Transcript
Brian McCullough (0:04)
Welcome to the TechMe Write Home for Thursday, April 17th, 2025. I'm Brian McCullough. Today OpenAI has a new reasoning model and another lower cost model as well. Is OpenAI about to acquire a coding startup? Is Perplexity turning to Samsung for distribution and branding? A neuralink rival gets FDA approval and why is Jensen Huang on a Code Red mission to China at the moment? Here's what you missed today in the world of tech more models, everybody OpenAI has launched O3, its most advanced AI reasoning model yet, as well as O4 mini, a lower cost alternative that still delivers, according to them, impressive results for ChatGPT paid users. Quoting Engadget a mere two days after announcing GPT 4,1, OpenAI is releasing not one but two new models. The company today announced the public availability of O3 and 04 minutes mini. Of the former, OpenAI says O3 is its most advanced reasoning model yet, with it showing strong performance in coding, math and science tasks. As for O3 mini, OpenAI is billing it as a lower cost alternative that still delivers impressive results across those same fields. More notably, both models offer novel capabilities not found in OpenAI's past systems. For the first time, the company's reasoning models can use and combine all of the tools available in ChatGPT, including web browsing and image generation. The company says this capability allows O3 and O4 mini to solve challenging multi step problems more effectively and take real steps toward acting independently. At the same time, O3 and O4 mini can not just see images, but also interpret and think about them in a way that significantly extends their visual processing capabilities. For instance, you can upload images of whiteboards, diagrams or sketches, even poor quality ones, and the new models will understand them. They can also adjust the images as part of how they reason. The combined power of state of the art reasoning with full tool access translates into significantly stronger performance across academic benchmarks and real world tasks, setting a new standard in both intelligence and usefulness, says OpenAI. Separately, OpenAI is releasing a new coding agent a la Claude code named Codex cli. It's designed to give developers a minimal interface they can use to link OpenAI's models with their local code out of the box. It works with OTH 3 and 04 mini, with support for GPT 4.1 on the way. Yes, on that coding agent. Quoting TechCrunch, Codex CLI appears to be a small step in the direction of OpenAI's broader agentic coding vision. Recently, the company's CFO Sarah Fryer described what she called the Agentic Software Engineer, a set of tools OpenAI intends to build that can take a project description for an app and effectively create it, and even quality assurance test it. Codec CLI won't go that far, but it will integrate OpenAI's models, eventually including O3 and O4, many with the clients that process code and computer commands, otherwise known as command line interfaces. It's also open source, OpenAI says. In a blog post provided to TechCrunch, OpenAI added, you can get the benefits of multimodal reasoning from the command line by passing screenshots or low fidelity sketches to the model, combined with access to your code locally via codec CLI. To spur use of codec CLI, OpenAI plans to dole out $1 million in API grants to eligible software development projects. The company says it'll award $25,000 blocks of API credits to the projects chosen. But let's get back to O3 and the fact that it is a reasoning model. Dan Shipper at every wrote up a summary of his experiences with it, and while I encourage you to read his entire thing to get a sense of the different ways he used it, I'm just going to read from his conclusion here. Quote this is the biggest wow moment I've had with a new OpenAI model since GPT4. The company has successfully lengthened the leash that an AI gets in order to do its tasks. Now you can reliably let it work for minutes at a time to get higher quality answers with no intervention. But what makes O3 especially powerful is the integration between the model and ChatGPT. It has tools like web search, reminders, memories and code interpreter that allow users to access more of its power with less hassle. This is a very valuable strategic position for OpenAI to be in, one one that will further its lead as the destination chatbot of choice for this AI era. O3 is also a lesson in the seasons of change that companies go through. For about a year after Sam Altman's firing, OpenAI was slow to release new products and analysts were prognosticating about its downfall. With this release stacked on its Deep Research and GPT 4.5 recently, OpenAI is back on a tear, end quote. Sticking with OpenAI for a second, Bloomberg says OpenAI is in talks to acquire Windsurf, an AI coding tool formerly known as Codium, for around $3 billion. Windsurf was valued at $1.25 billion in a 2024 funding round, so we know that coding AI is the new hotness and OpenAI has been moving to plant their flag in this arena. But what does this startup have that OpenAI doesn't think they can build on their own? Quoting from Bloomberg the deal would be OpenAI's largest acquisition to date and could help the company take on rising competition in the market for AI driven coding assistance systems capable of tasks like writing code based on natural language, prompting Windsurf, formerly called Exafunction, had recently been in talks with investors including Kleiner Perkins and General Catalyst to raise funding at a $3 billion valuation. The company was valued at $1.25 billion and a by General Catalysts last year. If the deal closes, OpenAI would compete more directly with companies like anthropic, Microsoft owned GitHub and AnySphere, which offer services in the fast growing field of AI coding. The deal would also be a signal that as more companies pile into the sector, the number of mergers and acquisitions will rise. OpenAI has acquired other startups before, including Vector database company Rockset and Multi, a remote collaboration platform. Investors have recently been enthusiastically backing AI coding tools, including AnySphere, the startup behind Cursor, which was in talks with investors to raise money at a valuation of almost $10 billion earlier this year. End quote. Three interesting tweets on this. First quoting Austin Allred if OpenAI buys windsurf, does it get data as to all of the input prompts and then outputs for all of the different models? I think it might and you'd be able to see whether the output is accepted or rejected. End quote. Then Zach Weinberg I'm sure everyone deep in the industry already knew this, but very clear the core model companies realize they need to own the customer application layer to actually make money. Tons of M and A likely coming to fight for the most mature application layer companies in the biggest categories coding, marketing, maybe customer service will be very tough to compete with the OpenAI or Google or Microsoft Application bundle in the long run. Then at semianalysis, Cursor and Anthropic had a mutually beneficial relationship but lacked realize controlling the main application of a model is as valuable as owning the model itself. With this acquisition, OpenAI gains greater ecosystem control and can build better products. End quote. The race is real folks. Bloomberg sources say Perplexity is in discussions to integrate its AI assistant on Samsung's devices and has reached an agreement to preload Perplexity on Motorola's phones. The details of the Samsung deal are still being hashed out. The people said the terms could involve offering Perplexity as a default AI assistant option or Preloading the startup's Android app on phones. Samsung, the world smartphone market leader, also could promote the assistant heavily as an option within the Galaxy Store, where users download apps. A deal with Perplexity is complicated by Samsung's wide ranging partnership with Alphabet, which powers many of the AI features on Samsung devices and provides the default search engine. But Samsung has been fostering a relationship with Perplexity for months. The South Korea based company's investment arm, called Next, backed the startup last year. Samsung is discussing making another investment in Perplexity in the near future, the people said. The startup has been in broader talks with investors for a new round of funding, which would double its valuation to $18 billion. It has discussed raising between 500 million dol million and $1 billion, Bloomberg News reported in March. Founded in 2022, perplexity has gained popularity for real time results and search engine like user interfaces. The assistant has the ability to service in depth research, and Perplexity can tap into models beyond its own, including those from OpenAI and Anthropic PBC. The Motorola deal will include Perplexity being preloaded as an alternative assistant to Google's Gemini. There will also be a tailored user interface for Motorola's updated Razer foldable phones, and marketing from the device maker will encourage customers to try Perplexity. Today, Motorola offers its own homegrown AI system and access to Google Gemini. Samsung takes a similar approach, providing its Bixby service alongside Google's AI platform. For San Francisco based Perplexity, securing Motorola and Samsung deals would be a major boon to building its brand and gaining popularity in the US where ChatGPT and Gemini are more established. While Motorola's market share is slim in the smartphone industry, the company is making strides. Samsung, for its part, has a share of about 20% globally, according to data from IDC.
