😎Nadella’s AI Endgame Unfolds

Today we will discuss:

• Sponsored: AppearOnAI—Track and boost your brand’s visibility across top AI chat platforms

• Microsoft’s AI future looks more crowded—Nadella moves from exclusivity to optionality in the race to dominate AI

• Don’t miss this week’s Workflow Wednesday—work smarter with AI using SheetsResume to generate a polished resume in minutes, plus write sharper messages with Grammarly AI in Gmail and Slack, and clean up stale GitHub branches automatically with GPT and Make.com; now available at only $20/month! 

• Gemini 2.5 pro gets a developer focused refresh—New update boosts coding reasoning and developer usability

• Spotlight: Alumnium—The only open-source AI test automation library for both web and mobile

• In other AI news—X updates its developer terms to block use of its content for AI training, Anthropic unveils Claude Gov models tailored for US national security needs, Amazon’s R&D lab sets up a new agentic AI group focused on robotics, and AI coding startup Cursor’s parent Anysphere hits a $9.9B valuation after a $900M raise

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Microsoft turns threat into opportunity with DeepSeek’s AI breakthrough

Key Points 

• DeepSeek’s open source model forced Microsoft to respond quickly but Nadella chose to adopt it rather than compete.

• Microsoft now offers over 1,900 AI models on Azure including competitors positioning itself as a neutral AI platform.

🗞️ Context of the news - When Satya Nadella landed at Davos in January he was ready to tout Microsoft’s AI dominance. But DeepSeek, a Chinese startup, shook up the narrative. 

Its open source R1 model rivaled OpenAI’s performance at a fraction of the cost. Alarmed, Nadella's team launched a rapid-fire investigation. Within 48 hours, 100 Microsoft employees had vetted R1 and surprisingly Nadella chose not to fight it. Instead Microsoft offered R1 through Azure adding it to a growing menu of over 1,900 models.

🤖News - Now, Nadella’s strategy is less about loyalty to OpenAI and more about optionality. Whether customers want OpenAI DeepSeek or Microsoft’s own tech Azure is where they’ll find it.

His mindset is shaped by economic principles particularly the Jevons paradox which says cheaper more efficient tech drives more consumption. That belief is pushing Microsoft to build its own smaller cheaper AI models under the MAI-2 initiative.

🥸Why this matters - Microsoft’s $13.75B bet on OpenAI helped ignite the AI boom but their relationship has shifted from collaborative to cautious. With MAI-2 Nadella’s preparing for a future where OpenAI isn’t the only option. It’s part protection plan, part power play.

Read the full story here.

We’ve just launched the 22nd edition of Workflow Wednesday for AI-minded professionals like you—actionable AI workflows delivered straight to your inbox.

This week’s topic: Integration

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Google enhances Gemini’s coding and creativity in new preview update

Key Points 

• Google’s updated Gemini 2.5 Pro performs better at coding and complex reasoning with improvements visible across benchmark tests.

• With cleaner responses and improved structure Gemini becomes easier to use in developer workflows and tools.

♨️News - Google has rolled out an updated preview of Gemini 2.5 Pro its advanced AI model aimed at developers. 

The upgrade builds on the version released just last month and is already live in Google’s AI Studio Vertex AI and the Gemini app. A wider release is expected in the coming weeks.

The company says the updated model performs better on programming tasks and continues to lead on difficult coding benchmarks. It also ranks highly on tests that evaluate reasoning math, science, and general knowledge. That puts Gemini 2.5 Pro in line with some of the best-performing models currently available.

In response to early user feedback Google has fine tuned the model’s output. The new version is said to be more creative with cleaner formatting and improved structure in its responses. These changes are designed to make it easier for developers to use in real-world applications.

🤓Why it matters - As AI models become more capable, small improvements in how they reason, respond, and format answers can make a big difference. With this update, Google is positioning Gemini 2.5 Pro as a more practical and polished tool for developers. 

Read the full story here.

Alumnium is changing how devs automate testing. 

It’s the only open-source, AI-powered library that supports both web and mobile — no more writing brittle scripts or juggling multiple frameworks.

Fast-growing, dev-loved, and built for real-world testing.

If you're into clean automation and smarter tooling:
Give it a ⭐ on GitHub → github.com/alumnium-hq/alumnium