Welcome, AI Enthusiasts!

Today’s AI Insights:

• OpenAI nears launch of its in-house chip

• Microsoft probes DeepSeek over OpenAI API use

• How to create AI-generated music with AI

• AI tool of the day

• Latest AI and tech news

• Top AI tools

• AI Meme of the day

^{Read Time: 3 mintue}

🤝 TOGETHER WITH THE RUNDOWN AI

Start learning AI in 2025

Everyone talks about AI, but no one has the time to learn it. So, we found the easiest way to learn AI in as little time as possible: The Rundown AI.

It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

LATEST AI NEWS

OPENAI

🤖 OpenAI Nears Launch of Its In-House Chip

OpenAI is breaking free from its reliance on Nvidia with its first-ever custom AI chip. The ChatGPT creator is finalizing the design this year, aiming to reshape AI infrastructure with faster, cheaper, and more efficient hardware—potentially redefining the AI landscape.

The Details:

• Chip Design Finalization: OpenAI’s first custom AI chip design will be ready in the next few months, with production set to begin at TSMC (Taiwan Semiconductor Manufacturing Co) by 2026. The initial process, called “taping out,” will kick off with advanced 3-nanometer tech.

• Team and Budget: Led by ex-Google chip expert Richard Ho, the design team has doubled to 40 engineers. Although smaller than Google and Amazon’s efforts, the project could cost up to $500 million to develop and scale.

• Strategic Collaboration: OpenAI is working with Broadcom to create the chip, designed to handle both AI training and operations. It will feature a systolic array architecture with high-bandwidth memory (HBM)—similar to Nvidia’s powerhouse GPUs.

• Purpose: Initially, the chip will be deployed on a limited scale for running AI models, with plans to develop future versions for more comprehensive capabilities.

Why it matters:

OpenAI’s custom chip could reduce its dependency on Nvidia’s GPUs and help lower costs while increasing performance. If successful, the project will position OpenAI as a leader not just in AI models but in the hardware that powers them—challenging Nvidia’s dominance and creating room for innovation in AI infrastructure. 

MICROSOFT

🔍 Microsoft Probes DeepSeek Over OpenAI API Use

Microsoft and OpenAI are investigating whether a group linked to Chinese AI startup DeepSeek obtained ChatGPT data without authorization. Bloomberg reports that Microsoft’s security team flagged suspicious activity involving large-scale data exfiltration through OpenAI’s API.

The Details:

• Suspicious Activity: Microsoft detected massive data transfers linked to individuals believed to be connected to DeepSeek in late 2024.

• Potential IP Theft: U.S. AI and crypto czar David Sacks suggested DeepSeek may have distilled OpenAI’s knowledge without permission.

• Government Concerns: OpenAI confirmed that Chinese firms are attempting to replicate its AI models and is working closely with the U.S. government to protect its technology.

• Ongoing Investigation: Microsoft and OpenAI have not publicly named DeepSeek, but Bloomberg’s sources suggest the company is under scrutiny.

Why it matters:

This investigation highlights the growing AI battle between the U.S. and China. If proven, it could spark further government regulations on AI security and strain U.S.-China tech relations. As Chinese startups like DeepSeek gain ground, U.S. tech giants face mounting pressure to protect their AI innovations and secure their competitive edge.

AI TOOL OF THE DAY

🌐 Dora: AI-Powered 3D Website Builder

Create stunning 3D animated websites without any coding. Ideal for designers, freelancers, and creative professionals, Dora simplifies web design, allowing you to focus on crafting captivating visuals.

Join a community of creators who have transformed their web design experience with Dora.

👉 Start building your 3D animated website with Dora today!

AI & TECH NEWS

OpenAI is in talks to raise $40 billion, with SoftBank leading the round with $15-$25 billion. The funding follows pressure from China’s DeepSeek AI models and OpenAI’s Stargate venture. If finalized, OpenAI would become the second-most valuable startup globally, behind SpaceX.

Texas-based Perplexity Solved Solutions is suing AI startup Perplexity for trademark infringement, citing consumer confusion due to similar branding and overlapping software services. The lawsuit follows a cease and desist letter ignored by Perplexity. Compounding the issue, Perplexity is also facing separate legal claims from News Corp over alleged content copying.

Google has introduced the Gemini 2.0 Flash AI model to its Gemini app, offering quicker responses and better performance for tasks like brainstorming and writing. Available on both web and mobile, users still have access to Gemini 1.5. Meanwhile, image generation is powered by the upgraded Imagen 3 AI, providing sharper, more accurate visuals.

Intel has received $2.2 billion through the U.S. CHIPS and Science Act to boost chip production across Arizona, New Mexico, Ohio, and Oregon. Despite policy shifts under the Trump administration, Intel remains confident in future collaborations. The funds will support advanced manufacturing and packaging innovations.

Microsoft has introduced the Advanced Planning Unit (APU) within its AI division to explore AI’s impact on society, work, and health. Led by AI CEO Mustafa Suleyman, the APU will conduct research, provide product recommendations, and release reports to guide AI’s responsible growth. This comes as Microsoft invests a record $22.6B in AI and cloud infrastructure in Q4 2024 to meet rising demand.

AI TUTORIAL

🎵 How to Create AI-Generated Music with MeloHunt

MeloHunt is an AI-powered song generator that enables users to create original, high-quality music tracks without requiring any musical expertise

Steps to follow:

1. Go to MeloHunt’s website and sign up for an account

2. Select either ‘Simple Mode’ for quick music generation or ‘Custom Mode’ for more detailed customization.

3. In ‘Simple Mode,’ provide a brief description of the desired style or mood. In ‘Custom Mode,’ specify parameters like genre, tempo, and mood.

4. Click ‘Generate’ to let the AI compose a unique track based on your inputs

5. Listen to the generated track, and if satisfied, download it for personal or commercial use

👉 Try it here

TOP AI TOOLS

💻 SlidesPilot - AI tools for creating and enhancing presentations.

📚 SciSummary - AI tool for fast summarization of scientific articles.

✂️ Erase BG - Free tool for removing image backgrounds in HD.

✏️ EditGPT - Proofread, edit, and improve your writing.

💇‍♀️ AI Hairstyle - AI-powered hairstyle generation and color change tool.

🚀 Buildpad - Platform for transforming ideas into marketable products through guidance.

AI MEME OF THE DAY

SPONSOR US

AI Insights newsletter is read by thousands of AI and Tech professionals/enthusiasts around the world.

Get in touch to get your product seen today!

Or email us at: [email protected]

THANK YOU FOR READING

FEEDBACK

We'd love to hear your feedback or any interesting thoughts you have!

Please share by replying to this email.