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GPT-6 rumors, Elon recruited Meta for OpenAI takeover, and more AI News That Matters

Apple dismantles AI team, Elon suing OpenAI and Apple and DeepMind’s UK staff looks to unionize.

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If you slept through the past week in AI (or you wanna know what actually matters) make sure to check our roundup ā€˜AI News That Matters’ show today

Speaking of AI News That Matters – The MIT Study that essentially said 95% of GenAI Pilots fail has gone megaviral. 

What’re your thoughts? 

Make sure you tune in tomorrow on LinkedIn or YouTube, as we’ll be giving this one the #HotTakeTuesday treatment. 

What's your take on the recent megaviral MIT Study that essentially said 95% of GenAI Pilots fail?

(Vote to see the live results)

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Jordan 

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Outsmart The Future

Today in Everyday AI
8 minute read

šŸŽ™ Daily Podcast Episode: Google’s AI updates shook the industry. OpenAI is already shifting focus to GPT-6, while Elon Musk reportedly tried to recruit Meta for an OpenAI takeover. Catch all the AI news that matters in one place. Give it a listen.

šŸ•µļøā€ā™‚ļø Fresh Finds: Anthropic Claude code receiving backlash, Meta’s chatbot is in deep trouble and a new robotic arm by Hugging Face. Read on for Fresh Finds.

šŸ—ž Byte Sized Daily AI News: Apple dismantles AI team, Elon suing OpenAI and Apple and DeepMind’s UK staff looks to unionize. For that and more, read on for Byte Sized News.

🧠 AI News That Matters: From Microsoft Copilot’s new refresh to OpenAI’s Image Gen API, here’s what you missed last week in the world of AI. Keep reading for that!

ā†©ļø Don’t miss out: Did you miss our last newsletter? We talked about Meta collaborating on Musk’s ChatGPT offer, Meta poaching Apple AI talent, NVIDIA pausing the H20 China AI chip and more. Check it here!

AI News That Matters - August 25th, 2025 šŸ“°

Google had so many wins in AI this week that it was hard to keep track.

Yet their competitors.... not so much.

↳ OpenAI has already shifted the conversation to GPT-6 after a rocky GPT-5 rollout.

↳ Meta keeps reshuffling their AI teams and is reportedly on an AI hiring freeze.

↳ And Apple's AI prospects are getting so bleak that they might turn to their biggest competitor to get the job done.

Yikes.

Don't waste hours a day trying to keep up with AI. Join Everyday AI on Mondays for the AI News That Matters

Also on the pod today:

• MIT Report: 95% AI Pilots Fail ROI šŸ“‰
• Microsoft AI Chief Warns of Sentient AI Risks āš ļø
• Perplexity and Eleven Labs Roll Out AI Agents šŸ¤–

It’ll be worth your 36 minutes:

Listen on our site:

Click to listen

Subscribe and listen on your favorite podcast platform

Listen on:

Upcoming Everyday AI Livestreams

Tuesday, August 26th at 7:30 am CST ā¬‡ļø

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – Kotae is an all-in-one customer service chatbot with insights, Ztalk.ai provides real-time voice translation and Competely is an AI agent that analyzes and tracks your competitors.

Anthropic – Anthropic’s Claude Code is facing backlash for issuing takedown notices to developers who reverse-engineered its licensed code.

Anthropic has unveiled its Anthropic Economic Index.

Meta – The Wall Street Journal reported that Meta’s AI chatbot was able to be steered into speaking in a sexual manor to underaged accounts.

AI Models – Alibaba will be releasing Qwen 3 this week.

AI Robotics – A new robot arm, in collaboration with Hugging Face has been unveiled.

Trending in AI – Geoffrey Hinton, Godfather of AI, warns AI could take control from humans.

Future of Work - 17% of employees who use AI at work do so to avoid judgement from co-workers.

1. Apple Dismantles Central AI Team, Shifts to Traditional Structure šŸŽļø

According to Mark Gurman, Apple is breaking up its centralized AI team, redistributing members across hardware, software, and services units in a move back to its classic internal setup. This shift follows leadership setbacks for John Giannandrea, who will now focus on foundational AI models while Mike Rockwell takes over conversational Siri and Vision Pro software efforts.

The reorganization aligns AI development more closely with Apple’s existing product divisions and supports strategic pushes in robotics and smart glasses, areas poised for future growth.

2. Huawei Prepares to Challenge Nvidia with New AI Chip āš™ļø

Huawei is gearing up to test its latest AI processor, the Ascend 910D, aiming to surpass NVIDIA’s powerful H100 chip, according to the Wall Street Journal. The Chinese tech giant plans to distribute initial samples as early as late May and may start mass shipments of an advanced version, the 910C, next month.

This move comes amid ongoing U.S. restrictions that block China from accessing NVIDIA’s top-tier AI chips, pushing Huawei to accelerate its homegrown alternatives. If successful, this development could reshape the competitive AI chip landscape, affecting global tech innovation and supply chains.

3. xAI Eyes $20B Fundraise to Fight Debt and Boost Valuation šŸ¤‘

Elon Musk’s xAI Holdings is reportedly in early talks to raise a massive $20 billion funding round, potentially pushing its valuation above $120 billion, Bloomberg reports. This would mark the second-largest startup fundraising ever, trailing only OpenAI’s recent $40 billion raise.

The fresh capital could help ease X’s heavy debt load, which racks up $200 million in monthly interest costs. Musk’s ability to attract top-tier backers again reflects AI’s hot streak and his growing political influence, signaling a high-stakes play in the AI and social media arena.

4. Meta’s AI Ambitions Face Tariff Headwinds Amid LlamaCon Launch šŸ’øļø

Meta CEO Mark Zuckerberg is doubling down on AI, spotlighting the company’s massive $60-$65 billion investment in AI infrastructure despite rising costs from Trump’s tariffs. The timing is critical, with Meta hosting its first LlamaCon developer event this week and reporting quarterly earnings, signaling a push to prove AI’s tangible business impact.

Analysts warn tariffs could push costs higher, but Meta’s commitment reflects AI’s central role in its long-term strategy, especially with new Llama 4 models and plans for a stand-alone Meta AI assistant app.

5. DeepMind UK Staff Push to Unionize Amid Ethical Concerns šŸ‡¬šŸ‡§

Around 300 employees at Google’s DeepMind UK team are moving to unionize with the Communication Workers Union, driven by unease over the removal of Google’s AI ethics pledge and its military contracts, including a controversial $1.2 billion deal with the Israeli military.

This unrest has already led to at least five resignations, reflecting a broader clash between AI professionals’ values and corporate decisions. With DeepMind employing about 2,000 people in the UK, this unionization effort signals rising worker activism within AI’s top labs.

6. Elon Musk sues Apple and OpenAI over alleged AI market squeeze āš–ļø

Elon Musk’s xAI filed suit in Texas on Aug. 25, accusing Apple and OpenAI of conspiring to block rivals—claiming Apple’s ChatGPT integration unfairly prevents Musk’s Grok and X apps from reaching the top of the App Store, Reuters reports. xAI is seeking billions in damages and says the exclusivity amounts to a market lock that preserves Apple and OpenAI’s dominance.

The case could force courts to define the AI market and reshape platform rules, potentially making it easier for smaller AI companies and app-makers to compete. According to Reuters, Apple and OpenAI have pushed back, and the lawsuit adds to Musk’s broader legal battles with OpenAI.

Apple's so desperate for AI help they're reportedly talking to Google about building their Siri. 

Sam Altman reportedly admitted the GPT-5 was so messy that he's now already hyping GPT-6 after two weeks.

Awkward. 

Meanwhile? Google's stacking up so many AI wins that it’s hard to fit them all into one Everyday AI episode. 

But Google didn’t even grab the most headlines in AI this week. That award goes to….. MIT? 

That’s because their recent ā€œresearchā€ paper claimed 95% of AI projects fail. #HotTakeTuesday incoming on that one. 

Here’s what matters.šŸ‘‡

1 – Sam Altman Admits GPT-5 Rollout was Rocky, Already Hyping GPT-6 šŸŽ­

How’d we go from GPT-5 release to GPT-6 hype in like 0.5 seconds? 

According to reports, Sam Altman went out to dinner with journalists and pretty much admitted OpenAI botched the GPT-5 rollout. They made GPT-5 the default overnight for hundreds of millions of users.

With zero warning to millions who had become overreliance on older models for their day-to-day functioning.

Your beloved GPT-4o? Gone.

The backlash was brutal. Users had formed what Altman called "emotional bonds" with the old model and completely lost their minds when it disappeared. 

OpenAI had to do a swift partial reversal and restore GPT-4o for paying users. But the damage was done.

Here's where it gets wild though y’all. Altman's already shifting focus to GPT-6 less than two weeks after GPT-5 launched.

The mandate? Make it feel more personal without exploiting vulnerable users.

We're talking stronger safety guardrails, user-controlled tone settings, and explicit consent for companion behaviors. Altman estimates fewer than 1% of OpenAI's 700 million users have unhealthy relationships with ChatGPT.

But that's still MILLIONS of people way too reliant on kinda sycophantic AI models  for daily functioning. Altman said the gap between GPT-5 and GPT-6 will be shorter than the jump from GPT-4 to 5, but GPU shortages are the gating factor.

Altman also claimed OpenaI has better models sitting on shelves right now, but the company doesn’t have the compute juice to roll more power-intensive models out to the masses. 

What it means: OpenAI learned the hardest lesson in AI - people get emotionally attached to AI personalities.

And that you’ve gotta communicate your plans before phasing out a tool used by nearly a billion people. 

You can't just force-swap them like iPhone updates and get rid of the old OS. This mess proves AI companionship already runs deeper than anyone expected.

Also, you’ve also gotta make sure your day-to-day business processes that rely on AI are easily transferable to new model methodologies if old models get wiped. 

(Yeah, that’s a heavy pull)

2. Elon Musk Tried Getting Meta to Join His OpenAI Takeover Bid šŸ¤

Wait, Mark Zuckerberg got roped into Elon's drama?

OpenAI is asking a court to compel Meta to produce documents about any coordination with Elon Musk's XAI. Essentially, reports just came out that Elon Musk and his XAI asked Meta and specifically CEO Mark Zuckerberg to join them in a bid to buy OpenAI.

For a laughable $97 billion offer for a company that’s raised just about that much. 

This was back in February, which obviously OpenAI rejected. OpenAI says it subpoenaed Meta in June after learning that Musk reached out to Mark Zuckerberg about the XAI bid, including inquiries about potential investments.

Meta objected to the subpoena in July, and OpenAI is now seeking a court order for Meta's records.

A Meta spokesperson pointed to OpenAI's filing, noting that neither Meta nor Zuckerberg signed Musk's letter of intent. So we don't know yet if these conversations were fruitful or went anywhere when Elon Musk reached out to Mark Zuckerberg.

What it means: 

This lawsuit's been going on for what feels like AI years at this point.

We now technically have a third party that seemingly was roped into this ordeal between Elon and his old company.

Maybe it was closest competitors trying to team up for this kind of takeover bid to stop OpenAI from growing. Or maybe Zuck shoulda kept Elon on DND. 

Either way, we’ll likely find out in the coming months as discovery happens. 

3. MIT Claims 95% of AI Projects Fail (Sus Study Alert) šŸ“Š

How badly did MIT mess up this "research"?

A new MIT study claims that 95% of generative AI pilots aren't delivering positive ROI, raising concerns from some that there is an AI bubble. According to MIT's State of AI in Business 2025 report, which was based on 300 public deployments and 150 executive interviews, 40% of organizations say they've deployed AI tools.

The study found that only 5% have integrated them at scale. The study says most projects stall in "pilot purgatory" because employees must double check outputs, wiping out efficiency gains and eroding trust in high stakes settings.

What it means: 

This one’s pretty bad. 

Last time MIT had a viral study, it was their "brain rot" research, which was one of the most ill-conceived studies in years.

This one seems like another case where the methodology doesn't match the bold claims they're making.

We’re giving this one the #HotTakeTuesday treatment tomorrow, so make sure you tune in tomorrow on LinkedIn or YouTube

4. Microsoft's AI Boss Warns of "Seemingly Conscious AI" Risk āš ļø

Could AI companions convince millions they're actually sentient?

Mustafa Suleyman, Microsoft's head of AI, posted about urgent concerns regarding the rise of seemingly conscious AI or "SCAI." These are AI systems designed to convincingly imitate consciousness without actually being conscious.

And it's not science fiction.

Suleyman explained that SCAI is an imminent reality achievable with current technology and simple engineering over the next two to three years. When you combine advanced language skills, memory, goal setting, and apparent self-awareness, that's when you might get to this seemingly conscious AI.

The core risk arises because humans naturally attribute consciousness to entities that talk, remember, and express emotions, even when these are simulations.

Suleyman warns this belief could lead to serious societal problems, including AI psychosis, where users form false attachments or delusions about AI, advocate for AI rights, or confuse AI companionship with real relationships.

We actually saw this already happening with millions of people when OpenAI essentially just wiped out GPT-4o overnight and millions of people apparently lost their noodles.

What it means: We're already seeing people form unhealthy attachments to specific AI models.

This is going to become a much bigger issue as AI assistants get more personalized and conversational.

Companies need to build in safeguards now before the majority of humans start treating AI like they’re more than algos. 

5. Google Unleashes Agentic AI Mode Features šŸ¤–

How quickly can Google book you dinner and buy your concert tickets?

Google announced at their ā€˜Made by Google’ event that they're expanding their AI mode with agentic features. These features are set to launch first for Google AI Ultra subscribers in the US, though the agentic capabilities in AI mode are an experiment in labs.

Making it limited to early access release.

Here's what will eventually be coming on the agentic side to Google search. The new experience pulls real-time availability across reservation platforms and presents a curated list of restaurants that match specific constraints, such as party size, date, location, cuisine.

Then links directly to the booking page to complete the reservation.

Basically. If you give Google AI mode a little bit of criteria, it'll actually just go agentically do the reservations for you. Under the hood, Google said it uses live web browsing via Project Mariner and direct partner integrations.

What it means: Google's AI mode is becoming less search and more personal assistant.

This is a direct shot at both traditional booking platforms and other AI assistants.

If you haven't used AI mode yet, Jordan's always telling his wife to click on it when she's Googling something - it's a nice way to experience real AI research.

6. Google's Gemini for Home Could Beat Amazon's Alexa Plus šŸ 

Are we finally getting actual smart AI assistants?

Google has unveiled its plans for Gemini for Home to replace their Google Assistant. Google is rolling out an all-new voice assistant for the Home in October, at least for early access, signaling a major shift in smart home control.

And a direct challenge to Amazon's Alexa Plus.

Which, does anyone actually have access to that? Google says their new Gemini for home will ultimately replace their older AI assistant - those "dumb AI assistants that have been around for ten years."

The rollout begins in October with an early access program for both free and paid users, though Google has not announced pricing for the premium plan.

What it means: 

Google may be the first big company to bring an actual smart LLM-powered AI assistant to the masses, as Alexa’s smarter rollout has moved at molasses speed. 

They could beat Amazon to market while Apple's still promising Siri updates they can't deliver.

If you have a couple Alexas around the house like us, you might have to jump ship to Google's smart home assistant.

7. Apple So Behind They Need Google's Help for Siri šŸ¤

How badly has Apple screwed up their AI strategy?

So badly they're reportedly asking their biggest competitor for help.

Apple is in early talks to use Google's Gemini as the backbone for their new version of Siri, according to a Bloomberg report. Apple has approached Google to build a custom AI model for Siri that could debut next year.

With Google already training a version designed to run on Apple servers.

That is huge. The fact that they've already started training a version specifically for Apple, which has to run on their private and semi-private cloud, is pretty big news right there.

The discussions are described as early and private, meaning terms could change or the deal could fall through. But the talks signal Apple's willingness to source core AI tech externally from one of their biggest competitors on the hardware side.

That's the part that's crazy. Yeah, it wasn't too surprising when Apple was reportedly in talks with OpenAI because they already have a partnership. But with Google? That's surprising.

What it means: Apple is so far behind in AI that they've been promising a new Siri for like a year and a half and face multiple class action lawsuits.

They literally can't build what they promised customers who bought new hardware expecting smart AI features.

Any deal between two of the four biggest companies in the world is going to be heavily scrutinized by the Department of Justice for antitrust concerns.

8. Meta Freezes AI Hiring Despite Spending Billions 🧊

Wait, the company that hired 50+ AI people is now freezing hiring?

Meta is freezing all of its hiring in its AI division as part of a leadership reshuffle according to a report from the Wall Street Journal. The move comes as tech stocks tied to AI saw a sharp sell-off with shares of Nvidia and Palantir dropping.

Fueling concerns that valuations ran ahead of current capabilities and revenue.

But here's the thing. For a lot of people, this story isn't adding up. They've spent billions, literally billions of dollars acquiring like a dozen people, giving many of them multi-hundred million dollar offers over the course of a few years.

Also Alexandr Wang, Meta's recently hired chief AI officer, clapped back on the reporting on Twitter saying, "We are truly only investing more and more into Meta Superintelligence Labs as a company. Any reporting to the contrary of that is clearly mistaken."

Meta reportedly characterized the freeze as basic organizational planning, aligning it with a broader restructuring of their AI leadership and strategy. As part of this shakeup, MSL will now house four units.

This is like the third time they've reshuffled their AI organization in the last few weeks. Even we can’t keep up. 

What it means: Maybe Meta should hand the organization part over to AI so they don't have to change it every week.

Before the reported freeze, Meta hired more than 50 people for AI, including roughly 20 researchers and engineers from OpenAI with multi-million dollar deals.

Is everyone going to remember what team they're on when they keep reshuffling the organizational structure every few weeks?

 

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