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Under the hood on Google I/O and Jony Ive x OpenAI
Welcome back! This has to have been one of the busiest weeks for AI news that I can remember. Major announcements at Google I/O, a groundbreaking deal between two of the biggest names in tech, and tons of cool new products and features.
Thanks for being here to keep up with it all—I appreciate each and every one of you.


Google rolls out its full AI arsenal

Via WIRED
Google just reminded everyone it’s still very much in the AI race—in fact, it’s betting the company on AI. Now that the dust has settled on I/O this week, here are four major highlights from the mega-event ▶️
Search that does the Googling for you: AI Mode is rolling out across the US, turning queries into research assistants. It breaks questions into subtopics, pulls in web results, and builds curated responses, complete with follow-ups and personalized context.
Smarter reasoning: Gemini 2.5 introduces “Deep Think” for complex problem-solving.
Cinematic generation: Veo 3 and Imagen 4 enable rich video and image generation—with audio, sound effects, and dialogue baked in.
NotebookLM goes mobile: One of Google’s most popular AI tools is now mobile first, offering offline audio summaries, real-time interaction with AI podcast hosts, and a new video overview feature coming soon.
The bigger picture: Google is integrating AI across its sprawling product suite. These aren’t experiments. They’re infrastructure. And the more Google blends Gemini into everyday tools, the harder it becomes to imagine using Google without it.
Can OpenAI make the next iPhone?
OpenAI has acquired io, the AI hardware startup started by famed former Apple designer Jony Ive, in a $6.5 billion deal.
So what are these two big names building together? Details are sparse, but here’s what we know so far:
The product will be pocket sized, contextually aware, screen free…and it’s not eyewear, OpenAI head Sam Altman told his team.
Altman said he aims to release the first device by late 2026.
Altman suggested that this acquisition could increase OpenAI’s value by $1 trillion (with a T), kicking off a family of high-tech devices—just as the iPod did in the 2000s. In his memo to the OpenAI team, Altman said this deal gives the company “the chance to do the biggest thing we’ve ever done.”
Looking to the future: Altman said this device will ship “faster than any company has ever shipped 100 million of something new before.” Ive called it a new design movement. But nailing AI hardware has been tricky—remember Humane’s Ai Pin?
Mistral’s coding model makes a strong entrance
This week, Mistral launched Devstral, a new open-weight model trained for software engineering tasks. Unlike some recent LLMs optimized for general use, Devstral is built to tackle real coding problems: issue resolution, pull request handling, and bug-fixing across diverse codebases.
What’s under the hood: Devstral was fine-tuned on datasets similar to those behind SWE-Bench, the benchmark for evaluating coding agents on GitHub issues. And it’s performing well—beating other open models like Google’s Gemma 3 27B and DeepSeek’s V3 on SWE-Bench Verified.
Why it matters: With GitHub Copilot and proprietary models leading most coding workflows, open alternatives haven’t been able to compete—until now. Devstral won’t replace commercial tools overnight, but it signals something bigger: Open-source LLMs are rapidly catching up, especially in specialized domains like developer tools.

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Jobs, announcements, and big ideas
I’m hiring a full-time Production and Operations Assistant to help manage comms, do research, build relationships with brands, and more. Learn more and apply here.
Anthropic debuts Claude 4, “setting new standards for coding, advanced reasoning, and AI agents.”
OpenAI is expanding the scope of its Responses API, and it’s all about making AI useful at work.
Meta brings 3D Instagram photos to Quest VR.
Microsoft updates Paint Snipping Tool and Notepad for Windows 11 Insiders.
G42 joins global tech alliance to launch Stargate UAE in Abu Dhabi
Shopify unveils AI-powered store builder and new tools for merchants


What if you could spot the next unicorn before anyone else? Watch along as I break down how Crunchbase’s AI is turning startup signals into crystal balls.

That’s a wrap! See you next week.
—Matt (FutureTools.io)
P.S. This newsletter is 100% written by a human. Okay, maybe 96%.