Musk’s xAI Hires Nvidia Talent to Create the First True AI-Built Game

OpenAI's Custom AI Chips, Microsoft's Text-to-Image Model, & Google's Workplace AI

Author

Andres Franco
October 15, 2025

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Here’s the latest from this week in AI:

  • OpenAI Partners with Broadcom to Build Custom AI Chips

  • Microsoft Launches MAI-Image-1, Its First In-House Text-to-Image Model

  • Elon Musk’s xAI Taps Nvidia Experts to Build AI-Generated Games

  • Google Launches Gemini Enterprise to Simplify Workplace AI

OpenAI has announced a multi-year collaboration with Broadcom to develop and deploy 10GW of custom AI accelerators to power its next phase of advanced intelligence. OpenAI will design the chips, while Broadcom will handle manufacturing and deployment using its Ethernet, PCIe, and optical networking technologies. The rollout begins in late 2026, with full deployment expected by 2029.

The partnership, which boosted Broadcom’s stock by 10%, marks OpenAI’s move to gain tighter control over performance, cost, and supply, joining tech giants like Amazon and Google in developing proprietary AI hardware. Whether these new chips can rival Nvidia’s dominance in AI computing remains to be seen.

Source: Breaking The News

Microsoft has launched MAI-Image-1, its first fully in-house text-to-image model designed to deliver photorealistic and fast image generation. Soon to be integrated into Bing Image Creator and Copilot, the model debuted strong, ranking ninth on LMArena’s leaderboard. Microsoft emphasized careful data selection and evaluation to ensure the model produces creative, high-quality results rather than generic outputs.

MAI-Image-1 marks Microsoft’s third purpose-built AI model, following MAI-Voice-1 and MAI-1-preview. The move underscores Microsoft’s growing shift toward developing its own AI technology and reducing reliance on OpenAI, signaling a broader strategy to strengthen its independent innovation pipeline.

Source: LMArena

Elon Musk’s xAI has hired Nvidia researchers Zeeshan Patel and Ethan He to develop world models capable of generating interactive 3D gaming environments, aiming to release a playable AI-created game before 2026. The company is expanding its “omni team” and recently listed a “video games tutor” role to help train Grok in game design. Musk has promised a “great AI-generated game” by the end of next year, with ambitions for AAA-level quality.

This move places xAI among the growing number of players exploring world models, a key area in AI development this year. While models like Genie 3 have pushed boundaries in creating playable environments, xAI’s challenge will be achieving natural game logic and control, essential ingredients for a true AI-driven gaming breakthrough.

Source: The Week

Discover the measurable impacts of AI agents for customer support

How Did Papaya Slash Support Costs Without Adding Headcount?

When Papaya saw support tickets surge, they faced a tough choice: hire more agents or risk slower service. Instead, they found a third option—one that scaled their support without scaling their team.

The secret? An AI-powered support agent from Maven AGI that started resolving customer inquiries on day one.

With Maven AGI, Papaya now handles 90% of inquiries automatically - cutting costs in half while improving response times and customer satisfaction. No more rigid decision trees. No more endless manual upkeep. Just fast, accurate answers at scale.

The best part? Their human team is free to focus on the complex, high-value issues that matter most.

Google has introduced Gemini Enterprise, a unified platform that lets employees create, deploy, and manage AI agents without any coding experience. The platform combines no-code agent builders with built-in assistants for research, coding, and customer support, and securely connects to company data across tools and apps. Pricing starts at $30 per user per month for the Enterprise tier, with a $21 Business plan offering fewer features and storage.

The release positions Google directly against Amazon’s new Quick Suite, as both companies race to embed AI agents into everyday workflows. The focus is shifting from who builds the smartest models to who can make AI easiest to use, streamlining automation where employees already work.

Source: Google

In Other News

U.S. stocks ended mixed Tuesday after a volatile session driven by shifting U.S.-China trade headlines and Federal Reserve comments. The Dow rebounded midday when U.S. and Chinese leaders were reported to be on track to meet, with gains extending after Fed Chair Jerome Powell hinted that more rate cuts could be ahead. Markets later dipped again after President Trump said the U.S. might “terminate business with China” over trade disputes involving cooking oil and soybeans.

Beijing, meanwhile, sanctioned U.S. units of South Korea’s Hanwha Ocean, adding to escalating trade frictions as new port fees from both countries took effect. Treasury Secretary Scott Bessent described China’s economy as being “in a recession/depression,” while earnings from Goldman Sachs, JPMorgan, and Wells Fargo beat expectations, and BlackRock’s assets surpassed $13 trillion. Gold hit another record high, silver rebounded after a brief drop, and crude oil slid about 1.4%.

Source: The WSJ

Cool tools of the week from insidersedge.io

LitGrades - Tool for students to create AI-generated flash cards

Vocaloid - Add lyrics & melodies to your musical compositions

Abbot - Programmable smart assistant for customer success teams

Instantdocs - Your #1 legal AI assistant. Transform weeks of work in 1-click

This Week’s Jobs On insidersedge.io 

Applied ML Engineer - Hologram Labs

Senior Software Engineer AI - Ripple

Community Manager - Origin Protocol

Senior Data Scientist - Magic Eden

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