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  • 🤖 AI Mismatch Brings More Refunds Than Profits

🤖 AI Mismatch Brings More Refunds Than Profits

Plus: OpenAI and Google Price Cuts, and new image generator player

August 15, 2024

Hello AI Enthusiast,

AI prices are in freefall, competition is heating up, and AI is popping up everywhere, but not always successfully. This week, we're unpacking why tech giants are slashing prices, how smaller players are disrupting the field, and what it takes for AI products to actually succeed.

Speaking of AI's rapid evolution, want to see how it's reshaping the workplace right now? Join our free webinar on August 28th at 6 PM CEST. Suitable for all experience levels, our CEO Gianluca will share real-world AI examples and implementation strategies. Prepare to challenge your assumptions about AI's limits in the workplace.

The Big Picture 🔊

OpenAI Launches Cheaper GPT-4o with JSON Structured Outputs

OpenAI introduced GPT-4o-2024-08-06 with 50% lower input and 33% lower output token prices. They also unveiled Structured Outputs, allowing developers to generate outputs that precisely match JSON schemas, enhancing structured data generation from unstructured inputs.

Google Gemini API: Price Cuts & New Features

Google is rolling out major updates to AI Studio and the Gemini API, including reduced prices for the popular Gemini 1.5 Flash model, expanded language understanding to over 100 languages, and improved PDF processing capabilities.

FLUX.1 AI Advances Text-to-Image Technology

Black Forest Labs has unveiled FLUX.1, an open-source suite of text-to-image models. Featuring a 12-billion parameter hybrid architecture, FLUX.1 outperforms competitors like Midjourney v6.0 and DALL·E 3 in image quality, prompt adherence, and style diversity.

Humane's AI Pin Struggles

Humane's $699 AI Pin faced negative reviews and high return rates, with more units returned than purchased by August. Despite raising over $200 million, the company generated just $9 million in sales, and the non-refurbishable returned Pins are contributing to significant e-waste.

Figure Unveils AI-Enhanced Figure 02 Robot

Remember Figure, the company behind the humanoid robot? They unveiled the Figure 02 robot, featuring advanced AI from a partnership with OpenAI. The model includes improved computing, enhanced hands, and advanced visual and language capabilities.

Gianluca Mauro
Gianluca MauroCEO and AI Rockstar

The race to zero is getting real, with OpenAI and Google lowering their prices. Why is this happening? Several reasons:

First, these models are getting cheaper to run as energy is more efficiently consumed.

Second, AI technology is becoming more democratic. FLUX showed us that what once took major companies years can now be achieved or even surpassed by smaller players in months.

Third, companies want to aggressively capture the mass market.

Finally, AI-based interactions are spreading into many products, from software like Notion and Canva to hardware like Humane and Figure. But not all find the right product-market fit, as we've seen with Humane. Success will likely come to niche applications or those truly solving problems.

Gianluca has been saying for a while that AI will become a commodity, and he just recently shared a TikTok video about this.

@gianluca.mauro

AI will be free #Ai #learnontiktok #artificialintelligence #business #machinelearning #product #ux #entrepreneur

As AI prices drop, we're curious about your investment in AI services:

Are you currently paying for any AI services?

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Bits and Bobs 🗞️

  • OpenAI declared that GPT-4o underwent thorough risk evaluation and mitigations before deployment.

  • OpenAI is allowing free ChatGPT users to create up to two images per day using DALL·E 3.

  • Amazon Music has introduced "Topics", an AI-powered feature that helps users discover podcasts by categorizing episodes based on content.

  • Rabbit’s r1 AI assistant has introduced a new "beta rabbit" mode that improves the handling of complex instructions and follow-up questions.

  • Alibaba Cloud unveiled Qwen2-Math-72B, a 72-billion parameter AI model that excels in solving complex math problems.

  • Meta and the University of Oxford developed VFusion3D, an AI system that uses pre-trained video models to generate synthetic 3D data from 2D images.

  • Perplexity has partnered with prediction marketplace Polymarket to provide users with AI-generated summaries and visuals for event-related news.

LOLgorithms 😂

Anyone else doing the same back and forth?

That's a wrap on our newsletter! Here’s a quick recap before you go:

Catch you next week! 👋