Next Week in The Sequence:

Our eval series continues with an examination of math benchmarks. In engineering we dive into Google’s new agentic toolkit. The research section dives into GPT 4.1 and our opinion edition will dive into the world of synthetic data.

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📝 Editorial: What a Week for OpenAI

Nobody should be surprised with the speed of progress at OpenAI but this week was something. OpenAI just simply had one of the most impressive weeks in its history. ecently, it was reported that Sam Altman was going to spend more time focused on product and strategy and I think we are seeing the results of that.This week’s developments highlight a key trend: OpenAI is rapidly transforming from a model provider into a full-stack AI platform, setting the pace in reasoning, coding, and agentic infrastructure.

The headline release was GPT-4.1, a substantial upgrade to the GPT-4 series. GPT-4.1 introduces a staggering 1 million-token context window, opening the door to entirely new workflows in long-context reasoning, large document processing, and advanced instruction following. Alongside the flagship model, OpenAI released 4.1-mini and 4.1-nano variants, optimizing for different tradeoffs in latency, cost, and performance. These models are integrated directly into ChatGPT and API endpoints, signaling OpenAI's intent to unify its offerings around the 4.1 generation.

Complementing the 4.1 release was the quiet debut of o3 and o4-mini, two new reasoning-optimized models. Internally referred to as the "o-series," these models are built to excel at multi-step reasoning, web browsing, visual tasks, and planning. OpenAI positions o3 as its most advanced reasoning model to date, capable of handling sophisticated instructions with higher reliability. Both o3 and o4-mini are tightly integrated into ChatGPT and early evaluations suggest improvements across reasoning, search, and multimodal comprehension.

On the developer tooling front, OpenAI launched Codex CLI—an open-source command-line coding assistant that runs locally but connects to OpenAI models. Codex CLI is designed to work with existing codebases and terminal workflows, providing real-time coding suggestions, file navigation, and project-wide refactoring. This marks a strategic shift towards offering tools that embed AI into the operating system layer, giving developers agentic-level augmentation directly in their shell environments.

Perhaps the most strategic news of the week is the rumored acquisition of Windsurf (formerly Codeium) for a reported $3 billion. Windsurf operates in the coding assistant space, directly overlapping with GitHub Copilot and other AI pair programming tools. If finalized, the acquisition would give OpenAI a more robust foothold in the IDE-level development experience and further solidify its vertical integration across model, platform, and interface.

Taken together, these moves signal an acceleration in OpenAI’s ambitions. From model innovation to agentic reasoning, from developer tooling to strategic acquisitions, OpenAI is positioning itself as the central platform for AI-native computing. The convergence of long-context models, reasoning agents, and local developer tools suggests a future in which OpenAI doesn’t just power apps—it becomes the operating layer for intelligent systems.

🔎 AI Research

MineWorld

In the paper "MineWorld: a Real-Time and Open-Source Interactive World Model on Minecraft", researchers from various institutions explore the potential of world models for simulating and interacting with diverse environments and human/agent actions, highlighting their use in game engines and reinforcement learning systems. This paper designs a Transformer decoder-based model that can function as both a policy model and a world model by jointly capturing the relationships between game states and actions.

AgentRewardBench

In the paper "AGENTREWARDBENCH: Evaluating Automatic Evaluations of Web Agent Trajectories", researchers from McGill University, Mila Quebec AI Institute, Google DeepMind, Polytechnique Montréal, and ServiceNow Research introduce AGENTREWARDBENCH, a benchmark to assess the effectiveness of LLM judges in evaluating web agent trajectories. This benchmark, comprising expert-annotated trajectories from various web environments and LLM agents, reveals that rule-based evaluations commonly used in the field tend to underreport the success rate of web agents.

S1-Bench

In the paper "S1-Bench: A Simple Benchmark for Evaluating System 1 Thinking Capability of Large Reasoning Models", researchers from the Institute of Information Engineering, Chinese Academy of Sciences, and the School of Cyber Security, University of Chinese Academy of Sciences present S1-Bench, a novel benchmark for evaluating the "system 1" thinking capability of large reasoning models (LRMs) on simple, intuitive tasks. Their evaluation of 22 LRMs demonstrates that these models often exhibit lower efficiency and a tendency to overthink on simple questions compared to traditional smaller LLMs.

Seedream

In the "Seedream 3.0 Technical Report" researchers from ByteDance introduce Seedream 3.0, a high-performance Chinese-English bilingual image generation foundation model. The report details several technical improvements across the entire pipeline, resulting in enhanced alignment with complex prompts, better typography generation, improved visual aesthetics, higher fidelity, and the capability for native high-resolution output.

TEXTARENA

In the paper "TEXTARENA", researchers from the Centre for Frontier AI Research (CFAR), A*STAR, Northeastern University, National University of Singapore, and MIT introduce TextArena, a platform for evaluating the soft skills of language models through competitive text-based games. The platform uses a TrueSkill™ rating system to rank models based on their game-playing abilities and provides insights into skills like strategic planning, logical reasoning, and adaptability.

BitNet vNext

The paper, "BitNet b1.58 2B4T Technical Report" from Microsoft Research, introduces BitNet b1.58 2B4T, the first open-source, native 1-bit Large Language Model with 2 billion parameters, demonstrating performance comparable to full-precision models of similar size while offering significantly reduced memory footprint, energy consumption, and decoding latency. Key contributions include the model architecture based on 1.58-bit weights and 8-bit activations, a comprehensive evaluation of its capabilities, and the public release of model weights and optimized inference code for both GPU and CPU.

🤖 AI Tech Releases

Codex CLI

OpenAI open sourced Codex CLI, a lightweight coding agent that can run in a terminal.

Gemini 2.5 Flash

Google released a preview version of Gemini 2.5 Flash.

Embed 4

Cohere launched a new Embed 4, its new embedding model to power retrieval applications.

DeepCoder

DeepCoder released a new 14 billion parameter code generation model.

Classifier Factory

Mistral released a suite of models for different classification tasks.

🛠 AI in Production

AI at Salesforce Marketing

Salesforce shares some insights about their AI infrastructure behind its Marketing Intelligence platform.

PayPal Agentic Toolkit

PayPal released a new toolkit for agentic commerce.

📡AI Radar

• OpenAI is in talks to buy AI coding startup Windsurf.

• It was also reported that OpenAI attempted to buy Cursor.

• Ilya Sutskever Safe Superintelligence (SSI) is now valued at $32 billion.

• Infinite Reality acquired AI firm Touchcast Inc for $500 million.

• Former Y Combinator president Geoff Ralston raised a new VC fund focused on AI safety.

• Robotics startup Xaba raised $6 million to implement industrial robots.

• Popular platform LMArena is now a company.

• 1Fort raised $7.5 million to improve small business insurance with AI.

• Kore.ai and G42 announced a strategic partnership to expand AI capabilities in the enterprise.

• AI data platform Deck raised $12 million in a new round.

• Capsule raised $12 million for its AI video platform.

• The team from eval platform Context.ai is joining OpenAI.

• AI voice platform Telli raised $3.6 million in a new round.

• Atomic raised $3 million to build an AI-first invenctory planning system.