AI advancements and challenges dominated the tech news cycle this week, with developments ranging from soaring valuations for AI video platforms to concerns about data privacy and the integration of biased content into AI models.

Synthesia, a British startup specializing in AI-generated video training platforms, secured a $200 million Series E funding round, pushing its valuation to $4 billion, according to TechCrunch. The funding round, led by existing investor GV (Google Ventures), nearly doubled the company's valuation from $2.1 billion just a year prior. Synthesia's success is attributed to its profitable business model, transforming corporate training with AI avatars and boasting enterprise clients like Bosch, Merck, and SAP. The company reached $100 million in annual recurring revenue (ARR) in April 2025.

Meanwhile, concerns arose regarding the potential for biased information to infiltrate AI models. TechCrunch reported that information from Grokipedia, a conservative-leaning, AI-generated encyclopedia developed by Elon Musk's xAI, is appearing in answers from ChatGPT. Grokipedia, launched in October after Musk criticized Wikipedia for alleged bias, has been found to contain articles with problematic content, including ideological justifications for slavery and denigrating terms for transgender people, according to The Guardian.

In other AI news, Humans, a startup founded by alumni of Anthropic, Meta, OpenAI, xAI, and Google DeepMind, raised a $480 million seed round to develop AI models focused on coordination and collaboration, TechCrunch reported. The company aims to build a "central nervous system for the human-plus-AI economy," addressing the current limitations of AI chatbots in managing complex team dynamics and long-term decision-making.

Researchers at the University of Montreal conducted a study comparing AI against 100,000 humans on creativity, Science Daily reported. The study found that generative AI, including models like GPT-4, can outperform the average human on certain creativity tests. However, the most creative humans, particularly those in the top 10%, still surpass AI in richer creative work like poetry and storytelling.

Developments also included advancements in AI tools like Anthropic's Claude Code and OpenAI's ChatGPT Health, as reported by multiple sources including TechCrunch, VentureBeat, Ars Technica, and NYT Technology. However, these advancements were accompanied by ongoing debates over AI safety and data privacy, particularly concerning platforms like TikTok.

The week also saw the failure of Farcaster, a blockchain-based social media network, raising questions about the utility of blockchain technology beyond finance, according to Fortune. Farcaster, co-founded by early Coinbase employee Dan Romero, aimed to create a decentralized alternative to platforms like Facebook. Despite raising a $150 million Series A round in 2024 and achieving a $1 billion valuation, the project failed to attract a significant audience and ultimately shut down.

Separately, Sunny Sethi, founder of HEN Technologies, is developing fire nozzles that put out fires up to three times faster than earlier products while conserving two-thirds of the water, according to TechCrunch.