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Good morning! It is December 19, 2024, today. We have an intriguing lineup of AI news, from GitHub making its AI programming Copilot free for VS Code developers to Google's controversial use of contractors for rating AI responses. Let's dive into the latest updates!

1. GitHub Copilot Goes Free for Developers Worldwide

GitHub has unveiled GitHub Copilot Free, offering developers 2,000 code completions and 50 chat messages per month at no cost. Now integrated into VS Code and accessible through a GitHub account, this tool supports coding queries, bug fixes, and multi-file edits using AI models like Anthropic’s Claude 3.5 Sonnet or OpenAI’s GPT-4o. With 150 million developers on GitHub, Copilot Free extends access to powerful AI tools, including Copilot Chat, directly from the GitHub dashboard.

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2. Google’s Gemini AI Faces Accuracy Concerns After Guideline Shift

Google contractors working on its AI model, Gemini, can no longer skip prompts requiring specialized knowledge, like healthcare queries, even if outside their expertise. Previously, evaluators could opt out to ensure accuracy, but new rules mandate they assess parts they understand and note their lack of expertise. Critics worry this change could compromise Gemini’s reliability on sensitive topics. Contractors now can only skip prompts missing information or containing harmful content. Google has not commented on the update.

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3. Perplexity AI Hits $9B Valuation with $500M Funding Round

AI startup Perplexity AI raised $500 million, tripling its valuation to $9 billion. Known for its real-time AI search tool, Perplexity competes with Google and OpenAI while offering features like document search and finance insights. With 15M users, it has secured partnerships with publishers like Time and gained backing from SoftBank, Jeff Bezos, and Nvidia.

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4. Vultr Raises $333M to Compete in AI Cloud Infrastructure

Cloud provider Vultr secured $333 million in funding, led by LuminArx and AMD, valuing the company at $3.5 billion. Vultr plans to expand its 32-location data center network and purchase GPUs to support AI workloads, competing with hyperscalers like Google and Microsoft. This move aligns with rising demand for AI infrastructure, as companies invest heavily in GPUs for training and inference of AI models. Vultr joins other "neocloud" firms like CoreWeave in capitalizing on the $276 billion AI chip market projected by 2027.

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5. AI Avatars Revolutionizing Customer Service and Operations

AI-powered digital avatars are transforming industries with lifelike interactions and 24/7 support. Leveraging NVIDIA’s advanced AI tools, these avatars enhance productivity and customer satisfaction across healthcare, finance, and more by providing multilingual assistance, personalized guidance, and seamless onboarding. NVIDIA’s AI Blueprints simplify the creation of 2D and 3D digital humans, making AI assistants more accessible for diverse applications like telemedicine and judicial processes.

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6. Apple Eyes Local AI Partners in China Amidst Growing Competition

Apple is in early talks with Tencent and ByteDance to integrate their AI models into iPhones sold in China, as ChatGPT remains unavailable in the country due to regulatory restrictions. With domestic rivals like Huawei gaining ground through advanced AI features, Apple seeks partnerships to address declining market share in the world’s largest smartphone market. A successful collaboration could position its devices to compete with the robust AI capabilities offered by Chinese tech giants.

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Stay tuned for more updates, and have a fantastic day!

Best,

Zephyr