AI Dev News – Sept 5th, 2025 (Fri) - AI Developer News

This week felt like the moment the rubber meets the road for practical AI agents. Microsoft dropped in-house models straight into Copilot like they’re just another feature—no big fanfare, just boom, here’s your new copilot. Google did the whole balancing act: antitrust ruling on one side, viral image-editing app on the other, and somehow still managed to fix an OAuth mess that was probably driving half the dev team crazy. Anthropic tightened the screws—no new sales, lawsuit settlement in the works, and that $1.5B payout sounds like a legal bill from a really angry author. Apple gave devs fast vision models to play with—no fluff, just raw speed and a browser demo that works. Editors got smarter, too. Zed with Claude Code via ACP? That’s not just a feature, that’s a full-on AI copilot living inside your editor. Open source stayed busy—Ollama’s perf tweaks are real, and that new DocumentDB repo is already making people nervous (in a good way). And security? Yeah, they rang the bell again—prompt injection in a README that could’ve hijacked your entire dev workflow. Not the kind of thing you expect from a “just a test” PR.

Anthropic

$1.5B author settlement – ~$3k per book across ~500k works. Dataset gets destroyed. Still pending approval, but the wheels are turning. reuters.com
Funding update – X post says they raised $13B at a $183B post-money valuation. Focus? Applied agents. Basically, they’re not just building models—they’re building tools that work. x.com
Sales in unsupported regions – No new trials or API keys. Existing access lasts until Oct 4. Enforcement hits Oct 7. If you’re outside the supported zones, better plan ahead. anthropic.com

Microsoft

Two new in-house models – MAI-Voice-1, a TTS model that cranks out 1 minute of audio in under a second on a single GPU, now powers Copilot Daily and podcasts. MAI-1-preview (MoE) is live for community testing. Limited Copilot text features rolling out. Early access form’s up. microsoft.ai
Azure AI Foundry (Aug update) – GPT-5 family is now more widely available across regions. UX and platform got some real tweaks. devblogs.microsoft.com
VS Code Dev Days – Agenda’s live, registration open. If you’re into dev tools, this one’s worth a look. code.visualstudio.com

Google

Drift OAuth breach – UNC6395 exfiltrated Salesforce data using compromised Drift tokens (Aug 8–18). Rotate your keys, scan for secrets, and don’t sleep on this. cloud.google.com
Antitrust ruling – No breakup, but big changes: data-sharing and anti-exclusivity rules. DOJ’s still moving on next steps. reuters.com • theregister.com
Gemini “Nano Banana” goes viral – 10M+ first-time users in days. 200M+ image edits since last week. #1 on LMArena’s image-edit leaderboard. Just… wow. 9to5google.com
AI in engineering at Google – AI writes about half the new code, 37% acceptance rate, >8% of CR comments auto-resolved. A few paste-adaptations got fixed automatically. Not perfect, but real progress. research.google
OSS Rebuild initiative – For npm, PyPI, Crates. Goal: verifiable builds and metadata. This could actually clean up the mess we’ve had for years. oreilly.com

Apple

FastVLM + MobileCLIP on Hugging Face – These are fast, mobile-friendly vision models. You can try the browser demo right now. If you’re into on-device vision, this is a solid starting point. huggingface.co • 9to5mac.com

OpenAI

ChatGPT outage (coverage) – Global disruption confirmed. OpenAI’s on it, but the exact window’s still in the status page. Pull that when you finalize. economictimes.com

Zed Industries (with Anthropic)

Claude Code via ACP (beta) – Zed’s now running Claude Code inside the editor using Agent Context Protocol. It’s not just a plugin—it’s built into the workflow. There’s a demo video. Check it out. zed.dev

WordPress / Automattic

Telex (experimental) – Type natural language, get custom Gutenberg blocks or themes. Early dev preview. Feels like magic, but still in the lab. techcrunch.com

Hugging Face

Trackio – Lightweight, open-source experiment tracking. No bloat, no fuss. Just track your runs. huggingface.co • infoq.com

Nous Research

Hermes 4 – Instruction-following model with “Instruct” and “Open” presets. Designed for local use. Eval results and examples are live. If you’re into self-hosted, this one’s worth a deep dive. hermes4.nousresearch.com

Ollama

v0.11.10 – Added EmbeddingGemma. Perf work’s real: CPU/GPU overlap, better multiplexing. If you’re running local models, this update’s a game-changer. github.com

Atlassian / Luma AI

Luma joins Atlassian – Finalized deal. The Luma team’s bringing AI across Jira, Confluence, Bitbucket, and more. This isn’t just a buy-in—it’s a full integration. finance.yahoo.com

Stack Overflow

2025 Developer Survey – ~80% of devs use AI tools. Trust in accuracy? Only ~29%. But usage is still climbing. It’s not trust yet, but it’s not going away. stackoverflow.blog

DocumentDB (GitHub org)

documentdb/documentdb – MongoDB-compatible engine. Built for cloud-native and OSS workloads. Watch the license, API compatibility, and performance. It’s early, but the direction’s solid. github.com

Research / Misc

Photos → 3D worlds – New model turns still images into explorable 3D spaces. Realism’s not perfect yet, but the potential’s wild. More details in the deep dive. arstechnica.com

Security (multi-vendor)

“CopyPasta” prompt-injection – Malicious instructions in READMEs or LICENSE files can hijack AI coding tools. Seen in Cursor, but risks extend to Windsurf, Kiro, Aider. This is not just a “theoretical” issue anymore. cointelegraph.com

Funding & Company News

Exa AI – $85M Series B at $700M valuation. They’re building an AI-native research engine. The name says it all. exa.ai
LayerX (Japan) – $100M Series B, led by TCV. First major Japanese AI deal. Focus: back-office automation. techcrunch.com
Isotopes AI – $20M seed. “Aidnn” is an analytics agent for enterprise data. Ex-Scale CTO Arun Murthy’s a co-founder. This feels like a real player. techcrunch.com
ModernFi – $30M Series B for deposit management infrastructure. Total funding now over $60M. They’re not just another fintech—they’re building the backbone. startuphub.ai