103: Today in AI: OpenAI Code Red vs Gemini, Mistral Launch Flops, Market Dynamics Shift

AI with Kyle

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This video is from the ‘AI with Kyle News and Updates Live Stream’

First aired: 3 December 2025

Summary: OpenAI is having a bit of a moment, and not the good kind. Sam Altman's sent out an internal memo declaring "code red" after Gemini 3 and Claude Opus absolutely spanked them in performance. They've paused everything—ads, AI agents, even that health assistant thing—to refocus entirely on making ChatGPT the best chatbot in the world again. It's quite the reversal considering they've had free reign for the last couple years whilst Google played catch-up. Now the tables have turned and suddenly they're the ones scrambling. They're promising a new reasoning model next week that'll supposedly blow Gemini out of the water, but we'll see about that. The broader picture here is fascinating though, because we're watching the market dynamics shift in real time. Google can afford to keep everything free indefinitely—they've got that sweet advertising money—which could be genuinely anti-competitive if they just wait for OpenAI to collapse under their own costs. Add in the Chinese models offering basically the same thing for pennies on the API, and suddenly those 2026 IPO plans look a lot less attractive. It's going to be messy, and whatever landscape we're looking at now won't be the same in a couple years. Also, I finally watched The Thinking Game documentary about DeepMind and it's absolutely brilliant—even my girlfriend got riveted by it, which says something.

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—— Time Stamps ——

00:00 Cold Open: Google's AI Monopoly Strategy

00:13 Welcome & Today's AI News Rundown

00:51 OpenAI Declares Code Red: What Happened

04:17 OpenAI's Key Upgrade Areas & Refusal Issues

05:39 ChatGPT vs Nano Banana Pro Image Generation

07:53 OpenAI's Competition Problem: Google, Anthropic & DeepSeek

09:09 Why ChatGPT Images Have a Yellow "Piss Filter"

15:18 Live Q&A: Why People Are Leaving ChatGPT

17:52 Privacy Concerns: Google vs OpenAI Data Handling

18:57 Q&A: ChatGPT 5.2 "Garlic" & Claude's Focus

19:45 Anthropic Plans IPO for 2026 Before OpenAI

21:53 Mistral 3 Review: Europe's AI Model Falls Short

23:34 Ministrel 3B: AI Running 100% In Your Browser

26:39 Europe vs US vs China: The AI Race Reality

29:38 Google's Amazon Playbook to Kill OpenAI

33:34 What This Means For Your AI Use Today

34:10 The Thinking Game: DeepMind Documentary Review

37:08 Outro: Newsletter, YouTube & Community

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