Amazon's AI factories, OpenAI 'Garlic' leak & more (December 3, 2025)

Good morning,

Today brings a wave of moves that show just how fast AI infrastructure, agents, and search are evolving. Amazon is racing to bring compute closer to customers, Google is experimenting with a hybrid AI search experience, and OpenAI is preparing a new model as competition heats up. It is a big day for AI strategy and a bigger day for AI drama.

Let's dig in👇

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🚀 New Launches

🚀 Amazon unveils on premises Nvidia powered AI Factories

Amazon just challenged competitors with on premises Nvidia powered AI Factories in a move designed to pull enterprise workloads closer to customer data. The offering matters because it lets companies run high performance AI locally without relying fully on AWS regions. It signals a future where major cloud providers fight to own both the cloud and the data center floor.

🤖 Amazon previews three new AI agents including Kiro

Amazon previewed 3 AI agents including Kiro that can code on its own for days which marks its strongest push yet into autonomous developer tooling. The big draw is Kiro’s ability to self iterate on codebases for prolonged periods without human nudging. Amazon is clearly positioning agents as a centerpiece of its AI ecosystem going into 2026.

🧄 OpenAI reportedly developing a new model called Garlic

Seeking Alpha says OpenAI is developing new AI model Garlic amid Google’s AI success as the company responds to accelerating competition from Gemini. Garlic is rumored to be optimized for lower cost inference which could help OpenAI protect margins. The timing suggests OpenAI is bracing for pricing pressure as Google leans harder into scale.

🧠 AI Shifts

🧪 Google tests merging AI Overviews with AI Mode

Google is testing merging AI Overviews with AI Mode which directly blends traditional search results with an AI forward interface. If rolled out widely it would rewire how billions interact with search by making generative answers the default. This is Google’s clearest signal yet that hybrid AI search is its long term direction.

🌏 China’s AI future shows a long path to profits

Bloomberg reports that China’s AI future looks like a long road to small profit as domestic cloud constraints and slow enterprise adoption weigh on growth. This matters because Chinese AI firms may struggle to match the monetization curves of US competitors.

📶 Marvell to acquire Celestial AI for as much as $5.5 Billion

Marvell reported strong earnings and looks to acquire Celestial AI in a bid to expand its photonic compute footprint. The deal matters because Celestial’s optical interconnects are viewed as a critical unlock for next generation AI accelerators. This sets Marvell up as a more serious contender in the high performance chip race.

🔥 Still Trending

📣 Sam Altman, OpenAI CEO, sounds a “code red” over Gemini

OpenAI’s CEO declared code red as Gemini gains 200 million users in 3 months reflecting serious concern about Google’s accelerating momentum. The explosive adoption puts enormous pressure on OpenAI to ship faster. The stakes around model quality and product direction have never been higher.

🧰 Tools of the Day

→ TrueFoundry AI Gateway, a scalable gateway for managing multi model routing
→ Aha 3, a personal thinking engine designed for deeper analysis
→ Mistral 7B, a compact open model that is easy to run locally

💬 Prompt of the Day

“Summarize [insert new story] in 3 sentences focusing on what happened, why it matters, and what it signals is coming next.”

⚡ Quick Hits

→ Google Discover is testing AI headlines that spark clickbait concerns
→ AWS launches new Nova models giving customers sharper control of deployments
→ AWS claims vector savings with 90 percent cost reduction in S3 Vectors
→ Mistral 3 arrives with new open models fit for edge and cloud
→ Hyundai’s MobED robot is heading to market next year

🔎 TLDR

Amazon is pushing both infrastructure and agent autonomy, Google is experimenting with a new AI first search format, OpenAI is cooking up Garlic to keep pace, China’s AI market is moving slower toward profits, and chipmakers are consolidating fast. Plus new tools, new launches, and plenty of agent drama.

Cheers,
David