DeepMind's newest AI system has found ways to speed up calculations that stumped mathematicians since 1969. The tool is already saving money in Google's data centers - and might reshape how we write computer code. Its first real-world results point to an unexpected shift in algorithm design.
OpenAI just added a specialized coding model to ChatGPT, but that's not the whole story. The company also opened up about its safety testing - a move that could reshape how AI firms handle transparency. Here's what changed and why it matters.
Baidu unleashed chaos in China's AI market. The search giant slashed prices on its new multimodal models by up to 80%, mocking text-only AI as yesterday's news. Yet they still depend on rival DeepSeek's text models - talk about mixed signals.
Meanwhile, American scientists flee to German universities as Trump's policies bite. At Munich's Technical University, US applications have tripled. Three-quarters of US researchers now eye the exit, while German universities offer the full package: funding, labs, freedom.
Two superpowers, two different crises. In China, AI companies wage price wars. In America, academics pack their bags.
Stay curious,
Marcus Schuler
Baidu Slashes AI Prices, Takes Aim at Text-Only Models
Baidu just fired a shot at its AI rivals. The search giant unveiled two new models that process text, audio, images, and video - while claiming text-only systems are becoming irrelevant.
CEO Robin Li pulled no punches at Friday's developer conference. "The market for text models is shrinking," he said, launching Ernie 4.5 Turbo and X1 Turbo at rock-bottom prices. The 4.5 Turbo costs 80% less than before, while X1 Turbo sells for half its original price.
Baidu backed its talk with hardware: 30,000 new AI chips, an automated task platform called Xinxiang, and AI avatars for merchant livestreams. Investors liked what they heard - the stock jumped 4%.
But here's the twist. Despite downplaying text-only AI, Baidu still uses rival DeepSeek's text models in key products. This move came after Baidu dropped subscription fees for its own chatbot, outgunned by free offerings from competitors.
Why this matters:
Look past the talk: Baidu needs both text and multimodal AI to compete
The steep price cuts tell the real story - China's AI companies are fighting for survival
Prompt: AI Image Prompt: A serene, biomechanical cathedral chamber bathed in soft bioluminescent amber and violet light. In the center stands Sister Avi: a six-limbed, feminine hybrid of human and insectoid grace, her body sheathed in glistening violet carapace with translucent enzyme sacs nestled along her ribs. Her face is featureless, serene, exuding peace and divine detachment. Antennae arc like crowns from her scalp, twitching with reverence. Around her, the Beatific Swarm hovers like dust motes in sunlight. The ambient light catches the slick textures of her form, casting gentle shadows that enhance the dreamlike, sacred stillness of her rebirth.
Perplexity Makes Phone Debut Through Motorola Deal
Perplexity AI struck its first smartphone deal. The search startup will integrate its technology into Motorola's new Razr phones alongside Microsoft Copilot, Google Gemini, and Meta.
"Search shouldn't be about endless links and ads," said Perplexity CEO Aravind Srinivas at Wednesday's New York launch. "Your phone is now an answer machine, personal assistant and research agent."
Every Razr buyer gets three months of Perplexity Pro with Deep Research features. The partnership follows OpenAI's recent Apple deal, which lets Siri tap ChatGPT for complex questions.
This move skips the specialized AI gadget trend, after devices like Humane's AI Pin flopped. Instead, Perplexity aims to make AI search a daily habit by building it directly into phones people already use.
Why this matters:
Perplexity bets phones, not standalone AI devices, will bring AI to the masses
The startup's $9 billion valuation shows investors agree search is ripe for disruption
Slimmer, Cheaper ChatGPT Research Tool Hits the Market
OpenAI has squeezed its web-scouring research tool into a leaner package, rolling out a "lightweight" version to ChatGPT users that trades verbose responses for wider availability. While the new tool runs on OpenAI's o4-mini model - a slimmed-down version of its heftier sibling - it promises to maintain the depth users expect, just with fewer words to wade through.
European Science Funders Hit Pause on China Projects
Three major European research funders have frozen joint projects with China since 2021, citing concerns over the country's murky data protection rules that could trap scientists in legal quicksand. While China requires approval to share any "important data" overseas, it hasn't bothered to define what that actually means - leaving European scientists wondering if sharing a spreadsheet might land them in hot water.
Commercial Network Makes Quantum Leap in Data Security
Scientists just sent quantum-encrypted messages across Germany's commercial telecom lines without fancy cooling equipment - a first for the field. Using a clever trick called quantum entanglement, Toshiba Europe's team moved secure data over 250km of regular fiber optic cables, showing that next-gen encryption might be closer to reality than we thought.
Apple Plans Full India Shift for US iPhones
Apple aims to build all US-bound iPhones in India by 2026, marking a decisive shift away from China as Trump's trade war reshapes tech manufacturing. The tech giant needs to double its Indian production to hit this target - a massive undertaking that would end China's two-decade reign as Apple's iPhone powerhouse.
Netflix Adds Basic Subtitles Without Sound Effects
Netflix now offers simplified subtitles that show just the spoken words, dropping audio cues like "[phone buzzing]" from its usual closed captions. The new feature starts with Netflix originals in English - beginning with You Season 5 - while half of US viewers now watch their shows with some form of subtitles on.
Adobe Adds Google and OpenAI Models to Creative Suite
Adobe just added AI image generators from OpenAI and Google to its Firefly app, expanding beyond its own tech. While Adobe's homegrown AI promises legal safety for commercial work, users can now tap rival models for brainstorming - though they'll pay for this creative freedom using Adobe's credit system.
Crypto Meets AI: Nous Lands $50M for Decentralized Training
Nous Research just scored $50 million from crypto investor Paradigm to build AI models using distributed computing power on the Solana blockchain. The startup plans to reward users who share their spare computing capacity, marking one of the first serious attempts to merge AI training with blockchain technology.
Trump Policies Spark American Academic Exodus to Germany
American scientists are fleeing to German universities. The Technical University of Munich reports a spike in US applications as Trump's policies target academia.
Three out of four US researchers now consider leaving the country. Trump's administration cut research funding, restricted speech, and demanded surveillance of student activities. The pressure hits hardest in climate science, health research, and social sciences.
German universities see a chance to gain talent. Applications to TUM's visiting professor program tripled, with one-third coming from US researchers. Every successful candidate gets funding and lab space.
But German academic leaders urge caution. While some welcome the influx, others worry about damaging ties with US institutions. "We need solidarity with our American partners, not poaching," says Walter Rosenthal, head of Germany's university association.
Why this matters:
History repeats: Just as German scientists fled to America in the 1930s, US researchers now seek refuge abroad
The shift could reshape global research, with breakthrough discoveries moving from US labs to German ones
Inflection AI burst onto the AI scene in 2022, combining elite founders with massive funding to build human-like conversational AI. Silicon Valley-based Pi aims to be your digital companion, not just another chatbot.
The Founders 👥
Reid Hoffman (LinkedIn co-founder)
Mustafa Suleyman (DeepMind co-founder)
Karén Simonyan (DeepMind principal scientist)
Founded: 2022
Employees: Rapidly expanding team of engineers and researchers poached from DeepMind, Google Brain, and OpenAI
Location: Palo Alto, California
Mission: Make human-computer interaction more natural
The Product 🤖
Pi ("personal intelligence") - a conversational AI companion
Accessible via web, mobile, and messaging platforms
Built on proprietary LLMs rivaling OpenAI and Google
Emphasizes privacy and user experience
Supports both text and voice interactions
The Competition 🥊
OpenAI (ChatGPT) - the market leader with Microsoft backing
Google (Bard/Gemini) - tech giant with vast resources
Anthropic (Claude) - safety-focused AI from former OpenAI team
Cohere - business-focused AI models
Meta - investing heavily in open-source LLMs
Character.ai, Replika - smaller personal AI companion startups
Financing 💰
$1.5B+ total funding
$1.3B Series B (June 2023)
Investors: Microsoft, Nvidia, Bill Gates, Eric Schmidt, Reid Hoffman, Greylock Partners
Valuation: $4 billion
Heavy infrastructure investment: thousands of Nvidia GPUs
The Future ⭐⭐⭐⭐
Inflection AI bets big on machines that listen with humanity. 😉 With founders' pedigree, massive funding, and sharp focus on personal AI companionship, they're poised to lead the next wave of AI innovation. Their success hinges on out-executing tech giants in a rapidly evolving market.
