Runway's Gen-4.5 Creates Realistic Videos While OpenAI Investigates Claims

AI-generated videos, often dubbed "AI slop," are increasingly prevalent on social media platforms like TikTok and Instagram. Tools such as Runway's Gen-4.5 are creating more realistic clips from simple text prompts, showcasing a new form of creativity. This development parallels AI's broader impact, including its role in the news industry, where it helps restore coverage and lowers costs for new outlets, though it has also led to job losses in entry-level positions. In the realm of AI training, Tether Data released QVAC Genesis II, a significant expansion of its open synthetic educational AI dataset. This version adds 107 billion tokens, bringing the total to 148 billion across 19 academic subjects, making it the world's largest publicly available dataset for teaching AI models reasoning and decision-making. Meanwhile, the European Union encountered substantial challenges with its AI Act and device regulations in 2025, with full resolutions expected in 2026. Rezolve Ai, a leader in AI-powered customer engagement, reported strong global growth, securing new business and expanding its reach across multiple regions. The company's success highlights a shift towards conversational commerce, with major clients renewing and expanding contracts. Former Facebook privacy chief Chris Kelly anticipates that the next major shift in AI will prioritize efficiency and cost reduction, particularly in building data centers, which saw over $61 billion in deals in 2025. However, concerns are emerging about the AI industry's financial dynamics, with some experts noting a "circular money machine" where major players like Nvidia and OpenAI invest in each other, potentially leading to recycled revenue and inflated valuations. MRB Partners warns that the booming AI market may face a slowdown in 2026 as spending cools, advising investors to diversify beyond big tech and AI. In the broader market, gold and copper significantly outperformed Bitcoin in 2025, with Bitcoin failing to attract both fear-driven and AI-driven investments. Social media platforms frequently amplify exaggerated claims about AI breakthroughs, contributing to misinformation. For instance, statements regarding OpenAI's GPT-5 solving complex math problems were overhyped, as the model had only found existing solutions rather than making genuine discoveries. This environment makes it challenging to gain a balanced perspective on AI's true capabilities and limitations.

Key Takeaways

• AI-generated videos, including those from Runway's Gen-4.5, are becoming more realistic and widespread on social media platforms.
• AI is reshaping the news industry by reducing costs for new outlets and restoring coverage, but also causing job losses in entry-level positions.
• Tether Data released QVAC Genesis II, an AI training dataset with 148 billion tokens across 19 subjects, making it the world's largest publicly available dataset for reasoning and decision-making.
• The European Union faced significant issues with its AI Act and device regulations in 2025, with solutions anticipated in 2026.
• Rezolve Ai achieved global growth, securing new business and expanding contracts for its AI-powered customer engagement platform, indicating a shift to conversational commerce.
• Former Facebook privacy chief Chris Kelly predicts AI's future will focus on efficiency and lowering data center costs, which accounted for over $61 billion in deals in 2025.
• Concerns exist regarding the AI industry's "circular money machine," where companies like Nvidia and OpenAI invest in each other, potentially inflating valuations.
• MRB Partners warns of a potential slowdown in AI investments in 2026, advising investors to diversify beyond big tech due to high earnings expectations.
• In 2025, gold and copper significantly outperformed Bitcoin, which did not attract expected AI-driven or fear-driven investments.
• Social media platforms often exaggerate AI breakthrough claims, as seen with overhyped statements about OpenAI's GPT-5 capabilities.

Embrace the Weird World of AI Generated Videos

AI-generated videos, often called "AI slop," are flooding social media platforms like TikTok and Instagram. These clips, created from simple text prompts, show impossible things like rabbits on trampolines or JD Vance in strange outfits. While some find them nonsensical, new tools like Sora2 and Runway's Gen-4.5 create increasingly realistic videos. This trend shows a new kind of creativity emerging on our phone screens, with anyone able to make and share these often funny and strange clips.

AI Reshapes News Industry for Better and Worse

Artificial intelligence is changing the news business, bringing both good and bad effects. AI has led to job losses, especially for entry-level positions like transcription that helped people start in journalism. However, AI also helps newsrooms restore coverage and lowers costs for new outlets, especially in smaller markets where local news had declined. While AI makes information cheaper and more plentiful, experienced journalists are still crucial to find useful facts and hold powerful people accountable. The article suggests a challenge for 2026 to embrace this change.

Tether Data Releases Huge New AI Training Dataset

Tether Data has released QVAC Genesis II, a major expansion of its open synthetic educational AI dataset. This new version adds 107 billion tokens, bringing the total to 148 billion across 19 academic subjects. It is now the world's largest publicly available dataset designed to help AI models learn reasoning, explanation, and decision-making. QVAC Genesis II uses a new "Option-Level Reasoning" method to analyze both correct and incorrect answers, teaching models deeper understanding. This release aims to make AI development more open and improve how models understand complex concepts.

EU Faced AI Act and Device Regulation Issues in 2025

The year 2025 was notable in med-tech history for the European Union. The EU faced significant problems with its AI Act and device regulations. Manufacturers doing business in the EU found 2025 to be a year of trying to fix these self-made issues. Full solutions and corrections are expected to arrive in 2026.

Rezolve Ai Grows Globally with New AI Customer Tools

Rezolve Ai, a leader in AI-powered customer engagement, announced strong global growth. The company has secured new business, launched live systems, and expanded its reach across EMEA, APAC, LATAM, and North America. CEO Marc Heymann noted that major clients, including a global telecom provider and a European retailer, renewed and expanded their contracts. This success shows a clear shift from traditional search to conversational commerce, with Rezolve Ai's platform helping businesses improve customer experiences and increase revenue. The company also has a strong pipeline of new opportunities extending into 2026.

Former Facebook Chief Predicts AI Will Focus on Efficiency

Chris Kelly, former Facebook privacy chief, believes the next big change in AI will be a focus on efficiency and lowering costs. He stated that AI companies must streamline the power-intensive process of building data centers, which saw over $61 billion in deals in 2025. Kelly expects companies that find ways to reduce data center costs will become leaders in the AI industry. He also predicts that Chinese companies and open-source models will play a significant role in providing access to basic AI computing.

Experts Discuss AI Industry's Circular Money Flow

Joe Weisenthal from Bloomberg discusses concerns about the AI industry's "circular money machine." He explains that major companies like Nvidia and OpenAI invest in each other, and these investments often lead to recycled revenue. For example, Nvidia invests in CoreWeave, which then buys chips from Nvidia. This creates a complex web of financial relationships, similar to the dot-com bubble era. While companies like Nvidia have real businesses and profits, some worry that the industry's high valuations and revenues might not be sustainable, being heavily funded by financial markets.

MRB Warns AI Investments May Slow Down in 2026

MRB Partners warns that the booming AI market may face a slowdown in 2026 as spending cools. The firm downgraded its rating on the tech sector, suggesting it is vulnerable to profit-taking due to high earnings expectations. MRB believes investors will question the large spending on AI infrastructure, demanding clearer evidence of returns. They advise investors to diversify beyond big tech and AI, looking instead at sectors like industrials, financials, and non-tech cyclicals. These areas could benefit from a manufacturing recovery and non-AI capital spending, offering more stable growth in the coming year.

Gold and Copper Outperform Bitcoin in 2025 Market

In 2025, gold and copper significantly outperformed Bitcoin and other major assets. Gold, a traditional safe haven, rallied 70% to over $4,450 per ounce, while copper, a sign of economic health, gained 35%. Bitcoin, however, underperformed, failing to attract both fear-driven and AI-driven investments. Experts like Markus Thielen suggest Bitcoin's "digital gold" narrative has not fully convinced Wall Street. Greg Magadini of Amberdata noted that gold benefits from central bank demand, while Bitcoin's demand comes from more speculative investors. This trend shows a shift towards tangible assets amid global concerns and the AI boom.

Social Media Fuels Exaggerated AI Breakthrough Claims

Social media platforms like X often encourage exaggerated claims about AI breakthroughs, leading to misinformation. For example, OpenAI's Sébastien Bubeck wrongly announced that GPT-5 solved 10 unsolved math problems, when it had only found existing solutions. Similarly, claims about GPT-5 solving Yu Tsumura's 554th Problem were overhyped, as mathematicians consider it an undergraduate-level puzzle. Experts like François Charton from Axiom Math note that while LLMs are useful for literature searches, genuine discovery is often overshadowed by social media's need for sensational news. This environment makes it hard to get a balanced view of AI's true capabilities and limitations.

Sources

• How I learned to stop worrying and love AI slop
• A challenge for 2026: Make yourself a little uncomfortable
• Tether Expands Open AI Training Data With Release of QVAC Genesis II Dataset
• EU scrambled in 2025 to overcome problems with AI Act, device regs
• Rezolve Ai Accelerates Global Momentum with Live Enterprise Deployments, Major Renewals and Expanding Pipeline into 2026
• The next AI pivot will be toward efficiency and lowering costs, ex-Facebook privacy chief says
• Video: Opinion | A.I.’s ‘Circular Money Machine’
• AI trade may ’hit a speed bump’ next year as spending cools, MRB warns By Investing.com
• Bitcoin trails polar opposites, Gold and Copper, as the 'fear and AI' trade lifts tangible assets
• How social media encourages the worst of AI boosterism