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Today:

• xAI Nears $9.3B Funding Deal

• Amazon To Cut Jobs, Plans More AI Agents

• Google Launches Gemini 2.5 Models

• Altman Claims Meta Offered $100M

• AWS Upgrades Chips To Challenge Nvidia

xAI Nears $9.3B Funding Deal

Elon Musk’s start-up xAI is close to raising $9.3 billion: about $4.3 billion from new shares and $5 billion in bonds and loans. The cash will fund huge computer centers needed to train its Grok chatbot and other systems. Investors still joined despite a recent fight between Musk and President Trump. Banks expect the debt to pay roughly 12 percent interest, and staff can sell some shares through a secondary sale.

Why this matters

1. Fresh fuel for the compute race – The deal shows that big investors keep pouring money into AI projects, widening competition with leaders like OpenAI and Google.
   

2. More powerful hardware coming – xAI will spend the cash on new data centers filled with cutting-edge chips, pushing demand for faster processors and energy-hungry infrastructure.
   

3. Social-AI integration stakes – Because xAI is linked to Musk’s platform X, success could weave advanced chatbots directly into a giant social network, raising new questions about content, safety, and regulation.

Amazon To Cut Jobs, Plans More AI Agents

Andy Jassy tells staff Amazon is all-in on generative AI. Alexa+, AI shopping helper, smart imaging, sizing, seller and ad tools already serve millions. AWS supplies custom chips, Bedrock, Nova and coding aides. Inside, AI boosts fulfillment, forecasting and customer service. Jassy foresees countless AI agents speeding innovation, shrinking routine roles and spawning new ones. Employees should learn AI, invent faster and keep Amazon operating like a nimble start-up culture.

Why this matters

1. Proof of large-scale use – Amazon now runs more than 1,000 AI projects, showing that generative AI is moving from labs into everyday business.
   

2. Rise of “agents” – Jassy predicts billions of task-doing software helpers; his plan confirms agents as the next big wave in AI design.
   

3. Workforce ripple effects – Amazon expects AI to cut some jobs and create others, spotlighting how automation will reshape future employment.

Google Launches Gemini 2.5 Models

Google moved its Gemini 2.5 AI models from test phase to full business use, adding a cheaper Flash-Lite option. The new lineup offers three levels: Pro for deep reasoning, Flash for fast, high-volume tasks, and Flash-Lite for budget jobs. Pro can read a million words at once and lets users choose longer “thinking time” for tough problems. Early users include Snap, SmartBear and Connective Health. New pricing cuts cost barriers.

Why this matters

1. Stronger competition – Google now fields a full, priced product stack that directly challenges OpenAI’s enterprise lead.
   

2. Flexible “thinking budget” – Letting customers dial how long the model thinks introduces fine-grained cost-accuracy control, a novel design trend for big models.
   

3. Huge context window – Pro’s ability to process an entire book or codebase in one go opens fresh use cases and forces rivals to match scale.

🧠RESEARCH

DoTA-RAG: Dynamic of Thought Aggregation RAG

DoTA-RAG is a new AI system that quickly finds and summarizes online information with higher accuracy. It uses a smart three-step process to improve search results, making answers more correct while staying fast. Tests show it beats older systems, making it useful for real-time knowledge tasks.

Ego-R1: Chain-of-Tool-Thought for Ultra-Long Egocentric Video Reasoning

Ego-R1 is an AI system designed to understand long, first-person videos—up to a week in length. It breaks down big questions into smaller steps and uses different tools to answer them. Trained with reinforcement learning, it outperforms older methods in video question answering, handling complex, real-world visual tasks more effectively.

LiveCodeBench Pro: How Do Olympiad Medalists Judge LLMs in Competitive Programming?

LiveCodeBench Pro tests how well AI models solve tough coding problems. Judged by Olympiad medalists, it shows that while models are good at writing code, they often fail at deep thinking and complex logic. The best model still can’t solve the hardest problems, proving humans remain stronger in algorithmic reasoning.

🛠️TOP TOOLS

Deep Dream Generator - AI-powered platform that transforms ordinary images into captivating, dream-like artworks.

Starry AI - AI art generator app that transforms text prompts into visually stunning digital artworks.

Oxolo Beta - AI-powered video generation platform designed to streamline the creation of engaging product videos for e-commerce and marketing purposes.

FinalScout - Chrome extension designed to enhance LinkedIn prospecting and outreach efforts.

Krea AI - AI-Powered platform that generate, enhance, and upscale images and videos in real time.

📲SOCIAL MEDIA

🗞️MORE NEWS

• Sam Altman revealed that Meta has offered OpenAI employees $100 million signing bonuses, but claims none of their top talent has accepted. He made the comments casually on his brother’s podcast, sparking skepticism and criticism online.

• Amazon Web Services is challenging Nvidia by upgrading its custom chips, cutting AI training costs, and powering top AI models like Claude Opus 4. AWS aims to control more of the AI infrastructure market.

• Google’s Gemini 2.5 Pro panics during tough Pokémon battles, showing weird behaviors like freezing or making bad choices. AI game streams reveal how these models think, struggle, and sometimes hilariously fail under pressure.

• Adobe launched its first AI image-generation app for phones, combining its own model with those from OpenAI and Google. Users can create social media-ready visuals, with premium features available through a $10/month subscription.

• Meta is developing AI smart glasses with luxury brand Prada, expanding beyond its partnership with Ray-Ban maker EssilorLuxottica. The move signals Meta’s push to blend advanced tech with high fashion, though no release date is confirmed.

• China’s spy agencies are rapidly adopting AI to improve intelligence gathering, analysis, and military planning. A new report says they use models like DeepSeek and even U.S.-made AI, raising concerns about covert uses and ideological bias.