Dario Amodei refused to allow mass surveillance of Americans or fully autonomous lethal weapons without human oversight. This refusal comes less than 24 hours before a Pentagon ultimatum deadline, with the Defense Secretary pushing for new contract terms. While OpenAI and xAI have agreed to the Pentagon’s terms, Anthropic insists some AI uses undermine democratic values and are simply not safe yet. Amodei even offered to help with a smooth transition if the Pentagon chooses to offboard Anthropic, emphasizing cooperation despite the standoff.
TechCrunch also covered Anthropic’s CEO making it clear he cannot comply with the Pentagon’s request in good conscience. He pointed out the contradiction of being labeled both a security risk and essential to national defense at the same time. Amodei stressed that the Department of Defense has the right to choose its contractors, but hopes they reconsider given Anthropic’s value to the armed forces. Currently, Anthropic is the only AI lab with classified-ready systems for the military, although xAI is preparing to enter that space. The company wants to continue serving the military but insists on safeguards against misuse.
Google just expanded access to its AI image model, Nano Banana 2, for free users. The Verge reports this update brings advanced features like real-time info, legible text, and localized translation to everyone using the Gemini app and Google AI platforms. Previously, these capabilities were locked behind paid tiers, but now free users get more creative control, sharper details, and up to 4K resolution options. Google says Nano Banana 2 makes complex image generation faster, cheaper, and easier, and it’s rolling out on multiple Google services including Search and Google Lens. Pro subscribers still have access to the original Nano Banana Pro for specialized tasks, but this new model is now the default for most users.
Finally, OpenAI is boosting its London presence, turning the office into its largest research hub outside the US. Wired reports that OpenAI is competing head-to-head with Google DeepMind for top UK AI talent, hiring from leading universities like Oxford and Cambridge. This expansion aims to strengthen research on AI safety, reliability, and performance, with the London team owning key parts of model development. The move is seen as a huge vote of confidence in the UK’s AI ecosystem and comes as the country scales data centers to meet growing compute demand. OpenAI’s London hub will also contribute to products like Codex and GPT-5.2, signaling a major investment in global AI leadership.
So, from sweeping layoffs to principled stands, and from free AI image tools to global research expansions, the AI world is moving fast. These stories show how technology, ethics, and business strategy are deeply intertwined in shaping what’s next. Thanks for tuning into The Prompt by Kuro House — see you tomorrow for another update.
