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Google IO Unveils Gemini 3.5, Pope Issues AI Warning, and Meta Cuts 8,000 Jobs: This Week in AI
The biggest week in AI news in recent memory packed in a Google IO firehose, an OpenAI legal verdict, a Meta workforce shakeup, a paused White House executive order, and a 43,000 word papal encyclical warning that artificial intelligence could warp human life. Here is what mattered, what changed, and what business leaders need to track.
Google IO Headlines: Gemini 3.5 Flash and Omni Lead the Lineup
Google used its IO developer conference to roll out a broad upgrade to its AI lineup, anchored by a faster Gemini 3.5 Flash model, a new multimodal system called Gemini Omni, and a cloud based personal agent named Gemini Spark.
According to CEO Sundar Pichai, Gemini 3.5 Flash beats the roughly four month old Gemini 3.1 Pro on nearly every benchmark, with especially strong results on GDP Val, which measures economically relevant tasks. Google says the model is optimized for longer running tasks and is integrated into its upgraded Antigravity agent platform, where it claims to be 12 times faster, at roughly one third to one half the cost of comparable frontier models. Google IO came with more than 100 announcements, with Gemini 3.5 Pro slated for a June release.
Gemini Omni: Any Input, Any Output
Google described Gemini Omni as a multiple input, multiple output model rebuilt from the ground up to handle any modality, including text in the future. Today, multiple inputs are supported but output is still video. The faster variant, Omni Flash, is already live across Google's platforms and can feed its own generated output back in for iterative editing.
Critics have benchmarked Omni's video output against Chinese models like SeaDance and found it lacking. That comparison misses the point. Omni is built to stand apart once it can output more than just video, and the family will expand beyond the current Flash variant.
Gemini Spark: A Cloud Based Personal Agent
Gemini Spark runs on dedicated virtual machines in Google Cloud, stays active twenty four seven, and keeps working in the background even when a user's computer is closed. The agent is rolling out in beta only for Ultra subscribers in the US, putting it in a narrow slice of the Gemini user base.
The concept overlaps closely with Microsoft's Copilot Cowork, which itself is built on top of Anthropic's technology. Both products take the form of a virtual machine connected to user data, running agents autonomously without requiring the user's local device.
Google Cuts Ultra Pricing and Introduces a $100 Tier
Alongside the Spark rollout, Google brought down the cost of its top plans. The Ultra plan dropped from $250 to $200, bringing it in line with Claude Max and ChatGPT Pro. Google also introduced a $100 a month Ultra plan, matching tiers already offered by OpenAI and Anthropic. Spark access is the headline reason to test the $100 plan for users embedded in Google Docs, Sheets, Drive, and Gmail.
Antigravity 2.0 and AI Search Across Every Surface
Google overhauled AI search across its products. The new AI search box now handles text, images, files, videos, and Chrome tabs in a single experience powered by Gemini 3.5 Flash, with information agents, generative UI, and personal intelligence layered on top.
Antigravity 2.0 is Google's standalone desktop app and central hub for agent interaction, sitting in the same category as Claude Code, Claude Cowork, and OpenAI Codex. The first iteration feels heavily beta and is not yet ready for the limelight. Google also reported more than 900 million monthly Gemini users, up from 400 million a year ago, with daily queries up sevenfold.
OpenAI Codex Adds App Shots, Goal Mode, and Remote Computer Use
OpenAI shipped its biggest Codex update yet, branded as ChatGPT for work in a desktop application. The new features include:
App Shots: Press both command keys on macOS to send the front most app window to Codex with both a screenshot and the available text. This is a two for one capture for users who screenshot and paste constantly.
Goal Mode: The first true Goal Mode in a user friendly desktop interface from a major lab. Give Codex a well informed goal and it will work for hours, possibly days, until the goal is achieved. Both Codex and Claude Code already had this in CLI form, but this is the version aimed at everyday knowledge workers.
Remote computer use: Control a Mac that is closed and locked from another machine. The capability blurs the line between local on prem machines and cloud accessible agents.
Plugin sharing: Codex plugins can now be shared across organizations, removing one of the bigger enterprise roadblocks.
Codex is currently the fastest growing AI segment in terms of new users, and access requires only a standard ChatGPT plan.
Elon Musk Loses OpenAI Lawsuit on Statute of Limitations
A federal jury in Oakland found that Elon Musk waited too long to sue Sam Altman, Greg Brockman, and OpenAI, ending the high profile case that could have affected the future of AI. The unanimous verdict came after less than two hours of deliberation following a three week trial.
The court rejected Musk's claims against Altman, Brockman, OpenAI, and Microsoft on statute of limitations grounds without reaching the core merits. Deadlines were three years for the charitable trust claim and two years for the unlawful enrichment claim. OpenAI cofounders had discussed a for profit shift as early as 2017 and created a for profit arm in 2019, but Musk did not sue until 2024. Musk's team plans to appeal, arguing the case was decided on a calendar technicality.
The broader read on this case is that it has always been theater. Both companies are headed for IPOs. xAI is reportedly going public in about a month at a $2 trillion plus valuation despite low revenues, and OpenAI and Anthropic are reportedly going public this year as well. The lawsuit serves as leverage and a storyline keeping Musk's companies in the headlines.
White House Pauses Frontier AI Executive Order
The White House had planned a major executive order on AI for release on Friday, with big AI CEOs reportedly set to attend the unveiling. The rollout was paused after venture capitalist and Trump adviser David Sacks objected directly to President Trump the morning before the event, blindsiding White House staff.
The draft order, which was meant to shape how the government handles frontier AI models, would have given the National Security Agency final say over which systems counted as covered frontier models. Other agencies would have helped build a classified benchmarking process within 60 days. The review would have remained voluntary and would not have created mandatory licensing or pre-clearance.
Industry leaders had pushed back on the proposed 90 day window for sharing new models before release, asking instead for 14 days. AI labs are not working 90 days out on their roadmaps, and recursive self improvement and new fine tuning techniques make that kind of advance planning impractical. An updated version with a shorter window of two weeks or 30 days may still emerge.
Meta Cuts 8,000 Jobs Amid Keystroke Surveillance Backlash
According to Reuters, Meta cut about 8,000 US employees, roughly 10% of its workforce, as the company shifts more money toward AI infrastructure and cost control. Meta plans about $145 billion in spending this year on data centers and hardware chips. The company also canceled about 6,000 open roles and is folding sub job functions into a broader AI builder title. An additional 7,000 employees have been moved into AI focused work.
The bigger story is how Meta got there. Meta is facing backlash over a new internal computer monitoring program that logs employees' mouse movements, clicks, drop down menus, and keystroke shortcuts on company laptops. The stated purpose is to collect training data so AI systems can learn how employees complete routine digital tasks. Employees have been told there is no opt out on company issued devices.
The New York Times and Wired reported that more than 1,500 employees signed a petition against the monitoring, while some workers have posted anti surveillance flyers in Meta offices. Employees have said they felt they were training their AI replacements for months before the jobs disappeared. This is likely a preview of how other large enterprises will approach AI restructuring, with Meta absorbing the PR damage in exchange for long term profitability.
Microsoft and EY Launch $1 Billion AI Consulting Partnership
EY and Microsoft expanded their partnership with a commitment of more than $1 billion over five years to help organizations scale AI across the enterprise. Microsoft is rolling out forward deployed engineers, or FDEs, who will work directly with EY teams using Microsoft's AI native hypervelocity engineering model to speed up implementation inside client delivery structures. EY positioned the expansion as an important milestone in its long standing alliance with Microsoft across tax, assurance, consulting, and Parthenon.
The companies are pitching clients on becoming frontier firms, defined as organizations that use AI at scale, train workers for new tools, and keep improving AI driven processes over time. Microsoft is technically the last of the big four to make this pivot. In a six week stretch, OpenAI, Anthropic, and Google have all made the same move:
OpenAI launched a $4 billion endeavor called the deployments company, or Deployco, on May 11 with 19 private equity and consulting partners including TPG, Bain, McKinsey, and Capgemini.
Anthropic followed with a $1.5 billion joint venture alongside Blackstone, Goldman Sachs, and others, targeting mid market companies through private equity portfolios.
Google took the platform route, committing $750 million at Cloud Next to 120,000 partners such as Accenture, Deloitte, and PwC to build Gemini agents.
The big AI labs are spending less focus on selling models and more on embedding their people inside Fortune 500 workflows.
Pope Leo's First Encyclical Warns of AI's Societal Risks
Pope Leo issued his first encyclical, called Magnifica Humanitas, a 43,000 word warning that artificial intelligence could reshape society in dangerous ways if it is not guided by human values. The Vatican released the document last week. Leo signed it exactly 135 years after Pope Leo the thirteenth signed Rerum Novarum, the landmark Catholic teaching on industrial era labor and social justice.
Leo argues AI is useful but is not neutral because it reflects the priorities of the people and institutions that build, fund, train, and deploy it. The encyclical raises several specific concerns:
AI could weaken human judgment by giving people instant answers that reduce creativity, discernment, and the patience needed to search for the truth.
AI can imitate care without real relationship, leading vulnerable people to mistake chatbots or digital assistants for genuine human connection.
Inequality grows as computing power, data, and influence concentrate in a small number of companies and actors.
AI could distort democracy by accelerating disinformation and making it harder to tell fact from fiction.
AI could make war easier by speeding up lethal decisions and distancing people from responsibility. No algorithm can make war morally acceptable.
Experts say the document could matter well beyond Catholic circles, particularly as governments debate AI rules for hiring, credit, public services, and safety. Coming ahead of US elections, the encyclical lands at a moment when AI generated and AI influenced content saturates the information environment.
What Else Is New in AI This Week
The rapid fire roundup of smaller stories worth tracking:
OpenAI says one of its unreleased internal models has solved an 80 year old math problem.
Cursor released Composer 2.5, offering near Opus 4.7 levels at a fraction of the cost.
Anthropic is reportedly going to release a preview of Mythos one for Claude Code and Claude Security.
OpenAI began selling multiyear capacity contracts to lock in AI compute demand from big enterprise companies.
OpenAI cofounder Andrej Karpathy announced he joined Anthropic.
DeepSeek is reportedly nearing the final stretch of a $10 billion fundraising round.
Hark raised a $700 million round for its still secret AI interface, led by Figure AI's Brett Adcock.
OpenAI may file IPO paperwork in coming weeks but may hold off on the actual offering.
OpenAI and Dell teamed up for a Codex partnership to help enterprises deploy on premise.
Intuit plans to lay off over 3,000 employees while refocusing on AI. ClickUp announced similar cuts.
OpenAI launched ChatGPT for PowerPoint in beta.
Blackstone and Google launched a $5 billion AI data center push in the US.
Anthropic announced that users under 18 cannot use its AI services.
DeepSeek is building its version of Codex with a desktop first AI agent.
Anthropic released Claude managed agents beta with self hosted sandboxes and private MCP tunnels.
The Pentagon is reportedly testing AI models that rival Anthropic after cutting ties with Claude.
Cohere open sourced Command A Plus, a sovereign mixture of experts model for on prem multimodal work.
Spotify and UMG announced paid AI covers and remixes for premium users.
The NSA released security guidance for AI driven autonomous systems.
Amazon turned Alexa Plus into an AI podcast maker for on demand conversations.
xAI expanded access to its Grok build agentic terminal coding assistant to all X Premium Plus subscribers.
Stability AI launched Stable Audio 3 for generating music with AI.
Google introduced shopping cart updates tied to its AI commerce push.
Anthropic acquired Stainless to improve developer tools and API integrations.
Topics Covered in This Episode:
1. Google IO 2026 announcements roundup
2. Gemini 3.5 Flash benchmarks and Antigravity integration
3. Gemini Omni multimodal model debut
4. Gemini Spark cloud personal agent and Ultra pricing changes
5. Antigravity 2.0 and Google's new AI search experience
6. OpenAI Codex App Shots, Goal Mode, and remote computer use
7. Elon Musk loses OpenAI lawsuit on statute of limitations
8. White House frontier AI executive order paused by Sacks call
9. Meta cuts 8,000 jobs and rolls out keystroke surveillance
10. Microsoft and EY $1 billion AI consulting partnership
11. Pope Leo's first encyclical Magnifica Humanitas on AI risks
12. Rapid fire AI news including Karpathy joining Anthropic
Episode Transcript
Jordan Wilson [00:00:17]:
As expected, the big AI companies grabbed plenty of headlines this week as they always do. I mean, OpenAI came out with some pretty big codex releases. Google announced, like, a 100 AI updates at its IO developer conference. Meta cut 8,000 jobs in a very dystopian way, and Microsoft in consulting giant formed a pretty noteworthy partnership. But it maybe was actually the pope that grabbed the biggest AI headlines this week when he said that AI could warp human life. Yeah. There's lots. If you spend time every single day trying to keep up with the advancements and developments in AI, you shouldn't.
Jordan Wilson [00:01:08]:
It's too much. It's too time consuming. Let me do that work for you on our weekly AI news that matters show. Let's get into it. Welcome to Everyday AI, and what's going on? My name is Jordan Wilson, and, well, this thing's for you. Everyday AI is your daily livestream podcast and free daily newsletter helping everyday business leaders like you and me keep up with AI. And I tell you what matters, what doesn't, and how to use that information to grow your company and career. So this is the unedited, unscripted livestream.
Jordan Wilson [00:01:40]:
But to be the smartest person in AI at your company, make sure to check out our newsletter at youreverydayai.com. Every single day, we recap the highlights from that day's show as well as all of the other AI happenings that you need to know. Alright. And, you you know, I hey. I agree with Jackie here, saying happy Tuesday. Rough getting started after a long weekend in Chicago. Yeah. It is Tuesday.
Jordan Wilson [00:02:04]:
Normally, we do our AI news that matters on Monday, but with the holiday here in The US, our weekly Monday, AI news recap is happening Tuesday, but we will be back to Monday next week. So, yeah, whenever this happens, always get, you know, notes from our international audience. Like, did did this podcast stop? No. Took a took a break. Right? Got a little sun. Alright. But let's get into the actual AI news. So first, even though this seems now like a year ago, but this actually happened, less than a week ago.
Jordan Wilson [00:02:37]:
So, Google unveiled not just faster AI models, but new agent tools and even a redesigned Gemini app and a lot more. So Google used its IO developer conference to announce a broad up grade to its AI lineup led by a faster Gemini 3.5 flash model, a new multimodal system called the Gemini Omni, and a cloud based personal agents named Gemini Spark. So according to Google CEO Sundar Pichai, Gemini 3.5 flash, that is Google's newest model, beats the roughly four month old Gemini 3.1 pro on nearly every benchmark with especially strong results on GDP valve, which measures economically relevant tasks. So Google says its new 3.5 flash is also much faster than other Frontier models and is optimized for running kind of longer, running tasks and also is integrated into its newly upgraded anti gravity agent platform, where it claims it to be 12 times faster, with cost roughly one third to one half of comparable models. So Google said the new 3.5 Gemini series was built for agentic work, meaning it can handle those long autonomous sections, sessions and complex coding pipelines. And, also, they said that, they can even use it while, building an operating system, which is something Google did in their demos. Google also introduced Gemini Omni as its next step beyond the video. So, yeah, if you use AI video or if you're into AI creativity at all, you obviously know Google's VO video platform.
Jordan Wilson [00:04:27]:
So next in that family is Gemini Omni. So Google described it as a multiple, multiple input, multiple output type model. I think they kind of said any to any that they've rebuilt from the ground up to handle any outputs, including in, text, in the future. Right? They said it's gonna be able to handle, text, video, drawings, anything. Right? So right now, it's multiple inputs, but the output, for Omni is still video. But it is a little bit different than their general, VO, you know, AI inputs is or sorry, AI outputs being video, because right now, it does have a little bit more of a multimodal reasoning aspect to it. I'll probably demo that, tomorrow, as we go hands on with, putting AI to work on Wednesdays. Probably show you a little bit of what's new across Gemini.
Jordan Wilson [00:05:22]:
So a lot of people are looking at the new Omni model, right, the anything in, anything out. And they're looking at just the video output, which I think is not really what it's intended to do. I think it's, you know, ultimately going to stand apart in the future when it can output more than just video. Right. But right now, that's just what people are judging it on, and they're looking at, you know, Chinese models like SeaDance and saying this new, you know, Google Omni, you know, output video output doesn't, you know, hold its weight against those. And, well, it doesn't, but I think, ultimately, it is going to be about much more than that in the future. So Google said that Omni can take its own generated output and feed it back in for iterative editing in the first faster version, which is called Omni Flash, and that's been live, since Google IO is already available across Google's different platforms. So, two two notes on the first two big announcements, and those were definitely the headline grabbers in Gemini 3.5 Flash and Google Omni Flash.
Jordan Wilson [00:06:25]:
Well, they are the Flash or the smaller variants. So Google did say at least on the Gemini 3.5 Pro side, we would be expecting the 3.5 Pro in June, and we'll see about Gemini, Omni, whether that's Omni Pro or in Omni regular, but they did say this is a family of models that is meant to go beyond just the, the video output. Alright. That's not all. Yeah. We're not gonna go over all a 100. Yeah. The Google literally said they announced more than a 100 things, so we'll leave that list in, our newsletter today.
Jordan Wilson [00:07:01]:
Not gonna bore you by going over all 100. But the other big one, which is not live for most people. Right? In typical Google fashion, you needed, I don't know, detective skills and a couple maps to realize what was released to who, where do you find it, when does it come out, when does rollout start stop. Right? Yeah. But, anyways, they didn't launch Gemini Spark, which is you could think of it essentially as like a cloud version of OpenClaw, but that's what Google says is their personal agent that runs on dedicated virtual machines in Google Clouds. Google Cloud stays active twenty four seven and can keep working in the background even when a user's computer is closed, but that is just rolling out in beta right now only for ultra subscribers in The US. So, that is obviously a very small majority of people who are using the Google Gemini products. Right? Most people are using it as part of their, maybe workspace organization.
Jordan Wilson [00:07:54]:
You might be on that, $20 a month plan, but not many people are on the expensive plan. But on that, you you know, note, to go along with the new always on Gemini Spark agent, well, Google did at least bring down the, cost of their more costly plans. So their Ultra plan that was previously $250 is now $200, which brings it in parity, with the other top tier plans, like the $200, Claude Max and the $200 ChatGPT Pro plan. So they did knock down the price from 250 to $200. And just as OpenAI and Anthropic have offered, there is now a 100 a month Ultra plan. So, yeah, if you do want to go test out, right, if you live inside of the, the Google verse and, you know, everything you use is Google, Google Docs, Google Sheets, Google Drive, Gmail, etcetera. You know, it might be worth testing out that $100 a month Ultra plan, just to get access to the Gemini Spark. I'll probably do that, just for a month.
Jordan Wilson [00:08:57]:
I had downgraded, my Ultra plan recently. I I've looked at my cost, and I'm like, oh, this is bad. Right? Subscribing to max plans everywhere. So I'll probably, myself re upgrade it to that $100 a month Ultra plan, to go over the Spark agent. Let me know if if you wanna see, anything on Spark. Right? I do think this is gonna be similar to Microsoft's, Copilot co work that they introduced, about a month and a half ago, right, which is kind of built on top of in profits technology. But it's just kind of like a virtual machine that's connected to all of your data. So it is more of this open clock ask, you know, agents that runs autonomously on your computer.
Jordan Wilson [00:09:39]:
For me, I have all that running in codec, so I don't have a huge appetite to go out and use necessarily something like Spark, or even something like Copilot co work because I get a lot of that and most of that out of codecs. Alright. Yeah. There's a lot more. We're gonna go over just some of the highlights from Google, IO here. There's also just new AI search everywhere. Right? The AI search experience has changed completely. So aside from it now being powered by Gemini 3.5 Flash, there is a new AI search box, and you can now search with text, images, files, videos, and Chrome tabs all in one place with AI helping the reasoning across them.
Jordan Wilson [00:10:18]:
There's also the smarter and more personal search as Google is adding information agents, generative UI, and personal intelligence, so then search can keep you updated, build custom answers based on your data, and connect with apps like Gmail and Google Photos if you opt into that. And then there's also the new anti gravity two point o, which is a standalone desktop app that serves as a central hub for agent interaction. So, yeah, if you've used Cloud Code, Cloud Cowork, Codecs from OpenAI, This is kind of Google's version. I did go over this on our Friday show. Not a big fan of anti gravity, two point o, their first iteration of it. I think it's super beta, not really ready for the limelight, but that's just my thought on it. Google also did announce that they have more than 900,000,000 monthly users, up from 400,000,000 a year ago, while daily queries have risen sevenfold. And the company is also adding a desktop app for macOS, new agent tools for developer through anti gravity two point o, and tighter links to search, shopping, and an improved watermark detection through Synth ID.
Jordan Wilson [00:11:30]:
So, my gosh. So much going on, at Google IO. Like I said, I'll probably, dedicate tomorrow's show to going over some of the highlights since the last couple of weeks we've been going hands on with codecs. Alright. Speaking of codecs, I don't know what the OpenAI team is going to announce this Thursday as they've, kind of pivoted to a weekly Thursday release cadence. And my gosh, this week's, releases were absolutely bonkers. So let's just quickly go over, some of what's new inside of OpenAI's codex. And if you did miss it, the last two Wednesdays, we've given the beginner's guide to codex.
Jordan Wilson [00:12:11]:
And if you don't know what codex is, essentially think of it as Chad CPT for work. Right? That's really what I think they're ultimately gonna be branding it as, you know, and it's a desktop application. But here is what's new in codex, and it is the fastest growing, kind of AI segment in the world right now at least in terms of new codecs users. So they introduced app shots, that's available in the codecs app on Mac o x, that lets users press both command keys to send the front most app window to codex with a screenshot and available text. This one is huge, especially for someone like me. I am screenshotting constantly and copying and pasting in, content into codecs, and this does both. So it's more than just a screenshot. It automatically brings whatever screen you're working on into codecs as well as any available text.
Jordan Wilson [00:13:01]:
So it is like a two for one bringing all that content in there. Also, goal mode is now fully available, and this is big. So this is the first time we've seen a true goal mode, in a kind of, user friendly desktop interface. Both codex and Cloud Code have integrated this into the CLI or command line interface tools that are more for developers, but this is the first goal mode that's kind of available for the everyday knowledge worker from one of the big players. So goal mode, essentially, it's just means you can give codex a goal as as long as it's well informed. It is going to work on tasks for hours or maybe even days. You're gonna wanna make sure that you use this, kind of, unless you're on the $200 plan like I am, you're gonna wanna use this wisely, and make sure you're monitoring it because, yeah, whether you're doing something goal mode, in quad code or codex or anywhere, it can go through your credits fairly quickly, especially if you're only on that $20, a month plan, in codex. And, yes, all you need to do for codex is just use your chat GPT plan.
Jordan Wilson [00:14:08]:
It's the same thing. So yeah. Goal mode, absolutely incredible if you remember things like Ralph loops or, you know, kind of, you know, think of something like a heartbeat, you you know, file in kind of the open clause of the world. It's kind of like this. You just give it an open ended goal, and it's going to continue to work. It's just essentially not gonna stop until that goal is accomplished, which is really cool. Next, there is remote computer use. So this is different than the essentially mobile app or chat g p t remote controller that you can do now by controlling your computer, in by using your mobile device, this is actually when your computer is locked.
Jordan Wilson [00:14:49]:
So this is big. This is no more having to carry around a, you know, half a jar laptop, which is what I was doing back in February. So now you can actually control a locked computer inside codec. So you might be saying like, okay. Why? I don't understand this. Right? So for me, as an example, I'm on my Mac Studio right now. My new MacBook Pro is closed, but I have certain projects that I've been running locally on that codecs. And since so if I wanted to, I could essentially control my computer even though it's closed and locked, which opens up some new capabilities.
Jordan Wilson [00:15:23]:
And I think it does kind of turn this, you know, kind of local machine, aspect, from all these, autonomous AI, instances to almost like cloud. Right? So I think the, the lines, right, between local, you know, quote, unquote, on prem machines and what you can access via anywhere is starting to blur. Yeah. There's a lot more. Also, there's plug in sharing, which is huge. I think this is one of the bigger enterprise, you know, roadblocks that a lot of big companies have run into, but you can now share, codecs plug ins across organizations. Yeah. And there was a whole lot more, but those are just some of the big updates, from codecs.
Jordan Wilson [00:16:05]:
And make sure whether you wanna know more about those or any of the other big AI features this week, make sure you go back and listen to episode seven eighty three, from Friday. That is our Friday feature show where we go over the big AI features of the week. Alright. This one now feels like it happened, like, three months ago. It didn't. Right? So, normally, we do our AI news that matter shows on Monday, and this happened just hours after last week's show, but it is still one of the bigger AI news stories of the week. So have to tell you about the update in the Elon Musk versus OpenAI trial. So a federal jury in Oakland found that Elon Musk waited too long to sue Sam Altman, Greg Brockman, and OpenAI, ending the high profile case that could have affected the future of AI.
Jordan Wilson [00:16:57]:
So, essentially, Elon Musk's long battle against OpenAI is over for now as he officially lost this case. More on that here in a second. So a unanimous jury ruled that Musk's claim were filed after the legal deadlines had already passed. So the court rejected Musk's claim against Altman, Brockman, OpenAI, and Microsoft on the grounds of statute of limitations without reaching the core merits of the dispute. So Musk's team said it plans to appeal, arguing the judge and jury decided the case on a calendar technicality rather than on the underlying allegations. So the case centered on claims that Altman and Brockman unlawfully enriched themselves in breach duties owed to OpenAI when the company moved toward a for profit structure. So the jury deliberated for less than two hours, yay, after a three week trial that drew major attention across the tech world. So time limits were a major issue in the case with deadlines of three years for the charitable trust claim and two years for the unlawful enrichment claim.
Jordan Wilson [00:18:10]:
Obviously, Musk very much missed those time limits as OpenAI cofounders had discussed the for profit shift as early as 2017, and OpenAI created a for profit arm in 2019. But Musk did not sue until 2024, Therefore, completely missing, kind of the statute of limitations that were the crux of Musk's claims. So Musk claimed that he waited so long because he believed Altman's, reassurances, but he later said he became alarmed after Microsoft invested $10,000,000,000 in OpenAI's for profit arm in 2023. Microsoft called the verdict a confirmation that the claims were untimely while OpenAI said the ruling preserves the company's current structure and investor backing. So, we'll see what happens here, with the, you you know, going through appeals from Musk's team. I said this back in 2024, and I stick to this. This is theater. This is nothing but theater.
Jordan Wilson [00:19:15]:
My that's this is my opinion on this. Right? This is theater from Musk's side. If you look at the facts, there hasn't been an actual case. Right? I'm no legal expert, but I can read. I said this back in 2024 when the lawsuit was first filed. I said, this is sour grapes. This is technicalities, and this is theater. Nothing else.
Jordan Wilson [00:19:33]:
I continue, to feel that way, and I will continue to feel that way even as more facts, get unveiled in the case. And ultimately, the reason for this theater, people are like, well, what's the what's the big deal? Well, hey. Both companies are going public. So, SpaceX, or SpaceX AI or XAI, SpaceX, whatever, the company is called nowadays is going public in about a month with a reported $2,000,000,000,000 plus valuation, despite low revenues. And OpenAI and Anthropic are reportedly going, public this year as well. So I think if nothing else, Elon Musk is using this, for leverage on his IPO, to, you know, kind of create a driving storyline and to keep his company in the headlines. That is my thought. But pretty big loss, at least for Elon Musk in this first round.
Jordan Wilson [00:20:28]:
Alright. Next. There was supposed to be a noteworthy AI order from the White House, but it hit an unexpected yet kind of quiet roadblock that a non not a lot of people are talking about. In this one, at least when it comes to AI's impact on your business, could have been and still might be pretty big. So the White House, like I said, had planned a huge executive order on AI that was supposed to be, released on Friday. However, that was paused after venture capitalist and Trump adviser, David Sacks, objected directly to president Trump just before the rollout according to reports. So this reversal matters because the order was meant to shape how the government handles frontier AI models, which could affect how fast major companies can release new tools and how much oversight they face. So according to reports, a senior White House official said Sachs had pre had earlier taken part in a review of the executive AI order that was supposed to be released and believed it to be too broadly supportive before changing his stance on Wednesday night.
Jordan Wilson [00:21:49]:
So the official said Sachs raised concerns that a voluntary agreement could eventually turn into a mandatory requirement and then called Trump Thursday morning without even telling most of his own staff. That call reportedly derailed the plan and blindsided White House staff who had been working on the release. So, yeah, reportedly, you know, all of the big AI CEOs were supposed to be at the White House for this unveiling on Friday, and then it was derailed. I think we got word of this late Thursday night. So four people familiar with the matter said industry leaders also pushed back on a proposed voluntary review process for cutting edge AI systems. So companies had wanted the White House to shorten the window for sharing new models from ninety days to fourteen days showing how quickly the tech industry wants clear rules and faster approval paths. So one of the key, you know, marketed benefits of this, well, was the White House was going to, you know, essentially approve or, inspect these models ninety days before release to ensure their safety, which at the time, I'm like, ninety days? Like, the AI companies aren't working that far in advance. Right? I've been told both on the record and on the record that, you know, big AI labs aren't working ninety days out.
Jordan Wilson [00:23:13]:
So when I saw this, I'm like, I don't think this is gonna work even if it's voluntary, mainly because companies don't even know their road map's 90 out because they're, you know, realizing whether it's through, you know, recursive self improvement or, you know, new fine tuning techniques, new technologies. Right? They don't know always what's gonna be happening ninety days out. So, now we're seeing that companies were kind of pushing back, and, ultimately, it seems like this was David Sachs calling, president Trump and wanting a short shorter window. So we'll see if there is an updated, kind of amendments to this, agreement or if it's kind of dead on arrival. So, a readout though of the draft was kind of leaked and shared, and it said that the National Security Agency or NSA would have final say on which systems counted as covered frontier models with other agencies helping build a classified benchmarking process within sixty days. So the draft, again, that was kind of scrapped for now. Also stressed that the review process would remain voluntarily and would not create mandatory licensing or preclearance, a detail that matters for companies racing to build and sell advanced AI products. So, you know, I think, some of this smoke kind of started with Claude Mythos, right, not fully releasing it to the public.
Jordan Wilson [00:24:40]:
But reportedly, they were working with the Trump White House on it. So, you you know, as these models become more and more capable, more and more autonomous, there has been this kind of gray area of of, like, okay. What happens when and if a model is fully released to the public and companies are not ready for it. Right? Because one of the, obvious use cases for these, one of the ill advised or one of the bad use cases is for cybersecurity. Right? In a bad way, cyberattacks. Right? So when these, when these, models and we're seeing this now. When their cyber capabilities are better than, well, any humans, that can be mean very bad things when released to the general public. Right? In theory, if a certain, you know, antiquated banking system or something like that, has security loopholes, hackers could use publicly available off the shelf models to bring down entire systems.
Jordan Wilson [00:25:35]:
It's obviously, a key concern, which is why some of these original talks about the, the White House kind of, quote, unquote, clearing AI models before their release. This is why some of the talks even started, but, it does seem like this kind of last minute phone call kind of at least for now skirted some of these plans. I do think that we'll see an updated version of this cleared. Maybe one of the things is being that ninety day, you know, limit down to, two weeks or down to thirty days. We'll see, but we'll continue, to cover it as it comes up. Alright. Here's nothing dystopian about this. Yeah.
Jordan Wilson [00:26:17]:
It it is. So, the Meta AI layoffs have finally happened. So according to Reuters, Meta has cut about 8,000 US employees or roughly 10% of its workforce as the company shifts more money toward AI infrastructure and cost control. So reports said the layoffs come as Meta plans about a 145,000,000,000 in spending this year on data centers and hardware chips for its AI push. The company has also reportedly canceled about 6,000 open roles and is simplifying sub job functions into a broader AI builder title, signaling a major internal restructuring at the company. An additional 7,000 employees have reportedly been moved into AI focused work, showing how aggressively Meta is redirecting staff toward its machine learning strategy. So, yeah, not only was there, reported 8,000, employees who just lost their jobs late last week, but a lot thousands of internal jobs that were not around AI are now AI roles. But that is not the part as sad or as strange as that sounds.
Jordan Wilson [00:27:35]:
That's not even the part that's grabbing the most headlines. It's actually kind of the method that Meta is taking in the interim to get to this. It's because according to reports, Meta is facing a ton of backlash over a new internal computer monitoring program that logs employees' mouse movements, clicks, drop down menus, and keystroke shortcuts on company laptops. So the stated purpose of all of the tracking is to collect training data so AI systems can learn how employees complete routine digital tasks according to internal messaging described in the reports. So employees have been told there is no opt out on the company issued devices, which has intensified concerns about privacy and workspace surveillance. So the New York Times and Wired report that more than 1,500 employees signed a petition against the monitoring, while some workers have posted anti surveillance flyers in meta offices. So this is not the first, and this is not the last that we will hear of this type of technology being used before mass AI layoffs. This also isn't the first time that we're gonna see a large enterprise company essentially start to take all non AI roles and to tell workers who have nothing to do with working in or around AI that, oh, hey.
Jordan Wilson [00:29:02]:
Now if you wanna keep your job, you work in and around AI now. So, yes, this has been described as, dystopian by a lot of people, and I would kind of agree. Right? Because, essentially, for the last couple of months, Meta employees have known. Right? They've known that these cuts were coming. They've been reportedly, I I wouldn't say they've been using this software. It's more like they've been subjected to this, kind of surveillance esque software that monitors literally every keystroke, every mouse movement. So, imagine. Right? And this is why you've seen, kind of reports recently of the morale at Meta at a literally industry low, and how people just don't want to work there anymore, because of this.
Jordan Wilson [00:29:54]:
So I'm guessing what Meta is doing, they're gonna take a PR hit in the short term, in hopes that they become more and more profitable in the long term. Their model that came out Muse Spark was actually okay. Right? It actually did fairly well on benchmarks, and they did say that they're gonna have a bigger version. So, I'm guessing that Meta is gonna be one of the first big companies that comes out and says, yeah. We don't really care anymore. We are restructuring the entire company, AI first. We're gonna take some, some PR black eyes. We're gonna be monitoring literally every single thing you do because employees have essentially said that they felt like they've been training their AI replacements for months with these systems learning everything they do, and then jobs just disappearing.
Jordan Wilson [00:30:40]:
So, kind of yeah. Kind of a weird one to even talk about and think about, but, unfortunately, yeah, I think this might be the future, of work at some big enterprise companies where this just becomes the status quo. Right? Talk about dark and gloomy potential days ahead. Not saying this is the good way, but I do think a lot of companies are gonna go this way. I would love to think that there's, huge enterprise companies that are gonna find the more optimistic way, in the more upbeat way that, you know, prioritizes, human intelligence. But in the short term, I mean, we'll see how Meta's stock, you know, goes over the past couple of weeks or over the next couple of weeks because I think that will, for better or worse, potentially serve as a as a blueprint for others in the tech industry. Alright. Another recent trend, this one maybe a little better than others.
Jordan Wilson [00:31:35]:
You know, yeah, companies big tech companies now, you know, those that build AI models are now becoming consultants. So according to reports, and Microsoft have expanded their partnership with a commitment of more than $1,000,000,000 over five years to help organizations scale AI across the enterprise. So, yeah, this new FDE role we've been hearing about a lot recently, the forward deployed engineers. So that's what Microsoft is rolling out here in conjunction with e, So their FDEs will work directly with consulting giant industry teams using Microsoft's AI native hypervelocity engineering model to speed up implementation inside client change in delivery structures. So said the expansion is an important milestone in its long standing alliance with Microsoft across tax assurance consulting and Parthenon. The companies say they wanted to help clients become what they call frontier firms, meaning organizations that use AI at scale, train workers for new tools, and keep improving AI driven processes over time. So this is not new, and Microsoft is technically the last of the big four to officially make this pivot into becoming AI consulting firms within the clients that use their products. That's because in a six week stretch, OpenAI, Anthropic, and Google have all made the same move.
Jordan Wilson [00:33:10]:
While they're spending maybe a little less of their focus on just selling models, and instead, they're starting to deploy their people inside of Fortune 500 companies to better use their models. Yeah. Addressing the capability gap that I've been talking about for now years. So OpenAI launched a $4,000,000,000, endeavor called the deployments company or Deployco, on May 11, so about two weeks ago, with 19 different private equity and consulting partners, like TBG, Bain, McKinsey, Capgemini, etcetera. And they're embedding FDEs or those forward deploy engineers directly inside of client workflows. Same thing. Google, Infropic also, followed right after that with a $1,500,000,000 joint venture alongside Blackstone, Goldman Sachs, etcetera, targeting mid market companies through private equity portfolios. And then Google, took the platform route, committing $750,000,000 at their Cloud Next conference to a 120,000 partners, such as Accenture, Deloitte, PDW to build Gemini agents.
Jordan Wilson [00:34:22]:
Alright. And our last big AI story of the week, like I said, I think the one that is gonna be talked about most this week, maybe it's not the meta layoffs, maybe it's not Google IO, maybe it's not the White House delayed AI, project there. I think you're gonna be hearing a lot about pope Leo, his recent warning on how AI could warp human life. So pope Leo has issued his first encyclical called Magnifica Humanitas, a 43,000 word warning that artificial intelligence could reshape society in dangerous ways if it is not guided by human values. So, the Vatican released the document last week, and Leo signed it as well exactly a hundred and thirty five years after the previous pope Leo the thirteenth, I believe, rerum noverum, which was the landmark Catholic teaching on the industrial era labor and social justice movement. So, Leo says AI is useful but is not neutral because it reflects the priorities of the people and institutions, that build, fund, and train and deploy it. So Pope Leo warned that AI could weaken human judgment by giving people instant answers that reduce creativity, discernment, and the patience needed to search for the truth. He also says AI can, imitate care without real relationship, which could leave vulnerable people to mistake chatbots or digital assistants for genuine human connection.
Jordan Wilson [00:36:13]:
Another concern is inequality since computing power, data, and influence are concentrated in the hands of a small number of companies and actors. Pope Leo says that AI could also distort democracy by accelerating disinformation and making it harder to tell fact from fiction, which matters for voters, workers, and businesses trying to make informed decisions. So he warned that AI could make war easier by speeding up lethal decisions and distancing people from responsibility, and he says that no algorithm can make war morally acceptable. Experts say the documents could matter well beyond Catholic circles, especially as governments debate AI rules for hiring, credit, public services, and safety. So, yeah, if you didn't, read the 43,000, word, encyclical, I didn't yet either. Although I probably will at some point here this week, but I think it's an important document, to keep an eye on even if you are not Catholic. I think this is going to, really set a set a tone. I'll just say this.
Jordan Wilson [00:37:29]:
Right? Especially coming up before, US elections here in a couple of months. I do think as AI models, right, as the, you know, super strong and super capable models, right, like we talked about cyber concerns, I think with disinformation and misinformation and AI being actively used, as a tool, to sow division, I think, is a an important topic to keep an eye on. So, whether you're thinking about how you, consume information on a day to day basis, what you believe, what you don't, how you're making decisions in your company. Just know if you haven't come to this realization already, you should probably assume, right, that most of all information you consume, is either AI generated or influenced by AI. So you really just have to start, you know, thinking more with your brain. Right? It's it's something I'm trying to do more and more, is, yes, I consume so much, you know, content and outlines and research that is done by AI, but, I always try and be vigilant about thinking with my own brain. Right? And ultimately being the one who makes the decisions. So, alright, that is it for the big AI news stories for this week, but let's quickly go over the bullet points of what's new and what's next.
Jordan Wilson [00:38:47]:
So some of these smaller stories, kind of our roundup, some rumors, some leaks, etcetera. So, OpenAI says their new internal, one of their internal models that they've not yet released has solved an 80 year old math problem. Cursor released composer 2.5 offering near Opus four seven levels at a fraction of the cost. Anthropic, is reportedly going to release a preview of Mythos one for Claude Code and Claude Security. So, yeah, we might be closer to getting the, mysterious mythos out in the wild. OpenAI began selling multiyear capacity contracts to lock in AI compute demand from big enterprise companies. OpenAI cofounder Andre Karpathy jumped to Anthropic as he announced that, he joined Anthropic. Right? I just like, when he tweeted that, I don't know why I had, like, the same vibes as when LeBron James said he was taking his talents to South Beach, right, to play for Miami Heat.
Jordan Wilson [00:39:51]:
I don't know why that's what I thought of. Reports say that DeepSeek is nearing its final stretch of a $10,000,000,000 fundraising round. Hark, raised a $700,000,000 round for its still secret AI interface, something, to keep an eye on. Right? Kind of led by, FigureAI's Brett Adcock. A new report says OpenAI may file their IPO or their initial public offering paperwork in coming weeks, but yet may still hold off on their, actual IPO waiting for the timing. OpenAI and Dell team up for a codex partnership to help, enterprises develop, deploy it on premise. Intuit plan to lay off over 3,000 employees while refocusing on AI. ClickUp did something similar with a big percentage of their employees.
Jordan Wilson [00:40:44]:
OpenAI launched Chad GPT for PowerPoint in beta. It's actually really good. Blackstone and Google launched a $5,000,000,000 AI data center push in The US. Anthropic, announced that users 18 cannot use their AI services. DeepSeek is making its version of codex with a desktop first AI agent. Right? Yeah. The, the the flock to, local desktop, versions continues. Anthropic released Claude managed agents beta with a self hosted sandboxes in private MCP tunnels.
Jordan Wilson [00:41:20]:
The Pentagon is reportedly testing AI, models that rival Anthropic after cutting ties with Anthropic's Claude. Cohere open sourced their model, Command a plus, a sovereign mixture of experts model for, on prem multimodal work. OpenAI used, already talked about that. Spotify and UMG, one of the major music groups, announced paid AI covers and remixes for premium users. I'm actually really looking forward to that one. The NSA released security guidance for AI AI driven autonomous systems. Amazon turned Alexa Plus into an AI podcast maker for on demand conversations. We covered that one in our Friday features show as well.
Jordan Wilson [00:42:08]:
If you wanna know more, XAI expanded access to its grok build agentic terminal coding assistance to all X Premium Plus subscribers. I don't even understand all of the x tiers. It seems like there's 20 of them, but their version of, you know, Claude Code, Claude Coworker, Codex is now rolling out to more people. President Donald Trump posted AI generated images of shackled immigrants drawing immediate backlash. Stability AI launched Stable Audio three for generating music with AI. Google introduced shopping cart updates tied to its AI commerce push, and Anthropic, acquired stainless to improve developer tools and API integrations. Alright. A lot happening this week in AI.
Jordan Wilson [00:42:56]:
As always, I hope this recap was helpful. If it was, remember, we normally do this every single Monday bringing you the AI news that matters. On Wednesdays, we go hands on with demos at our AI at work on Wednesdays. On Fridays, we do Friday features. That's really just focusing on just new AI features that you can use that are available now. So a little bit different than our Monday news recap. And then Tuesdays and Thursdays, we usually bring a variety, of different shows. So if you're new here, thank you for tuning in.
Jordan Wilson [00:43:28]:
Please take a minute to subscribe to the podcast if you haven't already. Then make sure to go to youreverydayai.com to sign up for the free daily newsletter to become the smartest person in AI in your company. Thanks for tuning in. Hope to see you back tomorrow and every day for more everyday AI. Thanks, y'all.