⚖️ Google Faces Major Legal Heat

PLUS: OpenAI’s AI gets smarter—but also weirder 🤯

Welcome, AI Enthusiasts!

Today’s AI Insights:

  • Google faces major legal heat

  • OpenAI’s new models hallucinate more

  • OpenAI unveils Flex Processing

  • xAI launches Grok 3 Mini

  • AI Startup Mechanize sparks controversy

  • How to create cinematic AI videos with AI

  • AI tool of the day

  • Latest AI and tech news

Read Time: 3 mintue

LATEST AI NEWS

GOOGLE

Image source: The verge

A U.S. judge ruled that Google illegally monopolized the online advertising market, paving the way for potential structural changes to its ad business.

The Details:

  • Judge Leonie Brinkema found Google monopolized publisher ad servers and ad exchanges, key components of online ads.

  • The DOJ seeks structural remedies, including forcing Google to divest parts of its ad empire like Google Ad Manager.

  • The court rejected one claim about advertiser ad networks but upheld two others, saying Google’s conduct hurt publishers and consumers.

  • Google plans to appeal, stating that publishers choose its tools because they’re effective and affordable.

  • The ruling follows similar antitrust cases against other tech giants, including Meta, Apple, and Amazon.

Why it matters:

This case is a watershed for antitrust enforcement in tech. If forced divestitures happen, Google’s ad empire could be split—setting a precedent for actions against other giants like Meta and Amazon. As regulators on both sides of the aisle crack down, Big Tech’s integrated ecosystems are under more pressure than ever.

OPENAI

OpenAI’s latest reasoning models, o3 and o4-mini, are impressive in math, coding, and problem-solving—but they’ve taken a step back in one critical area: hallucinations.

The Details:

  • Internal tests show o3 and o4-mini hallucinate more than older models like o1 and GPT-4o.

  • On OpenAI’s PersonQA benchmark, o3 hallucinated 33% of the time, double o1’s 16%. O4-mini fared worse, hallucinating 48% of the time.

  • Transluce, an AI research lab, found o3 invents actions (e.g., falsely claiming it ran code outside ChatGPT).

  • OpenAI admits it doesn’t fully understand why hallucinations worsened, citing the need for more research into scaling reasoning models.

  • Some users, like Workera’s CEO, noted o3 supplies broken web links—highlighting real-world impacts.

Why it matters:

Hallucinations are a major hurdle for AI adoption in accuracy-critical industries like law, healthcare, and enterprise software. As AI pivots toward reasoning models, solving this issue is urgent. Web search integration shows promise—but the risk of generating false info remains a core challenge.

AI TOOL OF THE DAY

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AI & TECH NEWS

Anthropic studied 700K Claude chats, mapping 308K value-rich exchanges across honesty, knowledge, safety, and more. Claude mostly aligned with its “helpful, honest, harmless” goals, though rare jailbreaks showed dominance or amoral responses. Insights fuel future AI safety checks.

OpenAI has launched Flex processing, a new API tier offering 50% lower prices for o3 and o4-mini models, in exchange for slower responses and occasional downtime. Aimed at low-priority tasks, Flex responds to rising AI costs and competition from Google’s Gemini 2.5 Flash.

Elon Musk’s xAI dropped Grok 3 Mini, a compact yet high-performing AI model that beats larger rivals like DeepSeek R1 and Claude 3.7 in math and coding benchmarks. With transparent reasoning traces and low costs, it fuels the AI price war sparked by Google’s Gemini 2.5.

 

Huawei will begin mass-shipping its Ascend 910C AI chips next month, matching Nvidia’s restricted H100 in speed and memory. Built with parts from SMIC and TSMC, the chip arrives as U.S. rules block Nvidia’s H20 in China, offering local developers a timely alternative.

Tamay Besiroglu launched Mechanize, aiming to fully automate work with AI agents. Backed by top tech names, it promises wealth and productivity but faces backlash for threatening jobs and AI research neutrality. Critics fear it could deepen inequality.

AI TUTORIAL

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Steps to follow:

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  2. Choose a Creation Mode: Select from text-to-video, image-to-video, or comic creation.

  3. Customize Your Content: Adjust animation styles, character expressions, and motion settings to match your vision.

  4. Generate & Edit: Let SkyReels produce your content, then fine-tune it using built-in editing tools.

  5. Export & Share: Download your final product in HD or 4K and share it across your preferred platforms.

Turn Ideas into Cinematic Videos—Try SkyReels Now

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