2 DAYS AGO • 5 MIN READ

☕️ Another Upgrade to Gemini, The Debut of Mistral Code & Reddit's Lawsuit Against Anthropic

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AI Tangle

AI Tangle provides timely, relevant AI news and tools tailored to help business leaders stay ahead of the curve. Our concise, actionable updates ensure you’re equipped to make informed decisions in a rapidly evolving AI landscape. As part of The AIE Network, AI Tangle connects you with additional resources such as AI Marketing Advantage and The Artificially Intelligent Enterprise for complete AI-driven business transformation.

Money makes the headlines this week as tens of billions flow towards building out AI infrastructure and securing fundraisers, while companies improve AI coding models even further.

Here are our main key highlights:

  • Google pushes another coding upgrade to Gemini 2.5 Pro in preview, tops leaderboards all around
  • French AI startup Mistral launches Mistral code, a vibe coding platform that takes after Cursor and others
  • Reddit sues Anthropic for unfairly scraping its forum content without a licensing deal

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- Your AI Sherpa, Mark Hinkle.

Google has previewed an upgraded Gemini 2.5 Pro that boasts top scores all around as it made improvements to Gemini's coding capabilities as well as its style and formatting structure. The new version jumps 24 points on LMArena, leads WebDevArena at 1443, dominates Aider Polyglot, and excels on benchmarks like GPQA and Humanity's Last Exam, taking the #1 spot. Developers can build with it via Google AI Studio and Vertex AI as it rolls out in the Gemini app a few weeks before full general availability. On top of benchmark results, user impressions on social media also seem largely positive.

With AI-assisted programming at peak popularity, French AI startup Mistral is launching its take on the vibe coding trend called Mistral Code, a client to compete with the likes of Cursor, Windsurf, and GitHub Copilot. Mistral Code is an AI coding assistant that packs together the company's AI models, an IDE assistant, and more into one complete package. Mistral claims that at least three separate companies, Capgemini, Abanca, and French national railway company SNCF, have already employed its Mistral Code in production at scale.

Social media platform Reddit has filed a lawsuit in the San Francisco Superior Court against Anthropic, alleging that it scraped over 100,000 sets of its publicly posted discussions without a licensing agreement, breaching Reddit's content policies. The complaint claims that Anthropic refused to negotiate a data license and unfairly profited from Reddit's more than 100 million daily users. Reddit has existing licensing deals with Google and OpenAI and says Anthropic's actions deprive "redditors" of privacy without compensation - Anthropic is yet to respond.

After being found out to be 700 underpaid Indian engineers in a trench coat, Builder.ai, an AI startup previously valued at $1.5 billion, has now filed for Chapter 7 bankruptcy in Delaware, which revealed tens of millions in debts to over 200 creditors. This list includes Microsoft, a backer of the company, Amazon, Shibumi Strategy, Quinn Emanuel, Sitrick Group, T&M USA, and more. An internal probe uncovered potentially bogus sales and invoices for work it had never done, forcing revenue restatements to a meager 25% of prior figures.

Cursor developer ​Anysphere has secured $900 million in a recent fundraiser at a valuation of $9.9 billion, led by Thrive Capital with a16z, Accel, and DST Global adding to the sum. The 3-year-old AI coding startup has doubled its ARR every two months and recently exceeded $500 million in annualized revenue. Cursor offers $20/mo Pro and $40/mo Business tiers and has even begun selling enterprise licenses. OpenAI reportedly approached Anysphere about an acquisition a month back, but the company declined, even as its revenue growth accelerated.

Canadian-based asset management company Brookfield has announced that it will commit up to $9.9 billion to build a massive AI data center in Strängnäs, Sweden, creating over 1,000 permanent jobs and 2,000 construction roles. The facility bets big on Europe's heavy demand for local AI infrastructure as data-sovereignty laws grow, making use of Sweden's stable power and connectivity. Brookfield, which already invests heavily in EU AI projects, is currently in the process of finalizing a land allocation deal with the municipality before breaking ground.

Similarly to Brookfield, Amazon is also committing $10 billion to new AI data centers and infrastructure, though its investment is going to North Carolina, Richmond County, ​instead of Sweden, as detailed in a Wednesday company blog post. Amazon's statement claims that it will add 500 more permanent local jobs, including data center engineers and network specialists, which adds to its 24,000 employees in the state as US tech giants scramble for dominance in the fledgling market.

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Hollywood, Copyright, and The Future of Filmmaking (56-min listen)

Where is the future of filmmaking headed? During a recent episode of The Verge's Decoder podcast, Runway CEO Cris Valenzuela explained why he thinks it's headed for AI and that Hollywood can't run from it forever, saying it's time to embrace the new technology.

Your AI Sherpa,

Mark R. Hinkle

Publisher, The Artificially Intelligent Enterprise (TheAIE) Network

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AI Tangle

AI Tangle provides timely, relevant AI news and tools tailored to help business leaders stay ahead of the curve. Our concise, actionable updates ensure you’re equipped to make informed decisions in a rapidly evolving AI landscape. As part of The AIE Network, AI Tangle connects you with additional resources such as AI Marketing Advantage and The Artificially Intelligent Enterprise for complete AI-driven business transformation.