Welcome to the latest edition of The Neural Link!
From Europe’s new AI champion and Google’s latest Gemini upgrade to GPT-5 backlash and a worrying surge in AI misinformation, this month captures everything from innovation to accountability. You’ll also find copyright lawsuits, bold infrastructure bets, and new signs of AI reshaping the job market.
Let’s dive into the biggest AI headline and what they mean.
ASML invests in Mistral, cementing Europe’s most valuable AI startup
Semiconductor giant ASML will invest €1.3 billion for a stake in French startup Mistral AI, valuing it at €11.7 billion. The move, aimed at European “tech sovereignty,” makes Mistral Europe’s most valuable AI venture and fuels its open-source LLM ambitions.
Why it matters:
This is a bold move for European "tech sovereignty." Backing open-
source AI at this scale could reshape the global power balance currently dominated by U.S. and Chinese players.
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OpenAI’s GPT-5 faces backlash over accuracy and creativity issues
OpenAI’s decision to replace GPT-4 with GPT-5 in ChatGPT prompted an outcry as users found the new model “dumber” at some tasks, lacking the creativity of its predecessor. Within days, CEO Sam Altman acknowledged rollout glitches and restored access to older models.
Why it matters:
Even leading AI firms can stumble when upgrading. The backlash shows how quickly users notice changes in performance and how critical trust is in model transitions.
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Google’s Gemini levels up with image editing power
Google is upgrading its Gemini chatbot with a new AI image model that gives users finer control over editing photos, a step meant to catch up with OpenAI’s popular image tools and draw users from ChatGPT.
Why it matters:
The race for user engagement is moving into multimodal tools. Google’s update is a clear play to close the gap with ChatGPT and reclaim creative users.
AI false information rate doubles in one year
A NewsGuard audit of the 10 leading gen AI tools finds the spread of false news 35% of the time, double the rate from a year ago. As chatbots became more responsive with real-time search, their refusal to answer dropped, but they increasingly echoed online falsehoods.
Why it matters:
More capable doesn’t always mean more accurate. As AI becomes embedded in everyday search and conversation, the risk of amplifying misinformation grows fast.
Authors sue AI platforms over alleged training on their books
A group of novelists sued Apple, alleging it illegally used their books to train AI without permission or pay. This follows a wave of copyright suits: Anthropic just agreed to pay $1.5 billion to settle authors’ claims that it trained its Claude chatbot on their writings.
Why it matters:
Copyright is becoming AI’s next big legal battleground. As lawsuits multiply, the pressure on tech giants to negotiate, and pay, creators is mounting.
- Elon Musk announces plans for “Macrohard”, a tongue-in-cheek rival to Microsoft, aiming to develop AI-native productivity tools powered by xAI.
- In a bold experiment, UK Technology Secretary Peter Kyle discussed a plan with OpenAI to provide ChatGPT Plus for free to everyone in.
- A Stanford study finds a 13% drop in junior hiring for coding, accounting, and support roles over three years, as companies adopt AI tools that replace routine entry-level tasks.
- Analysts suspect OpenAI is the unnamed company
behind a $10 billion custom AI chip deal with Broadcom, as top AI firms race to secure silicon amid GPU shortages. - At IFA Berlin, AMD CEO Lisa Su pushed back on bubble talk, calling AI “under-hyped” and urging patience as new AI-accelerated PC chips roll out.
- Cloud giants are pouring billions into AI infrastructure despite uncertain returns: Meta’s yearly AI spend tops $60B, even as the generative AI market’s revenue is only projected to reach $85B by 2029.
That’s a wrap on this month’s AI update. The landscape’s shifting fast and so are the possibilities.
We’ll be back soon with more.
Matt Dunn
Head of AI & Automation
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