Meta unveils closed-source AI model Muse Spark, thrilling Wall Street while simultaneously cutting 10% of its workforce and planning up to $135 billion in AI infrastructure spending, marking a bold shift to compete directly with OpenAI, Anthropic, and Google.
GPT-5-powered agentic search systems are crushing baseline scores with an NDCG of 0.453 versus a 0.289 BM25 baseline on Amazon ESCI, but hit a hard wall when facing knowledge-gap tasks where LLMs cannot evaluate information they don't already know.
Poolside launches two powerful agentic coding models — Laguna M.1 (225B) and open-weight Laguna XS.2 (33B) — both free via API for a limited time, delivering top-tier SWE-bench Pro scores and built for complex, long-horizon coding tasks using reinforcement learning trained on 30 trillion tokens.
Anthropic's Claude Opus 4.7 quietly raises real-world costs up to 27% through a new tokenizer that generates 32–45% more tokens than its predecessor, despite keeping prices unchanged at $5/M input and $25/M output — though short prompts under 2K tokens actually see a slight cost decrease.
OpenAI launches GPT-5.5 with record-breaking agentic performance and free healthcare access, Google unveils a full enterprise AI stack with $750M in startup funding, and Moonshot's Kimi K2.6 challenges top models at a fraction of the cost, signaling an intensifying race to dominate the AI industry.
DeepSeek ignites a global AI pricing war by slashing its new V4-Pro model costs by 75% for developers, dropping input token prices to just $0.036 per million — undercutting OpenAI, Google, and Anthropic — as geopolitical tensions over Chinese AI development escalate.
Anthropic's Batch API slashes token costs by 50%, but a new analysis reveals the savings only make sense at fleet scale — single-agent use suffers from up to 24-hour latency, and surprisingly, cheaper Haiku models take longer to batch than pricier Sonnet or Opus.
Former Google DeepMind researcher David Silver's new AI startup, Ineffable Intelligence, raises a record-breaking $1.1 billion seed round at a $5.1 billion valuation, marking the largest seed round in European history as it pursues superintelligence through reinforcement learning, backed by Sequoia, Nvidia, Google, and others.
Google commits up to $40 billion to AI startup Anthropic, valuing it at $350 billion, as both Google and Amazon race to back the Claude AI maker amid explosive demand and critical infrastructure challenges.
Chinese AI lab DeepSeek launches two powerful new flagship models, DeepSeek-V4-Pro and DeepSeek-V4-Flash, rivaling top US models like GPT-5.4 and Claude Opus 4.6 at a fraction of the cost — just $3.48 per million tokens compared to competitors charging up to $25 — intensifying pressure on American AI labs amid …