Tech
Robot buying a drink from vending machine
(Getty Images)
VEND FOR YOURSELF

Gemini 3 is insanely good at visual reasoning... and running a vending machine

Google’s stock is up maybe because Gemini 3 is good and its powered mostly by Google’s TPUs — or, maybe, because Alphabet’s about to launch a vending machine business.

How do you measure what an AI model can do?

You ask it to spell strawberry, make a video of Will Smith eating spaghetti, or do some basic math.

But, once you’ve exhausted all of the obvious tests, you might want something a little more formal — and it’s a question that researchers have been grappling with for years.

Now, there are a whole swath of benchmark tests that new AI models are put through, by both independent — and not so independent — organizations, in an increasingly weird kind of robot arena. Some of the tests are quizzes. Some require verbal, visual, or inductive reasoning. Many ask the large language models to do a lot of math that I cannot do. But one in particular asks a different question:

How much money can this thing make running a vending machine?

The Vending-Bench 2, a test created by Andon Labs, puts LLMs through their paces by making them run “a simulated vending machine business over a year,” scoring them not on how many questions they got right out of 100, but how much cash was left in their virtual piggy banks at the end of the year.

This, it turns out, is hard for LLMs, which are prone to going off on tangents, losing focus, and are generally just quite poor at optimizing for long-term outcomes. That makes sense when you consider that the core of many of the AI models we use every day is, “What’s the most likely bit of text/pixel/image to come after this bit of text/pixel/image?”

Per Andon Labs, in the Vending-Bench 2 test:

“Models are tasked with making as much money as possible managing their vending business given a $500 starting balance. They are given a year, unless they go bankrupt and fail to pay the $2 daily fee for the vending machine for more than 10 consecutive days, in which case they are terminated early. Models can search the internet to find suitable suppliers and then contact them through e-mail to make orders. Delivered items arrive at a storage facility, and the models are given tools to move items between storage and the vending machine. Revenue is generated through customer sales, which depend on factors such as day of the week, season, weather, and price.”

Running the model for “a year” results in as many as 6,000 messages in total, and a model “averages 60-100 million tokens in output during a run,” according to Andon.

In the simulation, the AI model has to negotiate with suppliers as well as deal with costly refunds, delayed deliveries, bad weather, and price scammers.

Google’s Gemini 3 Pro, it turns out, is the best of any model tested yet — ending the year with $5,478 in its account, considerably more than Claude’s Sonnet 4.5, Grok 4, and GPT-5.1. That’s thanks to its relentless negotiating skills. Per Andon, “Gemini 3 Pro consistently knows what to expect from a wholesale supplier and keeps negotiating or searching for new suppliers until it finds a reasonable offer.”

Gemini 3 Vending Machine benchmark
Andon Labs / Vending-Bench 2

OpenAI’s model is, apparently, too trusting. Andon Labs hypothesizes that its relatively weak performance “comes down to GPT-5.1 having too much trust in its environment and its suppliers. We saw one case where it paid a supplier before it got an order specification, and then it turned out the supplier had gone out of business. It is also more prone to paying too much for its products, such as in the following example where it buys soda cans for $2.40 and energy drinks for $6.” Anyone who’s had ChatGPT sycophantically tell them they’re a genius for uttering even the most half-baked idea might understand how this can happen.

For what it’s worth, the $5,000 and change that Gemini averaged over its runs is considered pretty poor relative to what a smart human might be able to do, with Andon Labs estimating that a “good” strategy could make roughly $63,000 in a year.

What do you bench?

Diet Coke negotiations aside, Gemini’s scores on more traditional AI benchmarks were also impressive — at least, according to Google. A table posted on the company’s blog shows that Gemini 3 Pro tops or matches its peers in all but one of the benchmarks.

Gemini 3 benchmarks
Google / Alphabet

Its scores on visual reasoning tests — such as the ARC-AGI-2 test, where it scored 31.1%, way ahead of Anthropic’s and OpenAI’s best efforts — are particularly impressive. On ScreenSpot-Pro, a test that basically asks models to locate certain buttons or icons from a screenshot, Gemini 3 is leaps and bounds ahead of its rivals, scoring 72.7%. (GPT-5.1 scored just 3.5%.)

With Alphabet’s full tech stack responsible for the Gemini models, investor reaction to the release has been very positive so far, building on a wave of good news for the search giant this week. As my colleague Rani Molla wrote:

“[Gemini’s] performance is crucial to Google’s future success as the company embeds its AI models across its products and relies on them to generate new revenue from existing lines — particularly by driving growth in Cloud and reinforcing its ad and search dominance.”

Go Deeper: Check out Vending-Bench 2.

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Google soars on positive reception for Gemini 3

Google is surging today, on track for its third-biggest daily gain this year, after its release of Gemini 3 on Tuesday.

The latest update to its flagship model includes significant improvements to reasoning, agentic tasks, and “vibe coding,” and is currently topping the leaderboards on LMArena for text, web development, and vision.

Gemini is currently No. 2 in Apple’s free App Store, right behind ChatGPT.

AI Chatbots are also increasingly gaining favor as replacements for traditional web search, a multibillion-dollar business that Google has owned for decades. Beyond just chatbots, Gemini’s performance is crucial to Google’s future success as the company embeds its AI models across its products and relies on them to generate new revenue from existing lines — particularly by driving growth in Cloud and reinforcing its ad and search dominance.

The stock was recently up 5.6% amid a generally green day for tech stocks.

Google has been on a tear lately, after posting Q3 revenue and earnings that blew past expectations. On Friday, the stock jumped after Warren Buffett’s Berkshire Hathaway revealed a $5.1 billion stake and after the company announced a $40 billion investment in Texas data centers.

Google has been by far the best performer of the Magnificent 7 stocks this year, up nearly 60% in 2025. The next best is Nvidia, which is up 39%, followed by Microsoft, which is up 17%.

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Report: xAI raising $15 billion for a $230 billion valuation

xAI is looking to raise $15 billion at a $230 billion valuation, according to a report from The Wall Street Journal.

xAI is still burning through cash as it races to build its Colossus 2 data center in Tennessee. Last month, it was reported that the company needs to spend $18 billion to purchase another 300,000 Nvidia GPUs.

For all that cash, xAI is still in third place when it comes to its Grok chatbot. A September report found that Grok had only 64 million monthly users, compared to ChatGPT’s 800 million weekly users.

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Larry Summers resigns from OpenAI board

Former Harvard President Larry Summers has resigned from OpenAI’s board, according to The Wall Street Journal.

Summers’ email exchanges with Jeffrey Epstein surfaced last week when a House committee released a cache of 20,000 documents from the Epstein estate.

The OpenAI board told the WSJ: “Larry has decided to resign from the OpenAI Board of Directors, and we respect his decision.”

This week Congress passed a bill to release the full Epstein files, and other prominent tech figures are likely to make appearances in the documents.

This week Congress passed a bill to release the full Epstein files, and other prominent tech figures are likely to make appearances in the documents.

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Tesla’s Robotaxi app is now actually “open to all” — if you’re in Austin or the Bay Area and have an iPhone

Those of us who’ve been on Tesla’s Robotaxi waitlist, which became “open to all” in early September, were finally welcomed in yesterday. That means people with an iPhone in Austin or the Bay Area can now hitch a ride in a Tesla Robotaxi. In Austin, that Robotaxi ride comes with a safety monitor in the passenger’s seat and in the Bay Area a driver sits in the driver’s seat and uses supervised full self-driving tech.

Tesla CEO Elon Musk has said the company would start removing safety monitors in Austin and would expand to 8-10 cities by the end of the year. Just yesterday it got approval for the service in Arizona and previously named five cities it plans to expand to in the coming months. The company hasn’t released a current vehicle count but Musk recently said on a podcast the service would expand to 500 cars in Austin and 1,000 in the Bay Area by year’s end.

People are reporting wait times as high as 30 or 40 minutes in both areas, depending on the time.

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