099: Today in AI: Flux Two Rivals Imagen at 1/5th Cost, Open Source vs Closed, Running Models Locally

Join 40,000 readers and get the full notes and summary: https://newsletter.aiwithkyle.com/subscribe Subscribe and turn on notifications to catch the next live stream: https://www.youtube.com/@iamkylebalmer?sub_confirmation=1 Want to know which AI business to start? Check out Freedom OS: https://aiwithkyle.com/join-freedom-os This video is from the ‘AI with Kyle News and Updates Live Stream’ First aired: 27 November 2025 Summary: Relatively slow news day today, so I decided to dive into Flux Two, the new open source image generation model from Black Forest Labs. It's genuinely impressive — almost as good as Google's Imagen (or "Nano Banana Pro" as I keep calling it), but here's the kicker: it costs about 3 cents per image versus Imagen's 15 cents. That's five times cheaper for nearly the same quality. Flux One was brilliant at generating images almost instantaneously, and Flux Two keeps that speed whilst matching the big boys on quality. It's the kind of thing that actually matters if you're building applications or doing proper design work, not just making party tricks. Off the back of that, I went into what open source actually means because there's a lot of confusion out there. People think open source equals free and closed source equals paid, but it's more nuanced than that. The Chinese labs are pushing hard on open source whilst American companies are closing everything down, and I reckon both approaches will stick around. I showed everyone how to run models locally on their computers or phones using tools like LM Studio and Hugging Face — it's worth trying just to see how it works. Not suggesting you should train your own models from scratch (please don't, the computational requirements are mad), but fine-tuning and deploying existing ones is genuinely accessible now. Watch full edited live stream: https://youtu.be/LRDa5VH_pdY —— More Useful Resources —— My other daily live show - 30-day building a business in public challenge: https://www.youtube.com/live/Z0Z_1Eg3HUk (day one) Ultimate AI Learning Resource List: https://www.aiwithkyle.com/resources/ai-learning-guide Free AI Entrepreneurship Playbooks: https://aiwithkyle.com/catalog Free Quiz: What AI business should you start? https://aiwithkyle.com/tools Free AI Training Business Planner: https://aiwithkyle.com/tools/workshop-builder Free AI Industry Translator Tool: https://aiwithkyle.com/tools/industry-ai-translator Free 10-Week ‘Vibe Coding’ AI Summer Camp: https://aiwithkyle.com/courses/10-week-ai-summer-camp —— Time Stamps ——   00:00 Intro 00:10 Today's AI News: Flux 2 & Open Source Deep Dive 01:05 Flux 2 From Black Forest Labs Announcement 02:21 Flux 2 vs Nano Banana Pro: Pricing Comparison 03:13 ELO Benchmarks: Is Flux 2 Worth It? 03:48 Why Sora 2 Is Just a Party Trick 05:19 Live Demo: Testing Flux 2 Image Generation 07:10 Testing Text and Typography in Flux 2 08:49 Flux 2 Quality Assessment 09:17 Why Open Source AI Matters 10:26 How to Access Flux 2: GitHub & Hugging Face 11:26 Open Source vs Closed Source AI Explained 12:00 Emre: AI Security Tool for Vibe Coders 14:50 Deep Dive: Open vs Closed Source Models 16:39 How Cursor Built $30B From Open Source VS Code 18:06 The Cathedral and the Bazaar Philosophy 19:05 Chinese AI Labs Dominate Open Source 20:04 Meta Abandons Open Source Llama Models 20:54 Run AI Locally: iPhone, Android, Mac Apps 22:56 Inference vs Training Your Own Model 23:20 Training AI: Hardware Requirements & Costs 26:35 GPU Rental Pricing: H200 Costs Explained 28:36 xAI Colossus: $15 Billion in GPUs 29:28 Europe vs China: Who Wins the AI Race? 29:59 Google DeepMind Acquisition for $400M 32:04 How to Start Building AI Apps 34:34 Building AI Agents with N8N 35:40 Can You Get OpenAI 4o Open Source? 37:43 Using Claude Code Inside Cursor 38:20 Shoutout: Diona Hodges 38:46 Wrap Up & Key Takeaways 40:10 Subscribe & Newsletter —— Contact —— Best is in YouTube comments. For business enquiries only: https://www.passionfroot.me/iamkylebalmer

There are no comments yet.

Please log in to write the first comment.