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OpenAI’s Bret Taylor Warns of AI Bubble but Sees Long-Term Value

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OpenAI board chair Bret Taylor believes AI is in a bubble. Yet he insists this is not cause for alarm.

In a recent interview with The Verge, Taylor supported earlier remarks by OpenAI CEO Sam Altman, who warned that “someone is going to lose a phenomenal amount of money in AI.”

Taylor agreed with the statement. However, he also emphasized the long-term potential of the technology.

The Dot-Com Bubble

Image Credits: Thibault Camus

Taylor drew a direct line between today’s AI boom and the dot-com bubble of the late 1990s.

During that period, numerous internet startups rose quickly but collapsed once the bubble burst. But despite those failures, the internet itself reshaped the global economy.

According to Taylor, “all the people in 1999 were kind of right.” While many businesses failed, the vision of a connected digital age proved accurate. 

He argued that AI may follow the same pattern. Several companies may not survive, yet the technology will endure and transform industries.

Also read: AI Bubble Burst: Is It Coming, and What Would It Mean?

Bubble

Taylor pointed to clear signs of a bubble in the AI sector: Capital inflows are immense; startups are attracting billions of dollars in funding.

Companies are valued far above their proven earnings, and the hype is intense; public attention is growing faster than practical results.

Taylor acknowledged these risks. Still, he described them as common features of periods of rapid innovation.

Historical Precedent

History supports his view.

  • The dot-com bubble produced failures but also gave rise to Amazon and Google.
  • The railroad boom in the 1800s caused investor losses, yet railroads became vital to commerce.
  • The housing crisis in 2008 triggered financial reform and new oversight.

These examples suggest that bubbles can destroy capital but also lay the foundation for lasting change. Taylor argued that AI is on the same trajectory.

Long-term Implications 

The bubble will affect markets more than daily life. Chatbots, design tools, and AI-driven assistants will continue to appear. But investors and startups will bear the greatest risk.

Over time, however, consumers may benefit most. Just as the internet brought online banking, e-commerce, and digital entertainment, AI may deliver personal health tools, adaptive tutors, and advanced workplace assistants.

Duality

Taylor’s perspective is measured. He accepts the risks but underscores the promise. AI may be overvalued in the short term.

At the same time, it may also become one of the most significant technologies of the century. This dual reality reflects his central point. 

A bubble can exist without undermining the long-term value of the technology itself. For Taylor, the turbulence is temporary. 



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Conduent Integrates AI Technologies to Modernize Government Payments, Combat Fraud and Improve Customer Experiences for Beneficiaries

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Successfully completed AI pilot with Microsoft – now live – boosts fraud detection

FLORHAM PARK, N.J., September 16, 2025–(BUSINESS WIRE)–Conduent Incorporated (Nasdaq: CNDT), a global technology-driven business solutions and services company, is embedding generative AI (GenAI) and other advanced AI technologies into its suite of solutions for state and federal agencies. These technologies aim to improve the disbursement of critical government benefits, enhance the citizen experience, and fortify fraud prevention across major aid programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP).

As part of a recently completed GenAI pilot with Microsoft – originally announced in 2024 and now fully deployed – Conduent has significantly increased its fraud detection capacity for its largest open-loop payment card programs. Because these cards can be used at a wide range of merchants, monitoring for fraud is particularly complex. Leveraging AI, a small team of specialists can now surveil tens of thousands of accounts for suspicious activity, including identity theft and account takeover with significant improvement in accuracy. This capability is in the process of being scaled to other payment card programs.

Following the pilot’s success, Conduent is now seeking to apply similar AI methodologies to help detect and prevent fraud in Medicaid and closed-loop EBT cards, including SNAP benefits – helping safeguard usage at approved retailers. A leader in government payment disbursements, Conduent currently supports electronic payments for public programs in 37 states.

“As states adapt to evolving budget constraints and eligibility requirements, AI can empower agencies to reduce fraud and improper payments while improving service delivery,” said Anna Sever, President, Government Solutions at Conduent. “With decades of experience supporting critical government programs, Conduent is deepening its investment in AI to expand these gains across multiple programs.”

Transforming Customer Support with AI

Conduent is also deploying AI to drive improvements in the contact center experience for public benefit recipients. A standout example is the Conduent GenAI-powered capability that equips agents with instant access to accurate, program-specific information – reducing call handling times.

Conduent provides U.S. agencies with solutions for healthcare claims administration, government benefit payments, eligibility and enrollment, and child support. Visit Conduent Government Solutions to learn more.





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CobaltStrike’s AI-native successor, ‘Villager,’ makes hacking too easy

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Villager can be weaponized for attacks

According to Straiker, Villager integrates AI agents to perform tasks that typically require human intervention, including vulnerability scanning, reconnaissance, and exploitation. Its AI can generate custom payloads and dynamically adapt attack sequences based on the target environment, effectively reducing dwell time and increasing success rates.

The framework also includes a modular orchestration system that allows attackers, or red teamers, to chain multiple exploits automatically, simulating sophisticated attacks with minimal manual oversight.

Villager’s dual-use nature is the crux of the concern. While it can be used by ethical hackers for legitimate testing, the same automation and AI-native orchestration make it a powerful weapon for malicious actors. Randolph Barr, chief information security officer at Cequence Security, explained, “What makes Villager and similar AI-driven tools like HexStrike so concerning is how they compress that entire process into something fast, automated, and dangerously easy to operationalize.”

Straiker traced Cyberspike to a Chinese AI and software development company operating since November 2023. A quick lookup on a Chinese LinkedIn-like website, however, revealed no information about the company. “The complete absence of any legitimate business traces for ‘Changchun Anshanyuan Technology Co., Ltd,’ along with no website available, raises some concerns about who is behind running ‘Red Team Operations’ with an automated tool,” Straiker noted in the blog.

Supply chain and detection risks

Villager’s presence on a trusted public repository like PyPI, where it was downloaded over 10,000 times over the last two months, introduces a new vector for supply chain compromise. Jason Soroko, senior fellow at Sectigo, advised that organizations “focus first on package provenance by mirroring PyPI, enforcing allow lists for pip, and blocking direct package installs from build and user endpoints.“



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Egyptian AI Startup Intella Secures $12.5 Million in Series A to Lead Arabic Speech AI Innovation

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Egyptian AI startup Intella has secured $12.5 million in an oversubscribed Series A funding round, cementing the country’s position as a leader in developing sophisticated AI solutions that serve the Arabic-speaking world’s unique linguistic needs.

Founded in 2021 by CEO Nour Taher and CTO Omar Mansour, Intella represents the cutting edge of Egyptian technological innovation, solving complex challenges that global AI companies have struggled to address effectively in Arabic contexts.

Breakthrough Technology Achievement

Intella’s proprietary speech-to-text models have achieved an impressive 95.73% transcription accuracy across more than 25 Arabic dialects—a remarkable technical feat that demonstrates Egyptian engineers’ capability to develop world-class AI solutions. This accuracy rate positions Intella ahead of global competitors in addressing Arabic speech’s inherent linguistic complexity.

The startup’s success stems from its deep understanding of a challenge that outsiders often underestimate: everyday Arabic speech relies heavily on regional dialects rather than Modern Standard Arabic, creating phonetic diversity that requires sophisticated, locally-developed solutions.

Strategic Market Leadership

Intella’s client portfolio spans finance, telecommunications, and government sectors, demonstrating the broad applicability of Egyptian-developed AI technology. The company’s tools, including transcript analytics and conversational agents, transform spoken interactions into valuable enterprise insights across MENA markets.

The oversubscribed funding round, led by Prosus Ventures with participation from 500 Global, Wa’ed Ventures (Aramco’s VC arm), Hala Ventures, Idrisi Ventures, and HearstLab, reflects growing investor confidence in regionally-contextualized AI solutions developed by African innovators.

Ambitious Growth Trajectory

With revenue more than doubling in 2024 and projections of up to 7× growth in 2025, Intella exemplifies the rapid scaling potential of Egyptian tech companies that understand their regional markets deeply. This growth trajectory positions Egypt as a hub for Arabic language technology development.

The new funding will enable Intella to refine its dialectal models, expand its analytics platform intellaCX, and advance its digital human “Ziila” for voice-ordering and conversational applications. These developments showcase Egyptian innovation in creating culturally relevant AI interfaces.

Regional Expansion and Impact

Intella’s expansion plans across Egypt and Saudi Arabia demonstrate how Egyptian startups can leverage their technical expertise to serve broader regional markets. The company’s approach to localizing speech AI addresses a critical gap where global models often perform poorly in real-world Arabic settings.

As organizations across MENA increasingly demand voice-enabled services and localized conversational AI, Intella is positioned as a foundational player bridging global AI advances with Arabic-speaking communities’ specific needs.

With total funding now reaching approximately $16.9 million, Intella represents more than a business success—it demonstrates Egypt’s emergence as a leader in developing AI solutions that serve linguistic and cultural diversity. The company’s achievement highlights how African innovators are creating technologies that global companies couldn’t effectively develop, positioning the continent as a critical player in the future of artificial intelligence.





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