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OpenAI rolls out Codex coder, Google goes full AI multimedia & more AI News That Matters

Microsoft's slew of AI updates, NVIDIA opens its AI ecosystem, U.S. has concerns with Apple x Alibaba partnership, and more!

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Today in Everyday AI
8 minute read

šŸŽ™ Daily Podcast Episode: Microsoft, Google, and Anthropic gear up for AI week. OpenAI's coding updates surprise us all. Don't miss out on this exciting week in AI. Get the AI news that matters! Give it a listen.

šŸ•µļøā€ā™‚ļø Fresh Finds: Microsoft’s involvement in Israeli military, China building supercomputer in space and Cohere’s startup acquisition. Read on for Fresh Finds.

šŸ—ž Byte Sized Daily AI News: Microsoft’s slew of AI updates, NVIDIA opens its AI ecosystem and U.S. has concerns with Apple x Alibaba partnership. For that and more, read on for Byte Sized News.

🧠 AI News That Matters: From Salesforce’s huge AI move to OpenAI’s GPT-4.1, 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 OpenAI unveiling Codex AI coding assistant, Google One surpassing 150M users and Anthropic apologizing for Claude’s legal citation issue. Check it here!

AI News That Matters - May 19th, 2025 šŸ“°

OpenAI made a coding splash.

Anthropic is in legal trouble for .... using its own Claude tool?

Google went full multimedia. And that's only the half of it. 

Don't spend hours a day trying to keep up with AI. That's what we do. 

Join us (most) Mondays as we bring you the AI News That Matters.

Also on the pod today:

• Salesforce Acquires Convergence šŸ’°
• Anthropic's Legal Citation Error šŸ§‘ā€āš–ļø
• OpenAI's GPT 4.1 Model Release šŸš€

It’ll be worth your 44 minutes:

Listen on our site:

Click to listen

Subscribe and listen on your favorite podcast platform

Listen on:

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

New AI Tool Spotlight – QualGent is an AI Mobile App QA Tester, Sim Studio is a Figma canvas for AI agent workflows and Mindverse is an all-in-one AI ecosystem for creativity and productivity.

Microsoft – Microsoft says it provided AI to the Israeli military for war.

AI in Society – China has begun assembling its supercomputer in space.

AI Startups – Cohere has acquired Ottogrid, a platform for conducting market research.

AI in Education – MIT has stated that it no longer stands behind a student’s AI research paper that has been widely circulating.

1. Microsoft Unveils Next-Gen AI Agents and Tools at Build 2024 šŸ› ļø

At this year’s Microsoft Build conference, the tech giant revealed a sweeping update to AI development with new tools like Windows AI Foundry, Azure AI Foundry enhancements, and multi-agent orchestration in Microsoft 365 Copilot. These advancements aim to boost developer productivity by embedding smarter AI partners directly into coding and business workflows, making AI agents more capable, secure, and customizable.

With 230,000 organizations already building AI solutions via Copilot Studio, Microsoft is pushing toward an ā€œopen agentic webā€ where AI agents autonomously handle complex tasks across industries.

2. NVIDIA Unveils NVLink Fusion to Power Next-Gen AI Infrastructureļø šŸ”—

At COMPUTEX, NVIDIA revealed NVLink Fusion, a breakthrough silicon platform designed to enable semi-custom AI infrastructure with seamless integration across CPUs and GPUs from partners like MediaTek, Marvell, and Fujitsu. This new tech promises to dramatically scale AI data centers, delivering bandwidth 14 times faster than PCIe Gen5, a crucial boost for training and running massive AI models.

By opening its ecosystem for custom silicon and rack-scale solutions, NVIDIA aims to accelerate the development of AI ā€œfactoriesā€ capable of handling trillion-parameter models efficiently.

3. U.S. Eyes Apple-Alibaba AI Deal Amid Security Concerns šŸ•µ

The White House and Congress are closely examining Apple’s recent partnership with Alibaba to bring the Chinese tech giant’s AI capabilities to iPhones in China, according to The New York Times. U.S. officials worry this move could boost China’s AI development, expand chatbot censorship, and expose Apple to Beijing’s strict data and content regulations.

Alibaba, a key player in China’s competitive AI landscape, confirmed the deal earlier this year, marking a significant milestone in its global AI ambitions.

4. House Republicans Propose Decade-Long Ban on State AI Rules āš–ļø

House Republicans have inserted a controversial clause in their tax bill that would block states and local governments from regulating AI for 10 years, aiming to create a uniform federal framework. The proposal has sparked backlash from state officials and some Democrats who argue it would handcuff local efforts to address AI risks and bias, while AI industry leaders welcome the move as a way to avoid a regulatory patchwork.

However, experts doubt the measure will pass Senate rules focused on budget-related content, making its future uncertain. If enacted, this could significantly shape how AI is governed nationwide, affecting everything from hiring algorithms to political deepfakes.

5. Microsoft’s AI Director Among 6,000 Laid Off Amid AI Push āœ‚ļø

Microsoft recently cut 6,000 jobs worldwide, including Gabriela de Queiroz, its Director of AI for Startups, signaling that no role—AI leadership included—is immune despite the company’s aggressive AI expansion. The layoffs hit software engineers hardest, even as Microsoft reveals AI now writes up to 30% of its project code.

This paradox of firing AI experts while investing in AI tech raises questions about how companies balance innovation with cost-cutting.

6. Apple’s AI Struggles Lead to Siri Overhaul šŸŽļø

According to Bloomberg’s Mark Gurman, Apple’s AI efforts have faced major setbacks since last year, prompting a complete rebuild of Siri using a new large language model (LLM) architecture. Internal resistance to heavy AI investment, late starts after ChatGPT’s rise, and difficulties merging old and new tech have all contributed to the chaos.

Now, Apple’s Zurich team is focused on creating a more conversational and context-aware assistant, leveraging on-device privacy techniques and potentially web-sourced data for smarter responses.

Salesforce just yoinked a baby agentic AI startup to keep pace, Google ninja-dropped a THREE-IN-ONE media creation powerhouse that nobody saw coming and the UAE is casually tossing $1.4 TRILLION at U.S. AI infrastructure.

Oh…. and the AI conference royal rumble is HERE this week with Microsoft, Google, Claude, and maybe even OpenAI all throwing down some major AI updates. 

Let's get into this week's AI feast, shorties. Here’s the AI news that matters.

1 – Salesforce Acquires Convergence AI šŸ¤

Salesforce just scooped up London-based Convergence AI—a startup barely ONE YEAR OLD created by ex-Shopify and Cohere engineers.

Their autonomous agents go toe-to-toe with OpenAI's Operator. Salesforce CEO Marc Marc Benioff is betting BIG, forecasting 1 billion AI agents deployed by 2025.

The acquisition creates a fresh AI research hub in London with Convergence as the core team. Balderton Capital, who led their $12M funding round alongside Salesforce and Shopify Ventures, admitted they didn't see this coming.

What it means:

Seems like Salesforce might be PANICKING about their AgentForce capabilities.

Their homegrown solution clearly couldn't cut it against OpenAI and the legion of whack-a-mole agentic startups popping up every week. 

Is this a well-thought out move by Salesforce or a desperation move to stay relevant in the agentic AI race? 

The timing speaks volumes—they couldn't wait for Convergence to mature because they're already behind. Over the past 6 months, Salesforce’s stock has not kept pace in Big Tech. 

Expect a feeding frenzy of agentic startups getting gobbled up by EOY as every major player scrambles for talent and tech.

2 – Google Quietly Launches Unified Media Platform šŸŽØ

Google AI Studio V quietly merged three media powerhouses: Veo 2 video generator, Gemini 2.0 image generation, and Imagen 3—all accessible for FREE.

Their Veo 2 tool straight-up EMBARRASSES both OpenAI's Sora and Runway's Gen 4. The slick new interface gives you slider controls for everything imaginable.

Google's Logan Kilpatrick dropped this news on Twitter Friday while everyone was looking elsewhere. Users report the AI Studio now outperforms their consumer-facing Gemini chatbot by a mile.

(We agree.) 

What it means:

Google just pulled one of the sneakiest AI power moves over the past few months. 

They've built a creator's DREAM SUITE while nobody was watching.

Their strategy is crystal clear: let others in Big Tech chase viral moments while they build the infrastructure serious creators actually need.

Two months ago Veo 2 dominated the video space.

Buuuuuut competition's catching up FAST.

This free access strategy is brilliant—hook creators on tools in one space they'll eventually have to pay for when building commercial applications.

3 – AI Conference Week Explodes with Announcements šŸŽ¤

Microsoft Build launched TODAY in Seattle with Copilot enhancements, AI avatars, and Windows 11 updates featuring the long-awaited Recall feature.

Google I/O kicks off TOMORROW showcasing their world-beating Gemini 2.5 Pro I/O model and likely Project Astra updates—their agent combining AI with voice and visual perception.

Code with Claude hits Thursday with hands-on Anthropic API workshops and potential new model drops.

OpenAI might crash the party with surprise announcements despite JUST releasing Codex last week.

What it means:

This isn't just conference week—it's ALL-OUT WAR for AI mindshare.

Microsoft is weaponizing Windows to make AI inescapable at the OS level.

Google DESPERATELY needs Gemini 2.5 Pro I/O to deliver real value, not just yummy benchmarks. 

Anthropic brilliantly positioned their event between the giants to maximize attention. (Lolz.) 

By Friday, Monday's announcements will look like ancient history.

This compressed innovation cycle is BRUTAL for developers but a gift for users getting quarterly updates instead of annual refreshes.

4 – Anthropic Uses Claude for Court Citations That Don’t Exist šŸ¤¦ā€ā™‚ļø

Anthropic just face planted HARD, admitting to an "honest citation mistake" in their legal defense against Universal Music Group, ABKCO, and Concord.

Their AI chatbot Claude generated FAKE citation details in their own copyright dispute filing. Universal's attorney called it a "complete fabrication"—hallucinated by the very AI being sued!

This adds to mounting legal AI disasters, including a California court recently reprimanding law firms for submitting AI-fabricated materials.

What it means:

Misusing YOUR OWN AI for legal citations IN A LAWSUIT ABOUT YOUR AI is beyond embarrassing.

The irony is DELICIOUS. Anthropic is fighting accusations about AI training while simultaneously proving why people don't trust AI outputs.

This will be Exhibit A in every AI hallucination case for the next decade.

If Anthropic's legal team can't use Claude properly, what hope do regular users have?

The "human in the loop" concept just got a very public demonstration of why it actually matters.

5 – Google DeepMind’s AlphaEvolve Beats Human-Created Algorithms 🧠

Google DeepMind unveiled AlphaEvolve—an AI that AUTOMATICALLY creates better algorithms than human experts. It optimized Google's data centers and can free up 0.7% of THE ENTIRE WORLD'S computing power.

AlphaEvolve discovered a new matrix multiplication method that demolished a 50-YEAR-OLD human solution. It rediscovered known math solutions 75% of the time and improved 20% of them beyond what humans achieved.

This evolution-inspired system tests and improves solutions step by step, learning and innovating simultaneously.

What it means:

AlphaEvolve just made computer science textbooks obsolete OVERNIGHT.

This isn't incremental. It’s legit revolutionary.

The 0.7% global computing savings translates to BILLIONS when scaled across all data centers worldwide.

We're witnessing algorithms that create better algorithms than their human creators ever could. (Yeah, think about that one.) 

Google now possesses computational efficiency that NO competitor can match, giving them a massive edge in every AI race requiring processing power.

This is just the FIRST iteration. Imagine what version 2.0 will accomplish.

6 – Google Building AI Software Engineer Assistant šŸ› ļø

Speaking of Google, they’re reportedly unveiling a new AI agent that helps engineers throughout the ENTIRE development process—from planning to documentation, according to The Information.

This tool aims to streamline software creation, making coding more efficient and accessible for developers by handling routine tasks.

The announcement comes alongside Gemini integration with Android XR glasses and a possible Samsung/Qualcomm XR headset reveal at tomorrow's Google I/O.

What it means:

When fully deployed, this agent could all but erase junior coding work while making senior developers 10x more productive.

Engineering teams will need complete restructuring when one dev with this AI can replace entire departments.

This directly challenges GitHub Copilot right as OpenAI dropped $3B on Windsurf and announced Codex, cranking the coding assistant arms race to fever pitch.

7 – UAE and U.S. Tech Giants Building ā€œStargateā€ Data Center 🌐

The UAE and U.S. tech giants are constructing a MASSIVE AI data center called "UAE Stargate" in Abu Dhabi spanning 26 square kilometers with 5 gigawatts of energy capacity.

Tech royalty—Jensen Huang (NVIDIA), Sam Altman (OpenAI), and Jeetu Patel (Cisco)—personally attended the signing. Phase one features a 1 gigawatt computing cluster using NVIDIA's Blackwell GB 300 chips.

The UAE committed a mind-boggling $1.4 TRILLION over ten years to the US economy, focusing on AI and US-made semiconductors.

What it means:

The UAE just bought their seat at the AI superpower table with RAW COMPUTING MUSCLE.

This isn't a data center. Naaaah. This UAE power play is a geopolitical chess move packing more AI capacity than entire continents combined.

The $1.4T UAE investment creates a power alliance that could dominate global AI development for a decade.

Oil wealth is transforming into digital infrastructure at UNPRECEDENTED scale.

Sovereign wealth funds are creating entirely new digital superpowers while traditional tech funding struggles with high interest rates.

8 – OpenAI Rolls Out GPT-4.1 Models To ChatGPT Users  šŸš€

OpenAI just pushed GPT-4.1 and GPT-4.1 Mini to ChatGPT after previously restricting them to API access. Plus, Pro, and Team subscribers get the full GPT-4.1, while Mini is available to EVERYONE.

These models deliver faster responses and better coding assistance. OpenAI clarified GPT-4.1 isn't a "Frontier model," dodging the extensive safety reporting requirements.

They've also launched a safety evaluations hub for more transparent communication about AI risks.

What it means:

OpenAI is evolving from chaotic surprise drops to predictable upgrade paths.

And GPT-4.1’s prowess as a coding model sends even stronger signals as to where OpenAI is focusing on. 

The timing of thither 4.1 drops, alongside their rumored $3B Windsurf acquisition and Codex release, signals an ALL-OUT ASSAULT on the coding assistant market.

9 – OpenAI Launches Codex Platform For Pro Coders šŸ’»

OpenAI dropped Codex for Pro, Enterprise, and Team users—a specialized agentic coder and fine-tuned model from their ultra-powerful o3 architecture specifically for better code.

Codex shows its reasoning during coding tasks that take 1-30 minutes in dedicated sandboxes. Each task gets its own space to work while you wait.

The system tackles problems that plagued earlier AI coding tools: substandard code, debugging nightmares, and security holes.

What it means:

OpenAI just weaponized their o3 model SPECIFICALLY for code with the Codex release. 

This isn't just competing with GitHub Copilot. OpenAI is aiming to replace entire development workflows with Codex.

The sandbox approach brilliantly solves the waiting problem that kills productivity in complex AI coding projects.

Enterprise teams will stop seeing AI as a suggestion tool and start treating it as a full collaborator handling entire components.

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