AI and Vibe Coding News for the Week of September 1

Prompt and Circumstance

DESCRIPTION David and Ilan catch you up on the latest AI news, covering OpenAI's new budget tier, why 95% of AI projects fail, and Google's impressive new image generation capabilities.

• OpenAI's $5 "Go tier" expands AI access globally
• Small language models finding their niche in manufacturing
• MIT report reveals harsh reality: 95% of AI projects fail
• World models represent the next evolution beyond LLMs
• Google's Nano Banana delivers lightning-fast image generation

CHAPTERS
[00:00] - OpenAI's Go Tier: $5 AI for Global Markets
[06:13] - Latam-GPT: Regional AI for Latin America

[07:13] - Small Language Models vs. LLMs
[12:34] - MIT Report: Why 95% of AI Projects Fail
[16:43] - Accenture CEO's Red Flags for AI Adoption
[20:33] - World Models: Beyond Language Understanding
[26:12] - Google's Nano Banana Image Generation Demo

KEY LINKS

• Small language models
  • https://www.wired.com/story/why-researchers-are-turning-to-small-language-models/
  • https://developers.googleblog.com/en/google-ai-edge-small-language-models-multimodality-rag-function-calling/
  • https://aimagazine.com/news/llms-vs-slms-how-ai-models-impact-sustainability
• World Models
  • https://www.theguardian.com/technology/2025/aug/05/google-step-artificial-general-intelligence-deepmind-agi
  • https://deepmind.google/discover/blog/genie-3-a-new-frontier-for-world-models/
  • https://www.youtube.com/watch?v=eyrDM3A_YFc&ab_channel=NVIDIADeveloper
  • Vsim https://techcrunch.com/2024/09/25/vsim-founded-by-nvidia-alums-raises-21-5m-for-robotics-simulation-tech/
• GPT Go
  • https://www.windowscentral.com/artificial-intelligence/openai-chatgpt/openai-quietly-launches-chatgpt-go-in-limited-regions
  • https://x.com/btibor91/status/1955170910694183005
  • https://www.forbes.com/sites/rebeccasadwick/2020/06/22/how-to-price-products/
• Latam-GPT
  • https://www.wired.com/story/latam-gpt-the-free-open-source-and-collaborative-ai-of-latin-america/
• 95% of AI project fail
  • https://mlq.ai/media/quarterly_decks/v0.1_State_of_AI_in_Business_2025_Report.pdf
• Accenture CEO on failed AI projects
  • https://fortune.com/2025/08/31/accenture-ceo-julie-sweet-ai-advice-success/
• Nano Banana
  • https://blog.google/products/gemini/updated-image-editing-model/

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