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Today:

• Bubble or Boom? Why AI’s Momentum Shows No Signs of Slowing

• OpenAI & Microsoft Outline Next Chapter in AI Partnership

• Alibaba & Baidu Train AI on Homegrown Chips, Easing Nvidia Reliance

• Claude Gets Memory for Teams + Incognito Mode for Everyone

• ByteDance Launches Seedream 4.0

Today:

we just reached PEAK AI hype

Celebrity money and corporate ambition collide as Jake Paul backs Cognition Labs’s Devon agent, Meek Mill prepares an influencer-friendly AI venture, and Chinese robot-maker Unitree readies a $7 billion IPO. OpenAI’s budget-lite film “Critters” aims to sell Hollywood on AI production, while Musk touts AI-created gaming with Eve Online developers. 

Despite bubble fears, faster language models, smarter robots, and surging investments suggest AI’s momentum shows no sign of slowing anytime soon either.

WATCH THE VIDEO ON YOUTUBE

OpenAI & Microsoft Outline Next Chapter in AI Partnership

OpenAI and Microsoft announced a non-binding memorandum of understanding that sets the stage for the next chapter of their partnership. They plan to turn the outline into a full contract soon, promising to keep building helpful AI tools while prioritizing user safety and responsible practices.

KEY POINTS

• Non-binding “handshake” deal sketches a deeper contract still to come.
  

• Joint goal: create better, easy-to-use AI tools for people and businesses.
  

• Both companies pledge strict safety checks before any new release.

Why it matters

This agreement shows the two biggest names in AI will keep working together. Their combined skills could bring faster, safer improvements to the apps many people already use every day. A clear promise of safety helps build public trust as the technology grows.

Alibaba & Baidu Train AI on Homegrown Chips, Easing Nvidia Reliance

Alibaba and Baidu have started training some of their artificial-intelligence programs on chips they designed themselves, easing reliance on U.S. supplier Nvidia. The switch follows American export limits on high-end processors and shows progress in China’s hardware push, though Nvidia still powers their top-tier models.

KEY POINTS

• Homegrown silicon in action: Alibaba’s chips now handle smaller AI models, while Baidu is testing new Ernie versions on its Kunlun P800.
  

• Pressure from U.S. rules: Tighter export curbs on advanced chips pushed both firms to develop and use local alternatives.
  

• Nvidia still in the mix: H20 processors remain key for cutting-edge work, but Alibaba claims its chip matches H20 speed.

Why it matters

Building and using their own chips gives Chinese tech giants more control when overseas supplies might stop. It also chips away at Nvidia’s hold on the world’s AI hardware. If the trend grows, it could reshape who leads—and who profits—in the global AI race.

Claude Gets Memory for Teams + Incognito Mode for Everyone

Anthropic added optional memory and incognito chat to Claude. Teams can have Claude remember project details, export memories to other bots, and keep contexts separate. Incognito chats leave no history. Memory is off by default, and admins can disable it, protecting privacy and user control.

KEY POINTS

• Workplace memory: Team and Enterprise users can store project facts, preferences, and workflows to avoid repeating instructions.
  

• Incognito mode: Any user can start a chat that is not saved or used for memory, useful for sensitive ideas.
  

• Opt-in safety: Memory is disabled unless turned on; admins can block it, and users can view, edit, or download their stored data.

Why it matters

These tools help teams work faster while giving clear privacy choices. Saved context cuts copy-and-paste busywork, and incognito chats offer a clean slate when needed. By making memory optional and transparent, Anthropic builds trust as workplace AI becomes part of daily tasks.

🧠RESEARCH

Sharing is Caring: Efficient LM Post-Training with Collective RL Experience Sharing

The paper introduces SAPO, a new reinforcement learning method that lets language models share learning experiences across many computers without needing centralized control. It improves training speed, cuts costs, and boosts performance—achieving up to 94% reward gains—by spreading smart behavior like "Aha moments" across the network during post-training.

A Survey of Reinforcement Learning for Large Reasoning Models

This survey reviews how reinforcement learning (RL) is helping large language models improve at complex reasoning tasks like math and coding. It outlines key advances, challenges in scaling, and future research directions. As RL grows central to training smarter models, better tools and infrastructure are needed to reach superintelligent systems.

RewardDance: Reward Scaling in Visual Generation

RewardDance is a new reward system that improves how AI models generate visuals like images and videos. It avoids common problems like “reward hacking” by aligning rewards with how vision-language models actually think. This lets models scale better and generate more diverse, high-quality content without collapsing into repetitive outputs.

🛠️TOP TOOLS

Each listing includes a hands-on tutorial so you can get started right away, whether you’re a beginner or a pro.

TopView AI – AI Video Generator & Editor - A browser‑based AI video generator/editor built for marketing videos and short‑form content.

Vidu Studio – AI Video Generator - A modern AI video generator that turns text prompts and images into short, high‑quality video clips in seconds.

PFPMaker – AI Image Generator - An online AI image generator for profile photos.

📲PODCAST

Creator Techgyver shows how makers can fuse props with powerful AI video tools like Runway’s world-simulation model. By rapidly “prompting” writing clear instructions, he turns bedroom clips into ancient scenes, proving that imagination, not money, drives virality across Instagram, TikTok and X. He argues prompt skills will soon let anyone build robots, translate speech live and even talk with animals, while universal access to chatbots could cut work hours and raise standards.

WATCH IT HERE

🗞️MORE NEWS

• ByteDance launched Seedream 4.0, merging image generation and editing into one fast, low-cost model. It rivals Google's Nano Banana with 10x faster speeds, strong prompt following, and competitive pricing but lacks public benchmarks.

• A new DeepMind study exposes a core flaw in vector embeddings: single-vector retrieval breaks under complex queries. Even ideal models hit a ceiling. Hybrid systems and new evaluation methods are needed to build more resilient AI.

• Microsoft updates Copilot Audio Expressions with a new scripted mode powered by its MAI-Voice-1 model. Users can now generate text-to-speech in fun styles like a vampire voice, just in time for Halloween.

• Nano Banana (Gemini 2.5 Flash Image) is coming to Photoshop this September, enabling AI-powered, prompt-based image edits alongside Photoshop’s powerful non-destructive tools like layers, masks, and selections for creative workflows that blend control with speed.

• Perplexity, the AI search startup rivaling Google, has raised $200M at a $20B valuation. With $1.5B in total funding and ARR nearing $200M, it’s rapidly positioning itself as a serious challenger.

• The FTC has launched an inquiry into AI chatbots from OpenAI, Meta, Alphabet, xAI, Snap, and Character.AI, focusing on how they test for harm, process user data, monetize engagement, and manage safety concerns.

• Oracle’s stock cooled after a record-breaking AI-driven rally pushed its valuation near $1 trillion. Fueled by massive cloud deals like a $300B OpenAI contract, Oracle outpaced the S&P 500, boosting Larry Ellison’s net worth to $372B.