AI Gets Cinematic, Squishmallows Get Smart, and Meta Gets Aggressive

Hi Innovators,

Today, we’re watching the lines between fiction and function blur even further. Midjourney just unveiled a cinematic leap into AI video generation, Five Below is squeezing AI into Squishmallow shelves, and the Fed is playing it cool on AI’s labor impact (for now). Toss in a $100M talent tug-of-war and an AI mock draft, and you’ve got a whirlwind tour of the modern tech-industrial complex.

Let’s dive in.

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Midjourney V1 Video: Gorgeous, Surreal, and Legally Spicy

Midjourney just dropped its V1 Video model, and we’ve spent the last 24 hours playing with it. Our verdict: We’re both awestruck and alert. Check out our team’s first take from the Enterprise AI Midjourney page.

Let’s break it down:

• The experience: It's as simple as their image model: prompt, pick a style, wait seconds. The video output is smooth, surreal, and already miles ahead of most GenAI video tools.

• The control: Motion styles like "pan", "zoom", or "rotate" let you play director. You can remix videos like you would images, and while you're limited to 3 seconds (soon 10), the outputs feel cohesive and intentional, not stitched-together chaos.

• The edge: Unlike Sora, Runway, or Pika, Midjourney's cinematic flair leans into fantasy realism. Think perfume ads shot on Saturn.

Here’s the tension, though: while the creative output is off-the-charts stunning, Midjourney is not publishing its training data sources. And that’s a big deal.

Disney and Universal just sued Midjourney for alleged IP infringement, so its refusal to disclose datasets is already drawing criticism. The murkiness stands in stark contrast to models like Sora that at least gesture toward transparency, even if they don’t go all the way either.

Why it matters for enterprises:
If you're thinking about using GenAI video for marketing, product demos, or internal comms, the tech is ready, but the legal guardrails are not. Midjourney's results are usable, breathtaking, and fast. But until provenance and licensing are fully addressed, we recommend treating this tool as R&D playground more than public rollout engine.

We’ll be watching closely as the industry converges around a standard for attribution, licensing, and dataset transparency. Until then, enjoy the magic, but keep it sandboxed.

Case Study

Five Below’s Secret AI Weapon: Squishmallow Logic

Discount retailer Five Below has quietly been stuffing more than plushies into their shelves; they’re embedding AI across inventory, pricing, and logistics to win in the tight-margin retail world. CEO Joel Anderson casually dropped that the company now uses AI to optimize every product drop, tailoring what’s shipped and stocked based on micro-trends, not just guesses.

This is what “operational AI” looks like when it’s not flashy, and it’s exactly where most enterprise value lies:

• Dynamic inventory: Smarter product placement across 1,600+ stores based on neighborhood-level demand patterns.

• AI-assisted negotiations: In response to inbound tariffs, their AI models are already rerouting sourcing strategies.

• Resilience without drama: No massive layoffs or giant re-orgs. Just daily efficiencies compounding into serious margin control.

Bottom line: Don’t sleep on the retailers quietly crushing with behind-the-scenes AI. This is your reminder that operational AI often beats generative glitz in the ROI column.

In the News

1. Fed Chair Powell Shrugs at AI’s Labor Impact (For Now)
   Jerome Powell said it’s “too soon to know” how AI will impact employment. Translation: everyone’s talking, but no one’s betting the farm. The Fed’s main concern? Making sure the skills transition doesn’t leave workers behind.
   → Full scoop

2. AI Predicts NBA Draft Outcomes
   USA Today just dropped its first AI-powered NBA mock draft, and it’s more than just a gimmick. The models incorporate player stats, biometrics, and game simulations — raising serious questions about the future of sports scouting.
   → AI Draft Picks

3. Meta Tries to Poach OpenAI Engineers — With $100M Bonuses
   Yes, you read that right. Meta is dangling nine-figure offers to OpenAI staffers, showing just how intense the AI talent war has become. Sam Altman confirmed the news but seemed unfazed. Expect more of these moonshot bonuses as LLM leaders try to defend (or expand) their braintrust.
   →Get the drama

TL;DR:

• Midjourney launched its first AI video model, and it’s visually stunning but legally murky.

• Five Below is using quiet AI wins to drive retail efficiency, and it’s working.

• Powell says it’s “too early” to tell if AI will disrupt the labor market.

• AI models are scouting NBA talent, and the results are surprisingly accurate.

• Meta is waving $100M checks to poach OpenAI engineers. The talent wars are real.

Stay sharp,

Cat Valverde
Founder, Enterprise AI Solutions
Navigating Tomorrow's Tech Landscape Together