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There was no blockbuster AI story this past week, no landmark AI court case or chartbreaking AI model. Although there were plenty of new updates, developments and stories that you need to know for your company to keep pace. This was one of those rare, quiet weeks in AI news and developments. You know what that means though, right? We're likely in for a doozy of new news this week. Like a sharpshooter that never misses twice. From the three, I'm guessing we're going to be in for a big week of AI updates this coming week. Regardless, we did get enough to keep up with the past seven days. I mean, we have the world's new best open model, some juicy AI lawsuits, and the Microsoft CEO calling out not just one of his biggest competitors by name, but also one of the companies that he's invested $5 billion in. Yeah, still plenty you need to know to keep up. And that's what we're going to do on today's AI news that matters. What's going on? Welcome to Everyday AI. If you're new here, my name is Jordan Wilson and we do this every day. It's your daily live stream, podcast and free daily newsletter helping business leaders like you and me keep up with AI developments. Use that information to grow your company and career. So if that's what you're trying to do, sweet. Me too. It starts here with the unedited, unscripted live stream podcast, but please make sure you go to our website at your everyday AI.com we're going to be keeping you up to date with the highlights from today's story and everything else that's happening in AI world. So let's just jump straight into it. First, Meta. After having an amazing July so far with their new Muse Spark 1.1 that we talked about last week, their new Muse image and video models, well, they got maybe a little bit of a black eye this week. That's because a group of 26 current and previous Meta employees has filed a federal lawsuit claiming the company's use of AI in layoff decisions unfairly targeted workers on medical, parental or family leave. So, according to the Associated Press, the lawsuit was filed in Oakland and involves 26 anonymous meta employees who say they were selected for layoffs after taking protected leave or requesting disability accommodations. So the employees are among the 8,000 thousand workers, or about 10% of Meta's workforce who were notified of layoffs in May. So the lawsuit alleges that Meta used internal AI systems, keystroke and activity monitoring and algo performance rankings and AI token usage dashboards dashboards to determine who would be laid off. So the plaintiffs claim that these AI powered system penalized employees who are on protective leave as their output was automatically reduced, making them more likely to be selected for termination. Many of the affected workers were on pregnancy or parental leave, while others took medical or family caregiving lead. Eight are women who had been who had taken maternity or pregnancy related leaves and four are men who took parental leave. So the lawsuit argues that Meta's systems failed to account for legally protected absences and did not pause for individualized review as required by law. The complaint cites violations of several state and federal laws, including the Family and Medical Leave act, the Americans with Disabilities act, and the Pregnancy Discrimination Act. So Meta responded saying that those claims lacked merit and are not based on facts and stated that workforce decisions were made by people, not AI. So not exactly the week that Meta wanted to follow up with after their hot start to July that saw their stock really just rebound from like a year of lackluster performance and losses. So Meta honestly had the best start, I would say, to July outside of OpenAI, right. If you look at kind of the, the big six of AI, all right, which is the big four model makers, that's OpenAI, anthropic, Google, Microsoft, and then you put in Meta and SpaceX into the equation. Right. If I talk about the Big Six in AI, right. It's kind of the Big Four plus Meta and SpaceX. So Meta actually had one of the best Julys, you know, so far until this happened. So not a good look. This one's going to be interesting to see how it plays off. And if nothing else, a good takeaway for business leaders here is you always have to make sure that your systems are talking to each other. Right. If this is truly the case, this is absolutely horrible. Right. If women that were on pregnancy leave were, you know, essentially decided and AI decided that they were going to be up for termination because they weren't hitting their keystrokes or their, you know, token, you know, targets, which is absolutely asinine if this is true, I hope it's not. But regardless, when it does break one way or the other, we'll let you know in the newsletter. I'm guessing this will eventually just be settled out of court. All right, our next one, which could end up being a big joint agreement for us tech companies, which you don't really see a lot. That's because the Google DeepMind CEO is pushing for a unified AI watchdog after the anthropic ban has led to kind of this staggered and what I'm calling the permission slip AI reality that we're all living in. So Google DeepMind CEO Demis Hassabis is calling for a FINRA style industry funded watchdog to oversee advanced AI, aiming to prevent the chaotic kind of government crackdowns like the one that halted Anthropic's Fable 5 and Mythos 5 models in June. So the Trump administration's abrupt ban on those models when they were citing national security risks triggered a tense two and a half week negotiation enforced last minute changes, exposing the lack of a formal review process for powerful AI systems. So this is what Demis's proposed body would require. So it would require AI labs to submit their Frontier models for pre release vetting up to 30 days before launch, focusing on threats like cyber warfare, bioweapons and nuclear misuse. So the framework would also include emergency powers to slow or halt industry wide AI development if a model is found to cross critical risk threshold. So the reason why this is important because this is the first kind of initiative that's picked up steam across all of, well, not all of the big six, but I think five of them. That's because major tech leaders including Microsoft's Satya Nadella, OpenAI's Sam Altman, Google, Sundar Pichai and others have publicly endorsed the core principles of the proposal, marking a rare show of unity in the competitive sector. Anthropic's Dario Modi supports binding regulation, but called for an even stricter government led agency with authority to block unsafe model releases outright. So Meta, led by Mark Zuckerberg, remains the notable holdout here, continuing to advocate for open source AI in drafting its own regulatory response. That one there is pretty I don't want to give it a certain name, but you know the fact that Meta cited open source AI being an advocate for even though they are the company that has famously shifted away from open models in their previous Llama series to now the Muse, which are proprietary closed source. So I don't really know why Meta's response Wells was well hey, we care more about open source anyways. All of the other major US labs have already signed voluntary agreements to submit their models for government safety testing. But the industry, the industry wants a predictable standardized process instead of the ad hoc intervention that we've seen. So the White House is currently reviewing the proposal as a potential compromise to keep America competitive in AI while managing security risks. So if you didn't see this, we did share this in our newsletter last week. I think this is sorely needed. Presumably you would have probably liked this to come from the government and not necessarily a private company, but maybe that's what might make this stick. Right? Similar to the FINRA style, you know, having a private public sector agreement that says, hey, we're essentially the experts in AI. You probably don't know government exactly what you should be doing when it comes to regulating our industry, which I absolutely agree with. That's not me saying that there's not smart people in AI in the government. There's obviously absolutely brilliant people, you know, who have both backgrounds at these big six tech companies working in government now. But for the most part, when it comes to like the bleeding edge technology, I don't think the White House really has a clue. And that's not a political statement, that's just any government. I don't think any government would have the clue how to regulate the United states acceleration in AI eye right now. Right, but that's because, you know, 60 days ago, you know, six months ago, the capabilities that we have today, no one probably could have predicted them, especially six months ago. So it is good that, you know, Google DeepMind's Demis Hasabis is kind of calling for this and taking this step forward. Demis obviously has one of the deepest and most respected backgrounds in AI in the entire world. So we'll see if Sir Demis can get it done. All right, Moving from one kind of compromise, I guess, of us big tech companies to a leak that could maybe impact millions of people. That's because we just got a report from Bloomberg that says OpenAI is working on its first hardware device. So finally we get some details on what this, you know, much reported on device. You know, we've been hearing about this thing for almost nine or 10 months now. So according to Bloomberg reports, it is a mobile smart speaker that integrates AI and syncs with ChatGPT. So according to reports, the device is designed to be a screen free device and it acts as a human like AI companion for the home, offering proactive learning and a personalized service. So unlike traditional smart speakers, OpenAI's model reportedly features mechanical elements that can move on their own, aiming to feel more like a living companion or one that can at least kind of wander maybe from room to room with you. So the speaker is intended to access a user's digital life, including emails, to deliver highly tailored assistance. So development is being led by former Apple engineers who played key roles in creating products like the iPhone and Mac. So the project comes amid legal friction, as Apple recently sued OpenAI, accusing it of stealing trade secrets and warning of more revelations during discovery. OpenAI denied any wrongdoings on that. Sources told Bloomberg the new device veers significantly from anything Apple has on the market today and is unlikely to violate trade secrets. So OpenAI's push reflects the growing industry excitement about consumer AI hardware, with startups like Hark raising around $700 million to build personal intelligence devices. So the reported OpenAI devices form factor hasn't been revealed, highlighting how much investor interest exists before these products are even unveiled. So I'm all for anyone that's listening to the show for a long time. I don't really care about my data. I don't. Right? If you want to know all the random AI stuff, I've been searching and if a OpenAI smart speaker wants to follow me around and help me with that. Sweet. Sounds good, right? Anything to get rid of Alexa and Siri, sooner the better. Like, please sign me up for this. Put me on a waitlist. All right, next, you don't have to get on a wait list because this is out. This is the new king of the Open well, soon Open Source Hill. All right, more on that here in a second, but we do have a new open source king in Kimmy K3. So Moonshot AI, a Chinese startup backed by Alibaba and TenCents, introduced Kimmy K3A absolutely massively monster open source model with nearly 3 trillion parameters. Yes, 3. Almost 3 trillion parameters. So Moonshot revealed Kimmy 3 at the World AI Conference in Shanghai, touting it as the world's first open source model in the 3 trillion parameter class. So kimik3 is not technically open source yet, but the company says they will release the weights on July 27. So at 2.8 trillion parameters, Kimi K3 puts it in direct competition with leading American proprietary models from OpenAI and Anthropic. So the announcement comes just weeks after the US temporarily forced Anthropic to withdraw its Mythos and Fable 5 models due to cybersecurity concern, highlighting the growing not just national security focus on advanced AI, but also the interest on potential open source AI projects that can live in the frontier like Frontier 0.5 sector. Right? So and this is why it's actually important, because third party evaluations by artificial analysis and arena show Kimmy K3 performing on parish, right? With GPT 5.6 Soul and Fable 5 so in some benchmarks they are a little bit better actually. But right now I would say that you have GPT 5, 6, Soul and Fable, they are class 1A. And now, well, you might have an open source model in Kimi K3, technically 1B. So at least right now I wouldn't even say it's the second tier. It's, you know, we have a tie for 1A. And yeah, we have a Chinese open source model that has closed the gap to B1B. So Kimmy K3's open source approach stands in contrast to obviously the closed proprietary systems of American firms, throwing a wrench in the AI strategy game plan for some larger enterprises. So the model itself is designed to operate with minimal human supervision, handling complex tasks like engineering and software development. The release immediately impacted global markets, with shares in Chinese competitors ZAI in Minimax dropping sharply in Hong Kong after the announcement. So I'll cut it to you straight on this because I think people, for the most part, when they look at open source models, they usually think of two things. They think, well, if I have a powerful enough computer, right, like as an example, I have a very beefy Mac studio sitting here on my desktop. People think, oh, if I have very expensive hardware, I can run the best open source models. No, we are past that. Unless you literally have a rack of Nvidia GPUs and a cooling center in your basement, you can't run this, right? This is for 0% of consumers out there. You can't run a 3 trillion parameter model on any consumer hardware. So that's number one. So yes, this is really for those enterprises that have access to compute at scale number one, especially if you can host it, which is not a lot of companies. But if you do have a couple of racks and maybe you have a large AI bill, you know, maybe you're paying eight, nine figures in AI spend with, you know, a bunch of GPUs, which again, not a lot of companies, but for some companies, yes, in this week or, sorry, in like 10 days or so on July 27th. So that's like in seven days you'll technically be able to download this model and if you want to fine tune it because it's open source. So for a very, very, very, very few companies, this is actually could be fantastic news. If you have the resources and the human skill needed to make that happen. That's one thing people think, oh, I can just download this and run it. No you can't. Number two, they think it's extremely cheap. Also not the case Right. So if you're not using this, you know, downloading it and running it locally, people think well o open source models are super cheap. Previously. Yeah, they were not really with this one. Right. We, we see this Kimmy K3. We also saw that Quen will be releasing their next big multiple trillion parameter model here any minute or any hour. So I don't think this next tier of frontier esque open models are going to be open in the sense that we thought of them previously. Right. And the other thing is there's no real guarant that we keep getting these open source Chinese models for much longer. We saw reports which we talked about on last week's AI News that matters that China may start restricting the export of their models. Right. Specifically not wanting maybe the US to get a hold of these, which is obviously ironic considering that these models have largely just been distilled from US models. So regardless, there's a little bit of background. You can't go download this. And if you're paying API prices, it's not like they're super cheap. Right. They're actually in many cases more expensive than GPT 5.6 Soul. You know, they're probably a little cheaper than Fable 5 and Mythos 5 since those are the most expensive models on the market when it comes to price per performance. All right, more model news. But this is not we get one. This is just we're waiting longer. So Alphabet, parent company of Google, its shares fell 4% Thursday after news broke that the highly anticipated Google Gemini 3.5 Pro. Yeah, months behind schedule, not coming out anytime soon. So according to a new Bloomberg report, the delay is due to Google's efforts to improve the model's coding performance, which falls short according to their own internal expectations. So the setback comes as competitors like OpenAI, Anthropic and Meta have all launched AI models recently that outperform Google's current offerings in software code generation. So Alphabet first teased Gemini 3.5 Pro in May after releasing Gemini 3.5 Flash. So in May at their IO conference they said that the model would be coming out in June. Obviously June has already passed and we're near the end of July. And now the latest report says Google's next model in Gemini 3.5 Pro could still be months away. So an Alphabet spokesperson told CNBC that the company is shipping quickly across a wide range of models and continues to test Gemini 3.5 Pro and other upgrades with partners and the US government. So yeah, if you were, you know, holding your breath or if you were you know, trying to decide between GPT56 Soul and Fable 5. And you're like, wait, let's just wait until, you know, Google Gemini 3.5 Pro, because it was supposed to come in June, surely it's coming in July. Well, no, and if this report holds to be true, we might be heading into the fall without even Gemini 3.5 Pro Pro. And at that point, I mean, presumably we're gonna be getting a Fable 5 one soon. We may be getting a GPT6 around the horizon. We'll see. So, you know, it's gonna be worth following to see just how big of a jump this 3.5 pro could be. Or maybe, I don't know if Google comes out with another Flash model in the interim because if they're still working on the retrained that they were previously, that can might be concerning. And I mean, we'll see if for the first time in a long while, at least two plus years, if Google is not able to compete on the model front, which to me, I would be shocked because I've always been a big believer in that. Google, at any point, whenever they want, can drop the world's most powerful model. So I don't know, maybe when I said that a year or so ago, maybe I was biting off more than I could chew and believing in the big G a little bit too much. So yeah, we'll see if that holds true. I still think they'll be able to, you know, Google, Are you still running in circles trying to figure out how to actually grow your business with AI? Maybe your company has been tinkering with large language models for a year or more, but can't really get traction to find ROI on Gen AI. Hey, this is Jordan Wilson, host of this very podcast. Companies like Adobe, Microsoft and Nvidia have partnered with us because they trust our expertise in educating the masses around generative AI to get ahead. And some of the most innovative companies in the country hire us to help with their AI strategy and to train hundreds of their employees on how to use Gen AI. So whether you're looking for ChatGPT training for thousands or just need help building your front end AI strategy, you can partner with us too. Just like some of the biggest companies in the world do. Go to your everydayai.com partner to get in contact with our team or you can just click on the partner section of our website. We'll help you stop running in those AI circles and help get your team ahead and build a straight path to ROI on Genai. It's they have their own, right, they have their own, you know, GPUs, TPUs. They can, they can train these things quickly without having to, you know, pay their competitors billions of dollars like Anthropic is having to do right now for inference and to train these models. So, so all right, speaking of big tech companies, we're moving from Google to Microsoft for our last big AI news story of the week. That is the juicy one. Here we go. So Microsoft CEO Satya Nadella recently, according to reports, started to kind of seemingly shift his public stance on mainstream AI, moving from an aggressive investor closed source Frontier Labs to a vocal critic of their current trajectory. So the shift began with Nadella's leaked criticism of anthropic's Claude Fable 5. So according to reports, Nadella slammed the flagship model as being too, quote unquote editorially controlled, arguing that its rigid guardrails and refusal protocols don't make sense for a creative utility. So reports also said that Nadella questioned Anthropic's limits on user requests to its high end Fable AI model, calling the editorial controls on creation tools nonsensical during remarks to Microsoft's copilot engineers. So Anthropic's Fable model sometimes rejects users, queries or responds with with older versions of the model, with essentially falling back to Opus 4.8, leading to a lot of frustration and criticism on social media. Right. You've seen many examples and I've tried some myself, Even asking Fable 5 about certain types of cancers or you know, hey, what are the biggest, you know, in certain medical fields, what are the biggest unanswered questions? And it will say essentially you can't ask this and it's going to roll you back to an older model like Opus 4.8. So this is extremely noteworthy as Satya Nadella is, at least according to these reports, publicly criticizing Anthropic. That's because Microsoft has invested $5 billion in anthropic, with anthropic agreeing to also spend $30 billion in future years on Microsoft's Azure cloud infra capture. So this is right? You normally wouldn't hear shots fired like this, you know, slamming a company in their flagship model, especially when said company is well, going to be reportedly paying you $30 billion over the next few years and you have a large ownership in that company. But that wasn't the, the only kind of shot at Anthropic that Nadella took. That one was again according to reports direct, the second one a little indirect. But most industry insiders are connecting the dots. So in A seemingly somewhat related long form online post last week, Nadella coined the term reverse information paradox to explain that businesses is essentially just pay for AI twice. They pay for it once with actual money, right? So they're buying subscriptions for their employees or paying for tokens. And then he said they're actually paying for it a second time. And the second time is more dangerous because they're giving away their proprietary knowledge and institutional know how that they're essentially forced to hand over to make the model useful. So in his post, Nadella didn't name names on who does this, but, well, everyone's looking at the fine print here and being like, wait, the only company that actually forces you to do that right now is Anthropic. Because if you're a. At least for paying business customers, at least Anthropic is the only one that has a requirement that they are going to retain your data and there's nothing you can do about it. Right? So with the new Mythos 5 and Fable 5, Anthropic essentially throws zero data retention, or ZDR. You know, Anthropic's just throwing zero data retention out the window. So again, although Nadella didn't mention Anthropic by name, everyone's, you know, reading his post and being like, okay, this is also definitely about Fable. So for all you people out there that, you know, sometimes say, oh, Jordan's being so hard on Anthropic. No, I'm not. My gosh. Like the fact that Anthropic still has that required data retention. Again, I don't have $5 billion invested in anthropic, and Anthropic hasn't agreed to pay me $30 billion over the next couple of years. So if Saudi Nadella is number one again, according to reports, calling them out by name in one, you know, breath, and then in the next breath, he's essentially describing them because that's the only company that truly fits that description for enterprise customers. That's not a good sign for Anthropic. Just saying that. So, yeah, many attributed that second half of the statement to Anthropic's Mythos 5 and Fable 5 data policy, which forces that data retention even for enterprise customers. All right, that's a wrap on our big stories, but let's quickly go into the what's new and what's next? So these are some still important happenings, some maybe some leaks in here, but let's just quickly go into our what's new and what's next? Rapid fire, here we go. So The Trump administration launched Gold Eagle Hub to accelerate cyber security patching for critical infrastructure. Meta reportedly enter talks to lease up to $10 billion of compute to Anthropic Google AI mode Added actions through canva, Instacart and YouTube Music. Yeah, if you didn't check that out, pretty cool. If you have a paid personal Gmail account, check that out. Next. I referenced this earlier, but Quinn 3.8 is launching soon and the company says it is a 2.4 trillion parameter model and they are reporting benchmarks near Fable 5, GPT5.6 Seoul Kimi K3 levels. All right, thinking machines released a 975 billion parameter open weight inkling AI model. New York halted any data center construction more than 50 mag MW. Is that mega? I always forget that what what that is. MW is. Is mega Megahertz. Is that right? Mega Megawatt. My gosh, y', all, sometimes I read too much AI news and I just forget things. All right, anyways, New York halted construction for one year on any of those new data centers. Next more than 200 experts, including 15 Nobel laureates, called for urgent preparation for AI's economic impact. Anthropic permanently extended Fable 5 to max users, but yeah, it's only at about 1/3 of the original limit. So yeah, I talked about this on last week's show. I said there's no way Anthrapic is actually taking away Fable 5 because they would lose most of their subscription revenue. So unfortunately for most people it is only if you're on that $100 or $200 a month paid plan. Google renamed NotebookLM to Gemini Notebook and they added cloud code execution for paid users. I think that's only out to Ultra users, but it will be coming out to pro users soon. So yeah, let me know if we should do a Gemini Notebook episode. When that drops I'm going to accidentally still call it NotebookLM all the time. Next, a hacker leaked Suno secret data reportedly showing that millions of songs were scraped from YouTube and and Deezer. All right, next, OpenAI released GPT Red, an automated system to detect prompt injection vulnerability and AI agents. Amazon Bedrock added support for OpenAI's new models GPT 5. 6. Apple is reportedly testing Prism L Prism L's AI model compression which would essentially allow them to run 27 billion parameter models on iPhones, which would be pretty sweet. Please just fix the Siri Apple if you're listening. Thanks. Anthropic added an in app browser to Claude code on desktop enabling site in Doc interaction. So yeah, I tried it out it's pretty good. It's not quite as good as Codex's, but it does the job. Next, Perplexity rolled out self improving memory, faster models and one click website publishing. ChatGPT rolled out their Universal Surgeon that helps you more easily find projects, images, documents, chats from one sidebar, a much richer and better search experience. Email program Superhuman released their new Auto Draft feature that writes email replies in your voice using better models and then you can go send them from your drafts. Next, Spotify released a new feature where you can talk to Spotify by voice or text to control music and see listening history. Gemini rolled out personal avatar tars to allow you to generate AI videos starring your own face and voice. And then last but not least, Chat GBT work, which I don't know if it's called just Chat GBT. Now I noticed that in the dropdown that used to say Chat GBT work and Codex. Now it just says Chat GBT and Codex. So I'm not sure if we're still calling it Chat GBT work or not, but regardless, it actually makes it easier. That's funny. One of my my AIs just shouted out at me, but it actually makes it much easier to show your conversation history. So essentially they brought your chats from Chat GBT into a place that made more sense inside of the desktop app, whereas before, you know, users were a little bit confused. Also, it brings your projects in which a lot of users were complaining about. So essentially if you tried out ChatGPT work when it came out about 10 days ago and we're like, wait, some of this isn't adding up. Where's all my Chat GBT stuff? Well, now it's all there. All right, so I hope this was helpful, all of the AI news that matters for this week, but like I said, to start the show, I can almost guarantee we're going to get a ton of new releases, right? Word on the street is we'll probably be getting an Opus 5 from anthropic that could be near that GPT56 or mythos level, you know, and who knows, it is still hot AI summer and I think that once the steam starts to pick up, it is going to be a hot one. So I get it. It is hard if you are a busy business leader and you're trying to implement AI in your company and you're like, how do I keep up? Well, it starts here with the daily podcast, but make sure you also go to our website@youreverydayai.com. thank you for tuning in. Hope to see you back tomorrow and every day for more Everyday A thanks, y'.

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All. And that's a wrap for today's edition of Everyday. AI, thanks for joining us. If you enjoyed this episode, please subscribe and leave us a rating. It helps keep us going for a little more AI magic. Visit your everydayai.com and sign up to our daily newsletter so you don't get left behind. Go break some barriers and we'll see you next time.