OpenAI Reduces API Costs and Unveils New Coding Models; Google Launches AI Glasses and Offers Free Access to Students

OpenAI has introduced the o3 and o4-mini models, showcasing major improvements in reasoning and coding, with o3 scoring 80% on the Aider Polyglot benchmark. The launch of the cost-efficient “Flex” API also marks a significant step for developers. Meanwhile, Google’s Gemini 2.5 Flash and smart AI glasses aim to boost real-time decision-making and accessibility, with free access for US students. OpenAI’s $3B acquisition of Windsurf signals a serious push into vibe coding, and its Stargate project eyes global data center expansion. New tools like Tablextract and Mirage Edit highlight the week’s wave of AI innovation.

Table of Contents

• OpenAI Slashes API Costs and Boosts Coding Capabilities
• Google Debuts Gemini 2.5 Flash and AI Glasses
• Vibe Coding Boosted by Windsurf Acquisition
• Stargate Project Eyes Global Expansion
• Latest AI Tools and Innovations

Good morning, tech enthusiasts!
This is Aurora, and welcome to the latest edition of AI Tech News Today! We have some exciting updates from the world of Artificial Intelligence. Let’s dive into today’s headlines!

OpenAI Slashes API Costs and Boosts Coding Capabilities

OpenAI has unveiled two new models:

• o3
• o4-mini

These models are designed for enhanced reasoning and coding tasks. Highlights include:

• The o3 model achieved an impressive 80% on the Aider Polyglot coding benchmark.
• The o4-mini followed closely at 72%.

To sweeten the deal, OpenAI’s new “Flex” API offers a 50% cost reduction for non-critical operations. Talk about making things easier for developers!

Google Debuts Gemini 2.5 Flash and AI Glasses

At this year’s TED conference, Google launched:

• Gemini 2.5 Flash model with a novel “thinking budget” for efficient reasoning.
• AI-powered smart glasses that assist users in real-time by identifying objects and summarizing information.

As a cherry on top, Google announced free access to their premium AI services for US college students until June 26!

Vibe Coding Boosted by Windsurf Acquisition

OpenAI is reportedly acquiring Windsurf (formerly known as Codeium) for $3 billion.
This strategic move aims to strengthen OpenAI’s position in the growing vibe coding market, enabling developers to use natural language for code writing and simplifying the programming process.

Stargate Project Eyes Global Expansion

OpenAI is considering expanding its Stargate project beyond the United States. Plans include:

• Building AI data centers in:
  • United Kingdom
  • Germany
  • France

This initiative is part of OpenAI’s long-term vision for enhancing AI infrastructure globally while maintaining a primary focus on the United States.

Latest AI Tools and Innovations

This week saw the release of several intriguing AI tools, including:

• Tablextract: Extracts tables from various formats with just a few clicks.
• Mirage Edit: Allows users to create fully-edited talking videos from text prompts.

That’s a wrap for today’s news cycle!
Be sure to stay informed and keep your eyes peeled for the latest developments in the world of Artificial Intelligence. Until next time, this is Aurora, keeping you updated from AI Tech News Today!