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What’s happening in AI right now

The AI coding revolution gains momentum

Startups and tech giants race to redefine software development

The software development landscape is undergoing a seismic shift as AI-powered coding tools rapidly evolve. This week saw a flurry of announcements that highlight the growing capabilities and adoption of these technologies, potentially redefining the role of developers entirely.

AI coding assistants attract major financing and early adoption

Cursor, an AI-powered coding startup, secured $60 million in Series A funding, propelling its valuation to $400 million. The company's platform, which aims to automate up to 95% of tedious coding work, has already attracted over 30,000 paying customers and achieved more than $10 million in annual recurring revenue (ARR). Cursor's approach focuses on creating a comprehensive "Google Docs for programmers" rather than offering piecemeal solutions.

This substantial investment reflects the growing confidence in AI's ability to transform software development. By automating routine tasks, these tools promise to free up developers to focus on more creative and strategic aspects of their work.

Open-source models level the playing field

While well-funded startups like Cursor are moving at a rapid clip, the open-source community is also pushing the boundaries of AI-assisted coding. Abacus.ai released Dracarys, a new family of open-source large language models optimized for coding tasks. These models show significant improvements in coding capabilities compared to their base versions, potentially offering powerful alternatives to closed-source solutions like GitHub Copilot.

The availability of Dracarys on Hugging Face and through Abacus.ai's Enterprise offering could democratize access to advanced AI coding assistants, allowing smaller companies and individual developers to benefit from these technologies.

The future of software development

As these AI coding tools become more sophisticated, industry leaders are beginning to envision a fundamental shift in how software is developed from the ground up. AWS CEO Matt Garman predicts that AI will handle most coding tasks within the next two years, allowing developers to focus on higher-level innovation and customer-centric problem-solving.

This vision aligns with the goals of companies like Cursor and the capabilities demonstrated by models like Dracarys. By automating routine coding tasks, these AI tools could free up developers to tackle more complex challenges and drive innovation.

News roundup

The top stories in AI today.

FUTURE OF WORK

Jobs are changing — are you?

• How the ‘AI-First Mindset’ is Reshaping How We Work, Create and Play

• How AI is Democratizing Genius-Level Thinking

• How AI is Reshaping the Creator Economy

• What Apple Intelligence Will Imply for IT Teams

• What’s Comes Next for the Artists Suing Midjourney and Stability AI

• How This Top Creator Platform Uses AI To Hire Brand Influencers

• Amazon Chief Tells Employees AI May Do Most Coding Within 2 Years

NEW LAUNCHES

The latest features & products in AI innovation.

• Canon’s AI Shift Sparks Debate Among Photographers

• ElevenLabs New AI Reader App Just Expanded to 32 More Languages

• Abacus.AI Releases Open-Source AI Model ‘Dracarys’ for Coding

• Google Releases Free ‘Prompt Gallery’ as Part of AI Studio

• LambdaTest Launches KaneAI Agent for Automated Software Testing

• Ideogram 2.0 Raises the Bar for AI-Generated Text in Images

GADGETS

Computers, phones, wearables & other AI gizmos.

• AI-Powered Brain Implant Offers New Hope for Depression Treatment

• Intel Core Ultra AI-Powered Laptops Are Purpose-Built for Creators

• ‘Google Keep’ Adds AI-Powered List Creation for Android Users

• Google’s Pixel Screenshots and Studio Now Available in These Countries

FUNDRAISING

Who’s getting that bread?

• AI Coding Startup Cursor Secures $60M

• Google Invests $117.5M in California’s Effort to Support Journalism

• Stanford Awards 6 Groundbreaking AI Projects with $3M Grant

• AI Startups Embrace ‘Minimum Viable Quality’ to Win VC Funding

AI MODELS

Research, testing, development, safety

• Tech Giants Push for Open-Source AI to Fuel Innovation

• The ‘Plasticity Problem’ and LLM’s Inability to Learn Continuously

• How Google’s 3 New AI Models Stack Up Against Each Other

• How Lab-Grown Mini Brains Could Power AI of the Future

• Microsoft’s Small Phi-3.5 Model Outperforms Gemini and GPT-4o in STEM

FINANCE & ECONOMICS

Economics + the movers & shakers on Wall Street.

• Frontier AI Models Could Cost $250B by 2027, Experts Predict

• Governors Face Tough Choices Balancing AI Investment with Economic Needs

• How to Fine-Tune AI for Human Flourishing

AI research changing the world

The latest breakthroughs and most pivotal papers — broken down in language anyone can understand.

Getting 26,500 LA City workers Al training

The Information Technology Agency of LA has unveiled an ambitious plan to integrate Al across all city departments, potentially revolutionizing public service delivery for 4 million Angelenos. At its core, the roadmap outlines a strategy to train over 26,500 city employees in Al, starting with a 3-month trial of Google Gemini Enterprise. But it's not just about efficiency-it's a blueprint for the future of urban governance.

The plan addresses critical ethical concerns head-on, prioritizing responsible Al adoption to mitigate risks of bias, privacy breaches, and job displacement. By 2028, cities fully embracing this Al-driven approach could see a 15% reduction in traffic congestion and a 10% improvement in air quality. As AlI becomes integral to city operations, it raises intriguing questions: How will this reshape the relationship between citizens and local government? Will it lead to more trust or skepticism? And as other cities inevitably follow suit, could we be witnessing the birth of a new era of hyper-efficient, Al-augmented urban centers?

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