The artificial intelligence landscape is rapidly evolving, with significant investments and strategic moves shaping its future. Meta is making a substantial commitment, forecasting $66-72 billion in capital expenditures for 2025, primarily for AI infrastructure like Nvidia GPUs and custom chips, aiming to outspend rivals. Meanwhile, OpenAI is partnering with toymaker Mattel to test its Sora 2 AI video model, allowing designers to quickly transform product sketches into video concepts. In the legal tech sector, the $5 billion startup Harvey is focusing on strategic growth habits, including calendar auditing and hands-on hiring, as it expands internationally. The challenge of integrating AI into the workforce is also a key concern; Stripe's head of AI, Emily Glassberg Sands, is hiring more new graduates but worries about a mentorship gap, while a Stanford study reveals that AI is most effective when automating tedious tasks, not attempting full job automation. This shift is already impacting white-collar jobs, with roles like translation being reshaped and income halved for some, though companies like A&O Shearman and AIG are leveraging AI for efficiency in legal work and underwriting, respectively. Addressing AI's potential for misuse, security leaders are increasingly concerned about AI-driven phishing attacks, which are becoming more sophisticated. On the innovation front, 19-year-old Dhravya Shah's AI memory startup, Supermemory, has raised $2.6 million with backing from Google executives and others, developing a universal memory API for AI applications. In the beauty industry, L'Oréal-backed Noli is using Akeneo's PIM for AI-powered beauty recommendations, creating personalized BeautyDNA profiles. Peloton is also integrating AI, launching Peloton IQ for real-time form feedback and personalized training plans, alongside new hardware and increased subscription prices.
Key Takeaways
- Meta plans to spend $66-72 billion on AI capital expenditures in 2025, focusing on infrastructure and outspending competitors.
- OpenAI is collaborating with Mattel to test its Sora 2 AI video model for product concept visualization.
- Harvey, a $5 billion legal AI startup, emphasizes calendar auditing and hands-on hiring for scaling.
- Stripe's head of AI is concerned about a mentorship gap for new PhD graduates entering the AI field.
- A Stanford study indicates AI is most effective when automating dull tasks, not entire jobs.
- AI-driven phishing attacks are a top concern for security leaders due to increasing sophistication.
- Supermemory, a 19-year-old's AI memory startup, has raised $2.6 million with support from Google executives.
- Peloton is introducing an AI coach, Peloton IQ, for real-time feedback and personalized training, alongside hardware updates and price increases.
- Trusted Media Brands is cautious about AI licensing deals, awaiting clearer terms and recurring revenue.
- AI is reshaping white-collar jobs, impacting roles like translation and requiring workforce upskilling.
Harvey CEO shares two habits for scaling $5B legal AI startup
Winston Weinberg, CEO of the $5 billion legal AI startup Harvey, shared two key habits for managing rapid growth. He regularly audits his calendar to decide what to delegate or do himself, aiming to automate daily operations. Weinberg also emphasizes hands-on hiring, especially for new office locations, believing these first hires are crucial for future growth. Harvey recently opened an APAC office in Sydney and plans to hire about 15 people there this year. The company believes its focus on empowering leaders early gives it an edge over larger AI competitors.
Stripe AI head hires more new grads but fears mentorship gap
Emily Glassberg Sands, Stripe's head of data and AI, is hiring more recent PhD graduates than ever due to their cutting-edge skills. However, she is concerned about a potential mentorship crisis, worrying about how these new hires will gain the experience needed to advance their careers. Glassberg Sands believes AI is changing the job market by automating tasks, making skills like critical thinking and collaboration more valuable. She questions what the future of entry-level work will look like as AI becomes more integrated into various industries. This concern is part of a larger debate about AI's impact on jobs for recent graduates.
Google execs back 19-year-old's AI memory startup Supermemory
Dhravya Shah, a 19-year-old entrepreneur from Mumbai, has received backing from Google executives for his AI startup, Supermemory. The company is developing a memory layer for AI applications to improve their ability to retain and recall information. Supermemory's technology aims to allow AI systems to learn from past interactions, enhancing performance without losing context. This innovation addresses a key challenge in AI development related to long-term memory and contextual understanding. The support from Google highlights the significant potential of Shah's vision and Supermemory's technology.
19-year-old's AI memory startup Supermemory raises $2.6M
Nineteen-year-old founder Dhravya Shah has secured $2.6 million in seed funding for his AI startup, Supermemory. The company is developing a universal memory API for AI applications, aiming to help them better understand context by building a knowledge graph from data. Shah, originally from Mumbai, previously sold a tweet formatting bot to Hypefury. Supermemory can process various data types and offers features like a chatbot and notetaker, with integrations for cloud storage and a Chrome extension. Investors include Susa Ventures, Browder Capital, SF1.vc, and executives from Google, Cloudflare, and OpenAI. The startup already has customers like Descript and Perplexity.
Trusted Media Brands cautious on AI deals amid industry rush
Trusted Media Brands (TMB), owner of Reader's Digest and Taste of Home, is in discussions for AI licensing deals but is holding back from signing agreements. The company is concerned about granting broad access to its content without clear value in return, as tech companies push for extensive usage rights. TMB has only signed a deal with Perplexity AI so far, which has not yet generated revenue. TMB is closely monitoring ongoing lawsuits against AI companies for content scraping and waiting for more favorable terms that offer recurring revenue and control over content usage. They are also using tools like Tollbit and Cloudflare to manage AI bot access to their content.
Peloton launches new hardware, AI coach, and raises subscription price
Peloton is overhauling its product lineup with a new Cross Training Series, featuring swiveling screens on all devices for easier transitions between cardio and strength workouts. The premium 'Plus' models now include a camera for movement tracking and hands-free voice controls. The company also introduced Peloton IQ, an AI and computer vision system that provides real-time Form Feedback and personalized training plans by analyzing workout history and data from wearables. Peloton acquired the breathing exercise app Breathwrk and partnered with Halle Berry and the Hospital for Special Surgery for new wellness content. The All-Access membership price is increasing from $44 to $49.99, and App+ from $24 to $28.99.
Stanford study reveals right and wrong ways to use AI at work
A Stanford University study analyzed 1,500 workers across 104 professions to understand how AI is being used at work. The research found that workers overwhelmingly want AI to automate tedious and repetitive tasks, freeing them up for higher-value work. However, many companies are deploying AI tools incorrectly, focusing on tasks that workers prefer to do themselves or that AI cannot yet perform well. The study suggests AI is most effective when used to automate dull parts of a job, rather than attempting full automation. Companies that frame AI adoption around automating disliked tasks see better results than those focused on efficiency alone.
L'Oréal-backed Noli uses Akeneo PIM for AI beauty recommendations
Noli, an AI-powered beauty shopping platform backed by L'Oréal, has chosen Akeneo's product information management (PIM) solution. This collaboration aims to enhance Noli's hyper-personalized product recommendation model. Noli uses a quiz, face scan technology, and expert insights to create a unique BeautyDNA profile for each customer, tailoring skincare and haircare routines. The partnership with Akeneo will provide structured and accurate product information essential for Noli's AI. Accenture is also collaborating with Noli, leveraging its experience with L'Oréal since the platform's inception.
AI-driven phishing attacks top security leaders' concerns
A new report indicates that nearly 40% of security leaders feel their organizations are least prepared for phishing and social engineering attacks. This concern is driven by the increasing use of AI in cyberattacks, with generative or agentic AI-driven phishing being the top worry for leadership teams. Concerns about AI-driven attacks have significantly increased since last year. Cybersecurity leaders also cite AI creating new attack points and the sophistication of modern cybercriminals as major challenges. Nation-state hackers are also leveraging AI to scale their attacks, posing advanced threats that standard security measures may not detect.
Mattel partners with OpenAI to test AI video model Sora 2
Toymaker Mattel is collaborating with OpenAI to test its artificial-intelligence video model, Sora 2. OpenAI CEO Sam Altman announced the partnership at the company's Developer Day conference. Mattel designers can use Sora 2 to quickly turn product sketches into shareable video concepts. This collaboration is part of OpenAI's ongoing efforts to advance AI capabilities. The partnership highlights the growing use of AI in product development and creative processes across various industries.
AI is reshaping white-collar jobs, impacting careers
Artificial intelligence is significantly changing white-collar work, affecting careers like translation, where AI cleanup now constitutes most of Julian Pintat's work, halving his income. While some predict AI will replace many white-collar workers, the initial impact is reshaping job roles and efficiency. Law firms like A&O Shearman use AI tools to handle large projects more cost-effectively, while companies like AIG are using AI for faster underwriting. Despite excitement, many AI pilots fail to provide a return on investment, and AI coding assistants have shown mixed results. Implementing AI effectively requires customized solutions and upskilling the workforce, with younger generations often leading AI adoption.
Meta's AI strategy: Outspend rivals with massive investments
Meta is investing heavily in artificial intelligence, forecasting $66-72 billion in capital expenditures for 2025, a move largely supported by investors. CEO Mark Zuckerberg's vision involves massive spending on Nvidia GPUs, custom chips, data centers, and talent acquisition. The company is also making deals with publishers and startups to secure its position in the AI economy. Meta's strategy focuses on overwhelming the field with capacity and staying power, aiming to make the AI race unaffordable for competitors. This approach mirrors their successful pivot to mobile a decade ago, but with a significantly higher cost.
Sources
- Harvey's CEO tells BI the 2 habits helping him scale his $5 billion legal AI startup
- Stripe's head of AI says she's hiring more new grads than ever — but she fears a mentorship crisis
- A 19-year-old nabs backing from Google execs for his AI memory startup, Supermemory
- A 19-year-old nabs backing from Google execs for his AI memory startup, Supermemory
- In the AI dealmaking rush, Trusted Media Brands is at the table but holding back
- Peloton overhauls it lineup with 'Cross Training' hardware and an AI coach
- The right way to use AI at work
- L’Oréal backed AI powered beauty tech platform Noli taps Akeneo PIM for product recommendations — Retail Technology Innovation Hub
- Security Leaders Cite AI-Driven Phishing Attacks as a Top Concern
- Mattel partners with OpenAI on Sora 2 AI video model
- How AI Is Changing White-Collar Work
- Meta’s AI strategy is simple: outspend everyone else
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