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💰Elon’s Betting $5B On The Future
PLUS: Apple teams up with Anthropic on AI coding platform 🍎
AI Insights
June 03, 2025
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Hey friends — today in AI is wild.
Musk’s xAI is raising $5B through a debt sale, Apple just teamed up with Anthropic, and ChatGPT is now built for shopping. Let’s dive in 👇
Today’s Highlights:
xAI launches $5B debt sale to fuel infrastructure
Apple partners with Anthropic on AI coding tools
Amazon unveils Nova Premier, its new AI platform
Google’s latest AI model struggles in safety tests
ChatGPT gets a shopping-friendly search update
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AI tool of the day
Quick roundup of today’s AI + tech news
Read Time: 4 mintue
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XAI
Elon Musk’s AI startup xAI is kicking off a $5 billion debt sale to fuel its growth, with Morgan Stanley leading the offering and investor commitments due by June 17.
The Details:
The sale includes a term loan B, a fixed-rate loan, and senior secured notes to fund general corporate needs.
Alongside the debt raise, xAI is offering $300 million in shares, letting employees sell equity to outside investors.
The share sale aims to peg xAI’s valuation at $113 billion, matching its value during the March acquisition of X.
Funds will support the expansion of xAI’s infrastructure and help scale its AI product offerings.
This move follows Musk stepping away from a brief government role, refocusing attention on his companies.
Why it matters:
xAI is moving quickly to secure the funding needed to compete in the AI arms race. With a $113 billion valuation and deep investor interest, Musk is positioning xAI as a major player in the next wave of AI innovation. The blend of debt and equity shows just how serious the push is.
Image Source: Shuttestock
Google’s new Gemini 2.5 Flash model performs worse than its predecessor on internal safety benchmarks. As AI companies loosen guardrails to make models more responsive, safety trade-offs are becoming harder to ignore.
The Details:
Gemini 2.5 Flash shows a 4.1% drop in text-to-text safety and a 9.6% drop in image-to-text safety compared to Gemini 2.0 Flash.
The model is more likely to generate content that violates Google’s policies when asked sensitive questions.
Google says the drop is partly due to false positives, but admits some policy-breaking responses occurred.
The model now follows instructions more faithfully, even when those instructions cross ethical lines.
Independent researchers say the report lacks enough detail to evaluate the severity of violations.
Why it matters:
As models become more responsive, they are also more likely to cross safety lines. Without detailed disclosures, it becomes harder for researchers to evaluate real-world risks. Transparency in safety testing is now more crucial than ever.
APPLE & ANTHROPIC
Image source: Shutterstock
Apple is teaming up with Anthropic to build a new AI-based coding assistant inside Xcode, Bloomberg reports. The tool will use Claude Sonnet to write, edit, and test code automatically.
The Details:
The project brings “vibe coding” to life, where AI agents generate code autonomously.
Claude Sonnet, Anthropic’s LLM, is being integrated into Apple’s Xcode.
Apple will initially use it internally, with no decision yet on public release.
Apple had previously announced Swift Assist but never released it due to internal performance concerns.
Apple joins the GenAI coding race as OpenAI eyes Windsurf, a rival tool, for $3B.
Why it matters:
Apple is ramping up its AI development efforts by embedding smarter tools into its ecosystem. With Claude handling code, Xcode may soon rival Copilot, Claude, and other GenAI tools in developer workflows.
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AI & TECH NEWS
OpenAI is launching a new shopping mode in ChatGPT that lets users compare prices, view reviews, and buy products directly in chat. It’s ad-free and includes images, links, and pricing. The feature is rolling out soon to all users, including free accounts.
Amazon unveiled Nova Premier, a powerful AI model with a 1M token context window for deep reasoning and multimodal tasks. It powers multi-agent workflows and can train smaller versions like Nova Micro, now available on Amazon Bedrock for scalable, cost-efficient deployments.
Tavus unveiled Hummingbird-0, a zero-shot lip-sync model that needs only one video to match any voice. Built on Phoenix-3, it delivers ultra-realistic results with no training required. Try it now on Fal or via Tavus’ API.
Meta’s Ray-Ban smart glasses now auto-record voice commands by default, with no way to fully disable it—only delete or turn off voice control. The change helps train Meta’s AI, but raises privacy concerns as the AI-powered mic stays live unless fully shut off.
Duolingo is phasing out human contractors, shifting content creation and other repetitive tasks to AI. CEO Luis von Ahn says future hiring will only happen if AI can’t do the job. AI is also now used in hiring decisions and performance reviews.
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