Google’s viral ‘nano-banana’ model arrives

PLUS: Anthropic's non-coders build apps and China's 'Little Nvidia' booms

Author

Jelani Abdus-Salaam
August 27, 2025

In partnership with

Welcome back, AI’ers!

Here’s What’s On The Menu For Today

  • Google's mystery 'nano-banana' model revealed

  • China's 'Little Nvidia' booms amid trade restrictions

  • The future of SaaS is flexible, AI-configured software

  • How AI is shifting power from software vendors to users

AI ON MY MIND

Happy Tuesday,

The viral mystery model nicknamed ‘nano-banana’ has finally been unmasked. Google has officially revealed the system as a powerful new image editing tool that delivers complex edits in just seconds.

This new model, named Gemini 2.5 Flash Image, blends high speed with impressive quality, making professional-grade image creation more accessible than ever. With the ability to transform ideas into visuals almost instantly, what does this mean for the future of creative workflows?

By the way, I've been getting questions about how AI works in practice, so I'm launching a separate newsletter that dives deeper into real business applications and practical advice. [Click here if you're interested].

-Jelani Fuel (Co-founder of Best of AI)

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TODAY’S TOP STORIES

Google's Mystery Model Is Here

The Recap: The AI world's latest obsession, the mystery model nicknamed "nano-banana," is a mystery no more. Google just revealed the system as Gemini 2.5 Flash Image, a powerful new tool for fast, high-fidelity image editing.

Unpacked:

  • The model delivers most edits in 1-2 seconds while maintaining character consistency, helping it quietly reach the top spot on LM Arena’s Image Edit leaderboard.

  • It excels at complex, multi-step edits using simple text prompts, allowing users to blend styles and add objects without needing traditional masking tools.

  • For those ready to build with it, Gemini 2.5 Flash Image is now accessible via API and in Google AI Studio, priced at $0.039 per image.

Bottom line: This model significantly lowers the barrier for creating professional-grade images, enabling complex edits with simple conversation. Its speed and quality push the boundaries of real-time creative collaboration, moving us closer to a future where ideas are visualized instantly.

China's "Little Nvidia" Booms

The Recap: Chinese chipmaker Cambricon reported a staggering 4,348% revenue surge, signaling that Beijing's push for AI hardware self-sufficiency is yielding significant results. This move underscores a growing trend of local tech giants seeking alternatives to US-based Nvidia.

Unpacked:

  • The company's 4,348% revenue jump to $403.8 million in the first half of 2025 flipped the company from a significant loss to a record profit.

  • This growth is fueled by US export controls and a government-backed push for self-reliance, compelling Chinese tech firms to purchase locally-produced AI chips.

  • Cambricon is also building its software ecosystem, creating a platform that now supports major Chinese AI models from companies like DeepSeek and Alibaba.

Bottom line: Cambricon's figures, though small next to Nvidia's, prove a viable domestic AI chip market is rapidly forming in China. This development signals a potential long-term shift in the global AI hardware supply chain, driven by national strategy and trade restrictions.

MY FAVORITE AI TOOLS

Relevance is my favorite AI tool right now (even more so than N8N).

Here’s why:

It’s an AI agent building tool that doesn’t require you to build out the logic using nodes. Instead, you use natural language to build out these agents. But the best thing imo is that you can build AI Agent teams.

Like agents talking to each other completing a goal until its done. It’s nuts. No other tool on the market is doing this. You have to check it out.

(Try it out →Link)

👾 AI Tools We Use Everyday

➡️ N8N for AI Agents - Literally use this everyday to write this newsletter (link)

➡️ Axiom AI - AI Browser automation to scrape anything on the web (link)

➡️ GummySearch - AI Reddit research (link)

Tools are sourced from our database and are not sponsored or affiliated.

MORE STORIES

The Future of Software is Flexible

The Recap: A new analysis argues the era of one-size-fits-all SaaS is ending. AI now makes it simple to configure complex, "malleable" software, meaning tools will finally adapt to your processes, not the other way around.

Unpacked:

- AI fundamentally changes the user's role from system builder to problem definer. You describe what you need in plain language, and the LLM handles the complex setup, turning an idea into a working tool in minutes.

- Previously, complex and flexible tools were too difficult for most teams to set up. Now, AI assistants can navigate that complexity, making powerful, adaptable platforms more accessible than their rigid, single-purpose competitors.

- The shift will be gradual, but by 2030, the key question for buyers may change from "How fast can we start?" to "**How easily can we change**?" As customization becomes conversational, rigid tools could become legacy solutions.

Bottom line: This trend signals a major power shift from software vendors to users. Tools that empower you to build and adapt will ultimately outperform those that lock you into a single way of working.

OTHER NEWS YOU MAY LIKE

Meta launched a California super PAC, preparing to spend tens of millions to back candidates who favor a light-touch approach to AI regulation in the state.

Anthropic revealed how its own teams use Claude Code for tasks beyond programming, with its legal department building phone tree systems and marketers automating ad creation.

A coalition pledged over $100M for a new super PAC network called "Leading the Future" to support pro-AI innovation policies and counter the AI safety movement.

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AI ON SOCIAL

 AI ART

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THAT’S IT FOR TODAY

Until next time, stay safe.

-Best of AI Team

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