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Welcome, AI Enthusiasts!
Today’s AI Insights:
Google debuts Gemini 2.5 Pro
Netflix launches AI-powered search tool
OpenAI to buy Windsurf for $3
OpenAI looks to cut Microsoft’s revenue share
Microsoft adds 2-year rehire ban for ousted staff
Anthropic launches AI for Science Program
xAI partners with Palantir to power finance AI
How to transcribe smarter with AI
AI tool of the day
Latest AI and tech news
Read Time: 4 mintue
LATEST AI NEWS
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Image source: Google
Just ahead of I/O 2025, Google has released Gemini 2.5 Pro Preview (I/O edition), an upgraded version of its flagship model. Designed for developers, it brings major gains in coding, web development, and video understanding.
The Details:
Gemini 2.5 Pro I/O edition is now live on Gemini API, Vertex AI, AI Studio, and the Gemini app at no added cost.
Leads LMArena for coding and tops the WebDev Arena Leaderboard for web app creation.
Shows major improvements in code editing, function calling accuracy, and interactive app building.
Achieves 84.8% on VideoMME, marking state-of-the-art video comprehension.
Google highlights enhanced aesthetics, reduced coding errors, and stronger developer steerability.
Why it matters:
With this update, Google is sharpening its edge in the AI race just as OpenAI and xAI gear up for their next releases. Gemini 2.5 Pro I/O edition proves that thoughtful refinement, not just scaling, leads to better performance. For developers building apps, writing code, or analyzing media, this model sets a new bar for speed, accuracy, and usability, all without changing the price tag.
OPENAI & WINDSURF
OpenAI is set to make its biggest acquisition yet with a reported $3 billion deal to buy Windsurf, an AI-powered coding assistant. This move could significantly enhance ChatGPT’s capabilities in developer workflows.
The Details:
OpenAI has agreed to acquire Windsurf (formerly Codeium) for around $3 billion, per Bloomberg sources.
Windsurf was last valued at $1.25 billion after a $150 million round led by General Catalyst in August 2023.
The startup had recently been raising a fresh round at the $3 billion mark, with investors including Kleiner Perkins and Greenoaks.
This deal aims to strengthen ChatGPT’s growing role in code generation, editing, and developer tools.
It follows OpenAI’s acquisition of Rockset in 2023 to enhance its infrastructure for enterprise offerings.
Why it matters:
As coding assistants become core to generative AI products, OpenAI is moving aggressively to lead in this space. With 400 million weekly users and a potential $40 billion funding round in the works, integrating Windsurf could sharpen ChatGPT’s competitive edge. This acquisition highlights OpenAI’s shift toward building deeper vertical capabilities for developers, setting the stage for more advanced, real-time coding support inside its ecosystem.
NETFLIX
Image source: Netflix
Netflix just unveiled its new AI-driven search experience, powered by OpenAI’s ChatGPT. The tool is designed to help users find what to watch using natural, conversational prompts.
The Details:
Users can now type requests like “funny but not too silly” or “scary with a bit of humor” to get tailored show and movie suggestions.
The feature is launching as an opt-in beta for iOS users this week, after early testing in Australia and New Zealand.
Netflix joins competitors like Amazon and Tubi in adding generative AI to search, though Tubi later shut down its version.
The tool aims to streamline discovery, especially for undecided viewers overwhelmed by choices.
Netflix also announced generative AI for translating title cards and revealed a new short-form video feed and redesigned TV homepage.
Why it matters:
As content libraries grow, finding the right show becomes harder. Netflix’s move brings AI search into the mainstream streaming experience and could redefine how users navigate entertainment. Whether it sticks will depend on how well users adopt conversational discovery.
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AI & TECH NEWS
OpenAI is planning to reduce Microsoft’s 20% revenue share to 10% as part of a broader restructuring. The move aims to replace profit rights with traditional equity, ease investor concerns, and extend Microsoft’s access to OpenAI tech beyond 2030—despite rising tensions and new deals with Oracle and SoftBank.
Amazon is building Kiro, an AI-powered coding tool that uses agents and a multi-modal interface to generate code in real time. Designed to outpace existing tools, Kiro promises faster, smarter software creation—positioning Amazon to compete in the booming AI coding space.
Elon Musk’s xAI has teamed up with Palantir and TWG to bring Grok and Colossus tech into finance and insurance. The goal? Smarter, AI-fueled operations that boost competitiveness across industries.
Anthropic is offering free API credits to researchers solving big problems in biology and life sciences. From drug discovery to genetic analysis, the goal is to speed up breakthroughs using Claude’s advanced AI for research, design, and data interpretation.
Microsoft is enforcing a two-year block on rehiring employees dismissed for performance issues, according to an internal doc seen by Business Insider. The policy marks a tougher stance on underperformance amid ongoing organizational changes.
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