OpenAI, NextDC Plan to Build Large-Scale Sydney Data Center

OpenAI researchers have developed a new method termed 'confessions' that encourages large language models (LLMs) to self-report errors and misbehavior, addressing concerns about AI honesty and transparency. This approach aims to enhance the reliability of AI systems by making them more accountable for their outputs.

OpenAI is facing intensified competition from Google, particularly with the rapid rise of Google's Gemini 3, which has gained 200 million users in just three months. In response, OpenAI CEO Sam Altman has declared a 'code red' for ChatGPT, emphasizing the urgent need for improvements to maintain its market position.

Amazon Web Services (AWS) has launched Kiro powers, a new system designed to enhance AI coding assistants by providing them with specialized knowledge on demand, rather than loading all capabilities at once. This innovation was announced at the re:Invent conference in Las Vegas and aims to address inefficiencies in current AI coding tools.

The rapid expansion of datacentres in Australia, particularly in Sydney and Melbourne, is raising concerns about their significant impact on the country's drinking water supply. Experts predict that the water demand for cooling these facilities in Sydney alone could surpass the total drinking water volume of Canberra within the next decade.

OpenAI has been ordered to provide ChatGPT data as part of a new court ruling, raising concerns about user privacy and the handling of AI-generated conversations. This ruling could set a significant precedent for how data from AI interactions is managed and disclosed in legal contexts.

Anthropic and OpenAI have recently showcased their respective AI models, Claude Opus 4.5 and GPT-5, highlighting their distinct approaches to security validation through system cards and red-team exercises. Anthropic's extensive 153-page system card contrasts with OpenAI's 60-page version, revealing differing methodologies in assessing AI robustness and security metrics.

Sam Altman, CEO of OpenAI, has explored potential deals to either acquire or partner with a rocket company, aiming to establish a competitor to Elon Musk's SpaceX. This move reflects Altman's ambition to expand OpenAI's influence beyond artificial intelligence into the aerospace sector.

OpenAI is reportedly accelerating the development of a new model, codenamed 'Garlic', aimed at addressing significant flaws in its ChatGPT product. This initiative comes in response to increasing competition, particularly from Google's Gemini, which has rapidly gained a substantial user base since its launch.