Ep 384: OpenAI and Microsoft tensions, NotebookLM/Adobe AI updates – AI news that matters

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Considering Nvidia's Advanced AI Model

NVIDIA has disclosed its latest AI model, fine-tuning and advancing previous models. This 'ahead of the curve' AI solution has reportedly outperformed some sectorial giants on specific benchmarks. Nonetheless, we should be cautious about overstating its significance given the narrow success spectrum.

Embracing Google's NotebookLM Updates

Google’s NotebookLM introduced the business edition alongside customizable AI audio features, allowing business owners to input custom instructions for AI-generated podcast hosts. Sensing a game-changer? Although the tool currently remains free, possibilities of future paid features can't be ruled out.

Exploring Adobe's AI-driven Creative Solutions

At the Adobe Max conference, Adobe announced AI tools for enhancing video and photo editing skills. One such extraordinary tool is the Firefly video model empowering creators to generate videos from text or images. Be mindful that it's in limited beta, accessible via specific Adobe platforms.

Unpacking the Microsoft-OpenAI Equity Deliberations

External advisors are being employed by Microsoft and OpenAI to facilitate intense negotiations concerning equity stakes. As of now, Microsoft's investment in OpenAI exceeded $14 billion since 2019. Prospective changes at Microsoft and OpenAI may have implications for their relationship, despite strong past collaborations.

Analyzing OpenAI's Transition and AGI Negotiations

OpenAI aims to strike a balance between its commitment to societal goals and its recent transition to a for-profit entity. Crucial deliberations include Microsoft's conditional tech access and the deciding authority when AGI is realized.

Apple's Investment in AI Features

Apple plans to drastically improve its virtual assistant, Siri, by 2026, integrating enhanced AI and Natural Language Processing (NLP) technologies. Speculations suggest that, despite its steadfast efforts, Apple might still be trailing competitors by about two years.

Exploring New Tools With Perplexity

Perplexity just made a splash with two new features aimed at enhancing research abilities. Its internal knowledge search and updated 'Spaces' are geared to rival Google's Gemini and OpenAI. Yet, accuracy concerns remain.

Delving Into The US Military's Deepfake Technology Interest

The US Special Operations Command is exploring deepfake tech for creating plausible online profiles, stirring concerns about information accuracy and trust in digital communications. Potential misuses of this technology call for thorough regulation.

Exploring Other Key Developments in the AI Space

AI innovations show no signs of slowing down. Microsoft announcing customizable AI Agents' launch, Meta's new AI model to reduce human involvement, and NVIDIA's newest AI model are among many essential updates. These breakthroughs continue to reshape our tech landscape and provide lucrative opportunities that businesses must seize.

Topics Covered in This Episode

1. Pentagon & AI Deepfakes
2. NVIDIA's New AI Model
3. Google NotebookLM Updates
4. Adobe Max Conference and Related Updates
5. Microsoft and OpenAI Equity Negotiations
6. Apple's AI Development
7. Perplexity's New Features
8. Meta's AI Developments

Podcast Transcript

Jordan Wilson [00:00:16]:
The US military might want to start using deepfakes. Adobe just dropped a ton of new AI updates. Speaking of drops, minutes ago, Microsoft just announced when it plans to drop its autonomous AI agents. And then speaking of Microsoft, are Microsoft and OpenAI fighting? Y'all, it's been a wild week in the world of AI news. Literally, every single big tech company is out there making pretty big headlines, and we're going to cover them all today in about, I don't know, 20 or 30 short minutes. Alright. What's going on y'all? My name is Jordan Wilson, and welcome to everyday AI. This is your daily livestream podcast and free daily newsletter, helping everyday people not just keep up with what's going on in the world of AI, but how we can all use that information and get ahead to grow our companies and to grow our careers.

Jordan Wilson [00:01:15]:
So that might sound like you. Right? Like, oh, I wanna keep up with AI. I wanna get ahead. I wanna be the smartest person in AI in my company. Well, you are in the right place. So, if you have not already, please go to your everydayai.com. Sign up for the free daily newsletter. You know, on Mondays, we usually do this show, the AI news that matters.

Jordan Wilson [00:01:34]:
Keep catching you up on everything in the world of AI. Maybe you just listen Mondays, but we always have a great lineup of other experts coming in from all aspects of business, to teach you about AI. So make sure you tune in every day if you can. Alright. So I'm excited to get today's show going. Real quick, I just gotta shout out everyone joining us live. I'm in a new, new little situation here, not recording in my normal, Chicago studio, so to speak. So thank you, for, for Michael, Rolando, Brian, Kurt, Tara, Joe, everyone else, Chris, for joining us live.

Jordan Wilson [00:02:12]:
So, without further ado, let's just jump straight into the AI news that matters because like I said, there is a ton this week. Alright. Let's start with Meta, shall we? So Meta has just released a new AI model, including a self taught evaluator to reduce human involvement. Yeah. Yay. Less humans, more AI. So Meta has just announced the release of several new AI models from its research division, highlighting a significant shift toward less human intervention in the AI development process. So the newly introduced self taught evaluator model is designed to assess AI responses with minimal human inputs, potentially leading to more autonomous AI agents in the future.

Jordan Wilson [00:03:00]:
So this model uses a chain of thought technique similar to that use in OpenAI's recent o one models, and it breaks down complex problems into manageable steps, enhancing accuracy and challenging subjects like science, coding, and math. So meta's researchers train the evaluator model entirely on AI generated data. Yeah. So, essentially, let me put this in human talk. So this new AI model from meta is made to fact check other AI models, and it was made with synthetic data or data created from AI. Yeah. If that's not meta from meta, I don't know what is. So researchers involved in the project expressed hope that as AI systems become increasingly more advanced that they will surpass human capabilities in self evaluation and correction.

Jordan Wilson [00:03:54]:
Other companies such as Google and Anthropic are also exploring similar concepts, but typically do not release their models for public use, setting Meta apart in this regard. So, yes, this is, an open source model that we just saw from Meta. So, y'all, this is pretty strange. Right? Very cool. Right? If you're an AI dork like myself, maybe maybe you are, but the fact that this new model self evaluates other AI models and it's trained on synthetic data made by AI. Right? It's hard to almost wrap my head around this early in the morning. Alright. Wrap your head around this.

Jordan Wilson [00:04:36]:
This is hot off the presses. So Microsoft has just announced a launch date for customizable AI agents. So this is going to be coming in the, public preview next month. So Microsoft has just announced that it will allow businesses to create their own autonomous AI agents starting next month, ramping up competition against Salesforce recently introduced AI tools called Dreamforce, or sorry, that was announced at Dreamforce. It's called Agentforce. So, yeah. Salesforce had this pretty big pivot last month at their Dreamforce conference when they said, hey, we're kind of an AI agents company now, and they introduced, Agent Force. So Microsoft, just now revealed its, some more of its plans to transition its autonomous agents in Copilot studio from the private preview it is currently in, only available to a very, select few number of people, to a public preview next month.

Jordan Wilson [00:05:40]:
So starting in October, allowing more organizations to build, their own AI agents. So these AI agents, well, they can do kind of anything. Right? They're designed to function as virtual workers capable of performing various tasks independently, representing a shift from traditional chat interfaces, to this more integrated solution. So, just couple of minutes ago, actually, at the recent AI tour event in London, Microsoft showcased an example of these new autonomous AI agents with the consulting firm McKinsey. So illustrating how an AI agent can analyze emails, retrieve relevant information, and summarize responses, all just using natural language. Yeah. You don't gotta be able to, you know, spit a bunch of structured inputs or code, to these agents. You just talk to it like, hey, agent, go do this work.

Jordan Wilson [00:06:37]:
So Jared Spataro, Microsoft's corporate vice president, highlighted the potential business value of these agents, noting noting that in this example, McKinsey reported a reduction in lead time by as much as 90% with their AI agent. Yeah. Everyone's always talking like, oh, is there a return on investment? Like, what's the actual time saved? Well, I don't know. Maybe McKinsey and Microsoft are two names that you've heard of before. 90% time savings. Let that one sick sink in as I take a sip of water. So Microsoft plans to induce 10 new autonomous agents in its Dynamics 365 suite, which includes applications for sales, services, finance, and supply chain management. So like I talked about, this isn't just Microsoft and Salesforce.

Jordan Wilson [00:07:34]:
Right? This is kind of everyone. We've heard reports that OpenAI, Google, DeepMind, just about everyone in the AI space is starting to heavily invest in AI agents. So, Microsoft actually here is probably going to beat Salesforce, to the first major company releasing agents to the public. So, yeah. Wild wild times y'all. I'm not sure if you all have seen, the examples, but we'll make sure to share this in our newsletter today. So, yeah. If you haven't already, make sure to go check that out.

Jordan Wilson [00:08:13]:
Another thing to check out, well, if you are a windows user, open AI has just launched ChatGPT. It's ChatGPT windows app for select users. So when, OpenAI has just began, just begun previewing a dedicated windows app for its ChatGPT platform signaling a significant shift in making AI more accessible to its users. So currently, this early version of the app is only available to paid users. So if you have a ChatGPT plus, teams, enterprise or e d u accounts with plans for a more comprehensive experience later this year. So you might be wondering, okay. Well, why do I need a ChatGPT app inside of Windows? Well, there's a lot of advantages and benefits. One is it's just a better experience, right, than having a 1,000 tabs open.

Jordan Wilson [00:09:10]:
If you really wanna get the most out of ChatGPT, I use personally, I love the Mac app. I'm on the Mac app right now. So, you know, originally, we heard back, when they announced this, that it was only going to be coming to Mac. So that's also an interesting, an interesting thing to note here that they did end up coming out with this Windows desktop version. So, yeah, if you haven't already checked it out. So it's been out the, desktop version for Mac has been out since June. So, you know, Windows users kinda got the the short end of the stick here having to wait an additional, you know, 4 or 5 months for the Windows version. But in our newsletter today, I'm sharing a video that I already created, that kind of shows you the benefits of using the app versus using the browser.

Jordan Wilson [00:10:01]:
Alright. So make sure to check that out if you are interested in the ChatGPT app for Windows. Hey, live stream audience. Do you guys prefer? Curious here. Also, I'm on the road, so normally, I've usually had 1 or 2 coffees by now, and it just hasn't hit me yet. The water is just not hitting as hard as the coffee does. But hey, live stream audience, do you listen, or or sorry, do you watch, or use ChatGPT in the desktop, app, or do you use it in the browser? I'm always curious how other people use ChatGPT. Hey.

Jordan Wilson [00:11:19]:
Alright. Apple is far behind. So recent insights from Bloomberg revealed that some Apple employees believe the company is approximately 2 years behind in artificial intelligence development, highlighting the competitive pressure in the tech industry. So at wwdc24, which happened back in June, that's when Apple first officially announced, Apple Intelligence.

Jordan Wilson [00:12:09]:
So this is Apple's new, their attempt to rebrand AI. Right? Don't know what that's all about. But that was kind of its first official, foray into the generative AI and large language model landscape, at least bringing it, to all of Apple's devices. But a recent report from Bloomberg, looked at internal employees saying that, yeah, we're up to 2 years behind. And I've been saying this since the get go. So, there was a lot of reports last summer that said Apple was spending 1,000,000 with an s, 1,000,000 of dollars a day, on training models internally. Yet, when they launched, really one of the highlights was, of Apple Intelligence was they decided to partner with OpenAI and use its ChatGPT model for more advanced, kind of questions from users. So, if you do ask a simple question, there's a good chance that the Apple Intelligence will use its own, Apple made kind of edge or small language model that lives on your device.

Jordan Wilson [00:13:22]:
However, it seems like the majority of more complex queries are actually just going to get passed off to ChatGPT. So, yeah, Apple has been facing a ton of scrutiny over the last couple of months, especially as Apple Intelligence just started rolling out in beta to a lot of users. I did a couple reviews both here on the show and, we reviewed a couple, more features in-depth on our YouTube channel. I was not impressed. Right? So not only was that, you know, I think that whole rebranding of Apple, artificial intelligence and calling it Apple Intelligence, kind of cheesy, if I'm being honest, but the features were not that good. Right? These are all features that we've had for 1 year, 2 years already. So it's really to say that Apple is 2 years behind. You know, a lot of times you see these reports and, you know, if it's unnamed sources or anonymous sources, you're like, I don't know if that's true.

Jordan Wilson [00:14:18]:
This one, I a 100% believe this report from Bloomberg talking about that even Apple's own employees are saying they are multiple years behind the other big tech companies. But, the Bloomberg article did mention that Apple does have a little bit of a history of starting slow and catching up. As an example, Apple Maps, when it first came out, was very bad. Right? And now it's it's pretty good. Right? There's actually features inside of Apple Maps that I would say are better than Google Maps. So that's just one example, that Bloomberg noted in its report in terms of Apple maybe starting very slow, but eventually catching up. Also, Apple right now plans by 2026 yeah. Not 2025, but by 2026 to have fully rolled out, its Apple intelligence including the revamped Siri, that is supposed to have that more, natural language processing, similar to ChatGPT's advanced voice mode.

Jordan Wilson [00:15:23]:
So, yeah, by 2026. Oh, I do not wanna be working at Apple right now. Yeah. They are so far behind. Alright. Perplexity. More AI news. Y'all, I told you, it this this week was a who's who.

Jordan Wilson [00:15:41]:
Every single name has been making, a splash this week. So Perplexity, has unveiled some new features to enhance research capabilities for users. So Perplexity has just announced the launch of 2 new features, internal knowledge search, and it's updated to spaces, which aims to provide users with greater flexibility in sourcing information. So the new internal knowledge search feature allows users to search both the web and their team's files, enabling multistep reasoning and code execution for more comprehensive responses. Previously, users could only upload, personal files, but this new tool expands the AI's capabilities to include Internet searches, providing a more integrated approach to search. The spaces feature serves as an AI powered research and collaboration hub, allowing users to customize perplexity's AI assistant to meet specific project needs and data requirements. So let me simplify what's happening here. So largely, I think people have viewed perplexity as an answers engine.

Jordan Wilson [00:16:57]:
Right? An AI powered answers engine, a competitor to traditional Google search, which I think it is. I will say this, perplexity in my experience has a lot more hallucinations than people talk about. Right? So as great as perplexity is, I think it's only right now, very useful for, certain business use cases. I still think, you know, when we always talk about human in the loop, I think you actually have to be very careful, especially if you are relying on perplexity to cite specific facts or sources. I think perplexity does an amazing job, at being able to grab general ideas and insights from many, articles online at once. So I think it's great for, replacing Google search, but I don't think right now it's great at producing, reliable citations, sources, and facts like you would hope for out of a large language model. So something that people overlook about perplexity is, well, it actually taps into other large language models. Although perplexity does have its kind of in house sonar, which is just a fine tuned version of meta's models, For the most part, people use, quad 3.5 SONET or OpenAI's GPT 4 o as the actual engine that powers it.

Jordan Wilson [00:18:20]:
Right? So what I think is happening here with perplexity, they are trying to compete more directly with those companies. Right? With OpenAI, with, Anthropic Claude, with Google Gemini, with these new features. These new, internal, knowledge search and the spaces feature. But similarly to how you can upload your files, in GPTs inside of, ChatGPT and inside of Gems in Google, I won't even put projects from Claude in this category because with, Claude projects, you can't query the Internet. So I think what they're trying to do here is they're trying to give, business users specifically an option to bring in their own knowledge base essentially, upload files, but then at the same time, get the good stuff out of perplexity, which is the ability to really browse the web, very quickly and to bring you insights. So, yeah. Let me know if if you guys wanna see, you you know, maybe should we do an updated deep dive on with all these new features. Let me know in the comments if you wanna see that.

Jordan Wilson [00:19:27]:
Speaking of things you wanna see, this one's weird. Alright. So according to reports, the US military is seeking advanced deepfake technology. Yeah. They're looking for this. They want to use it. So, the you the United States special operations command is reportedly actively pursuing the development of deep fake technology to create convincing online personas that are indistinguishable from real humans. So the Department of Defense's joint special operations command has released a procurement document outlining a desire for technologies that can generate realistic online profiles for social media and other platforms.

Jordan Wilson [00:20:14]:
So, the the Intercept actually had a great article breaking all of this sound that we'll link to in our newsletter. But according to the report, the goal is to create user profiles that appear human complete with multiple expressions and high quality identification photos that do not exist in reality. So the document, that was released specifies the need for not just static images, but also video and audio elements, including selfie videos set against believable backgrounds to evade detection by social media algorithms. Okay? The push for deep fake technology reflects a broader tension within the US government where some agencies aim to maintain public trust while others are seemingly wanting to invest in better understanding and potentially using some of this deep fake technology. The implications of this are obviously huge as, the implications of these technologies extend beyond military operations, raising questions about the future of information integrity and trust in digital communications for the general public. So, yeah, this is one we're going to be keeping a close eye on, and here's the here's the reality. I read a lot of AI news. Right? Every single day, we start the, the podcast with, you know, 2 or 3 of the biggest AI news stories, and then we dive into the topic for the day.

Jordan Wilson [00:21:46]:
And very rarely do I I read a story and say, wait, what? This is one of those, this this report, from the intercept talking about how the Pentagon actively wants to use AI to create deep fake users online. So, yeah, there's not a lot of information out yet about the intent, as in why. Right? You hope you hope that they want to use this technology so they can better understand how our, kind of adversaries across the the world are using it. Right? So I get that that piece of it. Right? Because other countries are trying to use this technology to maybe hurt or harm the United States. So, from that aspect, I understand it. You really have to be able to use and understand the technology, to prevent others from using it against you. But, man, I wish there would have been that kind of reassurance.

Jordan Wilson [00:22:41]:
Right? That is my assumption. So, I wish in this report and in this, this paper, that was, kind of released, I wish that that would have come to light a little more explicitly. A little concerning. Right? I don't know. Does anyone else, anyone else see that story and just like, ugh, just me? Not a big fan. Alright. Something I am a big fan of, new AI models all the time. So NVIDIA just launched a new AI model that outperforms some of the bigger companies.

Jordan Wilson [00:23:20]:
So NVIDIA, yes, the chip maker has released a new model based on llamas 3.1, from Meta. So NVIDIA has unveiled a new AI model that surpasses offerings on some benchmarks from industry leaders like OpenAI, Anthropic, and Google, marking a significant develop in the AI sector. So this release is pretty noteworthy because, obviously, NVIDIA is the leader in GPUs, which all of these companies need, to train their models. Yet NVIDIA just fine tune Meta's llama model, and it is already outperforming some models from OpenAI, Claude, and Gemini on certain benchmarks. So the new model is named Llama 3.1 Nemo Tron 70 b instruct. Great name. That just rolls off the tongue really early on a Monday morning. Alright.

Jordan Wilson [00:24:22]:
And it's been introduced on hugging face. If you just want to go use it, we'll have that link, in our newsletter today as well. So like I said, the fine tune model is based off of llama's 3.170 b model, which is actually wild. Yes. These models take time, but Meta's llama 3.170 b is not only the middle model of the 3.1 series. There is also the 405 b. So that is, you know, 70 b is trained on 70,000,000,000 parameters. 405 b trained on 405,000,000,000 parameters.

Jordan Wilson [00:24:59]:
So this new model, which got some benchmarks higher, than, OpenAI's GPT 4 o and Anthropics 3.5 SONET was on number 1, the medium sized model from Meta, but their old model. Right? 3.1. So a couple of weeks ago, Meta just released their new model, llama 3 point 2. So very interesting. So let's talk about the benchmarks. Right? Because everyone's talking about this, and I think there's a lot of, incomplete information. I think people were kinda losing their noodles. This went, viral online last month for a couple of reasons.

Jordan Wilson [00:25:36]:
Number 1, it's NVIDIA just fine tuning a open source or open weights model from Meta. But, you know, NVIDIA's in hardware, so why are they getting into software in AI models? So that's number 1. But it was just one specific benchmark under one specific, kind of set of criteria. So I wouldn't pay too much attention to this, obviously. I know a lot of people are talking like, oh, you know, OpenAI and, Anthropic, their new models, they're they're they're not even good because look at this new NVIDIA fine tune. It's way better. No. It's not.

Jordan Wilson [00:26:10]:
Just one. So the one very specific benchmark was the arena hard auto on, GitHub and that was with no control style. That's like some super technical dorky stuff, but essentially think of if if if you do a 100 tests and all these tests have different, conditions, it just outperformed, on one with an 85 point o score, which was higher than OpenAI's GPT 4 o and Anthropic's 3.5 SONET. So, here's the thing y'all. I wouldn't pay too much attention to this, although it is very cool. And, yes, you can go use it, and it is very impressive for a 70,000,000,000 parameter open source model, that it can perform at a pretty high level, right, of these closed source proprietary state of the art models. But, for general use cases, that's not where it's at. Even NVIDIA emphasized the importance, or NVIDIA cautioned that the model may not yet be suit of, suitable for specialized domain such as legal, mathematical reason, etcetera.

Jordan Wilson [00:27:16]:
So, you know, even NVIDIA said, hey. You know, this essentially was fine tuned and we were able to get great benchmarks in certain aspects, but probably not a model that you wanna start using every single day. A model I'm using every single day, literally NotebookLM. So we covered this last week, middle of the week, but NotebookLM has announced some new features. So they've announced a new business edition and also customizable AI audio features. So, Google's NotebookLM, which is based on its Gemini 1.5 model, announced some pretty significant changes to updating or customizing the AI audio overview. So that's, you know, these AI podcasts that have gone viral over the last, couple of months. That's from notebook l and m.

Jordan Wilson [00:28:14]:
But before, you kinda just, you you know, would upload all of your source documents and click generate an AI, podcast, and then the deep dive, that's it's essentially 2 AI hosts, and they would come and have a very real and very captivating conversation based on all the source material that you upload. But it was just kind of a crapshoot. Right? Because you couldn't really control what the host talked about. It was really up to their own, I'd say agency. Right? That's kinda weird to say. But now you can customize it. So Google kind of unofficially called this, you know, pass a note to the audio presenters, but essentially, it gives you about a 100, about a 100, 150 words of custom instructions that you can upload beforehand. So we did a very fun show on this last week.

Jordan Wilson [00:29:04]:
We did it live. So the example that we did is we uploaded, a bunch of documents. Right? So if you haven't heard of NotebookLM, it's fantastic. I personally love it. Aside from ChatGPT, it is the AI tool that I use most. But essentially you can upload all kinds of different source documents in different ways. So we uploaded some, you know, YouTube videos, websites, you know, I think PDFs on how to play cribbage. And then we uploaded some information on project management.

Jordan Wilson [00:29:33]:
Right? So previously, if you created an AI overview of that, you wouldn't get anything that worked great. Essentially, they would say, okay. Well, I think that this maybe project management piece was a mistake. So in our example, we put in some customized instructions and we said, hey. We're trying to teach project managers how to play cribbage. Right? So we were able to kind of, you know, quote unquote pass a note, and the the audio was actually fantastic. We we shared the downloadable audio in our newsletter, and I think it actually turned out, very, very well. So that was one new feature.

Jordan Wilson [00:30:07]:
The other new update from NotebookLM is they are launching a business edition, pilot program. So, I signed up, haven't gotten access to it yet, but we do assume in the future, Google will be charging for NotebookLM. Right now, it is free, which is wild because it operates as a grounded model. So it only works with your data, so it really reduces the amount of, hallucinations and increases the amount of trust. So it is a grounded model. It is retrieval augmented generation, right, in in a very simple form, and it's available for free. So Google kind of you know, I think it's a I think it's great that, Google and NotebookLM is coming out with this business edition feature. But what that means is probably NotebookLM is not going to be free forever, which is probably for the best, because they have millions of users, and I assume it is extremely expensive.

Jordan Wilson [00:31:04]:
So, I think more than anything, this is, par for the course, but bringing some, more advanced features to teams. So once we get more, updates on the, business edition, we'll probably be letting you know. Alright. Two more stories. Y'all, I told you this week, we got a ton. So Adobe Max. So Adobe, unveiled a ton of new AI tools at their Adobe Max conference. So their recent announcements at the Max conference have the potential, I think, to really transform the use of AI in creative spaces, especially with some video, and photo editing capabilities.

Jordan Wilson [00:31:44]:
So I'd say probably the biggest announcement out of all of this was Adobe, officially introduced the Firefly video model. So, yeah, like most things in AI, it's not publicly available yet. So it's a sign up page. Right? Blog post and a wait list. However, the Firefly video model is a new generative AI tool that allows users to create videos from text or images now available, in, like I said, limited beta rolling out very slowly within both the Premiere Pro app from, Adobe and their Creative Cloud as well as the Firefly web app. So, yes, Adobe does have a dedicated firefly web app for its AI generated photos, and now it's AI generated videos. So you might be thinking, like, okay. Well, why? And is this kind of late? Well, sure.

Jordan Wilson [00:32:38]:
Right? We have a lot of, text to video or photo to video products. You know, as an example, from Runway, from, Luma Dream Machine, from Cling. Right? There's there's a handful of just high quality, AI, you know, text to video, photo to video products. But one thing that Adobe is is really, really pushing here is that it uses data that it says it has access to. Where a lot of these other AI video models, they don't really say how their model was trained. Right? All these other big companies, they're kinda coy, right, on what goes into their models. Right? The the assumption is most of these models just have scraped the Internet and have scraped, sites like YouTube, which is, using copyrighted works. Right? So Adobe, at least, saying that it does not scrape the Internet for its training data, and it only uses, you know, to create the firefly, models.

Jordan Wilson [00:33:39]:
It only uses, visuals that it has essentially rights to use. So, pretty interesting there. Also on the photo side, Adobe did announce its new, Firefly 3 image generator. Pretty good. I'd say it's better than, DALL E, but still very far behind. Industry leaders, such as, Midjourney, probably stable diffusion as well. And maybe even, the imagine model from Google that they just rolled out 2 weeks ago, inside Google Gemini. So, I do think instantly, Adobe's AI photo generator, it's at least, you know, on par, maybe not tier 1 a, but maybe tier 1 b.

Jordan Wilson [00:34:20]:
But the big thing here is when are people going to get access, to the video generator? The quality looks really good, and they beat OpenAI's SoRA to the punch. Right? That's another huge thing. It's it's been about 8 months, since OpenAI previewed its text to video model, Soarra, but still don't have it. Right? So at least Adobe here beating them to the punch. The other big, kind of announcement that I think even though it's only 2 seconds, I think the new generative extend feature, inside of Adobe's video editing programs is huge. So this is a new feature that essentially, and we showed this live last week as well on the show, But, you know, think if you're a video editor and maybe you don't know, but a lot of times there's gaps. There's these small gaps, in video. And what that means sometimes is, you know, editors will sometimes just reuse a lot of shots or they'll use a lot of slow motion or some b roll that's not very good.

Jordan Wilson [00:35:19]:
Right? So this new generative extend, you need to have at least 3 seconds of video. Right? So anywhere from 3 to however many seconds, but minimum 3 seconds, and then you can extend it, and you can add 2 seconds on the back end, which doesn't seem like a lot. I get that. You're like, alright, Jordan. Why are you talking about 2 seconds of AI video? Well, it works with your video where so many of these other AI video generators work with text and they work with photo. So Adobe bringing this generative extend into professional workflows. Right? So many of the TV shows that we all watch, so many of the movies that we all watch, documentaries, etcetera, they're edited inside of Adobe. So I do honestly think this is going to be the first time that the majority of people in the world.

Jordan Wilson [00:36:12]:
Right? Yeah. We all like if if you're listening to the show, you live in an AI bubble with me. Right? We've all seen all these other AI video generators, but no one else has. I do think this little 2 second generative extend is going to be, the the feature that really brings AI video to the masses. Alright. Our last piece of AI news and we save the juiciest for last. So according to reports, Microsoft and OpenAI are navigating some complex equity negotiations amidst OpenAI's soaring valuation. So Microsoft's substantial investments in OpenAI are now totaling more than $14,000,000,000 since 2019, and they're now at the center of some intricate negotiations regarding equity as OpenAI has transitioned from a nonprofit to a for profit corporation.

Jordan Wilson [00:37:10]:
So according to reports from The Wall Street Journal, Microsoft and OpenAI have engaged some outside help to help them, talk through some of these tricky negotiations. So they've engaged Goldman Sachs and Morgan Stanley, respectively to assist them in determining Microsoft's ownership stake in the new kind of for profit structure and potentially renegotiating terms of their original agreement. So at least reportedly, the, the original agreement was open, was Microsoft invested at that time, more than or it was reported between 10,000,000,000 to $13,000,000,000 for a, reported I keep saying reported because it was never made public, but a 49% equity stake in OpenAI. But now OpenAI's valuation has skyrocketed to a $157,000,000,000 following a recent funding round with notable investors like Nvidia, SoftBank, and just about everyone. So Microsoft's earlier investment of $10,000,000,000 in January of 2023 valued OpenAI at $86,000,000,000. So, yeah, huge. That's, about a almost doubling, valuation in about, 18 months. So despite the high valuation, OpenAI projects a $5,000,000,000 loss this year with revenue expected to reach 3,700,000,000, but its, expenditures and what it's spending are outpacing that.

Jordan Wilson [00:38:47]:
So that's why we have to look at this restructuring and what's going on here. So, the restructuring of OpenAI right now, from a not for profit to a for profit to public company, aims to attract more investors while maintaining a commit to its, original societal goals. So OpenAI will still have a nonprofit that will continue to exist and retain a minority stake in the for profit entity. So, yes, the nonprofit charity is going to have an equity stake in the for profits, the the the new for profits, kind of parents company. So CEO Sam Altman is expected to receive a larger equity stake in the new company, addressing previous concerns about his limited investment exposure. So according to all of this rip all of these reports, there's another significant concern is a clause in the contract, that may restrict Microsoft's access to OpenAI's technology if OpenAI, later develops essentially artificial general intelligence or HEI. Right? So HEI is essentially, when AI is smarter than every single human in every single task. Right? So this clause and we actually did an entire, like, hour long show, investigating this about 3 or 4 months ago.

Jordan Wilson [00:40:13]:
So this one clause is designed to prevent potential misuse of the technology by Microsoft according to reports, raising questions about how AGI is actually defined and who actually determines its arrival. Right? Because, yes, the terms of this agreement change drastically once essentially AGI has, quote, unquote, been achieved. But right now, it is OpenAI's board that has the authority to decide when AGI is achieved, but its CEO, Sam Altman, acknowledges that this assessment will be subjective and potentially ambiguous. So Altman previously noted that as progress continues, determining the timeline for AGI becomes increasingly complex, suggesting it might be a gradual transition rather than a clear milestone. So, yeah. This is going to continue. Right? And I think we've really overlooked how monumental, this Microsoft and OpenAI partnership has been for both companies. Right? So from a financial standpoint, makes a lot of sense for OpenAI.

Jordan Wilson [00:41:28]:
Right, one of their biggest investors also when, we had the whole, you know, Sam Altman firing fiasco, back in November and, you know, outsiders were saying like, oh, it's open AI on the cusp of collapse. I was like, no. But it was actually Microsoft CEO, Sadia Nadella that, reportedly helped lead talks that, you know, brought Sam Altman back into the fold and reinstated him as CEO. So, yeah, there's a lot of these things under the hood that a lot of people aren't looking at. You know, another one is, so much of what Microsoft is leaning into, as an enterprise is its copilot. Right? Almost everything that Microsoft talks about now is based on copilot, which I think rightfully so. That's the AI is the future of work. Right? But Copilot and, essentially, Microsoft's future, systems at least right now are based on OpenAI's GPT technology.

Jordan Wilson [00:42:25]:
Right? GPT 4 or GPT 4 o. So, obviously, Microsoft has made some substantial, investments over the last couple of quarters to really bolster its own in house, large language model and small language model development to have less of a reliance on open AI and its GPT technology. So, yes, these reports that just came out from the Wall Street Journal, which we will be, linking to, in the newsletter. Pretty significant. Yes. This is standard. Right? Anytime, you know, there's 1,000,000,000 and 1,000,000,000 of dollars invested and, you know, corporations, you know, switch their operating structure and, you know, so this is normal, but it is definitely worth, paying attention to as we'll definitely be paying attention to, on this show as this is kind of this power partnership. Not saying anything shaky.

Jordan Wilson [00:43:21]:
Right? Not saying they're on shaky grounds, but, I mean, anytime you're bringing to the table outside parties to help you, renegotiate a multibillion dollar investment that really powers how we all work, it's definitely worth paying attention to. Alright, y'all. I know that was a lot. Here is the very, very fast recap of all of the AI news that matters, this week. So Meta has released a new AI model that literally just fact checks other AIs, and it was built with AI powered synthetic data. So Meta from Meta, Microsoft launched, its new custom or is launching its new customizable AI agents for businesses in public preview next month. So that, they just announced at their recent AI tour event in London. So big news there for Microsoft.

Jordan Wilson [00:44:15]:
Microsoft users now also getting, the ChatGPT desktop app if you are on a paid plan. Our next piece of AI news was looking at a Bloomberg report about how Apple is reportedly, according to its own internal employees, at least 2 year 2 years behind in AI, advancements compared to its competitors. Perplexity, our next AI news. Perplexity unveiled, some new features. Its internal knowledge, search, and spaces, which I think are putting them more on path to compete with, players like OpenAI and Google Gemini. Next, the US military is seeking to actually use some advanced deep face tech, deep fake deep fake technology. That one's weird, but definitely worth paying attention to. NVIDIA launched a new AI model that outperformed, Open AIs and, Quad's models, but only on very specific benchmarks.

Jordan Wilson [00:45:14]:
And this was based off a llama 3.170 b. So, NVIDIA, they're fine tuning a model. NotebookLM announced a bunch of new features, customizable AI audio, as well as a new business edition that they just, launched a pilot for. Adobe Max AI everything at their, AI or sir sorry. Their, Max conference. So including the, Firefly video as well as the Firefly photo 2, generative extent, I think is gonna be a big one. And then last but not least, some new reporting coming out, kind of detailing this, now maybe tumultuous relationship between Microsoft and OpenAI and some things that are going on behind the scenes there. That's a lot.

Jordan Wilson [00:45:58]:
I need a drink of water. I hope this recap was helpful. Every Monday, we go over the AI news that matters. If this is helpful, please join us every other day where we bring in expert guests from all realms of work to help us all understand AI better. So if you haven't already, please go to your everydayai.com. If this was helpful, don't keep this as your little secret. Share this with your coworkers, families, friends, your your your dogs, neighbors, babysitters, dog walker, whatever that means. Thanks for joining us, and we hope to see you back tomorrow and every day for more everyday AI.

Jordan Wilson [00:46:31]:
Thanks, y'all.