AI Daily Trends & Tool Updates — 2026-07-03

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Google and Meta escalate rivalry with AI consciousness and Watermelon models. — /headline -->

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1. AI Industry & Trends

Google dives into AI consciousness research

Years after firing an engineer who claimed their AI had become sentient, Google is now officially researching whether AI systems can actually develop consciousness. This shift reflects a growing trend among major AI labs to explore the potential for machine sentience.

Meta’s "Watermelon" model claims GPT-5.5 performance

Alexandr Wang, the lead of superintelligence at Meta, claims that their upcoming "Watermelon" model has reached performance levels equivalent to GPT-5.5 across major benchmarks. This move highlights Meta’s intense push to challenge OpenAI’s latest models.

South Korean government pushes for "Physical AI" localization

The South Korean government has designated Physical AI as a national strategic technology, aiming to make a breakthrough within three years. The goal is to build a "domestic full-stack" Physical AI by localizing essential technologies like data, AI models, and semiconductors.

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2. Key AI Tool Updates

GitHub Models to shut down completely on July 30

GitHub has officially announced that it will fully sunset GitHub Models. New user applications were closed in June, and the service will be completely discontinued on July 30. Developers are advised to begin migrating to alternative solutions.

Cloudflare introduces policy to block AI training bots

Cloudflare has decided to block "cynical bots"—those that collect data for both search and AI training purposes—on ad-supported web pages. It’s an attempt to balance web content protection with search visibility.

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3. Major Industry Shifts

Companies reshuffling organizational structures for AI

Large corporations in South Korea are fundamentally restructuring their operations using AI. This shift is changing how organizations function, from bridging the gap between practice and training to improving collaboration between HR and frontline departments.

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4. Market Reactions

Salesforce and Microsoft stock prices climb

Microsoft shares saw a sharp rise as investors flocked back to AI software stocks. Salesforce also saw an uptick, buoyed by positive sentiment suggesting that AI will not lead to the downfall of major software giants.

Date: July 3, 2026
Reference: Latest news as of July 1, 2026