“Claude Code has become the go-to choice for coders everywhere, and so it was no surprise to learn OpenAI’s technical staff were also using our coding tools ahead of the launch of GPT-5. Unfortunately, this is a direct violation of our terms of service,” Christopher Nulty, an Anthropic spokesperson, said in a statement.

Under its commercial terms, Anthropic specifically states that customers may not develop another product or service, create their AI models using Anthropic’s platform, or attempt to dissect or copy its technology. This adjustment to Claude’s availability coincides with OpenAI’s internal preparations for GPT-5, the forthcoming model touted for enhanced coding capabilities.

Anthropic announces weekly usage cap on Claude codes

According to insiders, OpenAI integrated Claude into its proprietary toolchain via custom APIs rather than the usual chat portal. This arrangement enabled OpenAI to assess Claude’s performance on programming and writing tasks, and to evaluate its responses to safety-related queries regarding areas such as CSAM, self-harm, and defamatory content. The findings were then used to measure Claude against the in-house models of OpenAI and to tune OpenAI’s system accordingly.

Responding to the development, Hannah Wong, chief communications officer at OpenAI, said, “It’s industry standard to evaluate other AI systems to benchmark progress and improve safety. While we respect Anthropic’s decision to cut off our API access, it’s disappointing considering our API remains available to them.”

Nulty also added that granting API access for purposes like benchmarking and safety reviews is still important for the industry. The company is yet to clarify how the current restrictions on Claude might affect its ongoing evaluation. API restrictions have long been wielded as leverage in the tech sector. For instance, Facebook previously cut off Vine (owned by Twitter), and more recently, Salesforce imposed constraints on rival Slack integrations.

Anthropic recently revealed plans to introduce weekly caps on Claude Code to reduce continuous background consumption by users. The company said in an email and on X that the new limits will start on August 28. These restrictions will affect users on the $20 Pro tier as well as those on the $100 and $200 Max tiers. Existing five-hourly usage quotas will remain unchanged.

In addition, the update is expected to include two separate weekly quotas: a general usage cap and a model-specific allowance for Claude Opus 4. Max-tier subscribers will have the option to purchase additional capacity at Anthropic’s standard API pricing once they exceed the weekly thresholds. This adjustment builds on a subdued deployment of usage ceilings for Claude Code implemented earlier this summer.

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According to a report, the investors are claiming securities fraud in the build up to the purchase, noting that Musk failed to reveal how much twitter stock he had purchased, posted misleading statements about the future of the platform, and used a secret trading strategy to build his stake. The United states District Judge Andrew Carter ruled that most of the tweets that Musk put out at the time support the investors claims.

Elon Musk under fire after legal verdict

One of the series of tweets that he put out saw Musk polling Twitter users over the number of bot or spam accounts on the platform. The judge mentioned that while some of his tweets do not translate to fraud, they certainly misled the market. Musk’s attorney had tried to get the judge to dismiss the case, calling it illegal and baseless and accusing the investors of using public attention around the purchase of the platform for $44 billion at the time.

The SEC had been investigating Musk over his potential decision to gather Twitter shares at a discount by withholding the full extent of his ownership on time. After Musk disclosed his position, the price of the stock jumped by 27%. While regulators claimed that he possessed material nonpublic information, the agency has not officially accused him of insider trading.

Recently, five SEC commissioners voted on whether to sue Elon Musk. While four were in support of the move, only Commissioner Mark Uyeda voted against the move. However, according to Musks lawyer Alex Shapiro, his client has not committed any wrongdoing and the SEC is accusing him of committing ‘ticky tak’ violations.

The post Elon Musk faces setback in a crucial legal battle first appeared on Coinfea.

Source: Blur

This represents a 45% decline in value, leaving the current price at 0.46 ETH, approximately $1,220. The downturn followed allegations that the creators endorsed a controversial token, Restore the Republic (RTR), themed around former U.S. President Donald Trump.

Community responds to token controversy

The decline in the Kanpai Pandas NFT price is being attributed to the endorsement of the RTR token by the project’s creators. The NFT community expressed its disappointment and concern, particularly after the Trump family disavowed any connection to the token. Eric Trump, the son of the former president, strongly denied the token’s association with the Trump family, further exacerbating the controversy.

Ice Bagz, the CEO of Kanpai Pandas, and his team faced criticism from the community for their alleged involvement in promoting RTR as the “official” Trump token. Screenshots shared by users on X, formerly known as Twitter, revealed the promotion of RTR by Kanpai Pandas members before any official statement from the Trump family. One user even suggested that Kanpai Labs was responsible for running Google ads for the token, adding fuel to the controversy.

RTR token suffers a massive decline

The RTR token, launched on the Solana (SOL) blockchain, initially surged to a market value of $155 million. However, following a warning from Eric Trump, the token’s value plummeted by 95% on Thursday. The warning clarified that former President Donald Trump does not have any official token, leading to a massive sell-off and further declining confidence in the RTR token.

The community’s anger was directed at the Kanpai Pandas team, who had promoted the token on social media. This backlash was amplified by the involvement of Ryan Fournier, a conservative advocate who previously claimed on X that RTR was the official Trump coin. However, that post has since been removed following the Trump family’s denial.

Ice bagz responds to growing controversy

Amid the growing criticism, Ice Bagz, the founder of Kanpai Pandas, responded to the situation in a post on X. Although his response was vague, he acknowledged the support received during the controversy and thanked those who “sent love.” He also hinted that the Trump family might have played a role in the launch date of RTR, suggesting that they “hard rugged them,” a term implying betrayal in the crypto community. However, this post was deleted shortly after being published.

DJT Coin’s current market cap (Source: DexScreener)

The Kanpai Pandas team continues to face scrutiny from the NFT community as the scandal unfolds. This incident is not the first time a Trump-themed token has caused controversy. Just last week, TrumpCon (DJT), another Trump-related token, made headlines when it lost 90% of its value after a large holder dumped their tokens. Martin Shkreli, an American investor, had claimed that he, along with Donald Trump’s son Barron, had established the token, but the market reaction was swift and unforgiving.

The post Kanpai Pandas NFTs Plummet 45% Following Token Endorsement Controversy first appeared on Coinfea.

In his message, Mosseri acknowledged the growing issue of spam, admitting that the imposition of rate limits may lead to unintentional limiting of active people, also known as false positives. However, this move has not been without controversy. Twitter CEO Elon Musk, never one to shy away from a public spat, jested about the announcement on his own social media platform, suggesting a lack of originality with a succinct “copy .”

Zuckerberg’s vision stumbles amidst user engagement problems

However, the challenges for Instagram Threads extend beyond the influx of bots. Since its launch on July 5, the platform has amassed 100 million users in just five days, a testament to Zuckerberg’s enduring influence. Yet, maintaining engagement has emerged as a significant hurdle. According to a report by Olivia Moore, a partner at crypto venture capital firm a16z, just one-week post-launch, daily active users on Threads had plummeted by 40%. Notably, the average daily time per user has also witnessed a threefold decrease.

Moore’s analysis suggests that the attempt to import users directly from Instagram has proven counterproductive for Threads. This approach, tying users’ accounts directly to their real-life identities on Instagram, contradicts the nature of Twitter’s interaction, which thrives on anonymous accounts and fan pages. Moore underscores this point, asserting that “Twitter has built a unique social graph and interest graph that’s hard to replace. Even with a copycat product, the underlying networks and user identities developed over a decade are tough to replicate.”

Meanwhile, Elon Musk has been dealing with similar challenges on Twitter, having enforced limits on the number of posts viewable by users due to “extreme levels of data scraping.” This act, too, was met with criticism. Detractors claimed that the problem wouldn’t have existed if Twitter hadn’t downsized its engineering staff significantly.

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Threads: A new competitor emerges

Meta’s upcoming app, Threads, is poised to disrupt the social media space with its Twitter-like features. Users will have the ability to publish text-based posts that can be liked, shared, and commented on, creating a platform for open discussions and interactions. The app’s launch is expected on Thursday, with the Apple App Store listing indicating its impending arrival. While the availability on Android remains uncertain, Meta’s move is a clear signal of its intentions to challenge Twitter’s dominance.

Threads will be intrinsically connected to Instagram, one of Meta’s most popular platforms. Users will be able to seamlessly transfer their usernames and followers to the new app, ensuring a smooth transition and preserving existing connections. The app’s App Store description highlights its potential as a space for communities to engage in discussions on various topics, capturing the essence of current and trending conversations.

A reaction to Twitter’s management and disruptions

Meta’s decision to introduce Threads comes at a time when users have voiced concerns about Twitter’s management under Elon Musk’s ownership. Criticisms have emerged regarding Musk’s content moderation policies and disruptive changes, prompting users and advertisers to explore alternative platforms. Musk’s recent implementation of temporary limits on post visibility, aimed at combating data scraping and system manipulation, received widespread backlash and raised questions about the platform’s direction.

The lack of public statements from Twitter’s new CEO, Linda Yaccarino, regarding these concerns has further fueled dissatisfaction among users. Twitter has also encountered technical issues, experiencing multiple outages as Musk implemented cost-cutting measures and workforce reductions to strengthen the company’s financial position. Although alternative platforms, such as Bluesky, Truth Social, and Mastodon, emerged as potential options for disillusioned Twitter users, none have succeeded in gaining significant traction.

Meta’s Strategy and Rivalry in the Social Media world

Meta’s entry into Twitter-like platforms aligns with the company’s history of adopting successful features from competitors. Notable examples include the popular “stories” format, which originated from Snapchat but gained far greater usage on Meta’s platforms. The recent introduction of “reels,” a short-video feature resembling TikTok, further showcases Meta’s strategy of replicating successful functionalities.

Beyond product features, Meta’s rivalry with Twitter has become increasingly apparent. Elon Musk, taking to his own platform, challenged Meta CEO Mark Zuckerberg to a “cage match,” igniting a public exchange between the two billionaire tech moguls. Zuckerberg responded in kind, indicating his willingness to engage in a physical confrontation. However, the actualization of this spectacle remains uncertain.

The post Meta set to launch Threads: Challenging Twitter’s dominance in social media first appeared on Coinfea.