AI Spotlight keeps you up-to-speed on the latest cool stuff in AI and tech. This week, we'll show you new tools, how businesses can use AI, and what's hot in the world of AI.

In today’s email:

• Elon Musk’s xAI lands $6B in new cash to fuel AI ambitions

• An AI Just Reached Human Level On 'General Intelligence'.

• Microsoft Is Forcing Its AI Assistant on People and Making Them Pay

• Tutorial: Real-Time Coding Assistance with Gemini 2.0

• 📢Top AI Tools of the Week

Elon Musk’s xAI lands $6B in new cash to fuel AI ambitions

AI is the name of the game in Silicon Valley, and Elon Musk just rolled the dice on a $6 billion cash injection for xAI. With heavyweight backers like Andreessen Horowitz, BlackRock, and Fidelity joining the round, xAI is now valued at a cool $45 billion. If that doesn’t scream ambition, Musk’s plans for generative AI supremacy surely do.

Key Points

• Big-name investors including Nvidia, AMD, and Saudi Arabia’s Kingdom Holdings (which chipped in $400M) backed xAI in its latest Series C funding round. xAI’s valuation has nearly doubled to $45 billion.

• xAI’s total funding now sits at $12 billion, with the new cash aimed at bolstering AI infrastructure, launching cutting-edge products, and accelerating R&D.

• Grok, xAI’s generative AI model with a “rebellious streak,” is deeply integrated into the X platform (formerly Twitter), powering everything from chatbots to image generation. Grok also recently debuted a standalone iOS app.

• Musk’s xAI is battling OpenAI and Anthropic, both flush with billions. Musk claims OpenAI is “anti-competitive,” while xAI touts an edge from access to data across Musk’s empire, including Tesla and SpaceX.

Source: https://techcrunch.com/2024/12/25/elon-musks-xai-lands-billions-in-new-cash-to-fuel-ai-ambitions/

An AI Just Reached Human Level On 'General Intelligence'

OpenAI’s new AI model, o3, just hit a major milestone scoring 85% on the ARC-AGI benchmark, matching human-level performance and smashing the previous AI record of 55%. Is this a step toward artificial general intelligence (AGI) or just a flashy stat? Let’s dig in.Key Points

• Big win: o3’s performance on the ARC-AGI test, designed to measure adaptability and problem-solving, brings AI closer to AGI.

• How it works: The model excels by using “chains of thought” to find adaptable, generalizable rules.

• Skeptics weigh in: Critics argue this might reflect task-specific training, not a fundamental leap in intelligence.

• What’s next? If o3’s adaptability proves consistent, it could reshape industries. Full potential remains unclear until OpenAI releases more details.
  Source: https://www.ndtv.com/world-news/an-ai-just-reached-human-level-on-general-intelligence-what-that-means-7331233

Microsoft Is Forcing Its AI Assistant on People and Making Them Pay

Microsoft is turning up the heat on AI integration—whether users like it or not. In a controversial move, the company bundled its AI assistant, Copilot, into Microsoft 365 subscriptions in select regions and raised prices across the board. The gamble? Boost AI adoption and justify its hefty investment in OpenAI. The reality? Users are feeling frustrated and overcharged.

• Forcing AI on users: Microsoft added Copilot to its 365 subscription in Australia and parts of Southeast Asia, hiking prices even for users who don’t want the tool.

• Price shock: Subscribers like Alistair Fleming saw their bills jump by 45% from A$11 to A$16 just for an AI assistant they didn’t ask for.

• Clippy flashbacks: Many users compare Copilot’s intrusive pop-ups to Microsoft’s infamous Clippy, and some, like Fleming, canceled their subscriptions entirely.

• Corporate push: Microsoft markets Copilot to businesses at $30/user per month but faces skepticism about its accuracy, data protection, and value.

• High stakes: With nearly $14B invested in OpenAI, Microsoft aims to surpass $10B in annual AI revenue, despite lagging behind ChatGPT in consumer adoption.
  Source: https://finance.yahoo.com/news/microsoft-forcing-ai-assistant-people-103000840.html

Quick Guide: Real-Time Coding Assistance with Gemini 2.0

Google's new Gemini 2.0 "Stream Realtime" feature acts like a personal coding tutor, offering instant guidance as you work.

How to Get Started:

1. Open Google AI Studio and select Stream Realtime from the sidebar.

2. Click Share Your Screen.

3. Resume coding and use voice commands to request help whenever needed.

4. Gemini will analyze your code in real time and provide actionable guidance.

Top AI Tools of the Week

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