Sam Altman's bubble warning for the AI industry, a CEO's controversial approach to AI adoption that delivered 75% profit margins, and how Wide Research deploys 100+ agents to revolutionize information gathering...

In this edition we’ll be covering…

  • The CEO who fired 80% of staff for AI resistance and still stands by it

  • Sam Altman's warning about AI investment bubbles

  • A tutorial on Manus Wide Research

  • 6 trending AI signals from across the industry

  • 3 AI tools to boost your productivity

  • And much more…

The Latest in AI

When Fire-and-Hire Meets AI

IgniteTech CEO Eric Vaughn just defended what might be the most drastic workforce transformation in tech history. Two years ago, he laid off nearly 80% of his company's employees for refusing to adopt AI fast enough. And he's doubling down on that decision.

Vaughn didn't just trim the fat - he performed open-heart surgery on his entire organization because employees were actively resisting and, in some cases, sabotaging AI implementation efforts.

Here's what his radical approach delivered:

  • Technical staff showed the strongest resistance to AI transformation, leading to the most significant layoffs in that department.

  • 75% profit margins emerged from the AI-first restructuring, with the remaining 20% of staff becoming significantly more productive.

  • Complete cultural shift from a traditional software company to an AI-native organization that now embraces automation at every level.

  • He mandated that all employees—regardless of their role—dedicate their efforts to AI projects. Mondays were dubbed “AI Monday,” and for a period, employees could only work on AI-related tasks

So What?

While companies like Klarna faced backlash and pivoted to hybrid AI-human models, Vaughn's replacement strategy actually worked. His approach raises uncomfortable questions about the future of work: Is gradual AI adoption just delaying the inevitable? The 75% profit margins suggest that sometimes the most ruthless approach to change might be the most effective.

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Industry Intel

The AI Bubble According to Sam

Sam Altman just admitted what many suspected: the AI market is in a bubble. But unlike previous bubbles, this one might actually be worth the hype.

During a recent interview, the OpenAI CEO drew direct parallels to the infamous dot-com crash, where investor enthusiasm far outpaced actual value creation. The difference? Altman believes AI represents "the most important thing to happen in a very long time."

The warning signs are already flashing:

  • Investment patterns mirror the late 1990s, with the top 10 S&P 500 companies more overvalued than during the internet bubble.

  • Speculative capital is chasing companies with weak fundamentals but perceived AI potential, creating pockets of dangerous overvaluation.

  • OpenAI itself remains unprofitable despite $20 billion in annual recurring revenue and a $500 billion valuation.

So What?

Altman's bubble warning comes with a twist - he expects OpenAI to survive the burst. This suggests we're in for a correction that separates the AI wheat from the chaff.

Smart money is already preparing for the inevitable shakeout, while companies with real AI fundamentals will emerge stronger.

Get Your Hands Dirty!

Deploying 100+ AI Agents with Manus Wide Research

Forget about "Deep Research" - Manus just launched "Wide Research" that deploys over 100 parallel AI agents to tackle complex, large-scale research tasks. Think of it as the difference between having one really smart researcher versus an entire research department working simultaneously.

Here's your step-by-step guide to spin up this research army:

  1. Upgrade to Manus Pro and access Wide Research. Navigate to your Manus dashboard and look for the "Wide Research" option in your tools menu (this is slowly rolling out to lower-tier users as well).

  2. Craft your research prompt strategically. Be specific about scope and output format. Here are proven prompt templates:

Research the top 100 SaaS companies by revenue in 2024. For each company, find: founding year, current valuation, primary product offering, key competitors, and recent funding rounds. Present findings in a structured table.
Analyze 50 AI productivity tools launched in the past 6 months. Extract: pricing models, key features, target audience, user reviews, and differentiation strategies. Rank by market adoption.
  1. Let the agent swarm deploy. Each of the 100+ agents is a full Manus instance that can handle web scraping, data analysis, and synthesis independently.

  2. Review and refine Wide Research delivers comprehensive reports typically within 10-15 minutes, compared to hours for sequential research.

The key breakthrough? Agent-to-agent collaboration combined with parallel processing creates a system-level mechanism that scales research capabilities by 100x while maintaining the flexibility of general-purpose AI agents.

Quick Bites

Stay updated with our favorite highlights, dive in for a full flavor of the coverage!

There's a new champion – for now – in the contest to be the fastest AI to complete the original Pokémon Red video game, with GPT-5 completely eclipsing its rivals.

Anthropic gave Claude Opus 4 and 4.1 the ability to end conversations in rare cases of persistently harmful or abusive interactions, marking a significant step in AI welfare research.

Maryland is developing comprehensive AI guidance for K-12 education by August 2026, ensuring AI literacy becomes part of workforce preparation programs.

A US senator is opening an investigation into Meta after a leaked document reportedly showed the tech giant's artificial intelligence (AI) was permitted to have "sensual" and "romantic" chats with children.

Palo Alto Networks' forecasts signal AI is providing a significant boost for cybersecurity tools, with the company projecting strong growth driven by AI-enhanced security solutions.

Nearly 90% of video game developers now use AI agents according to a new Google study, showing massive adoption across the gaming industry.

Trending Tools

🎬 Higgsfield Draw-to-Video - Transform sketches into cinema-quality videos with product placement capabilities and motion guidance controls.

🍽️ GrubPick - Your personal recipe library, powered by AI. Import, organize, and rediscover your favorite meals effortlessly.

🔍 Verbatim RAG - A minimalistic approach to Retrieval-Augmented Generation (RAG) that prevents hallucination by ensuring all generated content is explicitly derived from source documents.

The Neural Network

Okay, but who won the 100 meter humanoid robot dash???

Until we Type Again…

Thank you for reading yet another edition of Digestibly!

Reyhan

Early AI leader, advises Fortune 500 companies on AI Development, LLMOps, AI strategy, speaks (for fun) on practical AI. Turns cutting-edge theory into workflows teams can ship today.

Kevin

Ex-AWS SageMaker/Bedrock lead. Shipped infra powering 1M+ devices and $2.5M ARR. Obsessed with high-throughput, low-latency systems— and brings that discipline to every release.

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