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Can AI really create credible movies? A studio and some investors are betting it can. Meanwhile, Microsoft is moving quickly to secure publishing contracts for training its AI models. We're also diving into how the US is pushing for a Manhattan Project-style AI initiative, the growing ties between tech leaders and politicians, and the latest developments in the tech world. Follow us and share your thoughts in the comments below.

• Can AI Create Blockbusters? A Hollywood Studio Thinks So.

• Microsoft Strikes AI Training Deal with HarperCollins.

• US Pushes Manhattan Project-Style AI Initiative Amid China Rivalry.

• 🧰 AI Tools (Perplexity Prompts and Tools)

• Our Deep Dives.

• 📰 News and Trends.

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Microsoft Strikes AI Training Deal with HarperCollins.

Microsoft has partnered with News Corp.’s HarperCollins to use select nonfiction books for training AI models. The agreement, confirmed by HarperCollins, ensures limited usage with protections for authors' rights, allowing authors to opt in or out. Microsoft will not use the content to generate books without human authors.

This move reflects Microsoft’s pursuit of high-quality text to improve AI accuracy and expertise. It follows similar licensing deals by AI companies with major publishers, though some, like The New York Times, have sued over unauthorized content use, alleging copyright infringement.

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US Pushes Manhattan Project-Style AI Initiative Amid China Rivalry.

A U.S. congressional commission has proposed a large-scale, Manhattan Project-style initiative to accelerate the development of advanced AI systems, emphasizing public-private partnerships as key to achieving artificial general intelligence (AGI). The U.S.-China Economic and Security Review Commission (USCC) highlighted growing competition with China, urging streamlined processes, like faster data center permitting, to support AI development.

The report also recommends policy changes, including ending the de minimis trade exemption for Chinese goods under $800 to enhance oversight and reduce dangerous imports, such as fentanyl precursors. While bipartisan support for such measures is growing, resistance from the shipping industry and trade groups could complicate progress.

📰 AI News and Trends

• Generative AI Powers Robot Training in Virtual Worlds (MIT)

• Microsoft Teams will help you speak in a foreign language during meetings. Uses AI for real-time speech translation (TheVerge)

• Amazon held talks with Instacart, Uber, Ticketmaster, and others for help on its new AI-powered Alexa and potential buying them (BI)

• Meta planning big data center in Louisiana (Axios)

🌐 Other Tech news

• Google’s Chrome Worth Up to $20 Billion If Judge Orders Sale Antitrust officials also to seek data licensing and AI measures. Google says the proposals would harm consumers and developers (Bloomberg)

• Bitcoin (BTC) price has reached $95,000.00 (CryptoNews)

• Bluesky hits 20 million users. The decentralized service has nearly tripled in the last three months (Engadget)

• Musk Joined Call Between Trump and Google CEO. Dont think this is gonna end well (TheInformation)

• Forget driverless cars. One company wants autonomous helicopters to spray crops and fight fires (APNews)

• As it turns 20, Can Google Scholar survive the AI revolution? (Nature)

Our Deep Dives.

• Politics and Tech become one for all, or one for Profit.

  Sam Altman Joins San Francisco Mayor-Elect Daniel Lurie’s Transition Team.

  OpenAI CEO will co-chair San Francisco mayor-elect Daniel Lurie’s transition team to help shape the city’s future, focusing on innovation and partnerships. Lurie, a political outsider backed by his personal wealth, aims to address public safety and retain tech talent as he takes office on January 8.

  Altman, joined by leaders like former Twitter CFO Ned Segal, will work to reinvigorate San Francisco’s tech ecosystem and downtown. The move reflects a growing trend of tech executives advising government leaders to tackle urban challenges and foster innovation.

• Perplexity Launches AI-Powered Shopping Assistant.

  Perplexity introduces a new AI-driven shopping experience to streamline online purchases. Key features include:

  • Buy with Pro: U.S. Perplexity Pro users can complete one-click checkouts for select products directly on the platform with free shipping.

  • Snap to Shop: Visual search lets users find products by snapping a photo.

  • Unbiased Recommendations: AI-powered product cards and comparisons provide objective, easy-to-read shopping insights, powered by Shopify integrations.

  Perplexity also launches the Merchant Program, allowing retailers to share product data, join the Buy with Pro system, and access tools like APIs and trend dashboards. The service will expand globally after its U.S. debut.

• Mistral Enhances AI Models and Le Chat Platform to compete with ChatGPT.

  French AI startup Mistral has upgraded its Le Chat platform with web search, document editing, and file analysis tools. New features include a **canvas tool** for content creation and shareable AI "agents" for task automation.

  Mistral introduced two advanced models:

  • Pixtral Large, a 124-billion-parameter multimodal model for text and image analysis.

  • Mistral Large 24.11, optimized for long-context tasks like document processing.

  Both models are available via API and enterprise licenses. Backed by $640M in funding, Mistral focuses on practical AI solutions, now generating revenue and expanding access through cloud platforms.

• Electric School Buses Drive Clean Energy.

  Electric school buses, ideal for vehicle-to-grid (V2G) technology, send energy back to the grid, boosting reliability and reducing emissions. Programs like Oakland’s all-electric fleet show their potential to power homes and improve public health, while federal funding supports adoption. With growing momentum, these buses are key to decarbonization and cleaner communities.

• AI Studio Promise Raises Seed Funding. Can they Generate AI Movies?

  

  Promise, a generative AI-focused entertainment studio backed by Peter Chernin and Andreessen Horowitz, aims to revolutionize film and TV production. Co-founded by George Strompolos, Jamie Byrne, and Dave Clark, the studio will use its proprietary MUSE software to integrate AI into storytelling and empower creatives. Based in L.A., Promise is hiring AI talent to push storytelling boundaries and innovate production workflows.

🧰 AI Tools

Perplexity Prompts and Tools.

1. Exploring Complex Topics

• Prompt: “Provide a detailed summary of the ethical implications of using AI in autonomous vehicles, referencing recent studies and real-world examples.”

• Use Case: Use Perplexity to gather concise summaries and citations to delve into nuanced discussions on challenging topics like ethics, policies, or new technologies.

2. Creating Learning Pathways

• Prompt: “Outline a step-by-step guide to learning Python for data science, including resources, tutorials, and projects.”

• Use Case: Use Perplexity to structure a personalized learning roadmap with curated resources for self-paced learning.

3. Market Analysis and Trend Insights

• Prompt: “Analyze the current trends in renewable energy investments and identify key players, innovations, and challenges.”

• Use Case: Perplexity can synthesize market research from multiple sources, helping you stay informed about industry dynamics.

4. Research Collaboration and Ideation

• Prompt: “Suggest interdisciplinary research ideas combining AI, environmental science, and public policy, including potential applications and challenges.”

• Use Case: Use Perplexity to brainstorm innovative ideas for collaborative projects or research initiatives across disciplines.

5. Problem-Solving and Decision-Making

• Prompt: “Compare the pros and cons of different cloud storage solutions (e.g., AWS, Azure, Google Cloud) for small businesses in terms of scalability, cost, and security."

• Use Case: Leverage Perplexity to make informed decisions by comparing solutions based on factual data and expert opinions.

Tip for Effective Use:

• Tailor your queries with “specificity” (e.g., timeline, industry, audience).

• Ask for references to verify credibility and explore further.