Why Your AI Will Always Make Stuff Up (Study Just Dropped) | Austin's AI Newsletter

Hey friends — Austin here.

Each week I bring you the AI updates that actually matter.

This one’s packed: why AI keeps hallucinating (and won’t stop), Syllaby’s new Pro features, and AI Marketing World around the corner.

Plus: Azure cable chaos, Europe’s OpenAI challenger, an automation tool that builds itself—and my top 3 tools of the week.

Your playbook to stay ahead.

🚨 In This Week’s Issue

Breaking News: AI Isn’t Broken—It’s Incentivized to Hallucinate
Syllaby: Advanced Options = Pro Mode Unlocked
AI Marketing World: The Conference Where Execution Beats Theory
This Week in AI: Cable Cuts, Chat Automations & The European AI Challenger
Top AI Tools: GoHighLevel • Bibley • Tella
Meme of the Week: Strawberries in the letter R 🍓

Breaking News: AI Isn’t Broken—It’s Incentivized to Hallucinate

Here’s the wild part: AI hallucinations aren’t just accidents. They’re rewarded behavior.

A new study shows today’s top models aren’t built to tell the truth—they’re built to predict the next word. And that means when they don’t know? They’ll confidently make something up… because that’s exactly what they were trained to do.

Some examples researchers found:
❌ Asked for a dissertation title → gave three different wrong answers.
❌ Asked for a birthday → same thing, confidently wrong.
🤯 Not “bugs.” Just the system doing what it was optimized for.

Why it matters: If the incentive is to sound convincing instead of being correct, hallucinations aren’t going away. The real fix isn’t bigger models—it’s building better incentives.

Sponsored by Syllaby

Advanced Options = Pro Mode Unlocked

Good videos get views. Great ones get remembered. Advanced Options is your upgrade from “just another post” to must-watch content.

What you get:
✅ Subtitles you can style + animate
✅ Music + effects that hit right
✅ Smooth transitions & animations
✅ Folders for scale
✅ Custom watermark for your brand

Why it matters: attention is everything—and this is how you grab it, hold it, and look 10x bigger than your setup.

Sponsored by AI Marketing World Conference

The Future of Marketing Isn’t Predicted—It’s Built.

We’re not just watching AI transform marketing—we’re living it. And this October in Dallas, the curtain gets pulled back.

AI Marketing World 2025 is where operators, founders, and creators ditch theory and build strategies that work. This isn’t note-taking. This is execution.

Why you need to be there:
⚡ Real frameworks from real operators—no fluff, no buzzwords.
⚡ Hands-on labs + live demos—test tools, build workflows, leave with a plan.
⚡ The ultimate AI playground—founders + vendors showing off what’s next.
⚡ A room of decision-makers—founders, VCs, CMOs, and creators who move fast.

📍 Hyatt Regency Frisco – Dallas
📅 October 9–11, 2025
🎟️ Lock in your ticket now

I’ll be there—front row. And I want you in the room, too. Because this isn’t just another conference… it’s the future of marketing, happening live.

This Week in AI — Cable Cuts, Chat Automations & The European AI Challenger

Azure Hits a Snag Thanks to Red Sea Cable Cuts

Undersea fiber-cut chaos is throwing major latency spikes across Asia and the Middle East—and Microsoft just confirmed Azure is feeling the heat. They’ve been rerouting traffic to keep things running, but expect delays for those connecting through the region.

👉 Read More

Sidekick — Build Zapier-Style Automations… Using Chat

Automation platforms giving you headaches? Swap the builder for a chat interface. Just tell Sidekick what workflow you need—Slack to Notion, Gmail to Calendar—and it builds the Zapier-style automation for you. Simple, intuitive, and zero setup friction.

👉 Join Sidekick

Mistral AI — Europe’s Answer to OpenAI

Don't sleep on this: France's Mistral AI is gaining serious steam. They’re building open-weight language models and their AI assistant "Le Chat," positioning them as the top European rival to OpenAI. Sovereign AI is officially now.

👉 Read More

Top AI Tools of the Week — Tools That Actually Move the Needle

1. GoHighLevel — Your All-in-One Growth Engine

Still juggling six different apps just to run your business? Stop. GoHighLevel rolls funnels, CRM, SMS, email, scheduling, and automations into one clean dashboard.

• No-code, built to scale

• Speed and simplicity for agencies & creators

• Save serious $$$ by ditching the duct tape

👉Try GoHighLevel

2. Bibley — AI for Scripture Lovers

Finally—an AI that actually gets the Bible. Bibley delivers verse-by-verse context, study notes, and sermon ideas at the click of a button.

• Search smarter. Study deeper.

• Basically a 24/7 theologian in your pocket.

👉 Discover Bibley

3. Tella — Sleek Screen & Camera Recording

Loom’s cool. Tella’s cooler. Record your screen + cam, add built-in design features, and ship videos that look polished without editing stress.

👉 Try Tella Now

How 433 Investors Unlocked 400X Return Potential

Institutional investors back startups to unlock outsized returns. Regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.

Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? They got a 400X buyout offer from the company, as Revolut’s valuation increased 89,900% in the same timeframe.

No wonder 10K+ everyday people are taking the chance on Pacaso.

Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.

The same institutional investors behind Uber, Venmo, and eBay backed Pacaso. And you can join them. But not for long. Pacaso’s investment opportunity ends September 18.

Invest While You Still Can

_{Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.}

Meme of the Week

AI can generate global strategies, edit videos, and clone voices… But ask it how many strawberries are in the letter R—and suddenly it’s a fruit salad expert. 🍓🍓🍓

👉 Relax, our jobs are safe (for now).

Here’s the bottom line: AI isn’t “broken”—it’s just playing the game it was trained to win.

That means if you want an edge, you can’t just keep up—you’ve got to change the way you play. From smarter tools to better strategies, the winners will be the ones who move early, move fast, and never stop experimenting.

I’ll be back next week with more breakthroughs, more tools, and maybe one too many memes.

Stay awesome,
Austin Armstrong, CEO
Syllaby, Inc.