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  • 🤯 Stanford Builds $50 Rival to OpenAI’s o1

🤯 Stanford Builds $50 Rival to OpenAI’s o1

PLUS: How to Create YouTube Thumbnails with AI šŸŽØ

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Welcome, AI Enthusiasts!

Today’s AI Insights:

  • Stanford researchers build OpenAI GPT-3 rival for $50

  • OpenAI co-founder’s startup eyes $20B valuation

  • How to create YouTube thumbnails with AI

  • AI tool of the day

  • Latest AI and tech news

  • Top AI tools

  • AI Meme of the day

Read Time: 3 mintue

LATEST AI NEWS

SAFE SUPERINTELLIGENCE

Image Source: Getty

Safe Superintelligence (SSI), an AI startup co-founded by former OpenAI chief scientist Ilya Sutskever, is in early talks to raise funds at a valuation of $20 billion—four times its previous $5 billion valuation last September.

The Details:

  • Valuation Surge: SSI’s funding discussions come just months after raising $1 billion from Sequoia Capital, Andreessen Horowitz, and others.

  • Mission: The company aims to develop ā€œsafe superintelligenceā€ā€”AI models smarter than humans while remaining aligned with human interests.

  • Secretive Approach: Founded in June, SSI’s Palo Alto and Tel Aviv offices operate quietly, with few public details about its work.

  • Sutskever’s Role: His reputation as an early advocate of AI scaling, a key concept behind OpenAI’s ChatGPT, continues to attract major investor interest.

Why it matters:

SSI’s potential $20B valuation underscores investor confidence in high-profile AI ventures despite disruptions from low-cost rivals like DeepSeek. With AI safety concerns mounting globally, SSI’s novel approach could define the next wave of superintelligent systems.

STANFORD

Image Source: Niklas Muennighoff/GitHub

AI researchers from Stanford and the University of Washington have developed a reasoning AI model, s1, for under $50 in cloud compute costs, demonstrating how top-tier AI performance can be achieved on a shoestring budget.

The Details:

  • Minimal Cost, Maximum Output: The s1 model rivals the performance of OpenAI’s o1 and DeepSeek’s R1 on math and coding benchmarks.

  • Distillation Method: Researchers distilled reasoning capabilities from Google’s Gemini 2.0 Flash Thinking Experimental using supervised fine-tuning (SFT) and just 1,000 curated questions.

  • Training Setup: s1 was trained in under 30 minutes using 16 Nvidia H100 GPUs—compute that would cost around $20 today.

  • Open Access: The model, dataset, and training code are available on GitHub, potentially allowing anyone to replicate the process.

Why it matters:

This breakthrough highlights the rapid commoditization of AI technology, challenging major players like OpenAI and Google. As low-cost models become increasingly viable, the AI innovation race could shift dramatically, forcing large tech firms to defend their moats with next-gen breakthroughs.

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AI & TECH NEWS

Former OpenAI CTO Mira Murati has reportedly enlisted OpenAI co-founder John Schulman for her stealth AI startup, following Schulman’s brief stint at Anthropic. With key hires like Christian Gibson and plans to raise over $100 million, Murati’s venture signals bold ambitions in AI innovation.

French President Emmanuel Macron unveiled a €109B AI investment ahead of the Paris AI Action Summit, emphasizing its potential in healthcare and energy. To promote the event, co-chaired by India, Macron shared AI-generated videos of himself. The move aims to boost Europe’s role in AI innovation and governance.

Self Inspection, a San Diego-based startup, has raised $3 million in seed funding co-led by Costanoa Ventures and DVx Ventures, founded by former Tesla president Jon McNeill. The company aims to transform the $30B vehicle inspection market using AI-powered tech to streamline inspections for lenders, dealerships, and rental companies.

Amazon is set to invest $100B in AI for 2025, surpassing last year’s $83B. CEO Andy Jassy calls it a ā€œonce-in-a-lifetimeā€ opportunity, focusing on AWS’s AI infrastructure. Despite market pressure from DeepSeek’s low-cost AI model, Amazon aims for long-term AI growth and faster delivery innovation.

Elon Musk’s Department of Government Efficiency (DOGE) is working on ā€œGSAi,ā€ an AI chatbot to help 12,000 GSA employees be more productive and quickly analyze contracts, according to WIRED. After talks with Google’s AI fell through, DOGE is now considering using Microsoft’s GitHub Copilot for extra support.

AI TUTORIAL

An AI-powered tool that generates high-quality YouTube thumbnails based on your video’s title and description, streamlining the design process for content creators.

Steps to follow:

  1. Go to Magic Thumbnails and sign up.

  2. Click on ā€œSign Inā€ to create an account or log in.

  3. Input your video’s title and description into the provided fields.

  4. Click ā€œGenerate Thumbnailsā€ to allow the AI to create options based on your input.

  5. Review the generated thumbnails and download the one that best fits your video.

TOP AI TOOLS

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AI MEME OF THE DAY

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