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OpenAI has launched GPT-4o mini, a budget-friendly, multimodal AI model that will replace GPT-3.5 in ChatGPT, providing users with a smarter option. Additionally, API users will benefit from significantly reduced costs. Let’s unpack this...

Today’s Summary:

• 🆕 OpenAI introduces GPT-4o mini

• 📱 Microsoft Designer AI app

• 🤔 YouTube creators’ content used in AI training

• 💻 Codestral Mamba code generator

• 🏛️ J.D. Vance AI regulatory agenda

• 📚 Andrej Karpathy launches AI-education startup

• 2 new tools

TOP STORY

OpenAI launches budget-friendly GPT-4o mini for ChatGPT and API

The Summary: OpenAI has unveiled GPT-4o mini, a smaller version of its GPT-4o model that is 60% cheaper than GPT-3.5 Turbo. The new model supports text and vision inputs, with plans to add audio and video capabilities. GPT-4o mini will replace GPT-3.5 Turbo in ChatGPT for free and paid users, aiming to make the lower tier model smarter.

Key details:

• Priced at $0.15/1M input tokens and $0.60/1M output tokens

• Scores 82% on MMLU benchmark, surpassing Gemini 1.5 Flash (79%) and Claude 3 Haiku (75%)

• 128K token context window and knowledge up to October 2023

• Multimodal capabilities: currently supports text and vision inputs

• First model to apply "instruction hierarchy" for improved safety

Why it matters: This release is a step towards more affordable and accessible lower-tier AI for users and developers. By replacing GPT-3.5-Turbo for free users, it will increase capabilities and multimodality of the base model. The API version competes directly with Gemini-1.5-Flash, which currently had the best price-to-performance ratio.

OpenAI blog

TOOLS

Microsoft Designer AI tool for iOS and Android

The Summary: Microsoft Designer, an AI-powered creative tool, is now available on iOS and Android. The app offers AI-driven image generation, editing, and design features. Capabilities include image restyling, custom stickers, and greeting card creation. Microsoft aims to make creativity more accessible with AI assistance across its ecosystem.

Key details:

• Free app available on iOS, Android, and Windows devices

• 15 free daily "boosts" for AI-powered creations

• New features: Restyle image, Frame image, and Replace background

• Integration with Microsoft 365 apps for Copilot Pro subscribers

Why it matters: This move brings new advanced AI design capabilities to mobile users. As tech giants compete in the AI space, consumers gain access to a wide range of creative options on their everyday devices.

iOS app | Android app

DATA PRIVACY

YouTube creators’ content used in AI training

The Summary: Major tech companies, including Apple and Nvidia, have been using YouTube video transcripts to train their AI systems without creators’ permission. The data comes from an open-source collection. While this practice surprised creators, the use of publicly available data for AI training often falls under fair use.

Key details:

• 170K YouTube videos text transcripts were used for AI training

• Includes content from popular creators like MrBeast and MKBHD

• Companies involved include Apple, Nvidia, Anthropic, and Salesforce

• Data source compiled by nonprofit EleutherAI

Why it matters: This controversy shows the complex challenges of data sourcing for AI development. There is a gap between legal rights and creator expectations in the AI era. This highlights the need for clearer guidelines on using publicly available content for AI training.

MKBHD video response

QUICK NEWS

Quick news

• Codestral Mamba, a Mamba2 open-source model specialised in code generation

• J.D. Vance AI Agenda: Reduce Regulation

• OpenAI co-founder Andrej Karpathy launches AI-education startup

TOOLS

🥇New tools

• Microsoft Designer - Create, design, & edit with AI

• Otio - The fastest way to do research