The next creator tool from Meta looks like a game

AI is moving from chat into the products people use every day. Alibaba, Tencent, and Baidu are backing Kling AI for video creation. Meta is testing Pocket for AI-made games. Microsoft is partnering with Nine to ground Copilot in trusted journalism. Together, these moves show AI is becoming less of a feature and more of an operating layer for media, creativity, and information.

In today’s post:

• Microsoft Just Changed How AI Cites News

• Meta Quietly Entered AI Gaming

• Alibaba, Tencent, and Baidu Just Made Their Next AI Bet

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AGREEMENT

AI is learning that trust has a price.

Microsoft and Australian media company Nine have signed a landmark agreement that allows Microsoft Copilot to use Nine's journalism to produce more accurate AI responses. The deal shows how AI companies are beginning to pay for trusted content instead of simply relying on the open web.

• Microsoft Copilot can now reference articles from Nine's major news brands to provide richer, fact-based AI answers.

• Users will see summaries, snippets, and clear attribution, with links directing them to the original stories.

• The agreement includes respected publications such as The Australian Financial Review, The Sydney Morning Herald, The Age, and Brisbane Times.

• Nine says the partnership protects intellectual property while creating new revenue opportunities for professional journalism.

• Microsoft says verified reporting will help reduce misinformation by grounding AI responses in trusted sources.

• The agreement is Microsoft's first partnership of this kind in Australia and across the Asia-Pacific region.

• The deal signals a broader shift toward licensing high-quality content as AI companies search for reliable information sources.

The AI industry is entering a new phase. Building powerful models is no longer enough. The real advantage may come from access to trusted, exclusive information that others cannot use. As more publishers license their content, AI companies will compete not only on intelligence but also on the quality and credibility of the knowledge behind every answer.

LAUNCH

Meta's next AI product isn't another chatbot.

Meta has quietly launched Pocket, an AI-powered app that lets anyone create and share interactive games using simple text prompts. Instead of focusing on conversations, Meta is betting that AI can turn everyday users into game creators with just a few words.

• Pocket lets users generate small interactive games and apps by describing what they want in natural language.

• The app is built from Meta's earlier acquisition of the team behind the AI gaming platform Gizmo.

• Users can also browse a social feed to discover, play, and remix creations from other people.

• Pocket expands Meta's growing lineup of AI creative tools, joining products for AI images, videos, and creator editing.

• The launch happened quietly, suggesting Meta is testing user interest before making a larger announcement.

• Gizmo had already proven demand, reaching more than 635,000 installs with overwhelmingly positive user feedback.

• The bigger opportunity isn't gaming alone. It's making software creation accessible to millions without writing code.

AI is steadily removing the gap between having an idea and building something useful. Writing code used to be the barrier. Now the barrier is simply imagination. If products like Pocket succeed, the next generation of creators may spend less time learning programming languages and more time describing what they want to build.

STRATEGY

China's AI race just entered a much bigger league.

Kuaishou's Kling AI has become one of China's biggest AI stories. Alibaba, Tencent, and Baidu have now joined forces in a $2 billion funding round, signaling that the competition is shifting from building AI models to backing the platforms with the strongest adoption.

• Alibaba joined Tencent and Baidu in a $2 billion investment that values Kling AI at roughly $15 billion before the funding.

• Kling AI has quickly become one of China's most popular generative video platforms, attracting both users and strategic investors.

• Kuaishou's ownership will fall to around 68%, showing its willingness to trade control for faster expansion.

• The company also hinted that the funding could grow to nearly $3 billion if more investors participate.

• This investment reflects a broader shift as China's largest technology companies increasingly back promising AI startups instead of competing on every front.

• Video generation is emerging as one of AI's most valuable categories, alongside chatbots and coding assistants.

• The deal also signals growing confidence that AI-native products can become standalone businesses worth tens of billions of dollars.

The most interesting part isn't the size of the funding round. It's the list of investors. When fierce rivals invest in the same company, they're often betting that the market is becoming too important to ignore. The next phase of AI won't be won only by whoever builds the best model. It will also be won by whoever owns the products that millions of people choose to use every day.

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