In the August 12, 2025, episode of The Young and the Restless, alliances were formed, and relationships were tested!
What happened on The Young and the Restless

Nick met Phyllis in Chancellor Park. She quipped that they had to stop meeting like this. Nick got down to business. He wanted to know what Phyllis was doing with Cane the night before at Society.
Phyllis deflected, and she took a swipe at Sharon. "It was just a joke," Phyllis responded to Nick's pointing out her remark. Phyllis said she spent time talking to Cane, trying to convince him not to use the AI (Artificial Intelligence) program.
Phyllis claimed that Cane was more interested in repairing his relationship with Mattie and Charlie, and not using AI. Nick suggested that Cane could do both. Nick wondered if Cane was embarrassed by his wealth. Phyllis said that was the pot calling the kettle black, as Nick was Victor's son.
Nick wondered why Cane trusted Phyllis so much. She said she's made herself vulnerable to him, telling her about the time she faked her death. "He trusts me," Phyllis added. Nick said he wasn't buying the fact that Cane was no longer a threat. Nick cautioned Phyllis against siding with someone who is out to hurt the Newmans. He said they're prepared for Cane's attacks. Nick advised Phyllis that she could be hurt as a result.
Phyllis called Nick a jerk. She said she was tired of him passing judgment on her. Phyllis said she was going to work for whoever she wanted to work for. Nick accused her of playing into Cane's hands. Phyllis got emotional, but told Nick she was insulted. Phyllis wondered if Nick would tell Victor not to use the AI software if he had it. Nick said he would. "Like he'd listen to you," Phyllis snarked. Nick said that he didn't let the people he loved get hurt. Phyllis begged Nick to trust her, but if he didn't, it was his problem, not hers. Then, Phyllis walked away.
Meanwhile, Michael visited Victor at his office. Before they could talk about Michael spying on Cane for Victor, his phone rang. Cane was calling, and he wanted to know if Michael was going to work with him against Victor. Victor told Michael to make up his mind. When Michael went to take a seat, Victor interjected that he didn't invite Michael to do that. He sat down anyway.
The two men sparred about whether Michael would work for Victor or Cane. Victor called Michael's bluff. Michael revealed that he'd help Victor, but as Victor wouldn't take his advice, he'd act as a free agent. Victor said he wouldn't back off from fighting Cane. Michael agreed that Cane was the aggressor. Victor said, "You walked away." Michael pointed out that he walked away from the job -- not the Newman family. "We'll see," Victor conceded about a more amicable future.
Sally returned home to find Billy passed out, face down on the sofa, still in his clothes from the night before. "I was dreaming," Billy said. Sally replied: "You always are."
Sally asked Billy why he was drinking. He said he was hoping she'd come back. Sally shared that she was worried. She was wondering how to do damage control with the press because of the canceled launch party for Abbott Communications, adding she wasn't going to let Cane help Billy ruin his life. She reminded him that she stood by him so many times. Sally had even agreed to bring Phyllis on to Abbott Communications. Billy said they could have both -- he could get Chancellor and she could run the communications company.
Sally felt that Billy wasn't listening to her. She reminded Billy that he created Abbott Communications to help heal his hurt. Sally knew Billy wanted to stick it to Victor, but she begged him not to get involved with Cane. "We don't need Chancellor," Sally noted, adding that they had each other.
Billy told Sally that Jack was out at Abbott Communications. He was pulling funding after their last fight. Billy said they'd find other money, but that's why he has to work with Cane. Billy said Cane needs him, and he'd use that to his advantage. Billy added that Cane wanted to take down Victor Newman, just as Billy also wants to bring down the mogul.
Sally pointed out to Billy that she walked away from Marchetti to do Abbott Communications with him. Billy claimed this was a minor speed bump. He told Sally that she wasn't going to lose him. Sally said she felt like she already had. She asked why Billy was taking a risk with Cane when he didn't have to. Sally shared that she told Cane and Phyllis at Society that she wasn't going to let Billy play along with them. Billy wished she hadn't done that.
Sally recalled her and Billy's early days together. He said he wanted to share every moment with her. Sally accused Billy of putting his obsessions ahead of her. Billy assured her he had this under control.
Sally asked Billy why he was risking anything by playing Cane's game. Billy said he wasn't pushing anyone away. Billy said he came up with a plan last night. Billy said he didn't have to use the AI software. He won't use Cane's plan. Billy was going to run his own scheme. He said it's a win/win "for us."
Victor visited Adam in his office. He quipped that he's seen less of his grandson, Conner, ever since he and Adam moved to the ranch. Adam said that Connor's busy with school and sports. Adam added that his siblings have concerns about the AI software and using it.
Adam informed Victor that Chelsea reached out to a social media influencer, and they should form a partnership. Victor added that Billy's new venture is a folly. Adam wondered if they should put Billy out of his misery. He suggested they use Cane's software to take down Billy. Adam said Chelsea would go along with it. "Well, I'll be damned," Victor said about Adam bringing Chelsea over to their side. Victor said that Billy would be first, and then, they'd focus on Jack Abbott.
Meanwhile, Michael met with Cane on his train. He said he'd accept his offer with provisions, of course. Michael said no one could know of their working together. Cane wanted to know if Michael was keeping a secret from Victor or Lauren. Michael played things close to the vest. Cane said it was in his best interests to keep their union under wraps. He agreed to keep their working relationship a secret. Michael said he was ready to move on from Victor, but they had to settle on a salary. Cane offered to double his original offer. The two men shook on it.
Michael asked Cane what was his first assignment. Cane suggested that he make amends with Phyllis because he wanted his people to work well with each other. Cane told Michael that he was his fixer, so "fix it."
Next, Michael returned to Victor's office and told him that Phyllis was on Cane's team. Victor said he didn't care about Phyllis's motivations. Michael said he'd keep an eye on Phyllis. Victor suggested killing two birds with one stone.
Adam approached Nick in the park and told his brother he was on his way to see Connor's soccer game. Adam asked if Phyllis shared anything about Cane's next plan. Nick is convinced that Phyllis is playing for the other team. Adam pointed out that cyberhacking is in Phyllis's wheelhouse. Adam asked Nick if he'd be okay going after Phyllis if she came after the Newmans.
At Society, Phyllis took a call from Michael. She suspected that his job fell through, and Michael wanted a reference. "I doubt anybody has a position open for a backstabbing ex-friend," Phyllis snarked. Michael asked to see her. He told Phyllis to meet her at the park. She said that when he gets there and she's not there, Michael should assume that she's not coming.
Meanwhile, alone in his train, a smiling Cane acted as if his plans were unfolding exactly as he wanted.
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