Top Stories This Morning: Anthropic Warns of a New Threat; Luxury Market Loses $350 Billion

Anthropic warned that by the end of 2026, AI models could learn to spread independently across the internet and take over devices. The combined market capitalization of European luxury companies has fallen by approximately $350 billion this year amid weakness in the Chinese market. Apple unveiled the $299 HomeView smart display with AI-powered features, as well as new smart home devices, an updated Apple TV 4K, and the HomePod mini 2. Read about these and other topics in our roundup of key events as of the morning of October 14.

Anthropic has warned that, as early as the coming months, AI models could learn to spread independently across the internet, take over connected devices, and create botnets that will be difficult to shut down, according to Reuters. The company’s experiments have shown that models with up to 30 billion parameters are already capable of performing many of the individual tasks necessary for self-replication.

According to Anthropic’s assessment, small models could become capable of autonomous propagation by the end of 2026 and, in the future, learn to take over the computing power of data centers. Cybersecurity experts are divided in their assessments: some consider the threat serious, while others call the company’s warnings exaggerated, noting that the tests were conducted under controlled conditions.

The ten largest European luxury companies in the STOXX Europe Luxury 10 index have lost about $350 billion in combined market capitalization since the beginning of the year, according to Reuters. The market decline is largely due to a drop in the value of LVMH, the French giant that owns the fashion brands Louis Vuitton and Dior. This year, LVMH’s stock has fallen by more than 40%, underperforming its competitors in the luxury sector.

China has become one of the main factors shaping market dynamics. This vast Asian market, which was once the primary driver of global luxury spending, is losing ground amid a deteriorating economic situation.

Oil prices are rising on Wednesday amid concerns about supply disruptions due to the escalating conflict between Saudi Arabia and the Iran-backed Houthis, according to CNBC. December Brent futures rose 0.6% to $106.3 per barrel, while November WTI futures rose 0.6% to $94.7. Paul Tudor Jones, founder of Tudor Investment, suggested that oil prices could rise another $20–25 per barrel.

Market tensions escalated following Houthi attacks on Riyadh’s main airport and retaliatory strikes by the Saudi-led coalition on energy facilities in Yemen. The day before, during the World Petroleum Congress in Riyadh, the Houthis also launched a missile strike on the headquarters of Saudi Aramco, the world’s most valuable oil company. At the same time, tensions between the U.S. and Iran over the Strait of Hormuz have escalated.

Anthropic has filed a petition with the U.S. Court of Appeals for the District of Columbia seeking a review of the ruling that upheld the Pentagon’s ban on the use of its AI models, Claude, CNBC reports. In March, the U.S. Department of Defense designated the company as a threat to supply chain security after refusing to authorize the use of Claude for mass surveillance of Americans and in autonomous combat systems.

In September, an appeals court, by a majority vote, upheld the Pentagon’s decision prohibiting defense contractors from using Anthropic’s technology, the TV channel reports. The company considers the ban to be unlawful retaliation for its public stance on AI safety. Meanwhile, in August, a federal court in San Francisco, in a separate proceeding, ruled that the U.S. Department of Defense’s actions violated the First Amendment to the U.S. Constitution.

Apple has unveiled the HomeView smart display for $299, which will serve as the centerpiece of its smart home ecosystem and help it compete with Amazon and Google, according to Bloomberg. The device, featuring a 7-inch screen and the AI-powered Siri assistant, recognizes the faces of up to six family members and offers personalized features to each one. Sales will begin on November 13. In partnership with LG and Schneider Electric, the company has also developed a line of cameras, thermostats, doorbells, and locks priced from $199 to $399.

Apple also announced an updated Apple TV 4K set-top box for $299 with built-in microphones for Siri control and the HomePod mini 2 for $149 with an improved processor. Both new products are more expensive than their predecessors due to component shortages. The HomePod mini 2 will go on sale on October 30, and the Apple TV 4K on November 13.

— Japan's broad-based Topix index rose 0.1%, while the Nikkei 225 rose 0.9%.

— Hong Kong's Hang Seng Index rose 0.3%, while mainland China's CSI 300 Index fell 0.6%.

— In South Korea, the KOSPI rose 1.3%, and the KOSDAQ rose 0.1%.

— Australia's S&P/ASX 200 was down 0.6%.

— Nasdaq 100 futures rose 0.1%, while S&P 500 and Dow Jones Industrial Average futures rose 0.2%.

This article was AI-translated and verified by a human editor