🍭 OpenAI’s Flip-Flop, Hallucinating Bots, and the Anti-AI Club

Good morning. OpenAI’s reasoning models are hallucinating, its board flipped the business model, and some founders are still saying “nah” to AI.

→ Intern said to keep dropping these breadcrumbs… for the builders ←

What’s Cookin’:

• Reasoning models are hallucinating harder than ever

• OpenAI flips back to nonprofit mode (under pressure)

• Some founders are still saying "no" to AI

• 5 AI tools to write, clip, and auto-proof your next theorem — if you’re into that sorta thing…

  
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Reasoning Models
🤯 Hallucinations Getting Worse, Not Better

The Bite: OpenAI’s newest reasoning models, like o3 and o4-mini, aren’t just smart, they’re confidently wrong.

In one benchmark, they hallucinated up to 79% of the time. Our community lead, Cobi, just took a big sigh of relief. Reasoning models aren’t replacing him. Yet

Snacks: 

• Cursor's customer support agent invented a fake policy that made users cancel their subscriptions

• OpenAI admits newer models hallucinate more than older ones

• Reasoning models often mess up because they "think out loud" — and compound errors step by step

• CEO of Vectara emphasized hallucinations are baked into how current AI systems work.

• Basically: no matter how good they get, they’ll still make stuff up sometimes. All of us hope he’s wrong.

Why it bites: A chatbot is only useful if you can trust it. Otherwise, it's just an expensive improv actor with Wi-Fi.

Source: NY Times

OpenAI
🤷‍♂️ The Nonprofit That Kind Of Isn’t…

The Bite:  OpenAI just hit reverse on its for-profit pivot. After planning a full corporate glow-up, it’s now saying: “Just kidding — the nonprofit’s still in charge.”

kinda…

Snacks:

• Board chair Bret Taylor confirmed the nonprofit will still oversee operations

• Pressure came from regulators, civic groups… and Elon Musk with a lawsuit cameo

• The nonprofit will also be the PBC's biggest shareholder… naturally 

• CEO Sam Altman says OpenAI might still need "trillions" to hit its goals

Why it bites: This isn’t just about bylaws — it’s about trust. OpenAI was founded to build safe, human-aligned AI.

But as the dollars piled up, so did the structural gymnastics.

Now we’re watching a nonprofit oversee a for-profit that feeds a trillion-dollar tech stack. All while saying it’s all “for the greater good.”

The philosophical paradox of this AI era: Can you scale something responsibly if doing so requires partnering with the very power structures you were supposed to check?

This might be governance. It might be branding.

But it’s starting to look like a trillion-dollar virtue signal…

🍭 Steal this prompt
Your Face, Now Hiring in a 1989 Video Game

Back when pixels were chunky and computers wheezed, this is what your face would’ve looked like.

And honestly? It’s fire.

This prompt compresses any face down to a few dozen chunky squares — and somehow still nails the vibe.

Go full arcade, no game tokens needed 👇

1. Hit this link (for the prompt)

2. Copy + paste the prompt into ChatGPT 4o

3. Upload your portrait, headshot, or any subject really.

4. Bang. Now you’ve officially traveled back in time.

💥 Why it’s a banger:

• Instant retro energy — crisp, clean, and weirdly flattering

• Perfect for Slack, wallets, Skool, or anywhere you need a lo-fi flex

• Looks like your face got hired as a Game Boy NPC

  
  🍭 Try the prompt on Snack Prompt 🍭

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Formal proofs + informal reasoning = math wizardry in Lean-4. For my math homies

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Test Your Skill
Snack Quiz: Choose The Real Image 🔍

Anti-AI
🙅‍♂️ The People Saying "No Thanks" to AI

The Bite: While the AI gold rush rages on, there’s a growing tribe of professionals opting out on principle. For them, it’s not about what AI can do — it’s about what it erases: creativity, human connection, and a sense of meaning at work.

Hmm… I have the same feelings, but I work in AI (scratches head and takes a break)

Snacks:

• For some, it’s a creative line in the sand. They say they’re protecting identity. “If your brand is voice, craft, or care, AI can feel like dilution, not leverage.”

• Others fear skill rot. Offload every decision and you stop learning how to think.

• Eco-critics point to the energy burn. Not exactly “clean tech.” Valid

• And then there’s the paycheck pressure — some folks folded when job listings started demanding prompt fluency.

Why it bites: Saying no feels noble — until it costs you work. AI resistance isn’t always a stance. Sometimes it’s a luxury.

My take? AI isn’t here to steal your soul. It’s here to steal your 72-tab workflow.

Use it right, and it’s not a shortcut, it’s a multiplier.

Everything Else
You need to know 📈 

🩸 AI still suck at health advice

Oxford study says AI made people worse at diagnosing basic conditions.

GPT-4o was tested. Oops.

📈 11x founder steps down

After controversy and churn, Hasan Sukkar hands the CEO baton to CTO Prabhav Jain.

Still loaded with VC backing.

🖼️ wtf is a “red_panda”? They raised $30M though…

Recraft’s image-gen model "red_panda" outperformed DALL-E on benchmarks, raised 30 mil, and now they’re building a Canva killer.

New image-gen on the scene.

🇫🇷 Mistral AI wants to be Europe's OpenAI

$6B valuation, big name endorsements, and a ChatGPT rival called "Le Chat."

Still early, but loud.

🍏 Apple and Anthropic are building "vibe coding" tools

Claude Sonnet is reportedly powering a new version of Apple's programming software Xcode, that autowrites, edits, and tests code.

Still internal, but interesting.

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