AI ‘godmother’ calls for spatial intelligence

Good morning, AI enthusiasts. AI ‘godmother’ Dr. Fei-Fei Li just teased the following big leap in AI — spatially intelligent systems that might grasp the physics of the actual world.

These systems could mark some big breakthroughs, however the query is: are we able to take AI from understanding language to understanding the intricate details of the world around us?

P.S. We’re hiring a copywriter to check recent AI tools and create educational materials that help tens of millions understand and leverage AI. Apply here.

In today’s AI rundown:

• AI ‘godmother’ advocates for spatial intelligence

• Anthropic’s big cost advantage over OpenAI

• Turn spreadsheet data into insights with Copilot

• GPT-5 cracks a full 9×9 Sudoku puzzle

• 4 recent AI tools, community workflows, and more

LATEST DEVELOPMENTS

WORLD LABS

🤖 AI ‘godmother’ advocates for spatial intelligence

The Rundown: Famed AI specialist Dr. Fei-Fei Li just published a brand new essay detailing why the following breakthrough in AI will come from spatial intelligence, or systems that may understand, reason about, and generate 3D, physics-consistent worlds.

The small print:

• Li argues that while LLMs have mastered abstract knowledge, they lack the flexibility to perceive and act in space (things like estimating distance and motion).

• She said spatial understanding is the cognitive core of human intelligence and a vital step to take AI from language to perception and motion.

• World models, Li said, might be key to constructing this intelligence, but they need the flexibility to create realistic 3D worlds, understand inputs like images and actions, and predict how those worlds change over time.

• She added that these models will ultimately unlock recent advances in robotics, science, healthcare, and design by enabling AI to reason in the actual world.

Why it matters: World models that understand how objects move and interact could in the future predict molecular reactions, model climate systems, or test materials. The challenge lies in teaching AI real-world physics, but momentum is constructing fast with Li’s World Labs, Google, and Tencent all racing to bring spatially intelligent systems to life.

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With Lovart, you’ll be able to:

• Turn ideas into ready-to-use assets in seconds

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Try Lovart now and see why the platform just passed $30M ARR.

ANTHROPIC

🤑 Anthropic’s big cost advantage over OpenAI

The Rundown: Anthropic reportedly projects a significant cost advantage over OpenAI — expecting to spend far less on compute for training and running its AI models over the following few years, in keeping with The Information.

The small print:

• Anthropic estimates $6B in compute costs for 2025 versus OpenAI’s $15B, rising to $27B by 2028, in comparison with OpenAI’s $111B.

• The savings are expected from the corporate’s use of chips from Amazon, Nvidia, and Google for specialised tasks, unlike OAI’s heavy reliance on Nvidia.

• The news comes after Anthropic raised its revenue estimates, saying it expects to be money flow positive by 2027 and generate $70B in revenue by 2028.

• OpenAI, however, expects to hit $100B revenue mark in 2028 but won’t likely be money flow positive by 2030.

Why it matters: Anthropic is taking a quieter, more disciplined path, constructing AI through efficiency and enterprise focus (its 80% revenue is from API). OpenAI, meanwhile, is chasing breadth with a product-heavy push across ChatGPT, research, Atlas, and more. How these decisions play out will shape the following phase of AI.

AI TRAINING

 📊 Turn spreadsheet data into insights with Copilot

The Rundown: On this tutorial, you’ll learn the best way to use Microsoft Copilot Desktop’s Voice and Vision features to investigate Google Sheets or Excel data hands-free, asking questions aloud and getting quick insights without typing formulas.

Step-by-step:

• Install Microsoft Copilot from Microsoft Store (Windows) or App Store (macOS 14.0+/M1 chip), open the app, and check in along with your Microsoft account

• Go to Settings via profile icon, toggle on “Voice Mode” and “Copilot Vision,” then open your Google Sheets/Excel file within the browser

• Say “Hey Copilot,” click the specs icon (eyeglasses) on the toolbar to enable Vision mode — Copilot scans and confirms it sees your data

• Ask evaluation questions: “What’s essentially the most revenue-generating product?” or “Calculate total revenue” – Copilot highlights cells and explains calculations

• Close the toolbar, then prompt: “Draft an expert evaluation report with Executive Summary, Top Performers table, and Key Insights”

Pro tip: Use this workflow for learning recent skills, reading technical documents, or studying articles.

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Ask Warp agents to:

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SAKANA AI

🧩 GPT-5 cracks a full 9×9 Sudoku puzzle

The Rundown: GPT-5 just became the primary AI model to resolve a full 9×9 Sudoku puzzle, in keeping with Sakana AI’s Sudoku-Bench, a benchmark designed to check deep reasoning, spatial logic, and creativity.

The small print:

• Launched in May, Sudoku-Bench tests LLMs on classic and modern Sudoku variants that mix multiple rule sets and demand long, multi-step reasoning.

• No model had previously solved a full 9×9 puzzle until GPT-5 cracked it, showing higher spatial and logical reasoning than its predecessors.

• GPT-5 also achieved a 33% solve rate across puzzles — roughly double the previous leader, marking a significant step forward in benchmark performance.

• 67% of the puzzles remain unsolved, as models struggle with meta-reasoning (learning novel rules) and artistic “break-in,” which humans use naturally.

Why it matters: GPT-5’s Sudoku breakthrough shows real progress in structured reasoning, but additionally how far AI still is from considering like humans do. Closing that gap would require models that may mix mathematical logic, spatial awareness, and artistic insight, essentially the identical mix of skills we use to reason through the unknown.

QUICK HITS

🛠️ Trending AI Tools

• 🧠 Taku – Construct custom apps and tools in your workspace

• 📽️ Hedra – Now generate video and pictures in batches of eight

• ⚙️ Replit – Construct AI apps with 300+ model integrations, no API keys

• 🔎 Moondream – Run real-time video evaluation

📰 All the pieces else in AI today

Time magazine launched an AI agent to let users query and generate text and audio briefs from its 102-year-old archive.

OpenAI is offering one 12 months of ChatGPT Plus free of charge to U.S. servicemembers and veterans who retired/separated from lively duty inside the last 12 months.

Intel’s CTO and AI chief, Sachin Katti, departed for OpenAI, prompting CEO Lip-Bu Tan to assume oversight of the chipmaker’s AI and advanced technology divisions.

Legal AI company Clio, which provides tools to administer cases, research, and workflows, raised $500M in Series G funding at a $5B valuation.

Gamma, the platform for creating AI-generated presentations, web sites, and social media posts, surpassed $100M ARR and announced a $68M raise at a $2.1B valuation.

COMMUNITY

🤝 Community AI workflows

Every newsletter, we showcase how a reader is using AI to work smarter, save time, or make life easier.

Today’s workflow comes from reader Diego V. in Berlin, Germany:

“As a project manager, I actually have to run loads of meetings, with their respective meeting notes. I created an agent in Copilot that mechanically activates the meeting’s transcription. At the top of every event, it creates a brand new meeting notes page in my Loop workspace, populating the transcription content, and applying a custom template with discussion points, motion items + owners, and links to any referred documentation.”

How do you employ AI? Tell us here.

🎓 Highlights: News, Guides & Events

• Read our last AI newsletter: OpenAI calls for superintelligence safety

• Read our last Tech newsletter: This startup desires to edit embryos

• Read our last Robotics newsletter: Apple’s $133B humanoid moonshot

• Today’s AI tool guide: Turn spreadsheet data into insights with Copilot

• RSVP to next workshop @ 4PM EST Friday: AI Essentials for Leaders

See you soon,

Rowan, Joey, Zach, Shubham, and Jennifer — the humans behind The Rundown