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In this issue, we take a close look at Microsoft's new Phi-3 Mini. We'll see how this small device is poised to transform AI technology in portable gadgets.

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TODAY’S AI SECRET:

• Microsoft unveils Phi-3, tiniest AI model to date.

• Perplexity valuing its AI search platform at $3B.

• Daily trending & featured AIs boost your career and business.

• Australia's intelligence head cautions AI may worsen extremism.

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TODAY’S AI WORLD

• Apple's 3nm - Tech giant Apple is reportedly developing its own AI server processor, utilizing TSMC's advanced 3nm process with anticipated mass production by the second half of 2025.

• Photoshop AI - Adobe introduces "Generate Image" tool in Photoshop, enabling image creation from text prompts.

• $1.1B Deal - Coca-Cola commits to spending $1.1 billion over five years to use Microsoft’s cloud computing and artificial intelligence technology for streamlining operations and finding new growth opportunities.

• Combating Child Abuse - Major AI firms, including Google, Meta, OpenAI, Microsoft, and Amazon, have committed to examining their AI training data to remove any child sexual abuse material to ensure it doesn't appear in upcoming models.

• "Miss AI" Beauty Pageant - AI platform Fanvue, in partnership with the World AI Creator Awards, launched the world's first "Miss AI" competition, stirring widespread criticism. Critics bluntly label the initiative as a monumental step backwards.

MICROSOFT

Microsoft unveils Phi-3, tiniest AI model to date.

Microsoft recently launched the Phi-3 Mini, a new addition to its range of compact AI models. This innovative AI model is designed to work efficiently on devices with less processing power, like smartphones and laptops, while still delivering top-notch results.

The Details:

• Launch of Phi-3 Mini: Microsoft introduced Phi-3 Mini, a compact AI model with 3.8 billion parameters, aiming to provide efficient yet powerful AI capabilities on a smaller scale.

• Features and Capabilities: Despite its size, Phi-3 Mini performs comparably to much larger models. It's available on platforms like Azure and Hugging Face, highlighting its accessibility and versatility.

• Educational Approach in Development: The development of Phi-3 Mini utilized a unique "curriculum" based on children's learning methods, employing simpler language and concepts to enhance the model's understanding capabilities.

• Comparison with Competitors: The document also touches on competitive models from companies like Google and Meta, emphasizing the niche that Phi-3 Mini fills in handling simpler, more specific tasks efficiently.

Why It Matters:

• Advancement in AI Accessibility: The Phi-3 Mini's development makes powerful AI tools more accessible and affordable, particularly valuable for applications on personal devices where computational resources are limited.

• Innovation in AI Training: The training approach using simplified content mirrors early human learning, which could influence future AI training methodologies.

• Market Competition: By launching smaller, efficient models like Phi-3 Mini, Microsoft remains competitive in the rapidly evolving AI landscape, where various companies vie to offer specialized AI solutions for diverse applications.

AI IN STARTUP

Perplexity valuing its AI search platform at $3B.

Perplexity, an AI search engine startup, is making waves with its rapid growth and strong investor interest. The company is actively raising funds to develop and enhance its innovative AI-driven search technologies, positioning itself as a leader in the AI search engine market.

The Details:

• Significant Fundraising: Perplexity has successfully raised several large funding rounds in quick succession, significantly increasing its valuation from $121 million to between $2.5 billion and $3 billion in less than a year.

• Innovative AI Product: Perplexity is creating a cutting-edge product, Perplexity Enterprise Pro, which integrates multiple leading AI models, offering a more tailored and effective search experience.

• Strategic Market Focus: Perplexity distinguishes itself in a competitive AI market by focusing specifically on enhancing search functionalities, unlike its more generalized competitors.

Why It Matters:

• Advancement in AI Technology: Perplexity's development of advanced AI search solutions could redefine industry standards, pushing the boundaries of what AI can achieve in search functionalities.

• Investor Confidence: The rapid and substantial investment into Perplexity reflects strong market confidence in its potential and underscores the intense interest in AI technologies among investors.

• Focused Market Strategy: Perplexity's approach to targeting specific enterprise needs with its AI solutions highlights a strategic trend in the AI industry, emphasizing the importance of specialized applications over broad capabilities.

AI TOOLS

Trending AIs.

Featured AIs.

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AI IN AU

Australia's intelligence head cautions AI may worsen extremism.

Australia's intelligence head has cautioned about AI — it's a powerful tool that can be used for good but also poses risks. Enemies could use AI to spy, spread false information, and encourage extremism. However, AI also presents great chances for progress.

The Details:

• Enhanced Threat Landscape: Australia's intelligence chief, Mike Burgess, warns that AI could accelerate radicalization and improve the operational capabilities of the country's adversaries, potentially leading to increased security threats.

• Policy Shifts and Regulation: In response to these emerging threats, the Australian government is considering mandatory restrictions on AI development and usage, seeking input from legal and scientific experts.

• Call for Collaborative Regulation: Burgess advocates for cooperation between technology companies and intelligence agencies to ensure lawful access to encrypted communications, which he views as essential for effectively monitoring and countering extremist activities.

Why It Matters:

• Balancing Security and Innovation: The push for AI regulations highlights the need to balance technological innovation with national security and public safety, a challenge faced by governments worldwide.

• Implications for Privacy: The debate over encryption and lawful access underscores the ongoing tension between privacy rights and security requirements, with significant implications for personal freedoms and state powers.

• Global Security Dynamics: These developments reflect broader global concerns about the potential misuse of AI technologies, stressing the importance of international cooperation in technology governance.

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