Elon, XAI and the Promise of World Models

Take the AI Dragon Quiz to get tailored recommendations for AI tools & resources: https://clickhubspot.com/mkw

Episode 81: Is Microsoft finally stepping out of OpenAI's shadow to compete in the AI image generation race? Matt Wolfe (https://x.com/mreflow) is joined by special guest Maria Gharib (https://uk.linkedin.com/in/maria-gharib-091779b9), head writer of the Mindstream newsletter and one of the sharpest AI journalists around. Maria's journey from studying international affairs and politics to reporting on the AI frontier has made her writing a daily go-to for thousands, and now she’s bringing her AI insights to The Next Wave.

In this packed episode, Matt and Maria break down Microsoft’s surprising new MAI Image 1 model, its impact on the OpenAI-Microsoft partnership, and what it signals for future AI competition. They also dive into the evolving personality (and rules) of ChatGPT—including Sam Altman’s statements on mental health and GPT erotica—and talk about Google Gemini’s brand-new calendar integration. Other hot topics include Elon's ambitious "World Model" for XAI, when AI beats doctors to diagnose Lyme disease, and how Google’s new “AI makeup” feature is changing work calls.

Check out The Next Wave YouTube Channel if you want to see Matt and Nathan on screen: https://lnk.to/thenextwavepd

—

Show Notes:

• (00:00) Maria's Journey into AI

• (04:48) Microsoft's First In-House AI Model

• (06:58) LM Arena AI Demo Explained

• (11:40) Relaxing ChatGPT Restrictions Soon

• (14:51) ChatGPT: Tool or Companion?

• (18:13) AI Age Detection Challenges

• (21:57) Google's Gemini Schedules Meetings

• (25:45) AI Models and Business Moats

• (30:07) Bringing Characters to Life

• (31:04) AI Tools and Future Uncertainty

• (36:50) Elon's XAI: Revolutionizing AI Understanding

• (38:05) Training Robots in Virtual Worlds

• (43:47) AI Diagnoses Man's Lyme Disease

• (45:22) AI Enhancing Healthcare Diagnosis

• (47:48) Mindstream: Daily AI Updates

—

Mentions:

• Maria Gharib: https://www.mindstream.news/authors

• Mindstream AI newsletter: https://www.mindstream.news/

• Microsoft MAI Image: https://microsoft.ai/news/introducing-mai-image-1-debuting-in-the-top-10-on-lmarena/

• Gemini: https://gemini.google.com/

• Nano Banana: https://nanobanana.ai/

• Claude: https://claude.ai/

• AI-powered makeup in Google Meet: https://workspaceupdates.googleblog.com/2025/10/ai-powered-makeup-in-google-meet.html

Get the guide to build your own Custom GPT: https://clickhubspot.com/tnw

—

Check Out Matt’s Stuff:

• Future Tools - https://futuretools.beehiiv.com/

• Blog - https://www.mattwolfe.com/

• YouTube- https://www.youtube.com/@mreflow

—

Check Out Nathan's Stuff:

• Newsletter: https://news.lore.com/

• Blog - https://lore.com/

The Next Wave is a HubSpot Original Podcast // Brought to you by Hubspot Media // Production by Darren Clarke // Editing by Ezra Bakker Trupiano