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- OpenAI Launches New AI Reasoning Models – and a Surprise Agent 👀
OpenAI Launches New AI Reasoning Models – and a Surprise Agent 👀
How to run a small AI model locally on your phone

Welcome to another edition of Horizon AI,
OpenAI has released two new models, described as their “smartest and most capable to date,” along with an unexpected new coding agent.
Let’s get into it!
Read Time: 4.5 min
Here's what's new today in the Horizon AI
OpenAI’s New Reasoning Models: o3 and o4-mini
xAI Adds Memory Feature to Grok
AI Tutorial: How to run a small AI model locally on your phone
AI Tools to check out
The Latest in AI and Tech 💡
AI Findings/Resources
AI News
OPENAI
OpenAI’s New Reasoning Models: o3 and o4-mini

OpenAI just released o3 and o4-mini — not only the company’s most advanced reasoning models to date, but also the first to introduce visual understanding and full access to all ChatGPT tools.
Details:
The o3 model is OpenAI's most advanced reasoning model to date, outperforming previous models in math, coding, reasoning, science, and visual understanding. Meanwhile, o4-mini is a smaller, cheaper, and faster model.
Unlike previous reasoning models, o3 and o4-mini can use all ChatGPT tools, including web browsing, Python, image understanding, and image generation, to better solve complex, multi-step problems — for example, finding the location of a restaurant based solely on a photo of the menu.
Both models will also be the first to “think” with images, integrating them directly into their chain of thought.
OpenAI has also launched Codex CLI, an open-source coding agent that runs locally in users' terminals. It is designed to provide users with a simple and clear way to connect AI models to their own code and tasks running on their computer.
The new models are already available for ChatGPT Plus, Pro, and Team users, replacing the previous o1, o3-mini, and o3-mini-high models. Meanwhile, free users can try o4-mini by selecting 'Think' in the composer before submitting their query, with rate limitations.
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XAI
xAI Adds Memory Feature to Grok

xAI has introduced a new “memory” feature to its Grok chatbot, enhancing its ability to remember details from past conversations.
Details:
This allows Grok to provide more personalized responses based on user interactions over time. For instance, if you've previously discussed your preferences with Grok, it can tailor future recommendations accordingly.
The memory feature is currently available in beta on Grok.com and the Grok iOS and Android apps, though it's not yet accessible to users in the EU or U.K.
Users have control over this feature; they can disable it via the Data Controls page in the settings menu and delete individual memories directly from the chat interface.
xAI plans to extend this memory functionality to the Grok experience on X in the near future.
This new feature helps Grok catch up to competitors like ChatGPT, which recently upgraded its memory function, and Gemini, which offers similar capabilities. As companies continue to focus on personalization, "memory" is becoming a key feature in today’s leading AI models.
AI Tutorial
How to run a small AI model locally on your phone

Running this model locally will allow you to access it without an internet connection and improve privacy.
Download the PocketPal app through the App Store or the Play Store.
Download the model.
You can download Qwen 2.5 0.5B from Hugging Face. Pick the q4_0 (lighter) or q8_0 (fuller).
You can also download other models if you'd like.
Launch PocketPal, go to the "Models" section, and tap on "+ Local Model."
Choose the model you downloaded and start chatting.
AI Tools to check out
👉 Athina: A collaborative AI development platform designed for your team to build, test and monitor AI features.
👀 Aftercare: AI-powered survey for in-depth user feedback.
🥒 Pickle: Your AI body double for video calls.
📈 Trendtracker: Discover trends that matter instantly.
💬 Concierge: Talk to your apps with natural language.
AI Findings/Resources
👀 7 strategic insights business and IT leaders need for AI transformation in 2025
🔨 AI is evolving — and changing our understanding of intelligence
👉 A practical guide to coding securely with LLMs
The latest in AI and Tech
Microsoft's BitNet B1.58 2B4T is a new type of AI model designed to be smaller, faster, and more energy-efficient than traditional large language models. It doesn’t require specialized hardware like GPUs and can easily run on CPUs.
Google is being sued in Britain for potential damages of up to £5 billion in a class action, alleging that the company abused its dominant market position in online search to charge higher prices for advertisements in search results than would be possible in a competitive market.
OpenAI is in discussions to buy AI-assisted coding tool Windsurf for about $3 billion. The deal would be OpenAI's largest to date.
Perplexity AI will be pre-installed on new Motorola Razr smartphones as an alternative to Google Gemini. The company is also in talks with Samsung about a possible integration on Galaxy device.
That’s a wrap!
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Gina 👩🏻💻