This might’ve been the craziest week in AI we’ve ever seen—yet. From models that feel AGI-adjacent to open-source coding agents and a $32B startup built on pure vision, this week is truly historic. Grab a coffee, sit somewhere comfortable - because we’re diving into the biggest shifts happening this week that will undoubtedly shape the future of AI.
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The Most Historic Week at OpenAI… Yet
The News: This is one of the biggest weeks for OpenAI since GPT-3.5, introducing the most advanced reasoning models yet (o3 and o4-mini), an open-source command-line coding agent (Codex CLI), and the GPT-4.1 model family with 1 million-token context windows and drastically reduced pricing. Together, these launches push the boundaries of agentic AI, developer tooling, and multimodal reasoning in a way we’ve never seen before.
o3 redefines benchmarks with SWE-bench Verified jumping from 48.9% to 71.7%, a Codeforces Elo of 2727, and 12x gains in advanced math — thanks to a new architecture leveraging both training-time and test-time compute.
Both models now operate as fully agentic systems - o3 uses tools, executes workflows, and integrates multimodal reasoning. In a live demo, it executed over 600 tool calls in a single response.
Why it Matters: This week may go down as the most pivotal since GPT-3.5. With the arrival of o3, we’re staring directly at a new frontier of AGI-adjacent intelligence—one that doesn’t just answer, but acts, reasons, and builds. Meanwhile, GPT-4.1 is democratizing developer access to powerful AI, allowing for long-context software engineering at record-low prices. Combined, these launches position OpenAI not just as a model maker, but as the infrastructure backbone for a fully agentic, AI-native future.
Google Strikes Back: Gemini 2.5 & Veo 2
The News: Announced in the wake of Google Cloud Next 2025, and in direct response to OpenAI’s recent releases, Gemini 2.5 Flash introduces a novel "thinking budget" feature for hybrid reasoning, offering developers more control over cost and compute. Simultaneously, Veo 2—Google’s answer to OpenAI’s Sora—is now live across the company’s AI suite, unlocking cinematic text-to-video generation for users and developers. While OpenAI dominated headlines, Google is doubling down on practical, flexible, and creative AI use cases that meet consumers and builders where they are.
Whisk Animate allows Google One AI Premium users to animate static images into video clips.
Developers can use Veo 2 in Google’s AI Studio, with support for both text and image prompts.
Why it Matters: While OpenAI's breakthroughs made waves this week, Google's strategy is quietly powerful: bring high-utility AI to everyone. Gemini 2.5 Flash is a flexible, cost-conscious reasoning model built for real-world use, and Veo 2 broadens the frontier of generative video in a responsible and accessible way. These drops reinforce Google’s long-game: AI that’s not just smart, but usable, scalable, and everywhere you build.
NVIDIA brings AI chipmaking to the U.S.
The News:NVIDIA has announced its FIRST major U.S. manufacturing effort for AI chips and supercomputers, partnering with TSMC in Arizona and Foxconn and Wistron in Texas. The move is backed by a $500 billion commitment over four years.
Over 1 million sq ft dedicated to manufacturing and chip testing.
Foxconn in Houston and Wistron in Dallas are building supercomputer assembly and AI server facilities, with production expected in 12–15 months.
Why it matters: NVIDIA’s expansion marks a strategic pivot toward supply chain independence, national security alignment, and economic revitalization. Backed by incentives and public praise from policymakers, the move supports job creation and advances U.S. leadership in foundational AI infrastructure.
Alphabet and Nvidia joined the round, though their investment amounts remain undisclosed.
The company is focused entirely on building superintelligence while maintaining a safety-first mission.
Sutskever previously described SSI’s unique path forward as a “different mountain to climb”, hinting at a bold divergence from traditional AGI strategies.
Why it matters: SSI’s valuation has grown sixfold since its $5B mark in September 2024, without a product in market. The explosive growth reflects massive investor appetite for AI startups, particularly those helmed by OpenAI alumni and focused on long-term superintelligence goals.
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I think it's really fair to say that o3 is proto-AGI... it meets the expert level intelligence, it has the most advanced tooling AND reasoning that we've ever seen... if it's not AGI - what is?
Now look where we are today! I think that o3 is AGI. It hits all the criterion that 99% of experts agree on. It'd be great if everyone could agree on the same things though (this is supposed to be computer SCIENCE at the end of the day).
I think it's really fair to say that o3 is proto-AGI... it meets the expert level intelligence, it has the most advanced tooling AND reasoning that we've ever seen... if it's not AGI - what is?
"We will have AGI by 2025" - Sam Altman
Now look where we are today! I think that o3 is AGI. It hits all the criterion that 99% of experts agree on. It'd be great if everyone could agree on the same things though (this is supposed to be computer SCIENCE at the end of the day).