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Dear Reader,

Flipped.ai’s weekly newsletter read by more than 75,000 professionals, entrepreneurs, decision makers and investors around the world.

In this week’s newsletter, we cover top 5 latest AI news and more.

Today’s Menu

  1. Zoom launches AI-powered Docs feature to enhance workplace collaboration

  2. Character AI founders return to Alphabet in a major industry shift

  3. Apple delays launch of AI features for iPhone 16 amid cautious approach

  4. FLUX 1 by Black Forest Labs sets a new standard in AI art generation

  5. Mainframes find new life in the AI era as critical data processing engines

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Top 5 latest AI news

Zoom launches AI-powered Docs feature to enhance workplace collaboration

Users can view, edit, and collaborate on files during meetings with the Zoom Docs feature. Source: Zoom

Zoom has introduced a new AI-powered feature called Zoom Docs, aimed at revolutionizing workplace collaboration. This tool allows users to generate and edit documents using generative AI, creating shareable files based on their meetings. With the AI Companion integrated into Zoom Docs, users can also organize meeting transcripts, create tables, and track tasks assigned during meetings.

Announced at Zoom’s annual Zoomtopia event, these features are designed to make online collaboration smoother and more efficient. Zoom Docs is available at no additional cost for users with Zoom Workplace paid licenses, adding significant value to their subscriptions.

This move positions Zoom as a strong competitor against Google and Microsoft, both of which have already integrated AI into their collaboration tools. Earlier this year, Zoom introduced several AI-driven features, such as an AI assistant for summarizing meetings and writing emails, and a workplace automation tool for scheduling reminders. With these advancements, Zoom is clearly committed to enhancing its platform with AI, aiming to streamline workflows and improve productivity for its users.

Character AI founders return to Alphabet in a major industry shift

Source: Winni Wintermeyer for The Washington Post / Getty Images

In a move that’s sending ripples through the AI industry, Character AI’s co-founders, Noam Shazeer and Daniel De Freitas, are making a high-profile return to Alphabet. After leaving Google in 2021 to create Character AI, their personality-driven chatbot platform quickly became a sensation, often outperforming rivals like ChatGPT in terms of user engagement.

Now, Shazeer and De Freitas, along with several key employees, are heading back to Google. Alphabet will also license Character AI’s models for integration into its own products, marking this as one of the year’s biggest AI shake-ups. The arrangement, while not an outright acquisition, effectively brings Character AI’s technology under Alphabet’s umbrella without triggering regulatory scrutiny.

Despite the leadership transition, Character AI is poised for continued success. The company will receive a substantial injection of funding, and its engineering team remains largely intact. Moreover, the non-exclusive nature of the deal allows Character AI to explore other partnerships, ensuring its influence in the AI landscape remains strong.

Apple delays launch of AI features for iPhone 16 amid cautious approach

Source: News9live

Apple’s much-anticipated AI features for the iPhone 16 are facing delays, with the rollout of Apple Intelligence now expected to occur in phases. While the iPhone 16 will hit the market this September, key AI capabilities, including an upgraded Siri powered by generative AI, may not be available until next year. This staggered release reflects Apple’s cautious approach, aiming to avoid the pitfalls that have plagued other tech giants in their AI endeavors.

Apple’s strategy could be a double-edged sword. On one hand, taking time to refine its AI tools could help Apple maintain its reputation for quality and reliability. On the other, the delay might frustrate users eager to experience the latest technology, especially as iPhone sales have slumped by 10%.

The company is also facing challenges in adapting these new AI features for the Chinese market, where it is competing with strong local brands. Despite the delays, Apple is investing heavily in AI, and its upcoming innovations could set a new standard in the industry, provided they meet the high expectations when they finally arrive.

FLUX 1 by Black Forest Labs sets a new standard in AI art generation

Source: Black Forest Labs

In a surprise move, Black Forest Labs, a previously unknown AI startup, has burst onto the scene with its groundbreaking text-to-image model suite, FLUX 1. Just weeks after emerging from stealth mode, FLUX 1 has already leapfrogged over industry heavyweights like Midjourney 6.0, DALL-E 3 HD, and Stable Diffusion 3-Ultra. The model excels in critical areas such as image detail, scene complexity, and prompt adherence, as validated by the Elo rating system.

What sets FLUX 1 apart is its use of advanced techniques like rotary positional embeddings and parallel diffusion transformers, which enhance both speed and accuracy. Backed by AI industry leaders, including former engineers from Stability AI and investors like Andreessen Horowitz, Black Forest Labs is on a rapid ascent. Their ambitious roadmap includes a state-of-the-art text-to-video model, which could further disrupt the market and challenge giants like OpenAI and Runway.

Mainframes find new life in the AI era as critical data processing engines

IBM engineers work with an early version of its mainframe computer. Source: handout/Reuters

Mainframe computers, long considered relics of an earlier tech era, are experiencing a resurgence as AI becomes increasingly integral to business operations. Industries such as banking, insurance, and telecommunications are leveraging the unparalleled data processing capabilities of mainframes to enhance AI applications directly at the source. Unlike cloud-based solutions, which can be slow and vulnerable to latency, mainframes offer the ability to perform complex queries and run AI models in real-time, ensuring faster and more reliable outcomes.

IBM, the dominant player in the mainframe market, has reported a 6% growth in its business, driven by the demand for AI integration. The company’s latest zSystem mainframe is equipped to handle AI workloads, including large language models similar to those powering ChatGPT, and can support up to 40 terabytes of data. These machines are also prized for their cybersecurity features, including resistance to attacks from quantum computers, making them invaluable for sectors where data integrity and speed are paramount.

Despite their benefits, mainframes face challenges, including the dwindling number of developers proficient in legacy programming languages like COBOL. However, companies like BMC Software and Rocket Software are working to modernize these systems, enabling them to coexist with cloud environments and continue serving as the backbone of critical IT infrastructure. While the mainframe market may decline in new sales, its role in the AI era is far from over, with many businesses planning to increase their mainframe usage in the coming years.

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