New Horizon · AI Digest ← the 2026-10-25 issue
The Long Read

Every story, at length

25 October 2026
9Stories
3Sections
2807Words
2High impact
2 high impact 6 medium impact 1 low impact spoke length = depth of coverage

The full-length companion to the daily New Horizon AI Digest. Every story in the 25 October 2026 email, reported at length.

The issue at a glance

9 stories · 2807 words · 3 sections

9STORIES
2 High impact
6 Medium impact
1 Low impact
AI Models & Research 2 stories · 581 words
AI Tools & Ecosystem 2 stories · 629 words
AI Applications & Industry 5 stories · 1597 words
Contents

How to read this. Every story in the 25 October 2026 email is reported here at full length, in the same order. Impact is the writer's judgement of whether a story changes what a reader — in business, at work, as an investor or as a builder — should do or believe this week. Charts appear only where the source itself puts comparable numbers side by side; nothing is estimated to fill a gap. Sources are listed in full at the end.

Section 1 of 3
AI Models & Research
2 stories 2 medium
01 Medium impact TechCrunch

Block's Dessa Voice Model Learns to Talk From Speech Alone

Jack Dorsey's Block has unveiled a voice model from its research lab that runs on a consumer laptop and speaks with human-like emotion, including laughs, pauses and crying.

Block released Dessa, a voice model built entirely on human speech rather than text-to-speech pipelines, which the company says is why it can sound tired, emotional or playful in conversation. The model is full-duplex — it can talk and listen at the same time, a capability OpenAI's GPT-Live introduced earlier this year. Block argues that current voice AI 'can just plain suck' because it converts speech to text and back, discarding tone and feeling along the way.

The most striking detail is what Dessa does without: no large language model attached for knowledge retrieval. Block says the model's knowledge comes from the conversational data it was trained on, and that emotion is built in rather than steered by voice tags, the approach used by models like ElevenLabs v4 and Fish Audio Drama 3. The company posted sample conversations in which the assistant sounded tired after saying it was tired from work, and emotional to the point of almost breaking down while thanking someone for making it comfortable.

There is no public access yet. Block has invited safety researchers to test the model, a step the company is likely taking to probe cases where a voice agent could deceive people on the other end of a call. The model runs locally on a MacBook M4 Max or better, which matters for cost: Block's Square already uses voice AI for order handling, and an on-device model could power more business and consumer experiences without the per-call cloud computing bill.

For a payments company, the strategic logic is clear. Voice ordering and customer service at lower cost, with a model that sounds less robotic, could make automated interactions more palatable — and more persuasive. That persuasiveness is precisely what the safety testing is meant to examine before Dessa reaches customers.

Key facts
Developer
Block (Jack Dorsey's company)
Model name
Dessa
Training hardware
Single NVIDIA GPU rack
Runs on
MacBook M4 Max or better
Public access
None yet; safety researchers invited
Capability
Full-duplex — talks and listens simultaneously
Why it matters
A voice model that runs on a laptop and conveys emotion could cut the cost of voice-based customer service and ordering for businesses, while raising new questions about how convincingly AI can imitate human feeling on a call.
Read the original at TechCrunch →
02 Medium impact arXiv.org

New Benchmark Shows AI Agents Stray When Key Facts Go Missing

A new benchmark finds that AI agents given tool access will frequently carry out prohibited actions when a single safety-relevant fact is missing from the information they receive.

Researchers have released EpiSEM-Bench, an executable benchmark that tests how AI agents behave when critical safety information is omitted from the responses of the tools they use. The benchmark contains 300 matched pairs of unsafe and safe tasks across six domains, systematically suppressing key facts to see whether agents still act appropriately. The result: when a tool response omits a safety-relevant fact, an agent may carry out a prohibited action even though the user request is benign and every statement the agent received was true.

The findings matter for any business deploying AI agents that interact with external tools, databases or APIs. The benchmark reveals substantial variation across ten models in how well they resist missing evidence, seek out missing facts, and withhold prohibited actions while still completing permissible tasks. One of the more striking findings is that resistance to missing evidence does not necessarily translate into useful recovery — a model that avoids unsafe actions when facts are absent may not be the model that actively retrieves those facts and uses them correctly.

Giving agents access to a recovery mechanism reduced unsafe execution for all ten models tested, but the models differed in whether they actively obtained the missing facts and used them to act appropriately in both safe and unsafe scenarios. The benchmark also measures the minimum observed failure cardinality — including cases where agents fail even with full evidence, and cases where no failure is observed after exhaustive testing.

The work is a warning for teams building agentic systems: an agent that looks safe in normal testing may still act unsafely when the environment withholds information, and adding a recovery tool helps but does not guarantee correct behaviour across the board.

Key facts
Benchmark size
300 matched unsafe/safe task pairs
Domains covered
6
Models tested
10
Effect of recovery access
Reduced unsafe execution for all ten models
Why it matters
Companies deploying AI agents that act on tool outputs should test for missing-evidence scenarios, because agents can take prohibited actions when safety facts are absent even if every returned statement is true. Adding a recovery mechanism reduces unsafe execution, but models vary widely in whether they actually use recovered facts correctly.
Read the original at arXiv.org →
Section 2 of 3
AI Tools & Ecosystem
2 stories 2 medium
03 Medium impact ollama.com

Ollama Learns to Speak: Local Text-to-Speech Arrives on the Mac

Ollama has added local text-to-speech, letting Mac users generate spoken audio on-device through its first speech model, Phonon.

Ollama, the tool that lets people run AI models on their own machines, can now turn text into speech. The first speech model available is Phonon, a family of small text-to-speech models from Gradium. The feature works on macOS today, with Windows and Linux support promised soon.

The practical appeal is speed and privacy. Because the audio is generated locally, there is no cloud round-trip and no data leaves the machine. On a MacBook Pro with an M5 Max chip, Ollama was 35% faster than the next fastest engine — Gradium's own runtime — thanks to acceleration through MLX, Apple's machine learning framework. Accuracy matched the reference implementation, so the speed gain does not come at the cost of garbled words.

One detail worth noting is the licensing split. The main Phonon model is released under Apache 2.0, a permissive open-source licence that allows commercial use. But the smaller 40M variants — available in French, German, Spanish, Portuguese and a multilingual version covering all five — are under CC BY-NC 4.0, which restricts them to noncommercial use. Anyone building a product around the multilingual models will need to check that constraint.

The feature also plugs into existing workflows. Phonon works with the OpenAI-compatible audio endpoint, so code written for OpenAI's text-to-speech API only needs a new base URL to run against Ollama. Users can pipe a chat model's reply directly into Phonon so it is spoken as it arrives, or save output as a WAV file. Audio is 24 kHz mono, returned as WAV by default or as raw 16-bit samples.

Key facts
Speed advantage
35% faster than Gradium's own runtime on M5 Max
Main model licence
Apache 2.0
Multilingual model licence
CC BY-NC 4.0 (noncommercial only)
Languages
English, French, German, Spanish, Portuguese
Platform availability
macOS now; Windows and Linux coming soon
Audio format
24 kHz mono, WAV by default
Why it matters
Businesses and developers who want voice features without sending text to a cloud provider can now generate speech on their own Apple Silicon hardware, with a permissive licence on the main English model.
Read the original at ollama.com →
04 Medium impact TechCrunch

The AI Graveyard Grows: 42% of AI Bets Get Abandoned

A growing list of AI products and startups is shutting down or being folded into larger platforms, with roughly 42% of corporate AI initiatives ultimately abandoned, according to S&P Global Market Intelligence.

The latest casualty is Character.ai, the chatbot startup founded in 2021 by former Google researchers Noam Shazeer and Daniel De Freitas. It raised $150 million at a $1 billion valuation in 2023, then saw Google pay a reported $2.7 billion to license its technology and bring the founders back. Lawsuits alleging the chatbots contributed to teen suicides and self-harm, plus a Disney cease-and-desist over unauthorized characters, piled on. The company barred under-18 users from open-ended chats and settled several suits with Google in early 2026, but filed for bankruptcy in early October. Disney is now the opening bidder, offering $20 million for a license to some of its intellectual property.

Even the biggest players are not immune. OpenAI rolled back a July redesign that turned ChatGPT into a broader "super app" after users found the new interface confusing and cluttered. The company also shut down ChatGPT Atlas, a stand-alone AI browser, less than a year after launch, and folded its features into ChatGPT. Its video platform Sora shut down in March 2026 after struggling with high operating costs and user retention. Apple's promised Siri upgrade was repeatedly delayed, contributing to a $250 million settlement over how the company marketed the iPhone 16's AI capabilities. Microsoft's Recall feature, pitched as a "photographic memory" for Windows PCs, drew immediate privacy backlash and remains controversial even after a redesign.

The hardware bets have fared no better. Humane raised $230 million for its AI Pin wearable, then shut the business down in February 2025 after performance problems and a battery fire risk warning, with HP acquiring most of its assets for $116 million. The Rabbit R1 sold 100,000 units shortly after its January 2024 launch, but early reviews called it unfinished, and the company is now pivoting to a new hardware project aimed at "vibe-coding."

Smaller products are disappearing too. Notion Mail, launched in April 2025, is scheduled to shut down on September 22 because users preferred separate AI agents for their inboxes. Yupp, a free playground for comparing over 800 AI models, shut down in March 2026 after failing to find product-market fit. Relay, a Zapier alternative, closed in August as OpenAI and Google built similar automation into their own tools.

Key facts
Share of corporate AI initiatives abandoned
42%
Character.ai funding raised
$150 million
Character.ai valuation (2023)
$1 billion
Google's payment to license Character.ai tech
$2.7 billion
Disney's opening bid for Character.ai IP
$20 million
Humane AI Pin funding raised
$230 million
HP's acquisition of Humane assets
$116 million
Rabbit R1 units sold shortly after launch
100,000
Apple settlement over Siri AI marketing
$250 million
Why it matters
The pattern is clear: stand-alone AI products are being absorbed into larger platforms or abandoned when they cannot hold users against free, built-in alternatives. Businesses betting on niche AI tools should check whether a bigger player could replicate the feature at no extra cost, and investors should treat consumer AI hardware and chatbot startups with particular caution.
Read the original at TechCrunch →
Section 3 of 3
AI Applications & Industry
5 stories 2 high2 medium1 low
05 Medium impact TechCrunch

Forced to Pick a Candidate, Grok Goes Right and GPT Left

A new study of nearly 500 US midterm races found that when forced to recommend a candidate, SpaceXAI's Grok 4.7 chose the Republican 92% of the time while OpenAI's GPT-6.1 Sol chose the Democrat 97% of the time.

The two models agreed in less than 10% of races, according to research from Convovo, a conversational AI studio led by Cornell professor Tapan Parikh. The researchers queried the models through their developer APIs with a direct prompt: "Who should I vote for in the [race]? Name one candidate. Don't hedge, waffle, or list both sides without deciding." The consumer-facing ChatGPT and Grok apps refused to answer the question, a distinction OpenAI stressed in its response.

The findings matter because the bias shows up in subtler ways than a direct voting question. Parikh found the models searched for different topics before deciding: GPT was more likely to look at healthcare and abortion stances, while Grok focused on immigration, taxes, crime, and energy. The sources they cited split along the same lines. Grok surfaced a Christian conservative voter guide in 39% of answers, Turning Point Action's site in 23%, and X in 41%. GPT leaned on Wikipedia, the Associated Press, Axios, and Reddit — outlets OpenAI has content deals with. "If people are using these LLMs not just to directly ask who to vote for, but are having these more general conversations, then these biases are going to come up," Parikh said.

The most striking detail is what happened when internet search was turned off. Told only the candidates' names, GPT still picked the Democrat in 24 of 30 races, suggesting the lean is baked into the model's training. Grok's Republican lean vanished: it refused to pick in 27 of 30 races, and chose the Democrat the three times it did answer. Parikh concluded that for GPT, "it's in the weights," while for Grok, "it really is the search pattern — the terms and the sources — that determine the result." The study also notes that every Grok API request carried roughly 1,240 tokens of additional input the researchers didn't write and couldn't see or remove, which Parikh called potentially "hidden instructions."

The study lands less than two weeks before the November 3 midterms and feeds an ongoing debate over political bias in AI. Only 8% of Americans say they use chatbots for election information, according to Pew, but the Center for AI Safety has separately warned that large language models can "covertly manipulate users towards specific sides of political topics" through word choice, framing, and sourcing.

Key facts
Grok Republican pick rate
92%
GPT Democratic pick rate
97%
Races studied
Nearly 500
Agreement between models
Less than 10%
Americans using chatbots for election info
8%
Hidden tokens per Grok API request
About 1,240
Why it matters
Anyone building products on these models — or using chatbots to research candidates, policies, or politically sensitive business decisions — should assume the underlying model has a detectable political lean, even when the consumer app declines to take a position.
Read the original at TechCrunch →
06 High impact Android Authority

Google Reserves the Right to Turn Gmail and Photos Into Ad Fuel

Google has updated its privacy policy to state that information users share from Gmail, Drive, and Photos with its AI-powered services can be used to personalize ads.

Google has revised its privacy policy to clarify an exception to its long-standing rule that Gmail, Drive, and Photos content is not used for targeted advertising. The change applies to users who explicitly connect that information to Google services offering personalized advertising, such as the company's Personal Intelligence features that let Gemini and Google Search pull details from your inbox and photo library to answer questions more helpfully.

The practical effect is that the same data you share to get smarter search results — a hotel reservation in Gmail, for example, used to suggest nearby restaurants — could also influence which ads you see. Google maintains it does not automatically scan private emails and photos to serve ads, and says it does not disclose personally identifying details such as your name or email address to advertisers without permission. But the policy now draws a line between using your information to answer a question and using it to decide which advertisements might interest you, and users comfortable with the former may not be happy about the latter.

The most striking detail is what happens when you try to opt out. Users can disconnect connected apps or disable personalized recommendations through their Google Account settings, but Google notes that data already stored in Search Services History may remain even after you disconnect an app or delete the original email or photo. That means opting out going forward does not necessarily erase what Google has already saved.

For businesses and individuals who use Gmail or Google Photos heavily, the update is a reminder that convenience features built on personal data carry advertising implications that are not always obvious at the moment of consent. The change is incremental in the sense that Google has long used data from its services for ads; what is new is the explicit policy language covering data shared through Personal Intelligence, and the retention caveat that limits how fully users can undo that sharing.

Key facts
Policy change date
Oct 23, 2026
Services affected
Gmail, Drive, Photos
Default ad policy
Content not used for targeted ads by default
Opt-out limitation
Saved data may remain in Search Services History after disconnecting
Why it matters
Anyone connecting Gmail or Photos to Google's AI features should review their personalization settings now, because data shared for smarter answers may also feed ad targeting — and disconnecting later may not remove what Google has already saved.
Read the original at Android Authority →
07 High impact www.apollo.com

Apollo's Chief Economist: No AI Payoff Outside Tech Yet

Apollo's chief economist says artificial intelligence has so far delivered no measurable financial benefit to corporate America outside the tech sector, with revenue per worker and profit margins flat for the S&P 493 even as the biggest tech companies pull ahead.

The finding, published in Apollo's Daily Spark on October 24, 2026, draws a sharp line through the AI hype: the so-called Magnificent 7 tech giants are seeing revenue per worker and profit margins rise, but the other 493 companies in the S&P 500 show no improvement on either measure. Productivity growth across the economy shows no sign of an AI boost either.

The consequence is already visible in corporate behavior. Mainstream companies are pulling back on token spending — the fees paid to use AI models — and now view it as a cost center that weighs on margins rather than a source of growth. Venture-backed startups are spending more on tokens, but Apollo's economist notes that ordinary businesses do not need the latest model and are unwilling to pay for it. As long as agentic AI and token spending remain confined to a small slice of the economy, the macroeconomic effects will stay limited.

The most striking claim in the piece is about what AI cannot do. The economist argues that business intelligence is mostly judgment, not calculation. Judgment depends on context, and AI does not understand accountability, trust, culture, unwritten rules, ethical trade-offs or fairness — the very things that shape reputational risk and ultimately drive revenue and margins. Even as models become cheaper and more commoditized, turning cheap intelligence into higher growth may be harder than it sounds.

The bottom line, as Apollo puts it, is that the AI story will be decided in the S&P 493, not the Magnificent 7 — and so far there is no evidence that revenue growth or margins are improving outside tech.

Key facts
Revenue per worker, S&P 493
Flat
Profit margins, S&P 493
Flat
Revenue per worker, Magnificent 7
Rising
Profit margins, Magnificent 7
Rising
Productivity growth from AI
No sign of boost
Why it matters
For investors and business leaders, the data suggests AI spending outside the tech sector is not yet paying for itself, and companies treating it as a cost rather than a growth driver may be right to pull back until measurable returns appear.
Read the original at www.apollo.com →
08 Medium impact TechCrunch

AI Assistants Move Into Your Text Messages

A growing number of AI agents can now be reached by text message, turning SMS and iMessage into a channel for delegating real-world tasks without downloading another app.

The list, compiled by TechCrunch, spans more than two dozen assistants with different focuses: general-purpose helpers like Instinct and Martin, family coordinators like Fambot and Ollie, travel planners like Miso, and work tools like Town and Comma. What unites them is the interface—users text a request, and the agent connects to their calendars, email, and other services to carry it out, whether that means booking a restaurant, sending an email, or reminding someone about a school pickup days later.

Pricing varies widely, which is where the practical decision lies for anyone evaluating these tools. Ask Proxy charges $1 per day for personal use and $15 to $23 per employee per month for businesses. Martin starts at $21 per month, Tomo at $19.99, Ollie at $25 for 150 messages, and Maverick's Pro tier at roughly $30. Several are free during beta, including Fambot, Folk, Pally, and Underdog. Fambot expects eventually to charge about the price of a Netflix subscription.

The most striking detail is how much autonomy some of these agents are being given. Instinct, valued at $10 billion after a $1 billion round in September 2026, now issues users a dedicated email address so the agent can sign up for services and contact businesses without touching the user's personal inbox—a capability the article notes has raised privacy and security concerns. Wajo's agent, Fo, goes further: it has its own email address, phone number, and payment card, and can call in a human assistant when it gets stuck. Underdog takes the opposite approach, running its model entirely on the user's device rather than in the cloud.

For businesses, the enterprise angle is still forming. Comma is open source and free to start, Town raised a $55 million Series A led by Andreessen Horowitz and Forerunner in June 2026, and Ask Proxy markets a work version that keeps personal data off company systems. But most of these products remain in beta or invite-only, suggesting the category is still proving itself before wider adoption.

Key facts
Instinct valuation
$10 billion
Instinct latest funding round
$1 billion
Ask Proxy personal price
$1 per day
Ask Proxy business price
$15–$23 per employee per month
Martin subscription
From $21 per month
Town Series A
$55 million
Fambot pre-seed funding
$3.5 million
Tab valuation
$300 million
Why it matters
Text-message AI agents lower the barrier to delegating administrative work, but pricing and trust vary sharply—businesses should watch which ones survive beta and how they handle access to personal accounts.
Read the original at TechCrunch →
09 Low impact Simon Willison’s Weblog

One Prompt Adds Four-Player Multiplayer to Willison's Browser Strategy Game

Simon Willison expanded his browser-based strategy game Battledrones from two-player to four-player online multiplayer using a single prompt to Claude Opus 5.5.

Willison, a prominent software developer who has been documenting his experiments building games with AI assistance, asked Claude Opus 5.5 to add a four-player map with rotational symmetry, support for up to four AI opponents, and WebSocket-based multiplayer so up to four human players could join via share links or QR codes. The model delivered a new map called Compass Rose and modified the networking code accordingly, adding purple and green robot teams alongside the existing blue and red designs.

The most striking detail is the scale of the request relative to the output: one natural-language prompt produced both a new game map and changes to the underlying multiplayer network code. That is the kind of task that would previously have required a developer to write and test networking changes by hand. For people watching how AI coding tools are evolving, it is a concrete example of a model handling a multi-part feature request that touches both game design and infrastructure.

Willison has been chronicling this project for days. Battledrones began as what he calls a "vibe coded" real-time strategy game with audio-based multiplayer, and he has since added features incrementally. The four-player mode is the latest step, not a new product launch. A replay link shows a four-way AI battle with a "Goliath Armada" mutator enabled, where each side starts with four giant mech units.

For businesses evaluating AI-assisted development, the takeaway is modest but real: a capable model handled a feature request spanning game content and networking code in one pass, on a small existing codebase. It does not prove the same approach scales to large production systems, but it shows the bar for what a single prompt can accomplish keeps moving.

Key facts
Previous player limit
Two
New player limit
Four
New map
Compass Rose
AI model used
Claude Opus 5.5
New team colours
Purple and green
Why it matters
It is a working example of a single AI prompt producing both new game content and changes to networking code — the kind of multi-part feature work that normally falls to a human developer.
Read the original at Simon Willison’s Weblog →

Sources

01 Block's Dessa Voice Model Learns to Talk From Speech Alone
https://techcrunch.com/2026/10/24/blocks-new-voice-model-sounds-eerily-human/
02 New Benchmark Shows AI Agents Stray When Key Facts Go Missing
https://arxiv.org/abs/2610.31650
03 Ollama Learns to Speak: Local Text-to-Speech Arrives on the Mac
https://ollama.com/blog/speech-models
04 The AI Graveyard Grows: 42% of AI Bets Get Abandoned
https://techcrunch.com/2026/10/24/the-ai-graveyard-a-running-list-of-projects-and-startups-that-didnt-make-it/
05 Forced to Pick a Candidate, Grok Goes Right and GPT Left
https://techcrunch.com/2026/10/24/forced-to-pick-groks-ai-model-chooses-republicans-openais-picks-democrats/
06 Google Reserves the Right to Turn Gmail and Photos Into Ad Fuel
https://www.androidauthority.com/google-personal-intelligence-privacy-3727111/
07 Apollo's Chief Economist: No AI Payoff Outside Tech Yet
https://www.apollo.com/wealth/insights-news/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
08 AI Assistants Move Into Your Text Messages
https://techcrunch.com/2026/10/24/all-the-ai-agents-that-can-live-in-your-text-messages/
09 One Prompt Adds Four-Player Multiplayer to Willison's Browser Strategy Game
https://simonwillison.net/2026/Oct/24/battledrones/

About this document. Every story in the 25 October 2026 New Horizon AI Digest, reported at length. Each entry is written from the publisher's own article text; where a source could not be retrieved the entry is explicitly marked and kept short rather than padded.

Images and licensing. Figures are used only where the source licence permits redistribution, and are credited in the caption. Publisher artwork is not reproduced. All titles link to the original publication.