Welcome back to Daily Zaps, your regularly-scheduled dose of AI news ⚡️ 

Here’s what we got for ya today:

• ✨ OpenAI debuts powerful new model

• 🎨 Disney and Universal sue AI startup

• 🔤 Google cutting staff to offset AI investments

• 🤖 Meta invests $14 billion in Scale AI

Let’s get right into it!

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STARTUPS

OpenAI debuts powerful new model

OpenAI has launched o3-pro, an advanced reasoning AI model designed to solve problems step-by-step, improving reliability in fields like math, science, and coding. Available now for ChatGPT Pro and Team users and soon for Enterprise and Edu users, o3-pro replaces the older o1-pro model and is also accessible via OpenAI’s API, priced by input and output tokens.

Reviewers rate o3-pro higher than its predecessor in clarity, accuracy, and comprehensiveness, and it supports tools such as web search, file analysis, visual reasoning, and Python use. Although responses take longer and some features like image generation and temporary chats are currently disabled, o3-pro excels on benchmarks, outperforming competitors like Google’s Gemini 2.5 Pro and Anthropic’s Claude 4 Opus in math and science tests.

LEGAL

Disney and Universal sue AI startup

Disney and Universal have jointly filed the first major Hollywood lawsuit against AI image creator Midjourney, accusing it of copyright infringement for using and distributing AI-generated images of their iconic characters from franchises like Star Wars, The Simpsons, Toy Story, and The Avengers without permission. Despite repeated requests to stop, Midjourney allegedly continued releasing new versions of its image generator, prompting the studios to demand a jury trial, warning that such actions undermine U.S. copyright law incentives.

The suit labels Midjourney a “copyright free-rider” profiting significantly—$300 million last year—while ignoring infringement notices. Both studios emphasize protecting the creativity and investment behind their content, asserting that AI does not excuse piracy. The case, filed in California federal court, highlights growing legal challenges around AI and intellectual property in the media industry.

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BIG TECH

Google cutting staff to offset AI investments

Google recently offered voluntary buyouts to U.S.-based employees across multiple divisions, including its knowledge and information (K&I) unit—which covers search, ads, and commerce—and other teams like marketing, research, and communications. This move is part of Google’s ongoing efforts to reduce headcount following large layoffs in 2023, with buyouts now preferred over abrupt cuts due to past backlash affecting morale and trust.

The company is also requiring some remote workers living within 50 miles of an office to return to a hybrid schedule. Leadership encourages employees aligned and motivated by their work to stay, while offering a supportive exit option for those less engaged or meeting expectations. Alongside cost-cutting, Google is shifting internal training to focus on AI tools, reflecting its expanding AI infrastructure investments planned for 2025.

BIG TECH

Meta invests $14 billion in Scale AI

Mark Zuckerberg, frustrated by Meta’s lagging position in AI, is prepared to invest around $14 billion to acquire a 49% stake in Scale AI and recruit its CEO, Alexandr Wang, to lead a new AI research lab at Meta. Scale AI, a key player in data labeling for top AI firms like OpenAI and Google, has also partnered with Meta on defense-related AI projects.

Rather than fully acquiring Scale AI—partly to avoid regulatory scrutiny amid Meta’s ongoing antitrust trial—the company aims to leverage Wang’s technical expertise and business acumen to strengthen Meta’s AI efforts after the disappointing launch of its Llama 4 models. Zuckerberg’s move reflects a strategic shift toward more product-focused AI development, hoping Wang’s “wartime CEO” experience and insights into AI competition, especially with China, can help Meta catch up with rivals.