Adobe's counter-attack adds rival AI models

PLUS: OpenAI and Microsoft's new deal, plus Nvidia's $500B chip sales target

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Gen AI Art
October 30, 2025 • Estimated Reading Time: 10 minutes

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Adobe just unveiled a significant overhaul to its creative suite at its MAX conference, but the headline news wasn't just its new Firefly model. The company is now integrating AI from direct competitors like Google and Runway into its core applications.

By opening up its traditionally closed ecosystem, Adobe is making a strategic play to become the indispensable hub for creative AI. But will this pivot to an open platform be enough to maintain its dominance in an increasingly crowded industry?

Today in AI:

  • Adobe adds rival AI models to its creative suite

  • OpenAI and Microsoft’s new partnership deal

  • Nvidia forecasts $500B in AI chip sales

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What’s new? Adobe just overhauled its creative suite at its MAX conference, embedding conversational AI assistants, launching a new Firefly Image Model 5, and integrating third-party models from competitors like Google and Runway.

What matters?

  • New AI Assistants are being embedded directly into apps like Photoshop, allowing users to perform complex, multi-step tasks like selecting subjects and replacing backgrounds using simple conversational prompts.

  • The new Firefly Image Model 5 delivers higher-resolution images and conversational editing, but the bigger story is Adobe opening its platform to competitor models like Google's Imagen and Runway.

  • Creatives can now train a private Firefly model on their own work, enabling them to generate new content that consistently matches their unique style.

Why it matters?

By integrating the industry's best models, Adobe is shifting from a closed ecosystem to an open, indispensable hub for creative AI. This move gives professionals powerful new capabilities directly within the familiar tools they already use every day.

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What’s new? OpenAI has finalized its complex transition into a for-profit benefit corporation and simultaneously renegotiated its critical partnership with Microsoft, clarifying future collaboration and ownership terms.

What matters?

  • The original nonprofit is now the OpenAI Foundation, holding a staggering $130B in equity from the for-profit arm, with plans to direct $25B toward health research and AI safety initiatives.

  • The revised deal allows both companies to pursue AGI independently with other partners, a major shift that introduces more flexibility and potential competition into the partnership.

  • Microsoft's stake adjusts to approximately 27% (valued at ~$135B), and it secures its intellectual property rights through 2032, ensuring long-term access to OpenAI's technology.

Why it matters?

This restructuring provides OpenAI with a massive philanthropic arm and a clearer path to developing AGI without being exclusively tied to one partner. The new terms create a more balanced dynamic, potentially accelerating the entire AI ecosystem as both giants can now collaborate more widely.

What’s new? At a recent event in Washington D.C., Nvidia CEO Jensen Huang outlined projections for $500 billion in revenue from its Blackwell and Rubin chips through 2026. This forecast was accompanied by a blitz of new partnerships and major deployments.

What matters?

  • The U.S. Department of Energy is deploying seven supercomputers with over 100,000 Blackwell GPUs, which are all being manufactured domestically.

  • The company also announced a $1B investment in Nokia, helping the telecom giant pivot its network infrastructure toward AI processing.

  • New partnerships with industry leaders like Eli Lilly, Palantir, and Samsung were revealed alongside new open-source models for biomedical research and robotics.

Why it matters?

These massive revenue targets and strategic partnerships signal Nvidia's confidence, directly countering speculation of a potential AI bubble. The company is embedding its technology across government, industry, and research, solidifying its foundational role in the AI economy.

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Everything else in AI

Adobe unveiled Firefly Video, a new web-based editor that lets users generate clips, create custom transitions, and add AI-generated sound effects directly to a timeline using simple prompts.

Dell's clarified what hardware specifications actually matter for running AI locally on “AI PCs” in a new podcast, helping users cut through marketing claims to find performant machines.

Topaz Labs features its standalone Mosaic platform, a specialized tool for upscaling old photos to 4K, fixing motion blur, and sharpening out-of-focus faces.

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