Inside the Feud: OpenAI Considers Legal Strike Against Microsoft

Gemini 2.5 Pro, MIT’s Self-Teaching AI, & OpenAI and Mattel Team Up on AI Toys

Author

Andres Franco
June 18, 2025

Here’s the latest from this week in AI:

  • OpenAI vs. Microsoft: AI’s Power Couple Nears a Legal Breakup

  • Google Unleashes Its Fastest, Cheapest AI Yet with Gemini 2.5 Lineup

  • MIT’s Self-Teaching AI Learns Faster Than GPT-4

  • Barbie Meets ChatGPT: OpenAI and Mattel Team Up on AI Toys

OpenAI’s partnership with Microsoft is unraveling fast. Tensions flared after OpenAI’s $3B Windsurf acquisition, with the company refusing to share IP that could benefit Microsoft’s GitHub Copilot. OpenAI is now considering filing antitrust charges, accusing Microsoft of anticompetitive behavior.

The fallout runs deeper: Microsoft opposed OpenAI’s PBC restructuring, and OpenAI just signed a cloud deal with Google, signaling its intent to reduce reliance on Microsoft. What was once AI’s strongest alliance is turning into a rivalry, with OpenAI scrambling to reclaim control as the race to AGI accelerates.

Source: OpenAI

Google has officially rolled out its Gemini 2.5 Pro and 2.5 Flash models, designed for high-performance hybrid reasoning at top-tier speed and efficiency. Both models are now generally available for production use, following weeks of developer feedback.

In addition, Google unveiled a preview of Gemini 2.5 Flash-Lite, its most cost-effective and fastest AI model to date. The company says the entire Gemini 2.5 family sits on the “Pareto Frontier” of speed and cost, aiming to deliver powerful AI capabilities without breaking budgets.

Source: Google Blog

MIT researchers launched SEAL, a new framework that lets AI models teach and improve themselves without human input. SEAL enables models to generate their own training data and tweak their learning parameters through a reinforcement learning loop that rewards better performance.

In tests, SEAL-trained models outperformed GPT-4.1 in knowledge tasks and achieved a massive leap in puzzle-solving accuracy, from 0% to 72.5%. This self-editing ability marks a step toward self-improving AI, hinting at a future where models evolve beyond human guidance, potentially accelerating progress toward superintelligence.

Source: MIT

OpenAI and Mattel have partnered to bring AI-powered features to beloved brands like Barbie, Hot Wheels, and American Girl. The collaboration will blend OpenAI’s tech into physical toys and digital experiences, with the first AI-enhanced product launching later this year.

Mattel staff will also use ChatGPT Enterprise for creative and operational tasks, while both companies stress a focus on safety and kid-friendly design. As AI enters the toy aisle, the partnership promises smarter play, but also raises big questions about privacy and child development.

Source: The Toy Book

In Other News

U.S. markets dipped and oil prices spiked after renewed conflict between Israel and Iran dimmed hopes for peace. President Trump warned Iran of serious consequences, expanded U.S. military presence in the region, and left the G-7 summit early to focus on the crisis.

Retail sales also disappointed, falling 0.9%, while solar stocks dropped after GOP lawmakers upheld clean energy cuts. Brent crude surged 4.4% amid rising geopolitical risk.

Source: The WSJ

Cool Tools For This Week From insidersedge.io 

Glarity - Get ChatGPT summaries in Google & YouTube

Fontis.ai - AI art platform for generating and printing high-quality artwork

MajorGen - Craft job-ready resumes in seconds

WOXO - Generate videos from short descriptions

Jobs To Check Out This Week On insidersedge.io

Technical Program Manager - Subspace Labs

ML Egineer Intern - OP3N

Director of AI - Exodus Movement Inc.

AI Backend Engineer - Harmony

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