Halloween might have ghosts and goblins, but it's the AI news giving us the real shivers today. From Adobe's existential crisis to breakthrough GPU-accelerated agent sandboxes, the AI world isn't taking October 31st off.

Adobe — once the undisputed king of creative software — is having a real horror show this Halloween as it desperately tries to convince Wall Street it won't become the Blockbuster Video of the AI revolution. According to Mercury News reporting this morning, investors are getting increasingly spooked about whether Adobe's cash cows (Photoshop, Illustrator, Premiere) can compete with the new generation of AI-native creative tools that can generate entire campaigns from a text prompt. The company's stock tumbled 4.2% yesterday despite Adobe showcasing its Firefly model and integration plans. Here's the deal: Adobe is trapped in the innovator's dilemma — protect the $14B revenue from Creative Cloud subscriptions or cannibalize itself with truly revolutionary AI offerings? Meanwhile, startups with nothing to lose are shipping weekly improvements while Adobe committee-approves quarterly updates. Plot twist: Adobe actually has some of the most robust training data in the industry — if they could just move at startup speed.

This morning's benchmarks for Anthropic's newly released Claude 3.5 Sonnet show it's punching well above its weight class at just $3/M tokens. It scored 90.2% on MMLU (matching GPT-4o) while maintaining a 16K context window and blazing inference speed. The real shocker? It outperformed GPT-4o Mini on code generation with a 78.3% pass rate on HumanEval compared to Mini's 76.1%. For teams building production AI that need reliability without breaking the bank, Claude 3.5 Sonnet is currently the sweet spot. Still, if you're doing heavy reasoning tasks, GPT-4o's edge in step-by-step problem-solving (92.6% vs 87.4% on GSM8K) might justify the higher cost. Best technical value as of today? Claude 3.5 Sonnet for most applications, GPT-4o Mini if you need vision capabilities.

The AI gravy train keeps rolling as infrastructure providers report record earnings. AWS grew 29% year-over-year according to this morning's announcement, citing AI workloads as the primary driver. Meanwhile, Nvidia crossed the $1.2 trillion market cap threshold yesterday after announcing their H200 chips are shipping ahead of schedule. The money story that matters: the bifurcation between AI infrastructure winners and software question marks is growing. While NVDA is up 143% YTD and AWS is driving AMZN's growth, application-layer companies like Adobe (-18% YTD) are struggling to prove their AI strategy. Smart money is still betting that the picks and shovels of the AI gold rush (chips, cloud, specialized hardware) will outperform the prospectors themselves.

Launched in beta just yesterday, Sebastian.run lets you build entire mobile apps from natural language prompts — no code, no templates. The tool uses what its creator calls 'vibe coding' to generate both frontend and backend code simultaneously. I just watched a demo where it built a functional meditation app with user accounts and in-app purchases in under 30 seconds. The no-code revolution just got AI-powered afterburners.

Prediction markets are notoriously inefficient, and Aurca.ai's launch yesterday is turning that problem into profit. Their tool uses Bayesian methods and JAX-powered machine learning to spot mispriced betting contracts on platforms like Kalshi. The company reported this morning that beta users have already identified over $430,000 in arbitrage opportunities in just the first 24 hours. Early adopters report ROIs of 22-37% on political event contracts where the model spotted significant divergence between market prices and statistically sound probabilities. The founder tweeted this morning: 'We're basically giving people a money printer for prediction markets.'