Samsung's tiny AI model beats Gemini 2.5 Pro

PLUS: Elon’s AI game plan, and Sora 2 via API

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Gen AI Art
October 14, 2025 • Estimated Reading Time: 8 minutes

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Samsung is challenging the AI industry's 'bigger is better' mantra with a new, tiny model that just achieved a surprising win. The 7-million-parameter model is outperforming massive systems like Gemini 2.5 Pro on complex reasoning tasks.

By using a 'recursive reasoning' method, the model iteratively refines its answers, trading a smaller size for more processing cycles. With this breakthrough, does a clever architecture signal a major shift toward more efficient, specialized AI over sheer scale?

Today in AI:

  • Samsung's tiny model beats Gemini 2.5 Pro

  • xAI details its video game ambitions

  • Sora 2 now available via API

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What’s new? Samsung developed a Tiny Recursive Model with just 7 million parameters that outperforms giant models like Gemini 2.5 Pro on complex reasoning tasks, challenging the industry’s “bigger is better” philosophy.

What matters?

  • The model achieved 44.6% accuracy on the ARC-AGI reasoning benchmark, surpassing Gemini 2.5 Pro’s 37% score despite being thousands of times smaller.

  • Instead of brute-force scaling, the model uses recursive reasoning, where it iteratively refines its own answers in a loop, much like editing a draft multiple times.

  • This efficiency comes with a trade-off, as the model requires multiple processing passes to solve a problem, exchanging a smaller model size for more compute cycles.

Why it matters?

This breakthrough demonstrates that clever model architecture can be more effective than simply adding more parameters for specific, complex tasks. This could lead to more efficient, specialized AI tools that run faster and cheaper without relying on massive cloud infrastructure.

What’s new? Elon Musk’s xAI is jumping into the video game arena, with the ambitious goal to release a “great AI-generated game before the end of next year,” as he said in a post on X.

What matters?

  • To achieve this, xAI is developing world models—AI systems that learn physics and object interactions from video data—and has hired researchers from Nvidia to lead the effort.

  • The company is reportedly entering the race against other major labs to create AI that can generate realistic and interactive 3D environments from simple prompts.

  • The team’s focus is not just on procedural content generation but on producing a playable game with intuitive logic and controls, a significant step beyond current generative AI demos.

Why it matters?

Success here could fundamentally alter game development, shifting focus from manual asset creation to directing AI systems that build entire worlds. This is also a critical milestone for AI, proving its ability to generate complex, dynamic, and interactive simulations with real-world applications.

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What’s new? OpenAI has officially released its state-of-the-art video model, Sora 2, through an API, allowing developers and businesses to integrate high-quality AI video generation into their applications.

What matters?

  • The API release transitions Sora 2 from a limited demo to a powerful tool for developers, enabling the creation of new commercial and creative video applications.

  • Early adoption is already highlighting its potential for marketing, with public figures like Mark Cuban using the platform to generate promotional content for his company.

  • This official launch addresses immense market demand for accessible text-to-video technology, which was previously evident from the flood of unofficial 'Sora clones' on app stores.

Why it matters?

Making Sora 2 widely available through an API marks a major shift from a fascinating tech demo to a practical utility for creators and businesses. This move will accelerate the development of new applications in entertainment, advertising, and personalized content creation.

Everything else in AI

Microsoft expanded Copilot on Windows to connect with Google Drive, Gmail, and Outlook, allowing users to search across accounts and create documents with natural language.

OpenAI won a federal court ruling relieving it from the need to indefinitely preserve all user conversations, a partial privacy win for users amid ongoing copyright lawsuits.

PyMC Labs demonstrated in a new study that an AI method can predict consumer purchases with human-level accuracy by interpreting qualitative reasoning instead of simple numerical ratings.

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