AI with Kyle Daily Update 012
AI solves maths like a human + your SaaS is doomed
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The skinny on what's happening in AI - straight from the previous live session:
Highlights
🏆 OpenAI's Math Olympiad Gold Medal Moment
OpenAI's latest internal reasoning model just achieved gold medal level performance at the International Math Olympiad - without using any external tools. No Python, no Wolfram Alpha, no cheating. Pure reasoning through natural language, just like a human competitor. Even Gary Marcus, the grand old man of AI pessimism, called it "genuinely impressive."
1/N I’m excited to share that our latest @OpenAI experimental reasoning LLM has achieved a longstanding grand challenge in AI: gold medal-level performance on the world’s most prestigious math competition—the International Math Olympiad (IMO).
— Alexander Wei (@alexwei_)
7:50 AM • Jul 19, 2025
Kyle's take: This is massive. LLMs have always been rubbish at maths because they're language-based, not computation-based. We've had computers for decades that do arithmetic brilliantly. But this model worked out complex mathematical proofs using reasoning alone, under proper competition conditions. When even Gary Marcus is impressed, you know something proper has shifted. This could be a preview of GPT-5, and if Sam Altman's cryptic weekend tweet about finishing a coding project in 5 minutes is anything to go by, we're in for something mental.
Source: OpenAI Research Team
📉 The SaaS Death Spiral Begins?
Lovable just raised £200 million for their vibe coding platform, but here's the kicker - content creator Riley recreated Lovable's basic functionality in about an hour using Cursor. This raises the uncomfortable question: what's the point of paying for SaaS when anyone can build their own version overnight?
Kyle's take: SaaS is getting squeezed from both sides. Lower demand because customers can build their own tools, and higher supply because competitors can copy your software in hours.
BUT most people won't bother building their own - they lack the mindset, skills, or time.
The the moat now comes from distribution, not technology. The 80/20 rule has flipped: it used to be 80% building, 20% marketing. Now it's 80% marketing, 20% building. If you can't distribute, you're dead in the water.
🎭 Netflix Goes Full AI (And Proud Of It)
Netflix just announced they've used generative AI visual effects in "The Eternaut" - their first official use of AI in an original series. They're not hiding it or apologising. Co-CEO Ted Sarandos said the building collapse sequence "wouldn't have been feasible for show in that budget" without AI.
Kyle's take: This is going to be absolutely normal within two years.
It's like when Disney started using computers for animation - massive outcry at the time, now nobody cares. It becomes the norm. It just takes time.
The more interesting bit is the copyright implications. Right now, AI-generated content can't be copyrighted. So how much AI can you use before your entire show becomes uncopyrightable? 20%? 50%? 80%? There’s no legal limit yet.
Disney's currently suing Midjourney for training on their images, but I guarantee they'll change their tune when they want to use AI themselves!
Source: BBC News
Member Question: "How long before we see an AI driven real-time short film driven by each viewer?"
Kyle's response: Right now it's cost prohibitive - creating video content is still expensive. But costs keep dropping with every new model. The real challenge isn't technical, it's taste.
We like Netflix and cinema because professionals know how to build stories, put together the right actors, scenes, and dramatic beats.
When you type in what you want to see, you're probably not going to have that taste level to instruct the AI properly. We'll likely see a middle ground first - "I want something like The Wire but set in Korea with my favourite actors" - rather than everyone creating personalised AI slop.
This question was discussed at [23:08] during the live session.
Related Member Question from Dave: "If gen AI video becomes so cheap we will be flooded, won't people then look back to real video? Won't people want authenticity?"
Kyle's response: YouTube's already banned monetising AI slop as of last week because they're trying to stop the flood.
There'll be a backlash and then preference toward "human crafted" content, but it'll be like vinyl records - massive percentage growth from a tiny base. Still extremely niche!
I think most people will be absolutely fine with AI content. I'm basing this on my bus rides in London watching people consume complete crap on their phones…maybe I’m being ungenerous! But I think human-made content will become a luxury market rather than the main market.
This question was discussed at [33:19] during the live session.
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