FTI Consulting News Bytes – 24 October 2025

FTI Consulting News Bytes

This week’s edition explores the latest developments in AI, as Reddit has filed a lawsuit accusing AI startup Perplexity of illegally scraping user posts to train its search engine. We then look at how Netflix, despite the growing public concern over the use of AI in media industry, is betting its future on this technology. Next, we turn to Airbnb’s second and final product launch of the year, which will see the short-term let booking site become more social than ever before, but continue to shy away from AI. We then discuss the US government’s plan to take equity stakes in quantum computing firms, alongside Google’s new quantum breakthrough. Finally, we draw your attention to a statement signed by hundreds of public figures calling for a ban on superintelligent AI development. 

This week’s news

Reddit sues Perplexity over data use

Reuters, CNBC and other media reported this week that Reddit has filed a federal lawsuit against AI startup Perplexity and three other companies – Oxylabs, AWMProxy, and SerpApi – accusing them of illegally scraping user posts to train Perplexity’s AI-powered search engine. The complaint alleges that the defendants circumvented Reddit’s data protections, disguising their scrapers as normal users to harvest data Reddit claims is protected and copyrighted. Ben Lee, chief legal officer at Reddit, said Reddit was “a prime target because it’s one of the largest and most dynamic collections of human conversation ever created”.  Perplexity denies wrongdoing, saying it only summarises public Reddit content and calling the lawsuit an “extortion” tactic. The case could set a key precedent for how “public” online content can be used in the age of generative AI – and whether community-driven platforms can truly claim ownership of the conversations.

Netflix’s bet on AI

Despite Netflix’s shares dropping as a Brazil tax dispute hit its profits, CNBC reports that the company is going “all in” on generative AI. Netflix plans to expand AI’s role across its platform –  from refining content recommendations and ad targeting to accelerating aspects of content production. Co-CEO Ted Sarandos emphasised that AI is meant to augment rather than replace human creativity, citing examples like character de-aging in Happy Gilmore 2 as proof-of-concept. Netflix’s bold push signals how AI is becoming central to the streaming wars – not just at the edges but increasingly in the creative core. Many in the entertainment industry remain sceptical of AI and its growing presence in media. Whether Netflix can strike the right balance will define its edge in the next era of streaming.

Airbnb snubs ChatGPT integration

Airbnb this week unveiled its latest product update, bringing us a refreshed app making it easier than ever before for travellers to discover new places and book with confidence. As the platform continues to propel into the future with its latest Experiences feature seeing the application turn into a form of social media with its new update allowing guests to see who else is going on an Experience and build a connection ahead of time, Bloomberg reports that one form of innovation the travel giant continues to shy away from is the integration of OpenAI tools. Airbnb CEO, Brian Chesky said Airbnb is yet to integrate with ChatGPT because its connective tools aren’t “quite ready” yet. Despite being close pal with OpenAI’s Sam Altman, Chesky will continue to bide his time until the company builds “a platform so robust that Airbnb’s app can work within the ChatGPT chatbot in an almost self-contained manner”.

Quantum stakes rise

The US government’s move to take equity stakes in leading quantum computing firms like IonQ, Rigetti, and D-Wave marks a new phase of industrial policy – one that treats emerging technologies such as quantum computing as strategic national assets. The Wall Street Journal reports that the initiative, led by the Commerce Department under the Trump administration, echoes earlier deals that gave Washington ownership stakes in Intel and other critical materials producers, signalling a willingness to blend public investment with private innovation to secure tech leadership. This comes as Google announces a major scientific leap of its own, claiming its new Quantum Echoes algorithm can run 13,000 times faster than classical supercomputers and could revolutionise drug discovery and materials science, as reported by the Financial Times. Together, these developments suggest that quantum computing is moving from speculative science toward tangible capability, prompting both governments and corporations to position themselves for dominance in a technology likely to define the next wave of economic and geopolitical power.

Global call to ban superintelligent AI 

According to the Financial Times, more than 800 public figures – including Steve Bannon, Meghan Markle, Stephen Fry, AI pioneers Geoffrey Hinton and Yoshua Bengio, Apple co-founder Steve Wozniak and Virgin co-founder Sir Richard Branson – have signed a statement calling for a global prohibition on developing “superintelligence”, or AI systems more intelligent than humans. Published by the Future of Life Institute (FLI), the open letter argues that development should be banned until there is broad scientific and public consensus that such systems can be created safely. The signatories span politics, tech, business, and religion, reflecting growing cross-sector concern about loss of human control and national security risks. This underscores a widening gap between rapid AI innovation and public trust in its safety. While some see the ban as a necessary safeguard against existential threats, others may view it as an impractical constraint on progress – especially as global competition for AI leadership intensifies among major tech players and nations.

Top Tweets of the Week

• Sam Altman , OpenAI CEO: Our new AI-first web browser, ChatGPT Atlas, is here for macOS. Please send feedback! Availability on other platforms to follow.
• Department for Science, Innovation and Technology: We’re strengthening the #OnlineSafetyAct to make the digital world safer. New regulations will bring tougher protections against cyberflashing and content that encourages self-harm. A Statutory Instrument has been laid in Parliament to bring about these changes.
• Dexerto: The AWS outage affected $2,000 smart sleep beds, with some Sleep8 customers left stuck in an inclined position or with overheating mattresses.

Number of the week

$10bn The amount venture capital firm Andreessen Horowitz is seeking to raise to invest in the AI and defence industries.