EP 630: OpenAI brings Apps and Agents to ChatGPT, Google drops Gemini Enterprise, is the AI bubble here and more 

AI Developments That Directly Impact Business Strategy: Key Takeaways from Recent Industry Announcements

Unprecedented changes are underway in the AI space, with OpenAI and Google introducing exact new platform features, funding structures, and enterprise tools that promise to reshape how organizations operate. This article distills specifics from the latest everyday AI update, pinpointing what matters for leaders charting technology strategy and company growth.

Apps and Agents in ChatGPT: Redefining Workflow Integration

OpenAI has introduced real-time app integration within ChatGPT, allowing users—including those on free accounts—to connect with mainstream platforms such as Spotify, Zillow, Canva, and Figma (Transcript: 00:03:50). Notably, this integration does not require coding and leverages the ongoing AI conversation context to dynamically build and iterate resources—for instance, designing a pitch deck in Canva based on user input.

This move positions ChatGPT not just as a chatbot, but a potential AI operating system. The practical impact for businesses: the ability to interact directly with most third-party websites and tools via natural language, effectively automating tasks that previously had to be handled manually. Expect competitors like Microsoft, Google, and Anthropic to respond with similar capabilities, potentially mandating a review of how day-to-day work is structured.


Google Takes Direct Aim at Enterprise AI with Gemini Platform

Google has launched Gemini Enterprise and Gemini Business, priced at $30 per user monthly (half the cost of ChatGPT Enterprise and aligned with Microsoft Copilot 365), as disclosed at their Gemini at Work event (Transcript: 00:07:47). The solution consolidates a no-code agent builder, enterprise search, and governance—aiming for a “one front door” experience to overcome previous fragmentation.

Crucially, Gemini Enterprise offers deep grounding; responses are based strictly on internal company data, reducing errors and enhancing the reliability of sensitive business tasks. Available connectors include Salesforce, Jira, Confluence, and select Microsoft 365 apps, enabling comprehensive workflows that mix Google and Microsoft environments. For business leaders, Gemini's architecture signals a significant shift in how cross-platform data and processes can be unified under an AI-first strategy.


Circular Funding and the AI Market Bubble: Financial Engineering Under Scrutiny

A surge in unconventional funding models is complicating the AI investment landscape. XAI, Elon Musk’s AI venture, is reportedly structuring a $20B round blending equity and debt—with NVIDIA investing both as a provider and funder, and hardware acting as collateral (Transcript: 00:11:36). OpenAI, similarly, has signed a $100B data center agreement and a substantial arrangement with AMD, where OpenAI may also become a major AMD shareholder.

Industry analysts are warning of a possible AI bubble, noting that 80% of U.S. market gains in 2024 are tied to AI companies (Transcript: 00:23:41). Concerns revolve around circular financing: vendors investing in their own customers, potential overvaluation, and the lack of posted profits (OpenAI remains unprofitable despite soaring valuation, last at $500B). This should prompt close scrutiny of AI deployments, capital investments, and market signals, particularly when selecting long-term technology partners.


Developer Platforms Undergo Rapid Change: GitHub’s Reinvention

Microsoft is revamping GitHub, aiming to decouple its AI coding tool (Copilot) from a single app and make it ubiquitous wherever developers work (Transcript: 00:14:02). This follows notable market share losses to tools like Cursor and Anthropic’s Claude Code. Planned upgrades include better automation, analytics, security, and compliance for local regulations. Furthermore, Microsoft is contemplating adding AI usage as a KPI for internal employee evaluations.

This evolution reflects the need for developer tools that are flexible, integrated, and directly linked to business outcomes. Leaders should expect increased competitive pressure, greater developer productivity, and potentially, new metrics to measure the impact of AI within engineering teams.


OpenAI’s Expanded Developer Suite: API and Agent Innovations

OpenAI’s latest API releases feature GPT-5 Pro for domains requiring detailed reasoning and larger context windows, alongside Sora-2 (advanced video/audio generation) and a real-time mini model for dynamic voice apps (Transcript: 00:16:34). Businesses using SaaS platforms can anticipate new features—from in-app video generation to enhanced chat agents—as these APIs trickle down into commercial products.

Additionally, Agent Kit now allows enterprises and even non-technical teams to spin up drag-and-drop AI workflows and embed chat-based agents into sites or apps (Transcript: 00:29:30). While current capabilities lean toward workflow automation rather than true autonomous agents, safety layers (guardrails) are included to curb data leaks, jailbreaks, and misbehaviors—a nod to enduring security concerns.


Tiny AI Models Signal a New Wave of Edge Computing

Samsung’s Montreal Lab unveiled a “Tiny Recursion Model” with just 7M parameters, outperforming far larger competitors on select benchmark tasks (Transcript: 00:20:22). This innovation makes it feasible to deploy powerful AI locally on legacy devices, smartphones, or resource-constrained infrastructure without high-end GPUs. As edge AI grows, expect domain-specific, small-footprint models to enable just-in-time, context-driven capabilities in diverse environments.


Key Risks: Security and Existential Concerns

Prominent voices, including Google’s former CEO Eric Schmidt, highlight the risk of AI models being reverse-engineered for malicious purposes, despite corporate efforts at safety (Transcript: 00:28:41). While benefits may outweigh risks, growing consensus points to AI as an existential concern, reinforcing the need for robust internal AI governance frameworks.


Summary: Implications and Next Steps for business Leaders

  • The accelerating rollout of app integrations and agent builders signals a fundamental shift in IT architecture: leadership should re-examine workflow automation, cross-platform integration, and security.
  • Funding structures demand careful due diligence to separate genuine technology value from synthetic market signals.
  • The emergence of tiny, high-performance models opens fresh opportunities for edge computing, enabling AI on older devices and in new use cases.
  • As developer platforms transform, tracking the breadth and efficiency of tools is increasingly strategic.
  • Security, grounding, and internal data governance must remain a top priority given the pace and scope of change.

For business owners and decision-makers, the present phase of AI is marked by specificity and consolidation—not broad generalities. The latest product releases, investment moves, and developer tools outlined above need to be closely mapped against organizational strategy, workforce planning, and investment horizon. The AI landscape is rapidly redefining its own boundaries, and those at the helm must stay acutely aware of the details.

For ongoing, pinpoint AI updates tailored to executive needs, consider monitoring trusted sources that decode the news beyond headlines and provide direct, actionable insights.


Topics Covered in This Episode:

  1. OpenAI Brings Apps Integration to ChatGPT
  2. ChatGPT Launches No-Code Agent Builder
  3. Google Unveils Gemini Enterprise Platform
  4. Gemini Business vs. Personal Feature Differences
  5. OpenAI Updates Developer API: GPT-5 Pro, Sora-2
  6. Microsoft Revamps GitHub for AI Coding Tools
  7. Samsung Releases Tiny Recursion Model Breakthrough
  8. XAI Secures $20B Funding With NVIDIA
  9. AI Investment Bubble and Circular Funding Concerns
  10. OpenAI, NVIDIA, AMD Mega Data Center Deals
  11. Eric Schmidt Warns of AI Security Threats
  12. Agent Kit Delivers Low-Code AI Agent Creation


Keywords:

OpenAI apps, ChatGPT agents, no-code AI workflows, agents in ChatGPT, Google Gemini Enterprise, Gemini Business, large language models, AI operating system, enterprise workplace AI, Microsoft Copilot, Gemini 2.5 Pro, no-code agent builder, enterprise search, AI governance, grounding in AI, company data in AI, Salesforce AI integration, Jira AI connector, Confluence integration, Microsoft 365 AI, Gemini for business, XAI funding, Elon Musk AI startup, NVIDIA AI chips, Colossus II data center, AI infrastructure, circular funding, vendor financing, AMD AI chips, GitHub AI coding tools, GitHub Copilot, AI coding competition, Cursor AI, Claude Code, OpenAI Codex, Lovable Bolt, Sora 2 video model, multimedia AI API, GPT-5 Pro, voice interaction AI, real-time AI audio, tiny recursion model, Samsung AI, on-device AI, ARC AGI benchmark, edge AI, agent kit, connector registry, multi-agent workflows, chat-based agents, chat kit, agent builder, open source safety layer, AI guardrails, AI bubbles, overvaluation risks, market bubble, AI in finance, AI law, AI healthcare, political bias in AI, nano banana image editing, Google's AI mode, AI browser, Mac AI browser, Reflection AI, IBM Project Bob, AI hallucinations, data leaks, AI startup funding, AI predictions


Podcast Transcript


Jordan Wilson [00:00:17]:
OpenAI is bringing apps and agents to ChatGPT without the need to code. Google Gemini kinda had a shocking surprise with their announcement of Google Gemini for enterprise, which I think is a huge step forward. And is there an AI bubble, and is it going to pop? Yeah. There's a lot of new updates happening in hot take topics circling the AI news world this week. If you missed any of it, don't worry. We're gonna cut it to you straight this week with the AI news that matters. What's going on y'all? My name is Jordan Wilson, and welcome to Everyday AI. This is your daily livestream podcast and free daily newsletter helping everyday business leaders like you and me not just keep up with what's happening in the world of AI, but how we can make sense of it and actually use all this decision to make the right choice to grow our companies and our careers.

Jordan Wilson [00:01:15]:
If that's what you're trying to do, awesome. Maybe it's your first time listening, welcome. It starts here with the unedited, unscripted livestream podcast, but if you wanna take it to the next level, that's what our website is for, youreverydayai.com. Go sign up for the free daily newsletter each and every day. We both recap the highlights from that day's livestream podcast as well as bring you all of that day's AI news. And, hey, also on our website, there's, like, 630 now, podcasts you can go watch, view, listen to, and learn from the world's leading experts all for free. Also, in our newsletter today and in the Spotify poll, so Spotify users, go scroll down in your show notes, and check out the poll for today. I work for you.

Jordan Wilson [00:02:00]:
On Tuesdays, we do hot take Tuesdays. Mondays, we bring you the AI news that matters. So go vote for our hot take Tuesday episode for tomorrow's show. On Wednesdays, we do AI at work on Wednesdays. Thursday and Friday, for the most part, bringing you, interviews with those leading experts. But let's get into it. There was a ton happening in the world of AI news this week. Good morning to the live stream.

Jordan Wilson [00:02:22]:
Joining us, Brian, from Minnesota. Larry joining us from NYC. I was actually in NYC, last week. Secret project. I'll let you guys know, what was going on. Everyone else joining on the YouTube machine. Jay joining from, West Virginia. Big bogey face.

Jordan Wilson [00:02:39]:
Everyone else, Dino joining from Italy. Thanks for tuning in. Alright. First, let's start with this one. Apps. Alright? OpenAI is bringing apps. So in the same way, think of your phone. I want you to think of your phone and chat GPT the same for a minute.

Jordan Wilson [00:02:58]:
Do you remember your phone before there were apps, smartphones at least? Yeah. I kinda do. And they weren't super, helpful in terms of at least what you could do for your day to day personal and business lives. Well, now and pretty soon, we're gonna be living in a world where there's ChatGPT t apps. So let's go over this new piece of AI news. So Open AI at their dev day conference launched their new apps integration feature, letting users, interact with apps such as Spotify, Zillow, Canva, Figma, and more in real time. So very limited rollout of what apps are available, but OpenAI is opening this up to third party developers, and they said there's gonna be a lot more apps rolling out in the future. So, essentially, you can use ChatGPT to interact, with these apps in real time.

Jordan Wilson [00:03:50]:
So the new capability right now is available to all logged in at ChatGPT users outside of the EU, including both free and paid accounts. So I've looked in I think right now I'm using eight or nine different accounts. It's rolled out to about five or six of them, right now. So if you haven't seen it yet, it's adding the same way that you would previously add connectors. So now it might be called sources depending on what tier plan you're on. But essentially, you can add these apps. So let me just tell you real quick what this means. So, let's talk about Canva because I think that's an interesting one and this kind of explains what's new.

Jordan Wilson [00:04:27]:
So previously, Canva had had a GPT. Canva had an official connector, but essentially, these couldn't, iterate and interact with the actual app in the, in the interface of chat g p t. So now you can. You can actually not just create designs in Canva in the body of Chad GPT, but the real power here is it can use the context and understand the context of your current conversation to build, you know, maybe a pitch deck. That was one of the demos that OpenAI did. So you can work with other modes of ChatGPT, then call on, in this instance, the Canva app and build, anything you want and iterate on it as well just with natural language. So I do think the future, this is going to be huge, a huge step in, ChatGPT going from an AI chatbot to what I've been saying for years. Large language models are trying to be your AI operating system.

Jordan Wilson [00:05:24]:
So, think of, you know, maybe in six months or a year when the most of the websites that you use on a daily basis because this is opened up to third party developers. When most of those websites, you can interact with them, interact with the graphical interface, you you know, I think it's really gonna change how we work, and that's not an exaggeration. And I do feel that the other big players, including, Microsoft, Google, and Anthropic are going to have to follow suits because these apps and the limited ones that I use change how you work. They really do. You know, so another easy example, right, the the Zillow app. You can interact with the Zillow app in natural language. Say, hey. I'm you know, I live in Chicago.

Jordan Wilson [00:06:11]:
I can say, hey. I wanna find a new house. This is my criteria. And and maybe there's filters for that in the, app. Maybe there's not. And that's the other big thing. It's really being able to take this, unstructured approach to working with apps through natural language, but combining that with your context of the conversation and being able to work with it. So pretty big deal, from chat g p t with that announcement.

Jordan Wilson [00:06:35]:
Speaking of big deals, this one maybe didn't get the headlines, that a lot of the other stories got, but this is huge. So Google at its Gemini at work twenty twenty five events, Google announced Gemini enterprise and Gemini business, marking its biggest push yet into enterprise workplace AI and setting up a direct challenge to Microsoft Copilot and chat g b t enterprise. So, I did cover this more in-depth on episode six twenty nine on Friday, so make sure you go back and listen to that. I, I got early access to Google Gemini, business. So, was able to walk you through it. So make sure you go listen to that episode, but this is pretty big. So the new Google, Gemini's enterprise platform is priced at $30 per user per month, which is pretty similar to Microsoft Copilot three sixty five, but actually half of the price of ChatGPT Enterprise. So, going after a head to head, kind of showdown with Microsoft three sixty five Copilot, maybe those not satisfied with the platform or maybe those still choosing an AI operating system for their enterprise or maybe cutting into those, that maybe don't want to spend that much on Chativity enterprise.

Jordan Wilson [00:07:47]:
So Gemini enterprise offers unified access to Google's top AI models, obviously, including Gemini 2.5 pro, which has ranked as the world's most powerful model in many third party benchmarking services. The platform also consolidates a no code drag and drop agent builder, enterprise search, and governance into a single interface. So Google is essentially trying to, go with this new kind of AI one front door approach to bring people in because right now, Gemini, it is kind of all over the place in a good and a bad way. I like to say there's many side doors and back doors to use Google Gemini. So what Google is trying to do is they're trying to kind of rebuild and say, hey. Google for Google for, Gemini for business, Gemini for enterprise, this is the front door, because it has been confusing. Because even right now, as an example, my same workplace, account so, you know, if you use a Google, address for your company, you can technically still have a personal Gemini account with that, email and a business or an enterprise account. And actually, the two versions of Gemini work very much differently, which is also confusing.

Jordan Wilson [00:08:54]:
But the big feature in the Gemini for enterprise and Gemini for business, which is why you've gotta pay attention y'all. I don't wanna repeat this 20 times, but let me say this. Grounding, grounding, grounding. It's huge. In the same way that, myself and many people, millions of people love notebook l m for its ability to ground its responses in your data only. So Google Gemini, for enterprise and business has a similar grounding feature where the AI bases answers strictly on company data, and it reduces hallucinations and increases trust, making Gemini enterprise more reliable for those sensitive business tasks, and similarly, to just about any AI, you you know, large language model or AI ChatGPT. They do, work with some third party connectors. So on the enterprise plan, Salesforce is a big one that I think a lot of people are gonna, like and use.

Jordan Wilson [00:09:46]:
You have Jira, Confluence, and also Microsoft three sixty five products. Big news right there. Lot of stream audience. Let me know, if you want me in the future to do a comparison between Gemini, kind of enterprise or business versus the personal version of Gemini because there are technically big pros and cons to each. I do hope that Google, essentially rolls out some new, or some of their features that are great inside their person product inside the business tier. Because I think there's, at least some of my, day to day drivers of what I use Google Gemini for are not currently available in the business and enterprise plan yet. The grounding cannot be overlooked for teams that are serious about AI, but also serious about using your company's data. Alright.

Jordan Wilson [00:10:37]:
Annie here, says, if you use Teams, Copilot is nice. If you're using, Google Workspace, Gemini works with a nice light. Yeah. It it is ultimately about, like, what your organization use, but I was kinda surprised that Google, Gemini Enterprise and Google Gemini business rolled out with native Microsoft three sixty five integration, not across every single app, but across some of the main ones. So, you you have to you have to be able to call that out. Right. So Jay here saying, I would love to hear more differences between the Gemini personal and enterprise. Same with Microsoft, honestly.

Jordan Wilson [00:11:12]:
Yeah. It's hard for me to do Microsoft because I'm not part of a Microsoft organization. It's a little bit easier, for me to do, the the Gemini side. But I am gonna have some, some guests, probably in October and November, from Microsoft on to talk about some of their new agent capabilities. Alright. Our next piece of AI news, $20,000,000,000 of fundraising. But don't worry. It's not actually fundraising.

Jordan Wilson [00:11:36]:
So, Elon Musk's AI startup XAI is reportedly doubling its latest funding round to $20,000,000,000 according to Bloomberg. So XAI's latest funding round now totals $20,000,000,000, combining 7,500,000,000.0 in equity and 12,500,000,000.0 in debt. So the deal uses a creative structure, and part of that is with NVIDIA. And we're gonna talk about this a little bit more when we talk about the AI bubble and circular funding. But, the deal uses a creative structure. It's a special purpose vehicle, where NVIDIA will invest up to $2,000,000,000 and, essentially, XAI will buy, NVIDIA AI chips and then lease them, back after five years, meaning XAI does not directly take on the debt. So this approach gives financers collateral in the form of hardware while allowing XAI to scale up its computing power without traditional corporate debt on its books. So NVIDIA, the world's leading AI chipmaker and the company driving the generative AI revolution, is reportedly investing around $2,000,000,000 in the equity portion as well, joining Apollo Global Management, Diameter Capital Partners, and Valor Capital.

Jordan Wilson [00:12:49]:
So the capital will fund x, XAI's next major data center called Colossus two located near Memphis, which Musk says is key to developing next generation AI models. So the Wall Street Journal calls this the, quote, unquote, most expensive corporate battle of the twenty first century as companies pour tens of billion dollars into AI's, infrastructure. Bloomberg reports that XAI is burning close to a billion dollars a month, Although Gemini Musk has publicly denied this and insists that x, the company is not even raising capital right now. So, yeah, it's the $20,000,000,000 fundraise that reportedly just didn't happen. Alright. More big AI news, and Microsoft is planning to kind of blow up and rebuild one of its major products made for developers. So according to reports from Business Insider, Microsoft is moving quickly to revamp its GitHub platform in response to rising competition from the new AI powered coding tools. So Microsoft is reportedly overhauling GitHub to make its AI coding tools available wherever developers work, not just inside one app.

Jordan Wilson [00:14:02]:
So the push comes as GitHub faces competition from fast growing AI coding tools like Cursor, Anthropics Claude Code, OpenAI's codex, Lovable Bolt. There's a ton. So Microsoft CEO, Sadio Nadella, told executives that AI is erasing boundaries between apps, documents, and websites, and Microsoft wants GitHub to reflect that shift. So Microsoft is investing in upgrades to the core GitHub features, including GitHub actions for automation, analytics tools to track code performance, and enhance security for code storage. Microsoft is also working to ensure GitHub complies with local data storage rules aiming to expand its reach. So Microsoft GitHub Copilot remains popular, but recent data from Barclays shows it has lost market share to cursors and others in key developer segments. Microsoft is also encouraging teams to use AI more internally, even considering adding AI usage as a metric in employee reviews. Interesting.

Jordan Wilson [00:15:07]:
That sounds like a hot take Tuesday show waiting to happen. Y'all, here's here's my talk on this. I do think some of the AI vibe coding tools are starting to lose a little bit of traction, including, a lot of the recent reports are showing even, Claude in Claude code is losing a little bit of traction due to some model issues that many have reported, doing, you know, also stemming from developers just using it a little less. Grok code has become very popular. Gemini's latest updates to their 2.5 models, very popular, as well as more and more coders are flocking to OpenAI's codex as they released a specialized version of g v d five specifically for codecs. So it's interesting here to see now, Microsoft GitHub, acknowledge this and say, yeah. We're not competing here. Let's blow this thing up a little bit and rebuild, especially considering Microsoft GitHub Copilot was one of the first kind of, Copilot's coding tools.

Jordan Wilson [00:16:07]:
So they were one of the first to the market but losing share. So, the space is going to get wildly, more competitive here in the coming weeks. Alright. Our next piece of AI news. Yeah. There was three big announcements from OpenAI's dev day this week. We already talked about the first one, OpenAI bringing apps to ChatGPT t. The next one is a lot of new updates to its API.

Jordan Wilson [00:16:34]:
So OpenAI has rolled out some major updates to its developer API, and here's the big ones. GPT five Pro now available in the API, Sorab two for video and audio generation available as well, as well as a new lower cost real time voice model and image model. So, the two headliners at least would be the new g p t five pro model that is designed for domains where deeper reasoning and longer context windows are critical, including finance, law, and health care. I really only see GPT five Pro being used on the back end for highly valuable tasks considering it is, about, I think, 12 to 15 times more expensive than the GPT five version, so I don't see it being used widely. But for certain sectors, where it matters, I think it will be used. Sora two, different story. This is already rolled out to dozens of other AI video startups. So Sora two enables developers, to integrate the OpenAI technology into their products to generate synchronized audio and video from just text prompts, bringing advanced multimedia capabilities directly into their API for the first time.

Jordan Wilson [00:17:47]:
So what the heck does this mean? Well, actually, I do I should also, note the GPT real time mini model. Alright. So this is the model, that developers can use to, create more dynamic and interactive, platforms. So it dramatically reduces the cost of voice interactions and it makes real time audio apps more accessible for startups in small teams. So developers can now build richer end to end experiences with text, voice, and video from a single provider. This right here is really, OpenAI trying to compete a little bit more on the dev end with Google, which I think has been dominating, the multimodal experience because they've been the only real one, with the access. Right? With VO, three, their video model, their Gemini live integration via, the API as well. So, again, right now, in terms of four developers building, I think it's a two team race unless you're, you know, strictly building for software engineering, coding development.

Jordan Wilson [00:18:54]:
You might be using, OpenAI, but pretty pretty big news, here. And I think for most developers, again, it's a two horse race. It is OpenAI and Google running away from everyone else. What does this mean for everyone else? Well, all of the apps that you use. Right? All of the SaaS products you use, you may not know this, but there's a very high likelihood if there's any AI feature, they're using either Google or they're using OpenAI. So what this could mean is all of the apps that your companies use, uses could now either get video generation, could get a much more powerful model in GPT five Pro, building it all, or could get interactive features with the GPT real time mini model. Alright. Here's a stunning piece of news that you could call it tiny news, but I think it's gigantic.

Jordan Wilson [00:19:46]:
So because we're talking about tiny recursion models. It it was a joke. Wordplay. Alright. So a new open source AI model from Samsung's Montreal Research Lab is making waves for delivering big results with a fraction of the computing power and cost according to a new research paper. So what is this model? It is, a new brand or genre of models called a tiny recursion model, and it was developed at Samsung's Advanced Institute of Technology. And it contains, ready, 7,000,000 parameters. Yes.

Jordan Wilson [00:20:22]:
Most of the models are tens of billions, hundreds of billions, or even 2,000,000,000,000 parameters. So this new model from Samsung that achieved great results on certain benchmarks is, like, 10,000 times smaller. So, it contains just 7,000,000 parameters, but on some tests, it does rival or outperform models that are 10,000 times larger, including OpenAI's o three Gemini and Google Gemini's 2.5 Pro. So the new TRM model achieved a 45%, and this is the one that made waves. 45% on the challenging arc AGI grid tasks, results that match or beat much larger proprietary models in those domains. Yeah. Not just OpenAI, and Google's like everyone's models. So the model's breakthroughs comes from a radically simplified architecture that has just two layers using recursive reasoning to refine answers step by step rather than relying on massive scale or complex, hierarchies on the front end in the inference phase.

Jordan Wilson [00:21:33]:
So TRM's code is also now free freely available on GitHub under the MIT license, which allows anyone from startups to researchers to use, modify, and deploy it for commercial or research purposes. Yeah. So what this means is in the future, I think we're gonna see a ton of new edge edge AI use cases. Y'all, I got the receipts. Since 2023, I've been talking about domain specific small models are going to dominate the future, of enterprise personal and professional AI. A 7,000,000 parameter, model can run on literally anything. Right? It's it's so small. Right? Probably on a I I should look this up, but probably on even smartphones from, like, five years ago.

Jordan Wilson [00:22:25]:
Right? So a lot of these, you know, more edge AI or on device, AI use cases, you'd need the most expensive phone that just came out or, you know, you need a a GPU that's enormous, right, spending, you know, $2,000 on a GPU for your computer. This is small. It can run on anything, which really changes what's possible in the future. If this new technology does catch on, it's extremely, extremely exciting. Alright. Let's keep it going. Choo choo. Nisiani.

Jordan Wilson [00:22:57]:
What's up joining from the shy in the live stream. Good to see it. All right. Is there a bubble? Is it gonna pop? What the heck is circular funding, right? Yeah. Another new wave of, AI fears are circulating in Silicon Valley in the media. So Silicon Valley insiders are sounding the alarm in some new reports as concerns mount over a possible AI investment bubble with major players and experts warning about overvaluation and risky financial practices. So here's the, the bullet point. And and this might be one of the, hot take Tuesday episodes.

Jordan Wilson [00:23:41]:
We'll see. So make sure you go vote in today's newsletter and on the poll on Spotify. So, according to reports, AI related companies are driving 80% of the gains of the American stock market this year according to BBC News, sparking fears of unsustainable growth. Oh, weird. Another thing I told you all eighteen months ago when I was the first one to do this this research. Right? At the time, I think it was about 70%. Six of the companies, had about, 60 to 70% of the Nasdaq gains in 2024. So the writing's been on the wall for a while, but the rest of the world is finally starting to do the math.

Jordan Wilson [00:24:18]:
So global spending on AI is projected to hit 1,500,000,000,000.0 before the end of this year with giants like OpenAI, NVIDIA, Microsoft, Oracle, and AMD making massive deals. Alright. So, let's talk a little bit more. Is this a bubble? And some of the recent, eyes and attention on re renewed bubble talk has centered around OpenAI's recent deals as well as NVIDIA. But one of the biggest ones was OpenAI recently entered into a $100,000,000,000 yeah. With a b. The the t r m was a 7,000,000 parameter model with an m. Here, we're talking about a $100,000,000,000 agreement with a b between, OpenAI and NVIDIA to build data centers using, NVIDIA's advanced chips.

Jordan Wilson [00:25:07]:
And also OpenAI announced similar plans to purchase billions of dollars, in equipment from AMD and also potentially becoming a major AMD shareholder. So, yeah, depending on, kind of performance, OpenAI might, in the future become a 10% equity shareholder in AMD, which is absolutely nuts to think about. So why is everyone worried about that? Well, experts and investors are worried that these complex financing arrangements, which many are calling circular finding or, fund financing or, vendor financing where companies invest in their own customers may just be artificially boosting demand in clouding true market value. So let's look at OpenAI. But OpenAI's revenue is growing rapidly, but the company has never posted a profit raising questions about the long term financial sustainability at one of the major companies in the middle of all of this, AI bubble talk. I will say this. OpenAI is the most valuable private company in the world. Right? We talked about this on last week's AI news that matters show.

Jordan Wilson [00:26:19]:
The most recent valuation was at about $500,000,000,000, but that was before a lot of all of this recent news, so I wouldn't be surprised. Ready? I wouldn't be surprised if the next time that we get an OpenAI AI valuation that they're valued at more than a trillion dollar market cap, which would make them a top time, top 10 biggest company in The US. So, you know, a lot of people are worried about, oh, you you you know, OpenAI is not turning profit. True. But the potential is literally unfathomable about how a company like OpenAI has gone from a start up that no one really knew in October 2022 to now one of the most valuable companies in the world. It is because the generative AI technology is beyond revolutionary. So we'll continue to keep covering and if this is, an actual bubble. But also we saw the surge in AMD stock this week is seen as a sign by some that retail investors are just chasing AI type reminiscent of a previous, a previous market bubbles, as well as we talked about the massive infrastructure projects such as OpenAI's planned 500,000,000,010 gigawatt data center in Texas are underway, rising, raising environmental and financial concerns over over building.

Jordan Wilson [00:27:37]:
Alright. Is there deadly AI? Right? Should we be worried about AI killing us? Well, a very prominent name said, yeah. You kind of might have to take that into consideration. So our next piece of AI news, Google's former CEO has issued a stark warning about the risks of AI falling into the wrong hands. So Eric Schmidt, Google CEO from 2001 to 02/2011, told the Sifted Summit in London this week that AI models can be hacked to bypass built in safety guardrails, potentially allowing them to be trained for harmful purposes, including learning how to kill. Yeah. Nothing unsettling about seeing that headline come across as you sip your morning coffee when you read the everyday AI newsletter late last week. Right? So Schmidt stressed that all major tech companies currently prevent their AI models from answering dangerous questions, but he warned that these protections can be reverse engineered and removed by skilled hackers.

Jordan Wilson [00:28:41]:
So Schmidt's comments add to the growing concerns from tech leaders, including Elon Musk, who previously warned there is a nonzero chance AI could pose a Gemini a Terminator style threat to humanity. So so Schmidt has repeatedly called AI an existential risk, saying it could harm or kill many, many, many, many people as its capabilities grow. Despite these warnings, though, Schmidt remains optimistic about the long term benefits of AI, believing its abilities will eventually far exceed human capability. Alright. Our last big piece of AI news for the week, OpenAI, they're kind of third big announcement coming out of dev day. We split them up because I think all three were pretty big. Their apps, number one. Number two, the API announcements.

Jordan Wilson [00:29:30]:
And number three, their agent kit bringing drag and drop no code, low code agent building to the masses. So OpenAI announced agent kit, a new suite of tools designed designed to make building AI agents easier and faster for developers, enterprises, and even nontechnical people. So OpenAI unveiled agent kit during their dev day, event in San Francisco, and it includes agent builder, their visual canvas for creating and versioning multi agentic workflows. Also, there's a connector registry, which centralizes management of connections across OpenAI products and supports integration with large third party services like Dropbox, Google Drive, SharePoint, Microsoft Teams, and others. Also, they introduced ChatGPT kit. So essentially, you can use, agent kit and the agent builder to build agents, and then chat kit, which is now generally available, allows developers to easily embed chat based agents into apps and websites. And that is the big thing. Right? So for the most part, when you're using ChatGPT or if you're using their playground, if you're not a developer, it hasn't been always the easiest, if you want to, bring agentic capabilities using OpenAI's developer platform.

Jordan Wilson [00:30:51]:
Now it's pretty easy. Right? In the demo, they did this in, like, six or seven minutes, but I think the average person could even if you're nontechnical, you can get this in, like, an hour. Right? Literally, let me say that again. Even if you're a nontechnical person, you can go use the agent builder in and the agent kit, which includes, chat kit, and chat kit is how you can deploy an agent on your website or your app. But let me just let let me say this straight up. Is, the agent builder is this actually an agent? Not really. I would say this is more AI powered workflows. Right? But we'll see where the capabilities go in the future.

Jordan Wilson [00:31:35]:
So agent kits also introduced guardrails and open set, an open source safety layer that protects against data leaks, jail breaks, and unintended behaviors addressing some enterprise, security concerns. So, like like I said, competitive space right now. So we have, Microsoft Copilot Studio, Google, obviously, with their new announcement of Gemini business, and Gemini enterprise rolled out their agent builder. Very limited. So Google is is very limited, but very impressive results. And I think it's almost the, opposite maybe, for OpenAI's. It was a little buggier when it came out, but much more robust. So, I'm guessing once OpenAI irons out some of these bugs in their, agent kit, it may be more capable than some of the other competitors.

Jordan Wilson [00:32:24]:
Alright. That was a ton, but there's a ton more. Alright. So, those were our big stories. Hopefully giving you a little depth and explanation in context, but so much happened this week in AI. I can't spend, sixty seconds on every single story. So I'm gonna give you all the what's new and what's next rundown. So, some big stories, some new releases, some rumors.

Jordan Wilson [00:32:50]:
Here we go. Bullet point style going through them. Alright. So maybe if you're listening on the podcast, feel free to slow this part down. I'm gonna talk fast. Here we go. So, OpenAI has urged the EU to keep their big tech competitors in check. OpenAI could face a billion dollar fine over pirated books just like Anthropic faced.

Jordan Wilson [00:33:10]:
Speaking of Anthropic, they launch, launched Claude Code with plugins. Figure AI has released their figure o three AI robot, which can finally do the dishes and laundry. Yay. Meta has hired Thinking Machines Lab cofounder Andrew Tallak, reportedly for $1,500,000,000. Yeah. Billion. Alright. Google released Gemini 2.5 computer use, which we covered in the newsletter last week.

Jordan Wilson [00:33:37]:
Open sorry. IBM released their vibe coding tool called the Project Bob. Love that name, by the way. A new source code updates shows hints of OpenAI's much rumored browser code named Aura. So we'll probably see some fresh rumors hitting that this week. Copilot for Windows just got smarter with document creation and inbox connectors. Gardner came out with a new stat and study and said they expect 40% of enterprise software companies to be vibe coding by 2028. I think it'll be more than that and sooner.

Jordan Wilson [00:34:09]:
There was a Deloitte AI snafu with the Australian government where they essentially had to refund them a bunch of money because they, turned over a hallucinated report, and they used an old model. My gosh. Also, the AI bubble worries, we talked about that. IBM and Anthropic launched a partnership. AI startup Reflection AI raised $2,000,000,000 in new funding. GPT five Pro set a new ARC AGI record with state of the art, results. The browser company finally publicly launched their AI browser, Dia, and it's generally available to Mac users without a wait list or invite code. NVIDIA CEO Jensen Wong said in an interview this week that The US is not far ahead of China in AI, kind of sounding the alarm there.

Jordan Wilson [00:34:59]:
OpenAI released a new study that showed GPT five had a 30% less political bias versus their previous models. Google is rolling out nano banana image image editing inside AI mode. Y'all AI mode, once all these updates become generally available, I cannot underemphasize how big this is because Google CEO Sundar Pichai said that AI mode is gonna become the default mode when you go to AI search. So all these capabilities, eventually rolling out inside AI mode is huge. Google also announced that 50% of their code right now is being generated by AI. My gosh. JWT rolled out new connectors, for pro users, including Slack, Notion, and Linear, and there's a new US senate bill, here in, The US to prioritize companies, using AI chips and frowning on exporting them to rival countries. My gosh.

Jordan Wilson [00:35:54]:
That was a ton. What do you wanna hear tomorrow? Hot take Tuesday. So, thank you for joining. On Mondays, we bring you the AI news that matters. Tuesday, hot take Tuesday. So make sure you check out today's newsletter and vote for what you wanna hear tomorrow or check out the poll in Spotify. New thing we're trying to do. So scroll down in the show notes on Spotify and vote on the poll.

Jordan Wilson [00:36:13]:
What do you wanna hear? If this was helpful, please let me know. Repost this to your network. Let other people know we spend so much time trying to make sure we give you an unbiased, no fluff, no BS news on, hey. Here's what's happening, and here's what matters. So if this was helpful, don't be greedy. Don't keep everyday AI as your cheat code. Go share with someone. That's the only way we can keep doing this.

Jordan Wilson [00:36:37]:
So, thank you for tuning in. If you haven't already, please go to your everydayai.com. Sign up for the free daily newsletter. Thanks for tuning in. We'll see you back tomorrow and every day for more everyday AI. Thanks, y'all.

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