A $6.3 billion open-weight model just got embarrassed by the French... Transcript, AI Summary & Key Points

00:00 Yesterday, while you were being force-fed every iteration of that Rumple Stiltskin video, the Paris-based AI lab, Mistl, released Mistl large 4, a trillion parameter open weight model that they're claiming is the best of its kind, assuming you adopt the American ideology of just ignoring any technology coming out of China. It's natively multimodal, has a million token context window, and claims to blah blah blah.

00:22 The more interesting part of this release was the timing because it landed in the middle of what many are calling the dumbest week in the history of the openweight race. It kicked off early in the week when Trump announced a super intelligence force [music] laser >> whose job it is to keep America at the frontier of the AI race with their first order of business claiming that AI is actually dumb and the real future is SI.

00:46 Then Reflection AI, the $25 billion Nvidia backed startup that calls itself America's Open Frontier Lab who finally shipped their first model after 2 years of fundraising. It's called Beam. It has 501 billion parameters. It was trained on $6.3 billion worth of GPUs. It benchmarked itself against an already outdated Chinese model and 24 hours later it got outbarked itself by Mistl.

01:09 Then just yesterday, Moonshot AI, the Chinese lab behind Kimmy, closed its final funding round at a $50 billion valuation and started prepping a Hong Kong IPO, which I'm told the super intelligence force has no interest in investing in. In today's video, we'll look at what the French, the Americans, and the Chinese each ship this week. Find out why every government on Earth suddenly wants an open model to call its own, and figure out which one you should actually use.

01:32 It is October 7th, 2026, and you're watching the Code Report. If you're still not convinced about the benefits of openweight models, last month a man in San Francisco learned them the hard way when he had the authorities looking for him after a joking conversation he had with Claude triggered a safety review. And just last week, a woman in Florida got arrested just days after telling Claude she was going to do something that's typically frowned upon in modern society.

01:55 And even if you're not planning on committing a felony, with proprietary models, you're still sending every prompt to a data center, which is scanned by a classifier, but potentially read by a safety team and then used in whatever way the lab wants, like training future models or kicking off the process to throw you in jail. And whole ass countries are having the same problem, too.

02:14 Take a government that wants to use AI to find issues in their own power grid. Using a model like Mythos, which is designed for this exact purpose, would require handing a foreign company your private schematics and then hoping that they never get leaked or that someone on their payroll isn't a foreign spy, which Daario himself has said may already be the case.

02:32 Where if you were using an openweight model, most of these problems go away, which is why nearly every country in the world is trying to build their own if they can or find ones they can trust if they can't. Which brings us back to this week and the great model Midoff. The first announcement came from Reflection AI, which was started by two deep mind researchers who raised 4.6 billion, a billion with a B, on the premise that the best open model in the world should come from the west and Llama 4 wasn't cutting it.

02:58 Well, this week we finally got to witness manifest destiny realized when they released Beam. It's got 501 billion parameters and its base model was trained in just under 4 weeks on about 24 trillion tokens. After that, they spent four more weeks post-training it to get it better at writing code, using tools, and finishing long agent tasks. The result is a model that Reflection says keeps up with Jepu AI's GLM 5.2 while needing only a quarter of the hardware.

03:24 But sadly, as of today, you still need an invite to use it, and the weights aren't actually out yet, which means the best open American model is somehow still Gemma 4, which Google released under Apache 2.0 back in April. Then the next day, Mistl showed up with something that sounds like you'd order it from McDonald's. It's a mixture of experts model, which means it has about a trillion parameters, but only 49 billion of them actually turn on for a given token.

03:48 So, the idea is that you get a trillion parameters worth of knowledge for roughly the cost of running a model 20 times smaller. Which, if that sounds familiar, it's probably because it's the same trick DeepSec used last year to tank Nvidia. On the TMBBBS, it barely beats GLM 5.3 at long coding jobs. It beats Beam by 18 points and lands in the top five for finding security bugs, which is the one Mistl actually cares about because the power grid scenario from earlier is the thing they're actually trying to sell.

04:14 The catch is the numbers really are, trust me, bros, because they were provided by Mistl and they actually haven't finished training yet and the weights don't come out until later this month under their own custom license. Which brings us to China, which already has the thing both of them are trying to build with Kimmy K3. It's a 2.8 8 trillion parameter open model that Moonshot released back in July, which became so popular they had to stop taking new subscribers 2 days later because they ran out of GPUs.

04:41 Since then, Microsoft, Amazon, and Google have all been negotiating to host it. Anthropic accused them of running 300,000 requests through fake accounts to copy Claude, and the company went from a $4 billion valuation last November to 50 billion yesterday with China's own state AI fund involved in the round. So, which one should you actually use, though?

04:58 If all you've got is a gaming PC, go with Gemma 4 and get your money up. If you have your own data center and no compliance department, go with Kimmy K3. Or if you have a data center and a compliance department, then go with Mr. Large 4. And if you're a Patriot, Beams Weights are coming later this month. But no matter which model you choose, they'll need to get on the internet, which they can do with Colonel, the sponsor of today's video.

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05:39 Right now, my agent keeps getting stopped by a bot check. But when I spin up a browser with the config kernel recommends, it's able to access the page without any issues. The colonel builds these configs by continuously testing real browser and proxy setups against the live site. And each one comes with a success rate, sample size, and last verified date.

05:56 Use the code fireship at the link below to get $30 in free credits, which covers your first month on the hobbyist plan. This has been the Code Report. Thanks for watching, and I will see you in the next one.