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Promptobello
๐ง THE AI EDGE
Your AI News Digest for 2025-11-26
๐ก๏ธ AI TEMP CHECK
Mr. Mushroom is currently trying to explain to his family why an AI agent is cooking the turkey this year. (If it tastes like thermal paste, we know who to blame). ๐ฆ๐ค
While you were prepping for Thanksgiving, the AI world decided to go full chaos mode. Ilya Sutskever dropped his first major interview since leaving OpenAI, Warner Music decided to stop suing and start partnering, and OpenAI is hemorrhaging cash at a rate that would make a VC cry.
The Vibe: The "Scaling Law" era might be over. We're entering the "Age of Research." Also, lawyers are settling, and miners are finding lithium from space.
The quietest man in AI, Ilya Sutskever (co-founder of OpenAI, now SSI), just dropped a 90-minute philosophy bomb in an interview with Dwarkesh Patel. If you don't have time to listen to the whole thing while peeling potatoes, here's the Promptobello breakdown of what the Godfather of GPT actually thinks.
1. The "Age of Scaling" is Dead(ish). We're back to "Research."
โ The Old Way (2020-2025): "Scaling sucked the air out of the room." Everyone just added more data and compute to the same recipe (Pre-training).
โ The New Way: Pre-training data is finite. We can't just 100x the data anymore. We need new recipes. We're back to the 2012 era where clever ideas matter more than raw brute force.
2. The "Vibe Coding" Problem
Ilya compares current models to a student who studied competitive programming for 10,000 hours but has zero "taste."
โ They know the syntax, but they introduce bugs when trying to fix bugs.
โ His diagnosis: Models have "unreliable generalization." They memorized the textbook but don't understand the spirit of the task.
3. Emotions = Math?
This is the trippy part. Ilya thinks human emotions are actually just highly efficient "Value Functions."
โ Evolution hard-coded emotions (like social anxiety or hunger) to help us make decisions quickly without processing too much data.
โ The Future: AI needs its own "Value Functions" to stop hallucinations and make better decisions.
4. SSI's Master Plan
He isn't trying to build a chatbot. He's trying to build a "Human-like Learner."
โ Instead of a model that knows everything instantly, he envisions an AI that enters the economy like a brilliant internโlearns on the job and eventually becomes a superintelligence through continual learning.
Mr. Mushroom's Take: ๐ "So my anxiety is just a 'Value Function'? I need to debug my source code."
๐ MARKET PULSE
WARNER & SUNO: THE KISS AND MAKE UP DEAL
The News: Warner Music Group settled its copyright lawsuit against AI music generator Suno yesterday.
โพ The Twist: Instead of destroying Suno, Warner is effectively partnering with them. The deal allows Suno to keep developing while "respecting artists' rights" (read: paying royalties).
Why it matters: This is the template. For two years, we've wondered if AI would be sued into oblivion. This proves the endgame isn't destruction, it's licensing.
โพ Bullish for: AI startups with actual revenue (Suno, Midjourney).
โพ Bearish for: Lawyers hoping for a decade of litigation fees.
๐ฅ This hits different, right?
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โก QUICK BITES
๐ซ No Droids Allowed: Microsoft Copilot is getting booted from WhatsApp on Jan 15th, 2026. Meta decided it doesn't want other AI chatbots playing in its sandbox. The "Walled Gardens" are getting higher walls.
๐ A Tragic Defense: OpenAI filed a defense today against a lawsuit regarding a teen's suicide, showing data that ChatGPT recommended seeking help 100+ times. A heartbreaking reminder that AI safety isn't just about "rogue robots," it's about real human vulnerability.
โ๏ธ Lithium from Space: Fleet Space announced yesterday they found a massive lithium deposit in Quebec using AI + Satellite tech. The deposit shows "district-scale potential" that could reshape North American battery supply chains. Battery stocks are watching.
๐ง The Chill: US-China tech collaboration just hit a 20-year low, according to a study released today. The AI research world is splitting into two distinct, disconnected blocs.
๐ API WATCH
THE REAL BOTTLENECK: ILYA'S "UNRELIABLE GENERALIZATION" PROBLEM
The Diagnosis: Current models have "unreliable generalization." They're like a student who studied competitive programming for 10,000 hours but has zero intuition.
The Symptom: You ask Claude or GPT to fix a bug. It says "Oh my God, you're so right!" and introduces a new bug. You point that out. It brings back the first bug. Repeat forever.
Why It Happens: RL training makes models "too single-minded." They optimize for benchmarks, not real-world robustness. Ilya's exact words: "If you trust the data all the time... sometimes you can be doing the correct thing but there's a bug."
The Builder's Takeaway:
โพ Don't trust any model to self-correct in a single pass
โพ Build verification loops into your agent architectures
โพ The "Age of Research" means the next breakthroughs will come from how we train, not how much we train
This is why Ilya left to build SSI. He thinks reliable generalization is the unsolved problem.
๐ฐ FOLLOW THE MONEY
SPECIALIZED AI > SWISS ARMY KNIVES
โพ What they do: AI for student career discovery.
โพ The Lesson: While OpenAI and Perplexity fight over "Search," niche startups are quietly raising money by solving one specific problem really well.
2. The Burn Rate: A new report from HSBC estimates OpenAI needs to raise $207 BILLION by 2030 just to keep the lights on.
โพ The Scale: That is roughly the GDP of Greece. Just for server costs.
๐ ๏ธ TOOL SPOTLIGHT
PRAVAL AGENTIC AI FRAMEWORK
What is it? An open-source multi-agent system with native agent-to-agent communication.
The Key Feature: Praval Deep Research โ lets you run local research workflows on ArXiv papers.
Why we like it: Agents can talk to each other without hallucinating context. Native ChromaDB integration for memory. Think of it as Lego blocks for building AI agent teams.
Link: GitHub - aiexplorations/praval
๐ผ SUCCESS STORY
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โ ๏ธ IMPORTANT DISCLAIMER: The information provided in this newsletter, including the "Follow the Money" and "API Watch" sections, is for educational and informational purposes only. It does not constitute financial advice, investment advice, trading advice, or any other sort of advice. You should not treat any of the newsletter's content as such. Promptobello does not recommend that any cryptocurrency, security, or investment should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. Past performance is not indicative of future results.
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