🔴 Code Reds and Garlics 🧄

Sector6  Dec 5. 2025 The bi-weekly newsletter by AIM that brings the biggest shifts shaping IT, AI, and GCCs. 🔴 Code Reds and Garlics 🧄 Anthropic "doesn't do any code reds," Dario Amodei said, taking a direct hit at OpenAI. He used that line to separate his company from the consumer fight that has turned OpenAI and Google into rivals locked in a loop of constant launches. By Mohit Pandey Instead of Code Reds, Amodei said this focus lets Anthropic avoid the frantic reaction cycles that shape the consumer race. He said the company can keep building at its own pace and ensure the models are tuned for business problems.  Coding has become the fastest-moving segment for the company, helped by the release of Claude 4.5 Opus, which is outshining even Gemini 3 and GPT-5 Codex. For Anthropic, the long game matters. He said switching models is not as easy as it looks. Even API users face friction once they adopt a system deeply across teams. He said this gives Anthropic some shelter as the market heats up. Then came the warning. Amodei said parts of the industry are slipping into a bubble.  He became probably one of the few AI creators who pointed at the sudden spike in capital spending, saying that some firms are "YOLOing" on hardware as if timing does not matter.  The gap between uncertain future revenue and the long lead times of data centre construction can break a company, something that OpenAI seems to be betting big on, with recent reports on its partnership with TCS for data centres in India. Anthropic seems safe for now. Amodei said the company expects $8 billion to $10 billion in revenue by the end of this year.  He said scaling laws are still holding, surprisingly, even as Ilya Sutskever and Yann LeCun are doubting it, again. [AIM Exclusive at AWS re:Invent 2025] At re:Invent 2025, AWS launched a full agentic-AI stack. Nova for enterprise frontier models, Nova Forge for custom tuning, Trainium3/4 and GB300 UltraServers for sovereign-scale compute, and Bedrock AgentCore with frontier agents like Kiro.  The company positions India as a priority market for regulated, multi-model and sovereign deployments across IT, BFSI, GCCs and mobility, with AIM Network reporting live from Las Vegas. AIM, in collaboration with Snowflake, is excited to present an inspiring and future-focused webinar, 'AI Leadership & Innovation: Are You Ready for the Next Tech Wave?'  The thought-provoking conversation will feature two trailblazing technology leaders, Sowmya V Kumaran, director of engineering and AI infrastructure management at Cisco, and Kanika Kapoor, senior VP of data management and analytics leader at NatWest. Don't miss this opportunity to learn from industry pioneers and position yourself for the next wave of innovation. Register now. But What About Garlic? Across the valley, the mood is nothing like calm. OpenAI is back in its familiar pattern of sprint, panic, reset, sprint. The company pulled a "Code Red" this week after Google dropped Gemini 3 and Nano Banana Pro.  Sam Altman told teams to speed up product work and clear their plates.  Some projects tied to ads, health, shopping agents, and Pulse are now paused. The memo revealed a shift. The company is easing off its many side quests and pushing its teams to ship things that work and make money. At the centre of that push is a new model called Garlic.  The model is meant to rival Gemini 3 and Anthropic's Opus 4.5 in coding and reasoning. Garlic may ship as GPT-5.2 or GPT-5.5 in early 2026. There is also a quiet admission that GPT-5 did not get the giant pre-training cycle many expected. The company leaned on fine-tuning rather than a full new foundation run.  Critics say this has slowed progress. Fans say the company is fixing its base again and is already training stronger models. The economics are not gentle. Revenue is set to hit $20 billion this year, but HSBC said the company may stay unprofitable till 2030.  Compute needs could cross $200 billion. As Pedro Domingos joked, "Just as it was about to go bankrupt, OpenAI stumbled on AGI." Axtria's Bet on Human-Centric AI in Healthcare As the life sciences industry progresses towards digital transformation, a pressing question grows ever more significant: can technology truly keep pace with clinical innovation without losing its human touch?  "Being much more personalised, much more tailored, recognising that physicians are different, patients are different, and healthcare systems are different, that's where innovation is heading," Uday Bose, head of human pharma customer experience excellence and business steering at Boehringer Ingelheim, told AIM. Click here to read the full story. 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