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Leaders

Microsoft CEO questions Anthropic rules

Microsoft Chief Executive Officer Satya Nadella has questioned Anthropic’s decision to restrict certain storytelling requests on its AI chatbot Claude, arguing that the company’s approach to creative writing “doesn’t make sense.” His comments have reignited debate over how artificial intelligence companies should balance safety with creativity as generative AI becomes increasingly popular among users.

Speaking during a recent discussion, Nadella referred to Anthropic’s policy that limits Claude from generating stories featuring copyrighted or well-known fictional characters in some situations. The Microsoft chief said such restrictions could unnecessarily limit creativity and reduce the usefulness of AI assistants for everyday users. According to Nadella, storytelling has always involved building upon existing ideas, myths and fictional universes, making broad restrictions difficult to justify.

The remarks come after Anthropic introduced what it calls its “Claude Fable” policy, which places tighter controls on requests involving copyrighted fictional characters and certain creative writing prompts. The company says the policy is intended to reduce legal risks, prevent intellectual property misuse and encourage the creation of original content rather than derivative works.

However, Nadella believes the approach could discourage users from exploring creative ideas with AI. He argued that asking an AI model to write a story involving familiar fictional characters is often harmless and comparable to the way people have long created fan fiction, parody and educational material. Imposing broad limitations, he suggested, risks making AI systems less helpful without significantly improving safety.

The discussion reflects a wider debate taking place across the artificial intelligence industry. As generative AI tools become more capable of producing text, images, music and videos, developers are under growing pressure to prevent copyright infringement while still allowing users to engage in legitimate creative activities. Companies are increasingly required to strike a balance between protecting intellectual property and enabling innovation.

Anthropic has defended its position by saying that the restrictions are designed to promote responsible AI development. The company argues that encouraging users to generate original stories rather than relying heavily on existing fictional characters supports creators and reduces the possibility of copyright disputes. Claude’s safety policies have generally been stricter than those of many competing AI chatbots, reflecting Anthropic’s emphasis on cautious AI deployment.

Nadella’s comments also highlight the different philosophies emerging among leading AI companies. Microsoft, a major investor in OpenAI, has consistently supported the development of AI systems that remain useful across a broad range of personal, educational and professional tasks while incorporating safety measures where necessary. Rather than imposing blanket restrictions, many AI developers prefer context-based safeguards that evaluate how a request is being used before deciding whether to respond.

Industry experts note that the issue extends beyond fan fiction. Teachers often use fictional characters to explain complex concepts, students employ them in creative writing exercises, and developers use familiar examples while testing AI systems. Critics of strict content restrictions argue that blocking such prompts may reduce educational and creative value without effectively addressing copyright concerns.

At the same time, copyright remains one of the biggest unresolved challenges facing the generative AI industry. Publishers, authors, film studios and content creators around the world have raised concerns about AI models trained on copyrighted material and the possibility that AI-generated content could compete with original works. Several technology companies are already facing lawsuits related to copyright and AI-generated outputs, prompting firms to introduce additional safeguards.

The exchange between Nadella and Anthropic comes at a time when competition in the artificial intelligence sector is intensifying. Companies including Microsoft-backed OpenAI, Google, Anthropic, Meta and xAI are rapidly introducing new AI models and features while trying to address growing concerns over copyright, misinformation, privacy and safety. Their differing approaches are increasingly shaping how millions of users interact with AI-powered assistants.

As generative AI continues to evolve, questions surrounding copyright, creativity and responsible AI development are expected to remain at the centre of industry discussions. Nadella’s criticism of Anthropic’s storytelling restrictions has added another dimension to that conversation, highlighting the challenge of protecting intellectual property without limiting the creative potential that has made AI chatbots so widely adopted.

Also Read: Musk’s xAI sues user over CSAM

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Beyond

Musk’s xAI sues user over CSAM

Elon Musk’s artificial intelligence company, xAI, has filed a landmark lawsuit against a Grok user accused of using the chatbot to generate child sexual abuse material (CSAM) and sexually explicit AI-generated deepfakes. The case is being viewed as one of the first instances of an AI company taking legal action against one of its own users for allegedly exploiting generative AI to create illegal content, marking a significant moment in the debate over AI safety, platform responsibility and digital abuse.

The lawsuit, filed in a federal court in Texas, targets South Carolina resident Terry Harwood. According to xAI, Harwood deliberately bypassed Grok’s safety safeguards by using multiple accounts, misleading prompts and uploaded photographs of real people, including minors, to create sexually explicit AI-generated images. The company argues that the alleged misuse violated its terms of service, caused severe reputational damage and exposed it to legal risks.

xAI is seeking monetary damages, reimbursement of legal costs and a permanent court order preventing Harwood from accessing or using Grok in the future. The company says the lawsuit is intended not only to hold an individual accountable but also to send a clear message that AI platforms will pursue legal action against users who misuse their technology for criminal purposes.

Court documents allege that Harwood intentionally manipulated Grok’s image-generation capabilities to create child sexual abuse imagery and non-consensual explicit deepfakes. The complaint states that these actions endangered victims, violated xAI’s usage policies and undermined public trust in generative AI technology. Harwood had previously been arrested in a separate criminal investigation involving alleged child sexual abuse material, although that criminal case is distinct from xAI’s civil lawsuit.

The legal action comes as xAI continues to face mounting scrutiny over Grok’s image-generation tools. Earlier this year, several lawsuits accused the company of failing to prevent users from creating explicit deepfake images of women and children. In one case, teenagers alleged that AI-generated sexual images resembling them were created without their knowledge or consent using technology linked to Grok. Those lawsuits intensified calls for stronger AI safeguards and tougher regulation of generative AI platforms.

Responding to growing criticism, xAI says it has significantly strengthened its content moderation systems. The company revealed that it has suspended more than 52,000 accounts linked to abusive activity and submitted over 73,000 reports to the US National Center for Missing & Exploited Children during 2026. According to xAI, those reports have contributed to at least 244 arrests, reflecting its efforts to cooperate with law enforcement agencies investigating online child exploitation.

The case also reflects a broader shift in how technology companies are responding to AI misuse. Instead of relying solely on account suspensions or content removal, firms are increasingly turning to courts to deter users who intentionally exploit AI tools for illegal activities. Legal experts believe the outcome could influence how other AI developers enforce their terms of service and respond to the creation of harmful AI-generated content.

The lawsuit arrives amid growing global concern over AI-generated deepfakes, online child safety and the responsibilities of companies developing powerful generative AI systems. Governments, regulators and child protection organisations have repeatedly warned that rapidly improving AI image-generation tools can be weaponised to produce realistic but illegal content, making detection and enforcement increasingly difficult. The xAI lawsuit is therefore expected to become an important test case in defining where responsibility lies between AI developers and users who deliberately abuse the technology.

As artificial intelligence becomes more powerful and accessible, the case is likely to shape future discussions on AI regulation, digital ethics and platform accountability. Whether the lawsuit succeeds or not, it underscores a growing consensus across the technology industry that innovation must be matched by stronger safeguards to protect vulnerable people from AI-enabled abuse.

Also Read: Tech Mahindra posts robust Q1 with 28% rise in profit

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Beyond

Gold higher at ₹141,220, Silver at ₹215,950

Gold prices remained firm on Thursday as MCX gold futures traded higher in early trade, while silver futures edged marginally lower amid cautious investor sentiment. Despite mixed movement in the futures market, retail bullion prices across major Indian cities remained elevated, reflecting continued demand for precious metals as investors tracked global economic developments and interest rate expectations.

On the Multi Commodity Exchange (MCX), gold futures were trading 0.31% higher at ₹1,41,220 per 10 grams on 17 July. Meanwhile, MCX silver futures slipped 0.04% to ₹2,15,950 per kilogram at around 9:13 am, indicating mild profit booking after the metal’s recent rally.

The rise in MCX gold prices came even as physical bullion rates remained largely stable across the country. Analysts said domestic gold futures continued to mirror global trends, with safe-haven demand supporting prices amid uncertainty over the global economic outlook, inflation concerns and expectations surrounding future interest rate decisions by major central banks.

According to the latest retail bullion rates, 24-carat gold was priced at ₹1,43,430 per 10 grams in Delhi, while 22-carat gold stood at ₹1,31,490 per 10 grams. In Mumbai and Kolkata, 24-carat gold was retailing at ₹1,43,280 per 10 grams, while 22-carat gold was priced at ₹1,31,340 per 10 grams.

Jewellers said customer enquiries have remained healthy even with gold trading at record-high levels. While some buyers are delaying large jewellery purchases in anticipation of a correction, demand for lightweight ornaments, gold coins and bars continues to remain steady, particularly among long-term investors and those preparing for the upcoming festive and wedding season.

For now, the rise in MCX gold to ₹1,41,220 per 10 grams, alongside stable retail gold prices of ₹1,43,430 per 10 grams in Delhi and ₹1,43,280 per 10 grams in Mumbai and Kolkata, reflects the resilience of the bullion market. Even as MCX silver eased marginally to ₹2,15,950 per kilogram, retail silver prices held steady at ₹2,34,900 per kilogram, underscoring continued investor confidence in precious metals amid an uncertain global environment.

Market participants believe the rally in gold prices is being driven by continued demand for safe-haven assets as global uncertainties persist. Concerns over geopolitical tensions, trade developments and the future path of US interest rates have encouraged investors to maintain exposure to bullion.

International gold prices have also remained supported by expectations that the US Federal Reserve could adopt a more accommodative monetary policy later this year. Lower interest rates generally improve the attractiveness of non-yielding assets such as gold, while movements in the US dollar and Treasury yields continue to influence bullion prices globally.

Although MCX silver futures witnessed a slight decline during the session, analysts remain optimistic about the metal’s long-term prospects. Apart from its role as a safe-haven investment, silver enjoys robust industrial demand from sectors such as solar energy, electric vehicles, electronics and semiconductor manufacturing.

Experts believe silver could continue to outperform over the longer term because of its growing industrial applications, although its prices are expected to remain more volatile than gold. Investors are therefore advised to maintain a balanced allocation between gold and silver depending on their investment objectives and risk appetite.

Financial advisers recommend avoiding investments based solely on short-term price fluctuations. Instead, they suggest accumulating gold gradually through exchange-traded funds (ETFs), sovereign gold bonds, digital gold or periodic purchases of physical gold to reduce the impact of market volatility.

Jewellers have also advised buyers to purchase only BIS Hallmark-certified jewellery and compare making charges before finalisingGold purchases. Checking purity certification and invoices remains particularly important when bullion prices are trading near record highs.

Going forward, gold prices and silver prices are expected to remain sensitive to global inflation data, central bank commentary, currency movements and geopolitical developments. Domestic demand during the festive season could also influence retail prices if international bullion markets continue to remain firm.

Also Read: Sensex surges over 650 points, Nifty tops 24,200

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Corporate

Sensex stays flat as Nifty defends 24,050

The market ended Thursday’s session on a muted note as investors balanced encouraging corporate earnings with lingering global uncertainties. While the market traded in a narrow range throughout the day, selective buying in technology stocks helped limit losses.

The BSE Sensex closed nearly unchanged at 77,187, while the NSE Nifty 50 ended marginally lower at 24,073. Investors remained cautious amid concerns over geopolitical tensions in the Middle East and their potential impact on crude oil prices and global markets.

Technology stocks emerged as the biggest winners of the session. Wipro, Tech Mahindra and other IT counters attracted fresh buying ahead of quarterly earnings, with investors expecting stable demand and positive business outlooks. Electronics manufacturer Dixon Technologies was among the top gainers after receiving government approval under the production-linked incentive (PLI) scheme for mobile and semiconductor manufacturing, boosting confidence in its long-term growth prospects.

On the losing side, financial stocks weighed on market sentiment. Bajaj Finance, Bajaj Finserv and several insurance companies witnessed selling pressure after disappointing earnings and concerns over margins. Weakness in these heavyweight stocks offset gains in the IT sector, keeping benchmark indices largely unchanged.

The broader market, however, remained under pressure, with both mid-cap and small-cap indices closing in the red. Investors preferred booking profits in high-beta stocks while shifting focus to quality large-cap companies ahead of more quarterly earnings announcements.

Global cues also kept traders on edge. Ongoing tensions in the Middle East continued to raise concerns about possible disruptions to crude oil supplies, prompting investors to adopt a wait-and-watch approach. Despite the uncertainty, domestic market resilience and steady institutional participation prevented any sharp decline.

Also Read: HDFC AMC falls 5% after Q1 results

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1 Minute-Read

SpaceX plans mega $1 trillion IPO

SpaceX, founded by Elon Musk, is reportedly preparing for a possible IPO that could value the company at around $1 trillion, making it one of the biggest public listings in history.

The company is exploring plans to raise fresh capital as investors show strong interest in its space and satellite internet businesses. SpaceX’s valuation has surged due to the rapid expansion of Starlink, which provides satellite-based internet services worldwide.

While discussions around the IPO are progressing, the company has not confirmed the exact timeline, pricing or share details. A listing could mark a major milestone for the private space industry.

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1 Minute-Read

HDFC AMC falls 5% after Q1 results

HDFC AMC shares dropped over 5% after the company announced its first-quarter results, as investors reacted to a brokerage downgrade.

Despite reporting healthy profit growth and strong business performance, Kotak Securities downgraded the stock, raising concerns over valuations after its recent rally. The fall in share price reflected cautious market sentiment rather than weak earnings.

Some analysts believe the correction could offer a buying opportunity, while others remain watchful about the stock’s high valuation. HDFC AMC continues to maintain a strong position in the mutual fund industry with steady growth in assets under management.

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1 Minute-Read

White House unveils Gold Eagle AI cybersecurity

The White House has launched the Gold Eagle initiative, a new cybersecurity programme that uses artificial intelligence to identify software vulnerabilities before hackers can exploit them.

At the heart of the initiative is an AI-powered clearinghouse that will help government agencies and technology companies share information on cyber threats more quickly.

Officials said the platform is designed to speed up the detection and reporting of security flaws, helping organisations respond faster to emerging risks. The initiative is part of the US government’s broader effort to strengthen national cybersecurity and encourage closer collaboration between the public and private sectors.

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1 Minute-Read

Laser Power & Infra debuts at 17% premium

Laser Power Infra Ltd. made a strong stock market debut on Thursday, with its shares listing at ₹91 on the NSE SME platform, a 17% premium over the IPO price of ₹77 per share.

The listing was broadly in line with grey market expectations and reflected strong investor interest in the public issue. The IPO had received robust demand from retail and other investors during the subscription period.

The company plans to utilise the funds raised to meet working capital needs and support business expansion. Analysts advised investors to focus on the company’s long-term growth despite the strong listing gains.

Categories
Corporate

Ather Energy raises ₹1,200 cr to fuel future growth

Electric two-wheeler maker Ather Energy has raised ₹1,200 crore in fresh funding, marking a significant step in its plans to expand production, strengthen technology and accelerate growth in India’s fast-growing electric vehicle market.

The funding round also saw Hero MotoCorp, Ather’s largest strategic investor, increase its stake in the company to 30.68%, reaffirming its long-term confidence in the Bengaluru-based EV manufacturer.

Ather said the newly raised capital will be used to expand its manufacturing capacity, strengthen research and development, introduce new products and widen its retail and charging network across the country. The company is also expected to invest in next-generation battery technology and software capabilities to improve the ownership experience for customers.

India’s electric two-wheeler market has become increasingly competitive, with established manufacturers and new startups racing to introduce innovative products. Ather has positioned itself as a premium EV brand, focusing on smart scooters equipped with connected technology, fast charging and advanced software features.

The fresh funding will help Ather compete more aggressively as demand for electric mobility continues to grow. The investment is expected to support the company’s long-term strategy of increasing production and reaching more cities across India.

Hero MotoCorp’s decision to increase its holding highlights the strategic partnership between the two companies. Hero has backed Ather for several years and continues to support its expansion plans as India’s transition towards cleaner transportation gathers pace.

Also Read: Swiggy, HPCL roll out LPG service

Categories
Technology

Google changes Play Store rules

Google is set to introduce one of the biggest changes to the Android app ecosystem by allowing third-party app stores to be listed on the Google Play Store from July 22. The move follows a US court ruling in Google’s antitrust case with Epic Games, which accused the tech giant of restricting competition in Android app distribution.

With the new policy, developers of alternative app stores will be able to offer their marketplaces directly through Google Play. This means Android users will have an easier way to discover and install rival app stores without relying on sideloading, a process that often requires downloading apps from external websites and changing device settings.

The change is part of a court order aimed at increasing competition in the Android ecosystem. Although Google is appealing the ruling, it has decided not to seek an emergency stay, allowing the new rules to take effect while the legal process continues.

Epic Games, the maker of Fortnite, welcomed the move, saying it gives developers more freedom and provides users with greater choice over where they download apps. The company has argued that Google’s control over app distribution and in-app payments has limited competition and increased costs for developers.

Google, however, has expressed concerns that allowing rival app stores inside Google Play could expose users to greater security and privacy risks. The company says its Play Store protections help prevent malware, scams and harmful apps, and it plans to continue investing in security measures even after the policy change.

Also Read: IBM CEO faces toughest test yet