Good Morning, AI Enthusiasts!

In a move that can only be described as the AI equivalent of ghosting your date after a third dinner, Anthropic left Windsurf scrambling like a cat on a hot tin roof.

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QUICK HITS

• Microsoft has launched a free AI video generator in Bing to challenge Google's dominance in content creation.
• Google DeepMind is developing an AI-powered "next-generation email" system to automate email management and reduce inbox clutter.
• US labor unions are battling against job displacement from AI advancements, facing political and corporate challenges in securing worker protections.
• Mistral has launched Codestral Embed, a new code embedding model that surpasses OpenAI and Cohere in real-world retrieval tasks.
• Amazon is investing $10 billion in new data centers in North Carolina to enhance its AI infrastructure.

WAR

The Tale of Windsurf, Anthropic, and the Battle of the AI Titans

In a plot twist worthy of a Silicon Valley drama series, Windsurf, the AI-powered coding startup recently acquired by OpenAI for a jaw-dropping $3 billion, found itself in the crosshairs of Anthropic, a rival AI powerhouse.

• Windsurf, having achieved impressive growth with its innovative coding platform, faced an unexpected setback when Anthropic cut off its access to key AI models shortly after being acquired by OpenAI for $3 billion.
• With a mere five days to adapt, Windsurf quickly sought to implement third-party inference services and introduced a workaround for users to maintain some model access, despite criticism that it was a costly and complicated solution.
• Anthropic’s decision has triggered discussions about the implications of such competitive strategies, with concerns about potential harm to innovation and user reliance on these technologies.

What's interesting is that Windsurf opts for pricier third-party solutions to access Anthropic's advanced model capabilities instead of using OpenAI's models. What better way to say “I trust you” than to pay for it?

TOGETHER WITH MACROCOSMOS

Pretraining is the hardest part of AI to decentralize - until now

Vast data centres, enormous compute, and insatiable energy demands: only big tech can train LLMs. Even open-source models like Llama or Qwen are centrally trained, leaving DeAI dependent on centralized competitors.

Macrocosmos, an open-source AI lab on Bittensor, just launched IOTA - Incentivized Orchestrated Training Architecture. It allows anyone, anywhere to participate in LLM training-at-home:

✅ No memory constraints = wider accessibility.

✅ Fair, real-time rewards = co-ownership with proportionate attribution.

✅ 128× compression + trustless weight merging = global scale, fast.

Check out our interactive 3D dashboard. Join now to contribute compute, get rewarded, and train LLMs - and help make data centres a thing of the past.

COPYRIGHT

DeepSeek Might Have Used Google's Gemini To Train Its Newest Model

Chinese AI lab DeepSeek is alleged use of Google's Gemini data to train its latest AI model, R1-0528. The scrutiny over the data sources used for training AI models raises ethical concerns about data ethics, competition, and the integrity of AI outputs.

• DeepSeek has been accused of using outputs from Google's Gemini to train its R1-0528 model, with researchers suggesting similarities in language and expression between the two.
• This is not the first time DeepSeek has faced scrutiny; previous models were found to identify themselves as ChatGPT, hinting at potential training on OpenAI’s datasets.
• OpenAI has noted that DeepSeek may have employed distillation techniques, which involve extracting data from more advanced AI models, to enhance its own offerings.

The implications of such data sourcing accusations are profound for the AI landscape. In response to such practices, AI companies like OpenAI and Google are tightening security measures to prevent unauthorized training on their models.

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