Howdy wizards,
Hereβs whatβs brewing in AI.
The big thing
OpenAI built its own AI chip, code-named JalapeΓ±o. The message to Nvidia is hard to miss: the company that has paid Nvidia a fortune to run ChatGPT now wants to make its own silicon instead.
JalapeΓ±o is an inference chip, and hereβs what that means. So thereβs two big jobs in AI: training the model (the slow & costly process of teaching it that you do only once) and inference (running the finished model to answer your questions; happens billions of times a day). Nvidiaβs GPUs are general-purpose so they can handle both, but JalapeΓ±o is built only for the answering part. OpenAI will probably keep training its next models on Nvidia, itβs just trying to run ChatGPT on cheaper hardware it designed and controls.
OpenAI produced this thing in nine months, and they claim that their chip does substantially more work per watt of electricity than the best chips on the market today. It isnβt in mass production yet, OpenAI has one coding model running on it in the lab now, and plans a wider rollout later this year (and Microsoft has already claimed 40% of the first batch).
The point is to depend less on Nvidia and own more of the stack: the model, the product, and now the chip underneath. Kind of similar logic behind last weekβs SpaceX and Cursor deal, one layer down.
Why it matters The chip is one move inside a much bigger squeeze, which is this:
AI companies are buying so much memory and compute that theyβre pushing prices up across the whole market. The same shortage driving OpenAI to build its own silicon is why Apple just raised laptop prices (see below) and why AWS quietly bumped some GPU rentals about 20%.
When compute is the bottleneck, renting it becomes a risk. OpenAI is choosing ownership as its strategy.
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All the small things
Industry moves
Washington put OpenAIβs newest model on a government leash. OpenAI previewed GPT-5.6 (led by a flagship called Sol), its most capable model yet, and the White House asked OpenAI to limit who can use it, customer by customer, because it crosses the same cyber and bio line that got Anthropicβs Mythos pulled last month. Days later the government cleared Mythos for 100+ approved US institutions, and pressed Meta to submit its models for review too. For the strongest models, Washington now wants a hand on the release valve.
The next Mac costs more, and AI is the reason. Apple raised prices on Macs and iPads, in some cases 15 to 25%, blaming a component crunch it says it has never seen move this fast. AI data centers are buying so much memory that prices have more than doubled since late 2025, with the shortage expected to last into 2027.
A Nobel laureate left Google DeepMind for Anthropic. John Jumper, who shared a Nobel for AlphaFold (the AI that cracked how proteins fold), is leaving DeepMind after nine years for Anthropic. Heβs not alone: Gemini co-lead Noam Shazeer recently went to OpenAI, and several more Google researchers have gone to Anthropic.
Anthropic accused Alibaba of the biggest theft of Claudeβs outputs it has caught. In a letter to a Senate committee, Anthropic said Alibaba ran nearly 25,000 fake accounts to pull about 28.8 million Claude conversations over 45 days, trying to copy Claudeβs coding and agent skills into a rival model. Itβs the same βdistillationβ move Anthropic earlier accused DeepSeek of, just much bigger, and Anthropic is using the disclosure to press Washington for sanctions on the Chinese labs behind it.
New tools & product features
Computer use comes to Googleβs cheap, fast model. Gemini 3.5 Flash can now do computer use: hand it a screenshot and a goal and it returns the clicks, scrolls, and typing to carry out a task, looping until itβs done across a browser, phone, or desktop. Letting AI drive a screen isnβt new, but itβs normally slow and pricey; the news is that it now runs on a cheap, fast model, which can make more use cases for this type of automation economically feasible.
Models
Sakanaβs Fugu is a manager that delegates to other AI models. Japanβs Sakana AI released Fugu, which takes your request and routes it to a team of other companiesβ models, deciding which should plan, execute, and check the work, all behind one API. Because itβs really just an orchestration layer, it doubles as insurance against export controls: if one model gets banned or cut off, Fugu swaps in another with no code change. Early testers say the real-world feel doesnβt yet match the hype.
Chinaβs AI video models pulled ahead this week. ByteDance announced Seedance 2.5, which generates a full 30-second 4K clip from a single prompt (most tools still cap out around 10 to 15 seconds), though only in China for now. Alibabaβs rival model, HappyHorse, climbed to No. 2 across the major benchmarks, a spot that opened up partly because OpenAI discontinued Sora in April after it burned roughly $1M a day for almost no revenue.
Research
An AI helped doctors crack 18 childhood disease cases that had stumped everyone. Researchers at Boston Childrenβs and Harvard ran 376 unsolved pediatric cases (all of them prior dead ends) through OpenAIβs o3; it surfaced leads from the existing research, and specialists confirmed 18 new diagnoses, several of them answers that already sat in the medical literature but had never reached the familyβs doctors. The study just published in a New England Journal of Medicine journal, yet it ran on o3, a model from spring 2025: by the time results like these clear medical review, the AI behind them is already a year or two old, which hints at how much more is possible.
Meta read what people were typing from their brain activity alone. In Metaβs Brain2Qwerty v2 experiment, volunteers sat in a brain scanner and typed sentences, and the AI worked out the words purely from their brain signals, without seeing the keyboard or screen, getting 61% of words right on average (78% for the best volunteer) versus about 8% for earlier non-invasive attempts. Itβs not quite mind-reading (you still physically type) and it needs a room-sized scanner, so itβs a lab result, not a product, but itβs a big leap for reading the brain without surgery, and Meta open-sourced the code.
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