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OpenAI could go public, Gemini 2.5 continues dominance and more AI News That Matters

OpenAI surges in AI adoption, Trump fires U.S. Copyright Chief amid AI battle, Google Gemma models surpass 150M downloads and more!

Outsmart The Future

Today in Everyday AI
8 minute read

🎙 Daily Podcast Episode: Google Gemini 2.5 IO edition leads the pack, OpenAI eyes its IPO with Microsoft, and Apple explores new AI search engines. This week, AI news reshapes tech's giants and disruptors. Get caught up. Give it a listen.

🕵️‍♂️ Fresh Finds: Google’s image-to-video model to debut on Honor phones, Alibaba released quantized versions of Qwen3 and the new Pope talks about AI advancements. Read on for Fresh Finds.

🗞 Byte Sized Daily AI News: OpenAI surges in AI adoption, Trump fires U.S. Copyright Chief amid AI battle and Google Gemma models surpass 150M downloads. For that and more, read on for Byte Sized News.

🧠 AI News That Matters: From Apple and Anthropic’s team up to Amazon’s AI coding tool, here’s what you missed last week in the world of AI. Keep reading for that!

↩️ Don’t miss out: Did you miss our last newsletter? We talked about a ChatGPT Deep Research adding GitHub connector, Apple working on next-gen AI chips and Microsoft banning DeepSeek. Check it here!

AI News That Matters - May 12th, 2025 📰

OpenAI is making moves to go public.

Apple and Anthropic are teaming up for vibe coding.

And Google is quietly continuing its dominance with a quiet update to the world's most powerful AI model.

Once again, the big names are shaking up the AI space. 

Don't burn hours a day trying to keep up. Spend your Mondays with Everyday AI and our weekly 'AI News that Matters' segment.

Also on the pod today:

• Amazon AI Coding Tool Kiro 🧑‍💻
• AI Search Engines in Apple's Safari 🔍
• OpenAI and FDA Drug Approval Talks 💊

It’ll be worth your 46 minutes:

Listen on our site:

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

New AI Tool Spotlight – FirstQuadrant maximizes B2B sales, Migma AI creates on brand emails in seconds and GoBuildMyApp builds mobile native apps in seconds.

Google – Google’s image-to-video generator will be launching on Honor’s new phones May 22nd.

Google is launching a new initiative to back startups building AI.

LLMs – Alibaba has released quantized versions of its Qwen3.

AI in Society – Pope Leo XIV spoke on AI and says that AI advancements played a part in his papal name selection.

AI Design – Figma’s CEO spoke on his new approach to AI.

AI in Healthcare – A new AI tool scans faces to predict biological age and cancer survival.

Trending in AI – A letter signed by more than 400 British stars, artists and musicians are calling on the Prime Minister to update copyright laws on AI to protect them.

1. OpenAI Surges Ahead in Enterprise AI Adoption 📈

According to fintech firm Ramp’s latest AI Index data from April 2025, nearly one-third (32.4%) of U.S. businesses now subscribe to OpenAI’s AI services, a sharp rise from just 18.9% in January. Competitors like Anthropic and Google AI lag behind, with Anthropic holding only 8% of business subscriptions and Google’s share dropping to 0.1%.

This rapid growth highlights OpenAI’s expanding dominance in the enterprise AI market, which it expects to heavily fuel its projected $12.7 billion revenue this year.

2. Trump Fires U.S. Copyright Chief Amid AI Copyright Battle ⚖️

President Donald Trump has abruptly dismissed Shira Perlmutter, head of the U.S. Copyright Office, just days after she pushed back against broad AI training on copyrighted works—sparking claims of a political power move tied to Elon Musk’s AI ambitions.

The Copyright Office recently released a report cautioning that using massive copyrighted datasets for commercial AI purposes likely exceeds fair use, signaling tougher scrutiny ahead for AI companies like OpenAI.

3. OpenAI’s Stargate Faces Delays Amid Tariff Troubles ⚙️

OpenAI’s ambitious Stargate data center project is hitting turbulence as tariffs and market volatility spook investors, delaying the $500 million fundraising effort, Bloomberg reports. With SoftBank yet to finalize financing plans and major players like Microsoft and Amazon scaling back data center expansions, concerns about rising costs and potential overcapacity are mounting.

Tariffs could inflate infrastructure expenses by 5-15%, making the timing tricky for those backing AI infrastructure growth.

4. Google’s Gemma AI Hits 150M Downloads 🚀

Google’s Gemma AI models have officially crossed 150 million downloads since their launch in February 2024, marking a significant milestone in the competitive AI landscape. Despite this impressive number, Gemma still lags behind Meta’s Llama, which recently topped 1.2 billion downloads.

The latest Gemma versions are multimodal, supporting text and images across 100+ languages, with specialized applications like drug discovery gaining traction. However, both Gemma and Llama face criticism over their non-standard licensing terms, which may complicate commercial use, keeping developers cautious.

5. SoundCloud’s Terms Now Allow AI Training on User Content 🔊

SoundCloud quietly updated its terms in February 2024 to allow the platform to use user-uploaded audio for AI training, sparking concerns about content rights and consent. While the company insists it has never used artist content for AI model training and employs safeguards like a “no AI” tag, the new language signals a broader embrace of AI to enhance recommendations and detect fraud.

This move follows a wider trend among platforms like X, LinkedIn, and YouTube updating policies to leverage user data for AI development, which has drawn backlash over lack of opt-in choices.

6. US Treasury Reviews Benchmark’s $75M Bet on Chinese AI Startup 🕵

The U.S. Treasury is currently scrutinizing Benchmark’s recent $75 million investment in Chinese AI startup Manus, following 2023 restrictions on funding Chinese tech firms, according to Semafor. Benchmark’s legal team argued Manus skirts these rules by acting as a “wrapper” around existing AI models and being incorporated in the Cayman Islands, not China directly.

This move has stirred criticism within the venture community, highlighting the growing tension between innovation funding and geopolitical regulations.

Apple just admitted defeat in AI coding while OpenAI casually dropped $3 BILLION on Windsurf. 

Google flexed on EVERYONE with an update nobody asked for. 

And the FDA thinks letting AI approve your heart meds is totally chill.

Oh yeah, and OpenAI might go public while keeping nonprofit control.

So many power moves in AI happening….. Make it make sense!

(OK. We will.

Let's break down the AI craziness that dropped this week, shorties. 👇

1 – Apple + Antropic = Vibe Coding Frenemies 🤝

Apple just admitted it can't figure out AI coding alone.

Ouch.

The tech giant is reportedly teaming up with Anthropic to develop an AI-powered coding platform using Claude SONNET to write, edit, and test code.

Why the sudden partnership? Their previous AI coding tool Swift Assist never actually launched. It reportedly hallucinated code and SLOWED app development instead of speeding it up.

Apple's historically been all "we build everything ourselves" but this partnership marks a major shift in strategy.

They're also reportedly planning to integrate Google's Gemini and ChatGPT alongside Siri later this year because their "Apple Intelligence" features are about as useful as a screen door on a submarine.

What it means:

Even trillion-dollar companies can't solo the AI race.

Apple fumbled the AI bag HARD.

Their much-hyped Apple Intelligence barely exists, sparking class-action lawsuits over features advertised but never delivered.

When a perfectionist company like Apple calls for help, you KNOW the AI competition is brutal.

2 – OpenAI Drops $3B on Windsurf Like It’s Nothing 💸

OpenAI just YOLO’ $3 billion to buy Windsurf, the second-largest AI development platform.

At a 75x earnings multiple.

That's not an investment. That's a FLEX.

This gives OpenAI a customized coding environment to accelerate their AGI progress. And no, this doesn't mean OpenAI can't code (that hot take is embarrassingly wrong).

OpenAI's o3 is already world-class at coding. What they lacked was an IDE. It's like having an F1 driver with no car.

The juicy question: Will OpenAI keep letting Windsurf users choose competitor models like Claude and Gemini? Or force everyone into their ecosystem?

What it means:

OpenAI isn't just trying to win the AI race.

They're buying the whole track.

This is vertical integration at warp speed. Owning just models isn't enough anymore.

The power play is controlling everything from model to interface.

For developers currently using other models in Windsurf? The uncertainty is real.

3 – Apple Eyeing AI Search Engines for Safari 🔍

Safari might finally let you easily dump Google.

Apple is exploring adding AI search engines like Perplexity or ChatGPT to Safari, potentially ending Google's monopoly on Apple devices.

This bombshell came from Eddie Kyu during the DOJ's antitrust trial against Google. Currently, Google pays Apple an estimated $20 BILLION annually to be Safari's default search engine.

That's not pocket change. That's entire-country-GDP money.

Safari search traffic already declined for the first time in April 2025, with users increasingly turning to AI platforms instead of traditional search.

The candidates: ChatGPT with its voice features, Perplexity with real-time citations, and Claude with its reasoning and newly-added web access.

What it means:

The AI-powered search game's about to explode and Google’s traditional search stranglehold may get lost in the mix. 

Google's been paying Apple billions to keep competitors away.

Now the gates might open anyway.

For AI search startups, getting featured in Safari would instantly deliver hundreds of millions of users.

For Google, it's nightmare fuel that could force them to accelerate their AI search offerings.

Traditional blue-link search is dying faster than expected. The future is conversational, and everyone knows it.

4 – FDA + OpenAI Explore Drug Approval Partnership 💊

The FDA wants OpenAI to help speed up drug approvals.

What could possibly go wrong?

The drug approval process currently takes over a decade. The FDA is reportedly using AI to accelerate this, with OpenAI reportedly in discussions about integrating ChatGPT into drug evaluation research.

These talks are led by Jeremy Walsh, the FDA's first-ever AI officer, along with folks from Elon Musk's DOGE. 

No contract yet, but the FDA has already completed its first AI-assisted scientific review. Former commissioner Robert Califf noted AI has been used in review teams for years, but the potential now extends far beyond.

What it means:

This is equally thrilling and terrifying.

Faster drug approvals could save countless lives.

But AI literacy in regulatory agencies (and legit everywhere in corporate America) is dangerously low.

Less than 1% of companies have dedicated AI learning teams, yet the tech changes weekly.

This isn't knowledge you learn once. It requires constant education.

Without proper investment in AI literacy, we're slapping an "easy button" on life-or-death decisions.

Buuuuuut…. Let’s hope for the best? 

5 – Google’s Gemini 2.5 Pro I/O Edition Demolishes Competition 🏆

Google said "watch this" and dropped an even better version of their already-dominant AI model.

They didn't need to. They were already winning.

They just woke up and chose AI violence.

Gemini 2.5 Pro I/O Edition now ranks first on the Web Dev Arena leaderboard, crushing OpenAI, Anthropic, and others across nearly every category.

The new model codes like a senior developer, can generate full apps from YouTube videos, and nails front-end development tasks automatically.

Most impressive? Their front-end Canvas mode got under-the-radar super powers, as it lets non-coders build applications by just describing what they want.  

This I/O version is sneaky good. 

What it means:

Google is FLEXING.

They're not just leading the AI race. They own it. (That’s why OpenAI’s trying to purchase the race track! Lolz) 

The gap between Google and competitors grows wider weekly, forcing power moves like OpenAI's $3B Windsurf purchase.

For regular humans, Canvas mode is revolutionary.

Non-technical people can now create their own solutions without writing code.

The 2025 prediction came true: non-technical vibe coding is becoming a real option for building useful software.

6 – Amazon Enters Vibe Coding Wars with Kiro 🧠

Amazon doesn't want to miss the vibe coding party.

AWS is developing an AI code generation tool called Kiro that generates code in real-time using AI agents.

Beyond basic coding, it would create technical documents, find bugs, and optimize code. The entire development pipeline, automated.

Amazon already has Q Developer (their GitHub Copilot competitor), but Kiro reportedly will look far more advanced and comprehensive.

Initial launch is targeted for late June 2025, throwing Amazon into direct competition with OpenAI's newly-acquired Windsurf, Apple/Anthropic's partnership, and Google's Firebase tools powered by their powerful 2.5 Pro models. 

What it means:

The vibe coding gold rush is ON.

Everyone's jumping in the pool now.

A year ago, these tools were for tech geeks only.

Now they're becoming accessible to anyone with a business problem.

Amazon's betting its massive cloud ecosystem will give it an edge in a space where it's playing catch-up.

For AWS customers, the potential integrations could create advantages standalone tools can't match.

7 – OpenAI’s Nonprofit Keeps Control After Reversal 🔄

Its nonprofit arm will retain control over the for-profit business developing ChatGPT, reversing earlier plans to separate them.

CEO Sam Altman said this came after talks with civic leaders and attorneys general from California and Delaware.

The for-profit segment will become a Public Benefits Corporation, balancing profit with mission, while the nonprofit remains the major shareholder.

This reversal matters because OpenAI transformed from a research lab to a $300 BILLION behemoth with one of the world's most popular products.

The move also connects to Elon Musk's lawsuit claiming OpenAI betrayed its founding principles.

What it means:

The regulatory heat on AI governance is SCORCHING.

Even with a $300B valuation, OpenAI can't escape scrutiny.

For users, this theoretically means decisions will prioritize the original mission over pure profit.

At least on paper.

The fundamental question remains: how do you build world-changing AI while balancing capitalism and ethics?

8 – OpenAI-Microsoft Deal Renegotiations Points to IPO 📈

According to Financial Times, they're negotiating terms that could enable OpenAI's potential IPO while protecting Microsoft's tech access and OpenAI stake beyond 2030. 

Microsoft (reportedly holding ~49% stake in OpenAI) might reduce its equity in exchange for longer access to OpenAI's tech past the current contract end date.

This is happening while OpenAI expands other partnerships, including a massive $40 billion SoftBank-led funding round and Oracle projects for its Stargate computing infrastructure.

The restructuring keeps nonprofit control while potentially setting up a public offering.

Critics like Elon Musk say this prioritizes profit over OpenAI's original mission.

What it means:

The AI power dynamics are shifting FAST.

Microsoft seems willing to trade current ownership for future tech access.

Smart move if OpenAI keeps innovating. Risky if competitors catch up.

An OpenAI IPO would be SEISMIC for the entire AI industry.

It would create the first pure-play major AI public company and set valuations for everyone else.

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