The most important news pieces from the AI world are here for you, whether you’re an AI enthusiast or just wish to keep an eye on what’s going on.
Focus Topic: Where startup AI dollars really go
AI is no longer just a tool that startups use – it’s becoming the foundation of how they operate. According to Andreessen Horowitz’s new AI Application Spending Report, early-stage companies in 2025 are spending more on AI-native applications than on infrastructure like servers or GPUs. This marks a shift from building with AI to building around AI.
The study, based on data from over 200,000 Mercury customers, reveals that 60% of startup AI spend now goes toward horizontal tools such as OpenAI, Anthropic, and Perplexity, designed to boost productivity across all teams. The remaining 40% goes to vertical AI solutions that automate specific domains – from law firms (Crosby Legal) and recruiting (Micro1) to accounting (Combinely).
One of the most surprising trends is the rise of vibe coding tools like Replit, Cursor, and Lovable. Once seen as creative playgrounds for hobbyists, these platforms are now key enterprise spending categories. Replit, for example, generated nearly 15 times more enterprise revenue than Lovable among Mercury’s startup customers. It’s no longer about no-code – it’s about AI-code.
The report also shows how consumer AI tools are moving into the enterprise space. Over 70% of the top-ranked companies began as consumer apps – including Canva, Notion, and Midjourney – and are now widely adopted by teams and organizations. This “consumer-to-enterprise” flow is accelerating, proving that product-led growth and enterprise AI adoption are merging faster than ever.
In short, startup AI spending has evolved from hype to habit. 2023 was about AI experiments – 2025 is about AI operations, where startups are no longer just using AI, but hiring it.
LLMs & AI Models
- OpenAI launched Sora 2 and a new social video app with Cameos, letting users create realistic AI videos with synced sound and scene changes. Seriously, I am blown away by Sora 2 and I will do a deep dive of it pretty soon.
- Google Gemini doubled its market share in generative AI, rising to 13.7% while ChatGPT’s share fell to 73.8%, signaling a more competitive landscape.
- Microsoft introduced Agent Mode and Office Agent, bringing multi-step automation to Word, Excel, and PowerPoint.
- OpenAI added Instant Checkout to ChatGPT, enabling direct product purchases via Stripe without leaving the chat.
- Anthropic unveiled Claude Sonnet 4.5, the most capable coding model yet, with new Claude Agent SDK and long autonomous runtime.
- OpenAI implemented a new safety routing system and parental control tools, automatically switching to GPT-5 for sensitive queries.
- Meta announced plans to use AI chat data for ad targeting across Facebook, Instagram, and WhatsApp, with no opt-out option.
- Microsoft 365 Premium launched at $19.99, combining Copilot, Researcher, and Analyst agents to compete with ChatGPT Plus.
New Tools
- NotebookLM added customizable chat settings and a Learning Guide that helps users actively understand and retain material.
- Perplexity globally launched its AI web browser Comet, designed from scratch for AI-first browsing and now free for everyone.
- Google released Gemini 2.5 Flash Image (Nano Banana), expanding image aspect ratios and query customization.
- Mira Murati’s new startup introduced Tinker, an API for customizing top AI models like Llama and Qwen without infrastructure setup.
- Amazon unveiled new Alexa+ devices with enhanced AI abilities for smarter homes, natural conversations, and independent task handling.
- Elon Musk’s xAI is developing Grokipedia, a knowledge platform aiming to outperform Wikipedia with deeper, AI-curated insights.
- Lovable launched Lovable Cloud, enabling anyone to build full apps using text prompts with integrated Gemini-based AI.
👉 Explore these tools: NotebookLM | Comet | Gemini Flash Image | Tinker | Grokipedia | Lovable
Other Quick Picks
- OpenAI became the world’s most valuable private company, valued at $500B after a $6.6B share sale.
- Apple refocused on AI smart glasses, abandoning Vision Pro upgrades to compete with Meta Ray-Ban devices.
- Tilly Norwood, an AI actress, is negotiating Hollywood contracts, sparking debates on synthetic talent ethics.
- Apple internally tests Veritas, a next-gen Siri with advanced AI voice and photo editing features.
- Deutsche Bank found Gen Z workers fear AI-driven job loss more than older generations.
- California passed the first major AI safety law (SB 53), requiring transparency from major AI labs like OpenAI and DeepMind
🇪🇪 AI News from Estonia
- ScamGuardian.ai, founded by Silver Keskküla, raised funding from Skype and Wise investors to fight AI-driven fraud and social manipulation. Read here.
- Low-code development expert Kei Olbrei highlighted how AI-powered coding opens software creation to non-developers, boosting creativity and innovation. Read here.
- Lux Express is installing AI-powered driver monitoring cameras in its buses to detect fatigue and risky behavior, improving passenger safety across Estonia. Read here.
🎙️ AIPowerment Podcast dropped a new end-of-month episode featuring Ivo Visak, TI-Hüpe CEO, discussing AI in education and how schools can prepare for the future.
🎧 Listen to AIPowerment Podcast on Spotify, Apple Podcasts, and YouTube.
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📚 If you would like to participate in one of my trainings or listen to speaking engagements, here are the upcoming ones:
- 2 public and free AI trainings in Tartu on October 6th – AI toolbox and Creative AI.
- Training “AI võimalused finantsvaldkonnas” @ Äripäeva Akadeemia, 21.05.2025-28.11.2025 – information
- Training “AI võimalused projektijuhtimises” @ Äripäeva Akadeemia, 17.10.2025-28.11.2025 – information
- Training “AI uued rakendused”, 12.11.2025 – information
- Training “AI assistendi roll ja võimalused”, 15.10.2025 – information
