Good morning from San Francisco,

Where billions flow faster than morning coffee. Today brings a quintessential Valley story.

Former OpenAI Chief Technology Officer Mira Murati launches "Thinking Machine Labs" with a reported $1 billion in funding. She aims for a $9 billion valuation. Without a product. This move highlights Silicon Valley's ever-expanding bubble.

Meanwhile, OpenAI slashes its premium research features from $200 to $20 monthly. The price cut signals a shark tank environment where AI providers battle for market share.

Silicon Valley proves once again that hype trumps revenue in the AI gold rush. The AI price war kicks off, turning premium features into commodities. Big players scramble to lock in market share before the bubble pops.

Stay curious,

Marcus Schuler

Valley's New Unicorn: OpenAI Alumni Chase $9B Dream

Mira Murati hunts big game. The former OpenAI CTO launched Thinking Machine Labs last week, chasing $1 billion at a staggering $9 billion valuation.

AI startups, especially those led by OpenAI alumni, magnetize investor cash in 2025. These ex-employees command premium valuations that dwarf most tech ventures.

Murati's OpenAI tenure speaks volumes. She steered ChatGPT's development as CTO and briefly stepped in as CEO during Sam Altman's November 2023 ouster. After his return, she retreated to her technical role.

Silicon Valley buzzed with speculation about her next move. The answer came last week when Thinking Machine Labs emerged from stealth. Murati's blog announced: "We're building Thinking Machines Lab to make AI systems more widely understood, customizable and generally capable." Standard AI industry promises in fresh packaging.

She brought firepower. John Schulman, ChatGPT's co-creator, jumped ship. Jonathan Lachman, OpenAI's former head of special projects, followed. Barrett Zoph and Alexander Kirillov, key ChatGPT architects, rounded out the dream team.

The AI talent carousel spins faster. Ilya Sutskever, OpenAI's co-founder and chief scientist, launched Safe Superintelligence Inc. in May 2024. The Amodei siblings blazed this trail, leaving OpenAI to create Anthropic in 2021.

Murati's spokesperson dodged funding questions. The round continues with details in flux.

OpenAI's brain drain spawns billion-dollar AI labs like rabbits. Apparently, humanity needs competing AI companies, not collaboration. This musical chairs game shuffles familiar faces between new ventures, each carrying a heavier price tag. The $9 billion opening bid for Murati's startup screams either supreme confidence or supreme folly in AI's future.

Why this matters:

• OpenAI's talent hemorrhage creates a multi-billion-dollar diaspora of competing AI labs. Apparently, saving humanity through artificial intelligence requires multiple competing companies rather than collaboration.
• A $9 billion valuation for a newly launched startup underscores investor confidence—and risk appetite—in AI’s future
• The AI industry's game of musical chairs continues, with the same players reshuffling between companies. New faces, same talent pool, bigger price tags.

Read on, my dear:

• Mirsa Murati’s Blog Post

Deep Dive Without Deep Pockets: ChatGPT Plus Gets Research Upgrade

OpenAI slashes Deep Research prices. The powerful research tool drops from $200 to $20 monthly, joining the standard Plus subscription.

The feature transforms complex topics into detailed reports with minimal user input. Plus subscribers get 10 monthly Deep Research queries, while Pro users now command 120, up from 100.

OpenAI beefed up the tool's muscles. Images now complement citations, while smarter document analysis cuts through file formats like butter. Users simply click the Deep Research icon and wait - reports take five to thirty minutes to materialize.

The tool targets finance pros, scientists, policy wonks, and engineers. It serves anyone hungry for precise, documented research without the grunt work. The upgraded system now weaves user files with web sources seamlessly, eliminating copy-paste headaches.

OpenAI promises more upgrades ahead. Future versions will pack more visuals and data charts. For now, free users wait in line - the company cites intensive computing needs for the restricted access.

The feature's dramatic price cut signals a heating AI market. As competitors multiply, premium features become table stakes in the battle for user loyalty.

Why this matters:

• The research playing field just leveled dramatically - what once cost ten Starbucks visits per month now costs just one
• AI research assistants are evolving from novelties into essential professional tools, marking a significant shift in knowledge work
• The gap between consumer and professional AI tools continues to narrow, suggesting we're entering an era where powerful AI capabilities become household utilities

Read on, my dear:

• OpenAI announcement

AI Photo of the Day

Prompt:
Painted white, St Mary’s Lighthouse, St Mary’s Island, England highly-stylised atmospheric ink and wash painting, D flat precise line work, gongbi painting, delicate details flat illustration, soft strokes , layered composition, regency colour palette.

AI & Tech News

Tech Giant Dismisses Reports of Massive Data Center Plans

Meta refutes claims about a planned $200 billion AI data center campus. Reports suggested the company scouted locations in Louisiana, Wyoming, and Texas, but a Meta spokesperson branded these stories "pure speculation."

Apple's Dictation Algorithm Confuses 'Racist' With 'Trump'

Apple's speech-to-text feature briefly displays "Trump" when users say "racist." The company blames phonetic similarities between the words, not a subliminal programming plot.

Musk's AI Chatbot Unleashes Digital Profanity Tornado

xAI launched Grok 3's uncensored voice mode last Sunday, letting users trigger everything from 30-second screams to explicit role-play conversations. The chatbot's "unhinged" personality curses liberally when provoked, marking Elon Musk's deliberate break from competitors' safer approach.

AI Decoded 🔓: Audio Tools

Your guide to mastering AI tools - no tech degree required.

Beyond ElevenLabs: AI Audio Tools That Actually Save Time

Audio production is evolving rapidly, with AI reshaping tasks once handled only by professional engineers. AI now tackles tasks that once demanded professional engineers. These tools slash production time while boosting quality, all without requiring a sound engineering degree.

The AI Audio Revolution Starts Here:

Resound: AI that polishes your podcast like a pro

• What it does: Hunts down and eliminates filler words, awkward pauses, and background noise automatically. Then applies professional EQ, compression, and leveling to make your podcast shine.
• Standout feature: Destroys "umms" with ruthless efficiency
• Availability: Works on any browser - desktop or mobile
• Price: Free tier (20 minutes of audio); Paid plans from $15/month (4 hours) to $60/month (30 hours)
• Perfect for: Solo podcasters who'd rather focus on content than spend hours editing

Auphonic: The veteran AI audio tool that still outsmarts newcomers

• What it does: Balances levels between speakers, eliminates noise/hum, and masters your audio to broadcast standards Standout feature: Enforces platform-specific loudness standards so your audio sounds perfect everywhere
• Availability: Web-based plus iOS and Android apps for on-the-go fixes
• Price: Free tier (2 hours monthly); Subscriptions from $11/month (9 hours) to $99/month (100 hours); Or one-time credits ($12 for 5 hours)
• Perfect for: Podcasters, educators, and journalists who need quick, professional-sounding audio

LALAL.AI: The audio surgeon that extracts what you need

• What it does: Separates vocals from instruments, isolates specific instruments, eliminates background noise, and even tweaks voice characteristics
• Standout feature: Pulls clean vocals from mixed tracks without destroying audio quality
• Availability: Web service, desktop apps (Windows/Mac), and mobile (iOS/Android)
• Price: Free trial (10 minutes); One-time packages from $18 (90 minutes) to $100 (750 minutes)
• Perfect for: Musicians needing stems for remixing, podcasters cleaning dialogue, and karaoke enthusiasts crafting backing tracks

CrumplePop: The one-click wonder for video creators

• What it does: Eliminates room echo, fan noise, wind interference, and electrical hum with minimal effort
• Standout feature: Processes everything locally - your audio never leaves your computer
• Availability: Desktop application and plugins for major editing software
• Price: Free basic version; Pro features at $29/month or $599 one-time purchase
• Perfect for: Filmmakers and video editors who need clean audio without learning complex audio tools

Why These Tools Matter:

• AI audio tools liberate creators from technical hurdles. They democratize professional sound quality. Your audience judges content quality first by how it sounds - these tools ensure they keep listening.
• The days of needing an audio engineering degree to produce clean, professional sound have ended. These AI assistants handle the technical heavy lifting while you focus on creating compelling content. Your audience won’t know AI was involved—they’ll just notice you sound incredible