December 19, 2025 News

Yann LeCun Launches World Model AI Startup AMI Labs, Seeks Multi-Billion Dollar Valuation

Renowned AI scientist Yann LeCun has confirmed the launch of his new startup, Advanced Machine Intelligence (AMI Labs), which will focus on developing world model AI as an alternative to large language models. The company, led by CEO Alex LeBrun (formerly of Nabla), is reportedly seeking to raise €500 million at a €3 billion valuation. World models aim to simulate cause-and-effect relationships to overcome LLMs' hallucination problems by understanding environmental dynamics rather than relying on probabilistic text generation.

Meta Developing "Mango" Image/Video Model and "Avocado" Text Model Under New Superintelligence Lab for 2026 Release

Meta is developing two new AI models under its superintelligence lab: "Mango" for image and video generation, and "Avocado" for text-based tasks with improved coding capabilities, both planned for release in the first half of 2026. The company is also exploring world models that can understand visual information and reason without exhaustive training. This effort comes amid leadership changes, researcher departures, and Meta falling behind competitors like OpenAI and Anthropic in the AI race.

OpenAI Pursues Massive $100B Funding Round at $830B Valuation Amid Rising Compute Costs

OpenAI is reportedly seeking to raise up to $100 billion in funding that could value the company at $830 billion by the end of Q1 2026, potentially involving sovereign wealth funds. The fundraising effort comes as OpenAI faces escalating compute costs for inference, intensifying competition from rivals like Anthropic and Google, and broader market skepticism about sustained AI investment levels. The company currently generates approximately $20 billion in annual run-rate revenue and holds over $64 billion in existing capital.