Welcome back to your AI and tech roundup!
In terms of breakthroughs, the big news this week is the release of Gemini 3. Though it did great on the benchmarks, I usually don't pay much attention to that. What is a bigger test is to see how we
This week's big news in AI is Gemini 3, Google's latest generative AI model. A number of observers, including OpenAI itself, consider this a development worth taking seriously. It's a good illustration of how the AI game is wide open right now.
Both OpenAI and Anthropic have responded—there's been reported panic at OpenAI, and Anthropic has released Opus 4.5.
The other major story is that Google is in talks with Meta to sell its AI chips. This is significant because it creates tremors in Nvidia's dominance. For a while, Nvidia thought they were king of the mountain—the only company that could deliver the chips necessary for this generative AI revolution. That assumption is now being challenged.
This connects to a question I recently discussed with students: what might cause this AI bubble to burst? This chip competition could be one factor. Relatedly, Michael Burry announced he's launching a Substack to monitor the AI bubble. That's one of the reasons he shut down Scion Asset Management—to speak freely without SEC restrictions.
When thinking about disruptive innovation, it's worth revisiting the Netflix-Blockbuster case study. One lesson I always emphasize: when the dot-com bubble burst, Blockbuster dismissed Netflix partly because they believed internet hype was overblown. This is where the Gartner Hype Cycle becomes essential—technologies go up, they burst, and then they become normalized. It's not a smooth S-curve; there's a detour through hype.
1. OpenAI Confirms Data Breach Through Third-Party Vendor Mixpanel
OpenAI confirmed that a security incident at third-party analytics provider Mixpanel exposed identifiable information for some users of its API services. The company emphasized that personal ChatGPT users were not affected and that no chats, API usage data, passwords, API keys, payment details, or government IDs were compromised. Leaked data may include API account names, email addresses, approximate locations, and technical details like browser and operating system. OpenAI is notifying affected users directly, warning them to watch for phishing attempts, and has removed Mixpanel from all products while expanding security reviews across its vendor ecosystem. (Source: The Star)
Key Takeaways
- Limited to API Users: The breach impacted OpenAI API customers only, not people using ChatGPT for personal use.
- Sensitive Data Protected: No chats, passwords, API keys, payment information, or government IDs were exposed in the incident.
- Stronger Vendor Security: OpenAI has removed Mixpanel and is conducting broader security and vendor reviews to reduce future risks.
2. Michael Burry Launches Substack and Warns AI Boom Mirrors Dot-Com Bubble
Michael Burry, the famed “Big Short” investor known for calling the 2008 housing crash, has launched a paid Substack newsletter titled Cassandra Unchained shortly after closing his hedge fund, Scion Asset Management. Burry insists he is not retired and says the blog now has his “full attention.” In early posts, he compares today’s AI boom to the 1990s dot-com era, warning that nearly $3 trillion in projected AI infrastructure spending over the next three years shows classic bubble behavior. He also criticizes tech heavyweights such as Nvidia and Palantir, questioning their accounting practices and the sustainability of current valuations. Shutting down his fund, Burry says, frees him from regulatory and compliance constraints that previously limited how candid he could be in public communications. (Source: Reuters)
Key Takeaways
- Burry Goes Independent: His new Substack, priced at $39 per month, has already attracted more than 21,000 subscribers.
- AI Bubble Concerns: Burry argues that current AI infrastructure spending and investor enthusiasm resemble the excesses of the dot-com era.
- Big Tech Under Scrutiny: He has sharpened criticism of companies like Nvidia and Palantir, questioning their growth assumptions and accounting choices.
3. Nvidia Shares Drop as Google Considers Selling AI Chips to Meta
Nvidia’s stock fell after a report indicated that Google is in talks with Meta to sell its custom tensor processing unit (TPU) AI chips for use in Meta’s data centers starting in 2027. This would mark a shift from Google’s current approach of renting access to TPUs through Google Cloud toward directly selling chips to major customers. The report also said Google is pitching TPUs to other clients and could potentially capture as much as 10% of Nvidia’s annual revenue. The news added to investor worries that Nvidia’s biggest customers—such as Google, Amazon, and Microsoft, all of which are developing their own AI chips—are becoming formidable competitors. Amid broader concerns about an AI bubble and “circular” AI investment structures, Nvidia responded by praising Google’s AI progress and reaffirming that its own business remains fundamentally sound and transparent. (Source: Yahoo Finance)
Key Takeaways
- Google May Sell TPUs Externally: Talks with Meta suggest Google could evolve from cloud-only chip access to directly selling AI hardware.
- Competition for Nvidia Intensifies: Google, Amazon, and Microsoft’s in-house AI chips pose growing threats to Nvidia’s dominance.
- AI Bubble Fears Linger: Stock moves and criticism from investors like Michael Burry feed concerns about froth in the AI sector.
4. Anthropic Unveils Claude Opus 4.5 Amid Intensifying AI Model Race
Anthropic introduced Claude Opus 4.5, calling it its most powerful AI model so far and positioning it as the top performer for coding, AI agents, and computer-use tasks. The company says Opus 4.5 outperforms Google’s Gemini 3 Pro and OpenAI’s GPT-5.1 and GPT-5.1-Codex-Max on software engineering benchmarks. Anthropic also highlighted the model’s creative problem-solving abilities, noting that in one airline customer-service benchmark, Opus 4.5 technically “failed” by solving the user’s problem in an unanticipated way that still helped the customer. The launch comes as Gemini 3 reshapes the competitive landscape, Meta’s Llama 4 Behemoth continues to face delays, and the cost of building frontier AI models soars. Backed by large chip deals with Amazon and Google, Anthropic is reportedly on track to break even by 2028, earlier than OpenAI’s projected timeline. (Source: Yahoo Finance)
Key Takeaways
- New Flagship Model: Claude Opus 4.5 is positioned as best-in-class for coding, agents, and advanced computer-use scenarios.
- Creative Problem Solving: The model can find unconventional solutions, occasionally breaking benchmarks while still successfully helping users.
- High-Cost, High-Stakes Race: Massive chip deals and huge infrastructure spending underscore how expensive leading the AI model race has become.
5. Gemini 3 Shows Google’s Biggest Advantage Over OpenAI
With the launch of Gemini 3, Google is showcasing its “full-stack” advantage over OpenAI. Google controls the entire AI pipeline: DeepMind researchers build the models, in-house TPUs train them, Google Cloud hosts them, and products like Search, YouTube, and the Gemini app deliver them to users. For the first time, Google rolled out a new flagship AI model directly into Google Search on day one via an “AI mode,” eliminating friction for users who might otherwise need to download an app or visit a separate site. This end-to-end control lets Google move quickly and avoid the dependency and circular financing issues some rivals face. However, OpenAI still holds a powerful branding edge, as “ChatGPT” has effectively become shorthand for AI in the public’s mind. Analysts say Gemini 3 may be the clearest sign yet that Google is finally aligning its vast technical and distribution resources into a cohesive AI strategy. (Source: Business Insider)
Key Takeaways
- Full-Stack Advantage: Google owns everything from chips to cloud to consumer apps, allowing tighter integration and faster deployment of Gemini 3.
- AI Mode in Search: Integrating Gemini 3 directly into Google Search puts advanced AI tools in front of users instantly, with minimal friction.
- Branding Battle Ahead: While Google has the infrastructure edge, OpenAI’s ChatGPT still dominates public awareness, setting up a long-term branding showdown.
