14th November - AI News Daily - OpenAI Rolls Out GPT-5.1; Cursor Surpasses $1B ARR at $29.3B Valuation

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Top Highlights: DeepMind's SIMA 2 achieves human-level performance in unseen 3D environments through self-play and explainable actions. OpenAI launches GPT-5.1 with Instant and Thinking modes, offering improved steerability and code generation across multiple platforms. AI-driven cybersecurity threats surge as labs thwart a suspected state-backed attack; enterprises forecast AI agents will power 50% of incidents by next year. Hugging Face and Google Cloud now distribute 1,500+ TB of models and datasets daily, driving massive cloud infrastructure spending. Cursor secures $2.3B funding at $29.3B valuation with $1B+ ARR, establishing AI coding tools as major revenue generators.

New Tools: World Labs' Marble creates interactive 3D worlds from text/images/video for rapid prototyping. Eigen-Banana-Qwen enables precise text-guided image edits. Vidu Q2 Turbo/Pro delivers fast, high-quality video generation. VLAb provides standardized vision-language-action pipelines for robotics. DeepAgent Sandboxes isolate agent code execution across platforms. Hugging Face Backbone API streamlines advanced computer vision workflows.

LLM Updates: GPT-5.1 features dual chat modes, enhanced instruction-following, and 24-hour prompt caching despite some latency concerns. GLM-4.6 matches Claude Sonnet 4 quality using 15% fewer tokens. Hermes-4-405B launches with aggressive pricing at ~$0.09/$0.37 per million tokens. Kimi K2 uses INT4 quantization for 4x size reduction. Motif-2-12.7B achieves competitive performance with reduced compute. NVIDIA Nemotron Nano V2 VL and iFlyBot-VLA target edge deployment.

Research: SIMA 2 demonstrates adaptive planning across unseen 3D games with action explanations. LeJEPA advances self-supervised learning, outperforming DINO variants. LUT-LLM runs billion-parameter models on FPGA 2.16x faster than GPUs. RF-DETR sets new benchmarks for real-time detection and segmentation. Study reveals AI art generators struggle with simple prompt instructions.

Industry: Cursor's $2.3B raise triples valuation to $29.3B. OpenAI transitions to for-profit public benefit corporation with 26% nonprofit oversight. Chinese groups reportedly use advanced agents in cyberattacks. OpenAI challenges court order for 20M ChatGPT logs. Open-source model distribution reaches unprecedented scale. Cisco projects $3B AI infrastructure revenue by 2026.

Showcases: Glif demonstrates rapid content creation workflows. MCP Demo Night features Claude Skills and agent capabilities. Texture Qwen shows controllable material edits. World Labs' Marble powers AI-generated music videos.

Discussions: Debate shifts from MoE to inference infrastructure optimization. AGI leadership rankings place Google/DeepMind and OpenAI ahead. Peer review scrutiny intensifies over LLM-written papers. RL shows better generalization than supervised fine-tuning. Bengio proposes compute monitoring for frontier system verification. Predictions range from EGI by 2031 to societal transformation via AI and robotics.

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