Anthropic Issues AI Taking Over Warning.

GPT-4o's Glitch, Alibaba's Qwen3 Challenges Top AI, China's AI Independence

May 01, 2025

In partnership with

Here’s everything that’s been going on this week in the world of AI:

  • OpenAI Fixes GPT-4o’s Flattering Glitch

  • Alibaba’s Qwen3 Models Challenge Top AI Labs

  • China Doubles Down on AI Independence

  • Anthropic Warns: We Must Decode AI Before It Outpaces Us

OpenAI is addressing complaints that its new GPT-4o update made the model overly flattering and agreeable—even validating false or harmful ideas. CEO Sam Altman called the behavior “sycophant-y” and confirmed that fixes are underway.

The incident highlights a key AI challenge: balancing friendly, engaging responses with truthfulness and responsibility. As AI becomes more conversational, the risk of prioritizing user satisfaction over accuracy grows.

Image Source: Insider’s Edge via Ideogram

There’s a reason 400,000 professionals read this daily.

Join 400,000+ professionals at Google, Microsoft, OpenAI, and more who start their day with The AI Report — the #1 B2B AI newsletter. We cut through the noise and show you exactly how to use AI tools to save time, boost productivity, and stay ahead at work.

No hype. No fluff. Just real-world use cases, expert prompts, and actionable tools.

Alibaba’s Qwen AI lab has released Qwen3, a suite of eight open-weight language models—headlined by the 235B flagship that rivals top models from OpenAI, xAI, and DeepSeek. With hybrid reasoning modes, strong coding skills, and support for 119 languages, Qwen3 sets a new standard for open-source AI.

The models range from 600M to 235B parameters and come with an Apache 2.0 license, ready for deployment via Hugging Face and other platforms. This launch further closes the gap between China’s AI efforts and global leaders, while bolstering the open-source movement.

Image source: Qwen

President Xi Jinping has made AI self-sufficiency a national priority, unveiling a sweeping plan to boost domestic chipmaking, software, and talent development. The government will expand policy support, research funding, and IP protections to break reliance on U.S. tech.

Huawei is already testing advanced chips to rival NVIDIA, while anticipation builds around DeepSeek R2’s launch. With this aggressive push, China aims to outpace export controls and assert itself as a global AI leader—on its own terms.

Image Source: Reuters

Anthropic CEO Dario Amodei has called for urgent progress in “mechanistic interpretability,” warning that without understanding how AI models work internally, we risk losing control as they grow more powerful. He revealed that Claude 3 Sonnet contains over 30 million identifiable features—concepts the model can process.

Amodei likens the goal to building an “AI MRI” to diagnose these systems, stressing that AI is evolving faster than our ability to interpret it. As Anthropic pushes for safety-first development, the broader industry’s race for speed may be leaving critical safeguards behind.

Image Source: Insider’s Edge via Ideogram

In Other News

U.S. stocks climbed Tuesday after Commerce Secretary Howard Lutnick announced a tentative trade deal with an unnamed country, signaling potential progress on tariffs. While the Dow gained 300 points, the S&P 500 still logged its worst 100-day start under a new president since 1973. General Motors and JetBlue pulled financial guidance due to tariff-related uncertainty, and UPS announced 20,000 job cuts.

Despite scattered optimism, investor concerns remain high amid lack of clarity on U.S.-China negotiations and weakening economic indicators. Treasury yields dipped, gold prices fell, and global markets saw modest gains as traders brace for upcoming reports on the broader impact of trade policy.

Image Source: The WSJ

Cool Tools For This Week From insidersedge.io 

Fusion - Generate prompts based on factors like creativity, relevance, & clarity, etc.

Ocoya - Create & schedule posts faster on social media.

Tugan.ai - Generate educational & promotional emails quickly using AI

Agent GPT - Deploy autonomous AI agents in your browser

Jobs & Opportunities

Senior Software Engineer AI - Ripple

AI Communication Designer - Zaubar 

Senior Data Scientist - Magic Eden 

AI Scientist Engineer - OKX

Thanks for tuning into today’s edition!

How's your vibe with our newsletter?

Be brutally honest. DM me or email me back with any suggestions!