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Welcome to AI Decoded, Fast Company’s weekly newsletter that breaks down the most important news in the world of AI. You can sign up to receive this newsletter every week here. Inside the new Grok 3 model In just two years, Elon Musk’s xAI has become one of a dozen or so labs capable of developing state-of-the-art AI models. Now xAI is out with its Grok 3 large language model, which beats state-of-the-art frontier models, such as OpenAI’s GPT-4o and DeepSeek’s V3, in common mathematics, science, and coding benchmarks by a wide margin. Meanwhile, the smaller Grok 3-mini performs at par with the larger competing models. The new Grok model reportedly was trained …

Elon Musk’s AI chatbot Grok won’t be able to edit photos to portray real people in revealing clothing in places where that is illegal, according to a statement posted on X. The announcement late Wednesday followed a global backlash over sexualized images of women and children, including bans and warnings by some governments. The pushback included an investigation announced Wednesday by the state of California, the U.S.’s most populous, into the proliferation of nonconsensual sexually explicit material produced using Grok that it said was harassing women and girls. Initially, media queries about the problem drew only the response, “legacy media lies.” Musk’…

Defense Secretary Pete Hegseth said Monday that Elon Musk’s artificial intelligence chatbot Grok will join Google’s generative AI engine in operating inside the Pentagon network, as part of a broader push to feed as much of the military’s data as possible into the developing technology. “Very soon we will have the world’s leading AI models on every unclassified and classified network throughout our department,” Hegseth said in a speech at Musk’s space flight company, SpaceX, in South Texas. The announcement comes just days after Grok — which is embedded into X, the social media network owned by Musk — drew global outcry and scrutiny for generating highly sexualized deep…

My friend turned to me the other day with a sly smirk and whispered, “Are you also part of Group 7?” I shook my head, unsure of what she meant—feeling left out of whatever secret club she was referring to. It didn’t take long for the algorithm to catch up with me. Within a few hours, my For You Page on TikTok was flooded, and before I knew it, I, too, was officially part of the internet’s newest inside joke. “Group 7” began as a simple experiment by musician Sophia James, who wanted to promote her new song So Unfair—and experiment with the quirky nature of TikTok’s algorithm. TikTok’s For You Page, or FYP, described by the Guardian as “uncannily good at predi…

As the founder, chair, and CEO of the Exceptional Women Alliance, I am fortunate to be surrounded by extraordinary female business leaders. Our purpose is to empower each other through peer mentorship that provides personal and professional fulfillment within this unique sisterhood. This month, I’m pleased to introduce Sammie Dabbs. Sammie is passionate about building and scaling high-performing commercial organizations. As chief commercial officer, she oversees revenue strategy, sales, and marketing alignment—driving growth through a combination of operational rigor and customer-centric innovation. With a proven track record of leading teams, entering new markets, an…

Restaurant delivery in New York is not like restaurant delivery in any other part of the country. The city has a long history with food delivery thanks to its dense population and copious restaurants (roughly 25,000 at last count). It even had its own delivery brand, Seamless, launched over a quarter-century ago as SeamlessWeb in the city. Now, after a brief fall from public view, Seamless is back in New York. Seamless has operated under the thumb of a much larger brand for years. It merged with Grubhub in 2013, but retained its own branding in the biggest and arguably most important delivery market in the country. But when Grubhub got a new, foreign owner in 2020—Ams…

Shares in GSI Technology, Inc. (Nasdaq: GSIT) are soaring for the second day in a row. The company, which specializes in semiconductor memory solutions, saw its stock price skyrocket 155% yesterday. Today, GSIT shares are up another 39% in premarket trading as of the time of this writing. But why? Here’s what you need to know. What is GSI? GSI Technology is a provider of semiconductor memory solutions. That means it specializes in developing memory chips and products that help process data. Though the company isn’t as well-known as the bigger semiconductor memory solutions giants like Micron or Intel, it has been a staple of the semiconductor industr…

Shares in video game giant Take-Two Interactive Software, Inc. (Nasdaq: TTWO) are plummeting in early morning trading today after the company’s subsidiary, Rockstar Games, announced that it is delaying the release of its next flagship title, Grand Theft Auto VI, from fall 2025 until May 2026. Here’s what you need to know about the delay and how investors are reacting. Grand Theft Auto VI delayed until May 2026 In December 2023, Rockstar announced that GTA6—perhaps the most anticipated game of all time—would launch in the fall of 2025. Now, the studio has announced the game’s release is being pushed back until May 26, 2026. Rockstar’s announcement was brief. In …

Gucci announced on Thursday that its creative director of under two years, Sabato De Sarno, has left the position just two and a half weeks before the next runway show, and that the new collection would be created by the design team. The abrupt announcement of De Sarno’s departure comes as Gucci prepares to open Milan Fashion Week with a combined womenswear and menswear collection on February 25. His replacement will be announced “in due time,” the statement said. Gucci’s new CEO, Stefano Cantino, expressed gratitude for De Sarno’s focus on “Gucci’s craftsmanship and heritage,” while Kering deputy CEO Francesca Bellettini said he had “further strengthened Gucci’s fundam…

Gucci announced Thursday that the Balenciaga artistic director Demna will take over the creative direction of the Italian luxury fashion house, starting in July. Gucci and its French parent Kering said in a statement that Demna “has redefined modern luxury, earning global recognition and cementing his authority on the industry.” Demna, who goes by one name, has been at Kering-owned Balenciaga for a decade. He brings with him the title of artistic director. “I am truly excited to join the Gucci family,” he said in a statement. “It is an honor to contribute to a house that I deeply respect and have long admired.” Demna showed his latest and last Balenciaga ready-to-wear…

Kering released its third-quarter 2025 financial results on Thursday, showing it reduced the slump it had seen in the previous quarter. The French luxury goods house, which owns brands like Balenciaga, Gucci, and Yves Saint Laurent, reported 3.42 billion euros ($3.97 billion) in group revenue, down 5% year-over-year (YOY) compared to a 15% drop in quarter-two. It also beat Wall Street’s estimate of a 9.6% decline, according to consensus estimates cited by Reuters. Kering attributed the reduced revenue YOY, in part, to a negative currency effect of 5%. Luxury is in a lull As a whole, luxury brands have struggled in recent years, with blame boomeranging be…

A Gustav Klimt portrait painting that helped save the life of its Jewish subject during the Holocaust sold Tuesday for $236.4 million, a record for a modern art piece. Klimt’s “Portrait of Elisabeth Lederer” sold after a 20-minute bidding war at Sotheby’s in New York, where the flashiest item of the night was a solid gold, fully functioning toilet that went for $12.1 million. The 6-foot-tall (1.8-meter-tall) portrait, painted over three years between 1914 and 1916, depicts the daughter of one of Vienna’s wealthiest families adorned in an East Asian emperor’s cloak. It is one of two full-length portraits by the Austrian artist that remain privately owned. The work …

H Company and CEO Gautier Cloix turn AI and APIs into the next office colleague by creating agentic systems to perform real tasks alongside humans. View the full article

Ice cream maker Dreyer’s Grand Ice Cream Company has issued a voluntary recall of select Häagen-Dazs Chocolate Dark Chocolate Mini Bars after discovering they might have wheat in them. An investigation is underway, but Dreyer’s believes that food with wheat was put in the wrong packaging at the start of a production run, according to its announcement, published by the Food and Drug Administration (FDA). There are no related illnesses or injuries as of Dreyer’s announcement on Monday, November 3. As Dreyer’s states, “Those with an allergy or severe sensitivity to wheat run the risk of serious or life-threatening allergic reaction if they consume these product…

Fila is looking to Hailey Bieber to help its struggling brand. The South Korea-based sports apparel company is today launching a 13-piece spring/summer 2025 collection made in collaboration with Bieber, who is the founder of Rhode beauty. The pieces, which include a baby tee, sweatpants, and an oversized pullover, are designed to be “wardrobe staples,” according to the company, and are now available on FILA’s website and select Urban Outfitters stores. It’s clear the Hailey Bieber x FILA Collection is geared toward athleisure rather than performance activewear based on the campaign photography, which in one photo shows Bieber spilling an iced coffee. [Photo: Fila]…

Half of Airbnb users in the U.S. are now using the company’s AI-powered customer service agent, CEO Brian Chesky said Thursday during an earnings call. The tool was quietly rolled out last month and is expected to be available to all U.S. users in the coming weeks. Chesky said the AI assistant has already led to a 15% drop in users needing to contact live support agents. While the technology is still in its early stages, he expects it to steadily improve. “It’s going to get significantly more personalized and agentic over the years to come,” he said following the release of Airbnb’s first-quarter earnings. Compared to other travel platforms racing to apply AI …

Want more housing market stories from Lance Lambert’s ResiClub in your inbox? Subscribe to the ResiClub newsletter. Fresh data shows that as of August, 25 of the 50 biggest U.S. metro areas—representing half of the country’s major housing markets—are seeing prices fall compared with last year. That share has steadily climbed from just 14% in late 2024, underscoring how soft demand and rising active inventory for sale have coincided in greater downward pressure on prices across much of the country. Back in November 2024, seven of the nation’s 50 largest metro-area housing markets (14%) had falling year-over-year home prices. In February 2025, 12 of the nati…

Halloween is a fun, scary time for children and adults alike—but why does the holiday seem to start so much earlier every year? Decades ago, when I was young, Halloween was a much smaller affair, and people didn’t start preparing until mid-October. Today, in my neighborhood near where I grew up in Massachusetts, Halloween decorations start appearing in the middle of summer. What’s changed isn’t just when we celebrate but how: Halloween has evolved from a simple folk tradition to a massive commercial event. As a business school professor who has studied the economics of holidays for years, I’m astounded by how the business of Halloween has grown. And understanding why …

On December 1, podcaster and venture capitalist Harry Stebbings posted on LinkedIn that candidates were 200 times more likely to get into Harvard University than they were to get a job at the $6.6 billion valuation AI startup ElevenLabs. According to his statistic, out of 180,000 applicants in the first half of the year, only 0.018% were hired by the AI voice agent platform. That figure—extrapolated from a July spike in applications—may have been hyperbole. But it still went viral. And out of tens of thousands of applications, just 132 candidates eventually got the job at ElevenLabs—indeed, much lower than Harvard’s 3% to 4% admission rates. “On average, we’re se…

There are few things more evocative of the free American spirit and the nation’s wide-open spaces than the image of a Harley-Davidson motorcycle zooming down a stretch of empty highway. But while taking one of the legendary hogs for a spin may still be liberating for riders, the company’s independent dealership owners are feeling an increasingly tight financial and business squeeze. A rash of reports in recent weeks have sounded alarms about the troubles Harley dealers face, and the rising number of dealerships closing shop as a result. While Harley-Davidson still counts more than 650 of those locations in operation across the U.S., specialist automotive media warn th…

The life of a junior associate at a prestigious law firm involves hours of research and analyzing contracts. Three years ago, Winston Weinberg found himself buried in these kinds of tasks as a first-year antitrust and litigation associate at O’Melveny & Myers in Los Angeles. And there Weinberg might have remained, diligently climbing the BigLaw ranks from associate to partner, logging thousands of hours of drudgery along the way. Instead, he’s cofounder and CEO of Harvey, the high-flying legal AI platform that’s raised more than $800 million by promising to handle much of this work. “A lot of the tasks junior [associates] do are going to get automated,” Weinbe…

For the past decade, quantum computing has struggled to balance promise and practicality. While the world’s most advanced systems remain engineering marvels, they’re bedeviled by the same flaw: the fragility of qubits—the fundamental units of quantum data—and the delicate hardware required to control them. A single fluctuation, for example, can collapse a quantum state, invalidating a computation. Most quantum systems also depend on large-scale refrigeration colder than deep space, with cryogenic racks that often occupy multiple rooms. Scaling quantum systems demands exponential increases in cost, energy, and environmental stability. So while the U.N. has designated 2…