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Revolutionising AI Application Development with Language Models

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Revolutionising AI Application Development with Language Models

by Gonzalo Wangüemert Villalba

4 September 2025

Introduction The open-source AI ecosystem reached a turning point in August 2025 when Elon Musk’s company xAI released Grok 2.5 and, almost simultaneously, OpenAI launched two new models under the names GPT-OSS-20B and GPT-OSS-120B. While both announcements signalled a commitment to transparency and broader accessibility, the details of these releases highlight strikingly different approaches to what open AI should mean. This article explores the architecture, accessibility, performance benchmarks, regulatory compliance and wider industry impact of these three models. The aim is to clarify whether xAI’s Grok or OpenAI’s GPT-OSS family currently offers more value for developers, businesses and regulators in Europe and beyond. What Was Released Grok 2.5, described by xAI as a 270 billion parameter model, was made available through the release of its weights and tokenizer. These files amount to roughly half a terabyte and were published on Hugging Face. Yet the release lacks critical elements such as training code, detailed architectural notes or dataset documentation. Most importantly, Grok 2.5 comes with a bespoke licence drafted by xAI that has not yet been clearly scrutinised by legal or open-source communities. Analysts have noted that its terms could be revocable or carry restrictions that prevent the model from being considered genuinely open source. Elon Musk promised on social media that Grok 3 would be published in the same manner within six months, suggesting this is just the beginning of a broader strategy by xAI to join the open-source race. By contrast, OpenAI unveiled GPT-OSS-20B and GPT-OSS-120B on 5 August 2025 with a far more comprehensive package. The models were released under the widely recognised Apache 2.0 licence, which is permissive, business-friendly and in line with requirements of the European Union’s AI Act. OpenAI did not only share the weights but also architectural details, training methodology, evaluation benchmarks, code samples and usage guidelines. This represents one of the most transparent releases ever made by the company, which historically faced criticism for keeping its frontier models proprietary. Architectural Approach The architectural differences between these models reveal much about their intended use. Grok 2.5 is a dense transformer with all 270 billion parameters engaged in computation. Without detailed documentation, it is unclear how efficiently it handles scaling or what kinds of attention mechanisms are employed. Meanwhile, GPT-OSS-20B and GPT-OSS-120B make use of a Mixture-of-Experts design. In practice this means that although the models contain 21 and 117 billion parameters respectively, only a small subset of those parameters are activated for each token. GPT-OSS-20B activates 3.6 billion and GPT-OSS-120B activates just over 5 billion. This architecture leads to far greater efficiency, allowing the smaller of the two to run comfortably on devices with only 16 gigabytes of memory, including Snapdragon laptops and consumer-grade graphics cards. The larger model requires 80 gigabytes of GPU memory, placing it in the range of high-end professional hardware, yet still far more efficient than a dense model of similar size. This is a deliberate choice by OpenAI to ensure that open-weight models are not only theoretically available but practically usable. Documentation and Transparency The difference in documentation further separates the two releases. OpenAI’s GPT-OSS models include explanations of their sparse attention layers, grouped multi-query attention, and support for extended context lengths up to 128,000 tokens. These details allow independent researchers to understand, test and even modify the architecture. By contrast, Grok 2.5 offers little more than its weight files and tokenizer, making it effectively a black box. From a developer’s perspective this is crucial: having access to weights without knowing how the system was trained or structured limits reproducibility and hinders adaptation. Transparency also affects regulatory compliance and community trust, making OpenAI’s approach significantly more robust. Performance and Benchmarks Benchmark performance is another area where GPT-OSS models shine. According to OpenAI’s technical documentation and independent testing, GPT-OSS-120B rivals or exceeds the reasoning ability of the company’s o4-mini model, while GPT-OSS-20B achieves parity with the o3-mini. On benchmarks such as MMLU, Codeforces, HealthBench and the AIME mathematics tests from 2024 and 2025, the models perform strongly, especially considering their efficient architecture. GPT-OSS-20B in particular impressed researchers by outperforming much larger competitors such as Qwen3-32B on certain coding and reasoning tasks, despite using less energy and memory. Academic studies published on arXiv in August 2025 highlighted that the model achieved nearly 32 per cent higher throughput and more than 25 per cent lower energy consumption per 1,000 tokens than rival models. Interestingly, one paper noted that GPT-OSS-20B outperformed its larger sibling GPT-OSS-120B on some human evaluation benchmarks, suggesting that sparse scaling does not always correlate linearly with capability. In terms of safety and robustness, the GPT-OSS models again appear carefully designed. They perform comparably to o4-mini on jailbreak resistance and bias testing, though they display higher hallucination rates in simple factual question-answering tasks. This transparency allows researchers to target weaknesses directly, which is part of the value of an open-weight release. Grok 2.5, however, lacks publicly available benchmarks altogether. Without independent testing, its actual capabilities remain uncertain, leaving the community with only Musk’s promotional statements to go by. Regulatory Compliance Regulatory compliance is a particularly important issue for organisations in Europe under the EU AI Act. The legislation requires general-purpose AI models to be released under genuinely open licences, accompanied by detailed technical documentation, information on training and testing datasets, and usage reporting. For models that exceed systemic risk thresholds, such as those trained with more than 10²⁵ floating point operations, further obligations apply, including risk assessment and registration. Grok 2.5, by virtue of its vague licence and lack of documentation, appears non-compliant on several counts. Unless xAI publishes more details or adapts its licensing, European businesses may find it difficult or legally risky to adopt Grok in their workflows. GPT-OSS-20B and 120B, by contrast, seem carefully aligned with the requirements of the AI Act. Their Apache 2.0 licence is recognised under the Act, their documentation meets transparency demands, and OpenAI has signalled a commitment to provide usage reporting. From a regulatory standpoint, OpenAI’s releases are safer bets for integration within the UK and EU. Community Reception The reception from the AI community reflects these differences. Developers welcomed OpenAI’s move as a long-awaited recognition of the open-source movement, especially after years of criticism that the company had become overly protective of its models. Some users, however, expressed frustration with the mixture-of-experts design, reporting that it can lead to repetitive tool-calling behaviours and less engaging conversational output. Yet most acknowledged that for tasks requiring structured reasoning, coding or mathematical precision, the GPT-OSS family performs exceptionally well. Grok 2.5’s release was greeted with more scepticism. While some praised Musk for at least releasing weights, others argued that without a proper licence or documentation it was little more than a symbolic gesture designed to signal openness while avoiding true transparency. Strategic Implications The strategic motivations behind these releases are also worth considering. For xAI, releasing Grok 2.5 may be less about immediate usability and more about positioning in the competitive AI landscape, particularly against Chinese developers and American rivals. For OpenAI, the move appears to be a balancing act: maintaining leadership in proprietary frontier models like GPT-5 while offering credible open-weight alternatives that address regulatory scrutiny and community pressure. This dual strategy could prove effective, enabling the company to dominate both commercial and open-source markets. Conclusion Ultimately, the comparison between Grok 2.5 and GPT-OSS-20B and 120B is not merely technical but philosophical. xAI’s release demonstrates a willingness to participate in the open-source movement but stops short of true openness. OpenAI, on the other hand, has set a new standard for what open-weight releases should look like in 2025: efficient architectures, extensive documentation, clear licensing, strong benchmark performance and regulatory compliance. For European businesses and policymakers evaluating open-source AI options, GPT-OSS currently represents the more practical, compliant and capable choice.  In conclusion, while both xAI and OpenAI contributed to the momentum of open-source AI in August 2025, the details reveal that not all openness is created equal. Grok 2.5 stands as an important symbolic release, but OpenAI’s GPT-OSS family sets the benchmark for practical usability, compliance with the EU AI Act, and genuine transparency.

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Solana Price Could Fall to $65 as Unstaking Surges 150%

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Staking Collapses

The Solana price remains under heavy pressure in early February, with the token down nearly 30% over the past 30 days and trading inside a weakening descending channel. Price continues to grind toward the lower boundary of this structure as long-term conviction fades.

At the same time, net staking activity has collapsed, exchange buying has slowed, and short-term traders are building positions again. Together, these signals suggest that more SOL is becoming available for potential selling just as technical support weakens.

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Staking Collapse Meets Descending Channel Breakdown Risk

Solana’s latest weakness is being reinforced by a sharp drop in staking activity. The Solana staking difference metric tracks the weekly net change in SOL locked in native staking accounts. Positive values show new staking, while negative readings indicate net unstaking.

In late November, long-term conviction was strong. During the week ending November 24, staking accounts recorded net inflows of over 6.34 million SOL, marking a major accumulation phase.

That trend has now fully reversed. By mid-January, weekly staking flows had turned negative. The week ending January 19 showed net unstaking of around –449,819 SOL. By February 2, this had worsened to –1,155,788 SOL, a surge of roughly 150% in unstaking within two weeks.

Staking Collapses
Staking Collapses: Dune

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This means a growing amount of SOL is being unlocked from staking and returned to liquid circulation. Once unstaked, these tokens can be moved to exchanges and sold immediately, increasing downside risk.

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This collapse is happening as price trades near the lower edge of its descending channel with a 30% breakdown possibility in play.

Bearish SOL Price Structure
Bearish SOL Price Structure: TradingView

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With SOL hovering near $96, the combination of technical weakness and rising liquid supply creates a dangerous setup. If selling accelerates, the channel support may not hold.

Exchange Buying Slows as Speculators Increase Exposure

Falling staking activity is now being reflected in exchange flows. Exchange Net Position Change tracks how much SOL moves onto or off exchanges over a rolling 30-day period. Negative values indicate net outflows and accumulation, while rising readings signal slowing demand.

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On February 1, this metric stood near –2.25 million SOL, showing strong buying pressure. By February 3, it had weakened to around –1.66 million SOL. In just two days, exchange outflows dropped by nearly 26%, signaling that accumulation has slowed.

Exchange Outflow Slows Down
Exchange Outflow Slows Down: Glassnode

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This decline in buying is occurring as unstaking accelerates, increasing the amount of SOL available for trading. When supply rises while demand weakens, the price becomes more vulnerable to sharp declines.

At the same time, speculative activity is rising.

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HODL Waves data, which separates wallets based on holding time, shows that the one-day to one-week cohort increased its share from 3.51% to 5.06% between February 2 and February 3. This group represents short-term Solana holders who typically enter during volatility and exit quickly.

Speculative Cohort Buys
Speculative Cohort Buys: Glassnode

Similar behavior appeared in late January. On January 27, this cohort held 5.26% of the supply when SOL traded near $127. By January 30, their share dropped to 4.31% as the price fell to $117, a decline of nearly 8%.

This pattern suggests that speculative money is positioning for short-term bounces rather than long-term holding, increasing the risk that bounces will fade.

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Key Solana Price Levels Still Point to $65 Risk

Technical structure continues to mirror the weakness seen in on-chain data. SOL remains locked inside a descending channel that has guided price lower since November. After losing the critical $98 support zone, the price is now trading near $96, close to the channel’s lower boundary.

If this support fails, the next major downside target lies near $67, based on Fibonacci projections. A deeper move could extend toward $65, aligning with the full measured 30% breakdown of the channel.

On the upside, recovery remains difficult. The first level that Solana must reclaim is $98, followed by stronger resistance near $117, which capped multiple rallies in January. A sustained move above $117 would be required to neutralize the bearish structure.

Solana Price Analysis
Solana Price Analysis: TradingView

Until then, downside risks remain elevated.

With staking collapsing, exchange buying weakening, and speculative positioning rising, more SOL is entering circulation just as technical support weakens. Unless long-term accumulation returns, Solana remains vulnerable to a deeper correction toward $65.

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Lawsuits are piling up against Binance over Oct. 10

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Lawsuits are piling up against Binance over Oct. 10

Social media sentiment continues to turn against Binance for its alleged role in crypto liquidations on October 10.

Immediately after October 10, traders were already threatening legal action. However, this year, new lawsuits and arbitrations look to be underway, along with numerous other complaints and legal setbacks.

A simple chart of crypto asset prices illustrates the reason for the dogpile of complaints against Binance.

Following months of clear correlation with broad indices like the S&P 500 and Nasdaq 100, crypto decoupled precisely on October 10 — and has trended downward ever since.

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Total crypto market capitalization vs. S&P 500 and Nasdaq 100. Source: TradingView

Read more: Binance’s $1B BTC buy fails to win back trust after Oct. 10

October 10 auto-deLeveraging

As the world’s largest crypto exchange, Binance had a unique role to play in October 10.

For example, flash-crash prices as low as 99.9% existed only on the exchange on that date, and it had just changed its pricing feeds and treatment of a major stablecoin, Ethena USDE.

Wintermute CEO Evgeny Gaevoy called Binance’s Auto-DeLeveraging prices “very strange,”  while Ark Invest’s Cathie Wood blamed billions in crypto liquidations on a Binance “software glitch.”

A post with millions of impressions also called out errors in Binance’s pricing oracles for cross-margin unified accounts.

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Ethena USDE played a particularly important role in Binance’s October 10 liquidations. After crashing to less than $0.67 on Binance, USDE has regained its $1 peg but has shed more than half its market capitalization since 10/10.

Binance attempts to restore confidence

Without admitting to responsibility, Binance nonetheless quickly — and voluntarily — agreed to pay huge sums of money to customers that suffered losses on that date.

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Shortly after the event, Binance announced $328 million in compensation plus another $400 million worth of loans and vouchers.

In another attempt restore confidence amid the bearish knock-on effects of October 10, Binance announced in late January 2026 that it would use its entire $1 billion SAFU (Secure Asset Fund for Users) emergency reserve to buy bitcoin (BTC) over a 30-day period.

It has not helped much. The giant BTC buy failed to win back its fans-turned-critics, with negative topics about Binance still trending on social media on a nearly daily basis.

As pressure continues to build over the exchange’s role in the historic liquidation event, founder Changpeng Zhao has blamed fake social media and unrelated bitcoin traders for bearishness.

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He also attempted to divert blame from Binance onto Donald Trump for the crash, saying, “It’s pretty clear that the tariff announcements preceded the crash, not Binance system issues or Binance doing anything.”

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Wall Street giant CME Group is eyeing its own ‘CME Coin,’ CEO says

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Wall Street giant CME Group is eyeing its own 'CME Coin,' CEO says

CME Group CEO Terry Duffy has suggested the derivatives giant is exploring launching its own cryptocurrency.

In response to a question from Morgan Stanley’s Michael Cyprys during the company’s latest earnings call, Duffy confirmed the firm is exploring “initiatives with our own coin that we could potentially put on a decentralized network.”

The comment was brief and came in response to a question about the role of tokenized collateral. In response, Duffy first noted that the world’s largest derivatives exchange is carefully reviewing different forms of margin.

“So if you were to give me a token from a systemically important financial institution, I would probably be more comfortable than maybe a third or fourth-tier bank trying to issue a token for margin,” Duffy said. “Not only are we looking at tokenized cash, we’re looking at different initiatives with our own coin.”

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The company is already working on a “tokenized cash” solution with Google that’s set to come out later this year and will involve a depository bank facilitating transactions. The “own coin” Duffy referenced appears to be a different token that the firm could “potentially put on a decentralized network for other of our industry participants to use.”

The CME declined to clarify whether this “coin” would function as a stablecoin, settlement token or something else entirely when asked by CoinDesk.

However, if such an initiative goes through, the implications are significant.

While CME Group has previously flagged tokenization as a general area of interest, CEO Terry Duffy’s comments this week mark the first time the exchange has explicitly floated the concept of a proprietary, CME-issued asset running on a decentralized network.

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The firm is set to launch 24/7 trading for all crypto futures in the second quarter of the year, and is also set to soon offer cardano, chainlink and stellar futures contracts.

CME’s average daily crypto trading volume hit $12 billion last year, with its micro-ether and micro-bitcoin futures contracts being top performers.

The launch wouldn’t make CME the first traditional finance giant to launch its own token. JPMorgan has recently rolled out tokenized deposits on Coinbase’s layer-2 blockchain Base via its so-called JPM Coin (JPMD), quietly rewiring how Wall Street moves money.

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Bitnomial Lists First US-regulated Tezos Futures

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XRP, Derivatives, Tezos, Bitcoin Futures, Cardano, Futures

The Chicago-based cryptocurrency exchange Bitnomial has launched futures tied to Tezos’s XTZ token, marking the first time the asset has a futures market on a US Commodity Futures Trading Commission-regulated exchange.

According to Wednesday’s announcement, the futures contracts are live and allow institutional and retail traders to gain exposure to XTZ (XTZ) price movements using either cryptocurrency or US dollars as margin.

Futures contracts let traders hedge risk or gain price exposure by agreeing to buy or sell an asset at a set price on a future date, without holding the asset itself.

Regulated futures markets are often viewed as a prerequisite for broader institutional participation in the US, including potential spot exchange-traded funds (ETFs), because they provide standardized price discovery and oversight under the CFTC.

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