Magica logo

🤯 CEOs have "AI psychosis"

Editorial Team
·

📖4 min read

Cover image for 🤯 CEOs have "AI psychosis"

🚀 OpenAI Drops GPT-5.5, Cognition Hits $26B for a Vibe

  • OpenAI is making GPT-5.5 the default for free users and retiring older Codex models on June 2. Meanwhile, Cognition's Devin "AI software engineer" just hit a $26B valuation (??)
  • Frontier models are moving wayyy faster than anyone can keep up with, and VCs are throwing billions at agents that might eventually write working code. Bestie that's not how this usually works.

🧬 Zuck's Biohub Drops ESMFold2, Says "Move Over AlphaFold"

  • The Chan Zuckerberg Biohub's new Evolutionary Scale Model (ESMFold2) maps and designs proteins, claiming to outperform AlphaFold at structure prediction.
  • It's already designing binders for cancer and immune disease targets with high hit rates in the lab. FINALLYYYY an AI story that's actually about saving lives instead of replacing your job :)

🧠 Trajectory Raises $15M for AI That Never Stops Learning

  • Ex-DeepMind and Apple researchers just launched Trajectory, a startup building AI that captures user corrections to keep improving instead of staying frozen after training.
  • Continual learning is lowkey the holy grail of AI - models that fix their own mistakes without burning $100M on a retraining run. We love to see it.

🤝 Snowflake Hands AWS $6 Billion for AI Compute

  • Data giant Snowflake just signed a $6 BILLION deal with Amazon Web Services, tied directly to AWS's Graviton processors and AI chip infrastructure.
  • Enterprise AI is expensive. Like... a lot. And everyone is suddenly realizing they need custom silicon or they're cooked.

💻 ByteDance Says "We'll Build Our Own Chips, Thanks"

  • TikTok's parent company is developing custom AI chips using Arm and RISC-V designs to dodge Intel and AMD's price hikes and supply chain chaos.
  • Big Tech is officially in its DIY silicon era. If you can't beat Nvidia's pricing... just make your own chips and pretend you wanted to all along.

📉 Salesforce Stock Tanks on "SaaSpocalypse" Fears

  • Salesforce beat Q1 estimates but gave a weak revenue forecast, and the stock dropped because investors think AI coding tools and agents are about to replace traditional software subscriptions.
  • The SaaSpocalypse is here. Why pay $50/seat/month when an agent can just... do the thing?? Sir this is a CRM.

💳 Meta Wants $19.99/Month for "Premium" AI

  • Meta is rolling out paid subscriptions across Instagram, Facebook, and WhatsApp, plus testing Meta One Premium at $19.99/month for deeper reasoning and more compute on Meta AI.
  • Running these models is bleeding money, so now every AI company is speedrunning the Netflix pricing model. Free tier soon to be unusable, don't @ me.

💼 Capgemini's AI Pipeline Hits $12B Because Nobody Knows What They're Doing

  • Consulting giant Capgemini reports an AI pipeline topping $12 billion, with clients spending wayyy beyond normal IT budgets to figure out this whole AI thing.
  • Companies are panic-buying AI consultants because their CEO read a McKinsey report. Consulting firms are eating good this year.

🎯 Brands Are Ditching Ad Agencies for AI in Mumbai

  • Target and Kimberly-Clark are using AI tools at their Indian hubs to make ads in-house, slashing content creation from a month down to two hours.
  • Traditional ad agencies are cooked. Why pay Ogilvy millions when an AI can generate 47 variations of "smiling family uses paper towels" before lunch??

🏦 Chicago Fed: AI Hype Might Actually Cause Inflation

  • Chicago Fed President Austan Goolsbee warns that expecting huge AI productivity gains could spike inflation. If companies spend big now expecting future profits, it could overheat the economy and force rate hikes.
  • So let me get this straight - the AI bubble might make your mortgage more expensive?? Cool. Cool cool cool.

🤯 Tech CEOs Officially Diagnosed with "AI Psychosis"

  • Industry leaders warn that CEOs are overestimating what AI can do right now, triggering a wave of premature layoffs. Bosses play with prototypes and assume the tools can replace humans - ignoring the complex final steps real work requires.
  • People are losing real jobs because their CEO had a vibes-based revelation after one ChatGPT demo. This. Is. Fine.

🔤 Google's AI Insists There Are Two P's in "Google"

  • Google's AI Overview is out here claiming "Google" has two P's and butchering basic spelling, because LLMs read text as "tokens" instead of individual letters.
  • We're spending $75B+/year on AI infrastructure and the smartest model on Earth can't spell its own creator's name. I'm screaming.