Good morning, it’s Tuesday! Today, we’ve got a musician scamming millions with AI-generated songs, the NSA AI Security Center safeguarding defense tech, and elite Chinese students rooting for U.S.-China cooperation in AI. Plus, physics-powered AI models are cracking complex flow simulations, while OpenAI’s SearchGPT faces a tough showdown with Google.

Oh, and don’t forget to check out the latest Forward Future Original about Cursor, the ChatGPT that knows your codebase.

Your Daily Roundup:

1. Reflection 70B AI Model Under Fire for Discrepancies in Performance Claims

2. Physics-Informed AI Revolutionizes Fluid Flow Modeling in Subsurface Media

3. China's Top Students Optimistic About AI, Favor Regulation Over Pause

4. Musician Indicted for $10M AI-Generated Streaming Fraud

5. OpenAI's SearchGPT Impresses but Faces Accuracy and Query Challenges

6. Apple Showcases AI-Powered iPhone 16 and other devices

7. NSA's AI Security Center Strengthens DOD's AI Defense Strategy

👉️ Top AI Stories

Reflection 70B AI Model Faces Scrutiny After Lofty Claims Are Challenged

The newly launched Reflection 70B AI model, initially celebrated for its top-tier benchmarks, has come under fire as independent evaluators were unable to reproduce its claimed performance. Questions surrounding the accuracy of the release, model weights, and potential misrepresentation have sparked controversy within the AI community, casting doubt on the model's true capabilities. Continue reading here.

Physics-informed Machine Learning for Modeling Flow in Fractured and Porous Media

This paper presents a novel approach using physics-informed machine learning (PIML) to model fluid flow in fractured and porous media. By integrating physical laws into machine learning models, the method offers improved accuracy and computational efficiency in simulating complex subsurface flows, demonstrating potential applications in fields such as energy resource management and environmental studies. Continue reading here.

Apple Showcases AI-Powered iPhone 16, New Watches, and AirPods at Cupertino Event

Apple unveiled the AI-enhanced iPhone 16 series, its first smartphones designed with AI from the ground up, including advanced Siri capabilities and object recognition. Alongside the phones, Apple introduced new Watches with health monitoring features and updated AirPods with hearing-aid capabilities, as it seeks to differentiate itself in a market increasingly driven by AI competition, particularly from Google and Huawei. Continue reading here.

Elite Chinese Students Optimistic About AI, Favor Government Regulation and U.S.-China Cooperation

A survey of students from China's top universities reveals strong optimism toward AI, with 80% believing it will do more good than harm. Most respondents support government regulation, but do not advocate for a pause in AI development. They also stress the importance of U.S.-China cooperation for safe AI progress. Continue reading here.

North Carolina Musician Charged in $10 Million Fraud Scheme Using AI-Generated Fake Songs

Michael Smith, a 52-year-old North Carolina musician, has been indicted for using AI to create fake songs under fictitious band names and fraudulently collecting $10 million in royalties from platforms like Spotify, Apple Music, and Amazon Music. Smith allegedly programmed bots to generate billions of fake streams over seven years, earning royalties intended for legitimate artists. He now faces federal charges, including wire fraud and money laundering, which could lead to up to 20 years in prison for each charge. Continue reading here.

OpenAI's SearchGPT Shows Promise, But Faces Challenges in Competing with Google

OpenAI's SearchGPT, a prototype search tool that combines AI-generated answers with sources, shows potential but struggles with certain types of queries and suffers from occasional inaccuracies, or "hallucinations." Early users praise its concise answers and interface but note limitations in areas like local and shopping searches. While not yet a direct competitor to Google, it may disrupt the search landscape as OpenAI refines its capabilities​. Continue reading here.

NSA's AI Security Center Strengthens DOD's Leadership in AI Technology

The NSA's Artificial Intelligence Security Center is playing a critical role in advancing and protecting AI technology within the Department of Defense (DOD). According to Air Force Gen. Timothy Haugh, the center focuses on safeguarding AI models and intellectual property while helping to understand and defend against AI risks from adversaries. As the U.S. prioritizes secure AI adoption, the DOD's 2023 AI strategy reinforces its leadership in AI to maintain a competitive edge on future battlefields. Continue reading here.

Vultr is a cloud services provider delivering high-performance compute, storage, and networking solutions. It allows developers and businesses to deploy applications globally with ease and scalability. Try for free.

👾 Forward Future Original

Cursor: An AI Code Editor Enriches the World

An 8-year-old girl sits at her computer and starts programming. As if it were the easiest thing in the world. She is the daughter of Cloudflare Vice President Ricky Robinett and is using a chatbot and does coding “simply [by] typing text-based prompts into an AI coding tool called Cursor” [1]

This Cursor-app was released back in June, but has only recently gained widespread acceptance in the tech scene. It is not often that an app gains general acceptance and broad approval from the AI and developer scene within a short space of time. Numerous different tools are sometimes circulating the web [2] - but this time it seems to be different. There is widespread unanimous support for Cursor and it is described as the tool par excellence for programmers. “Engineers at leading AI startups like OpenAI, Midjourney, Perplexity and Scale AI, as well as tech companies like Shopify and Instacart, are among the 30,000 customers who pay $20 or $40 per month to use Cursor's AI tools to write and edit entire chunks of code”

Searches for Cursor have exploded since the end of July and beginning of August.

The success of Cursor has even attracted Forbes and prompted the editors to write a major article about the app - of course only in the highest terms and almost a eulogy for the app's efficiency.

When ChatGPT saw the light of day in 2022, it had an unprecedented impact on the way we generate knowledge. Today, we can say that Cursor has done the same with programming. Since the advent of LLMs, former sites like Stackoverflow have fallen behind, especially after Microsoft released the GitHub CoPilot. However, the more Cursor pushes itself into people's focus, the more so. I would therefore like to investigate the question:

What Is Cursor and What Makes It Successful?

In 2022, the company Deepgram was founded by four friends who met at MIT and within a short space of time received around $60m in seed capital for their start-up from well-known names such as VC Andreesen Horrowitz, OpenAI Startup Fund and others. The company has now grown to a valuation of $400m. The friends started out with the aim of developing an app that would benefit beginners and professionals alike, make everyday coding easier and multiply productivity. But the result is even more than that.

Programming Without Prior Knowledge… Continue reading here.

🚀 Launches + Funding

• AI Fundraisers Revolutionize Donor Engagement: Givzey's AI-powered fundraisers are being tested to engage lower-level donors, addressing staffing challenges but raising ethical concerns and job displacement risks.

• Harrison.ai Launches Radiology AI Model: Harrison.ai's new radiology-specific AI model, Harrison.rad.1, enhances diagnostic accuracy and report generation, aiming to alleviate the global radiologist shortage by performing on par with human professionals.

• Fetch.ai Launches AI Innovation Lab: Fetch.ai opens an Innovation Lab in San Francisco, providing $10 million annually to support early-stage AI startups, alongside internships and talent programs to foster AI innovation.

• Rabbitt.ai Unveils No-Code Retrieval Solution: Rabbitt.ai's ChanceRAG is a no-code solution that integrates AI models with document retrieval systems, enhancing precision for complex queries and streamlining RAG pipelines for real-world applications like customer support.

✍️ Editor Picks

Markets

AI Craze Is Distorting VC Market, as Tech Giants Like Microsoft and Amazon Pour in Billions of Dollars

Venture capitalists are facing challenges as they seek exits in a private market flush with highly valued AI startups, such as OpenAI and Anthropic, which are not under pressure to go public due to substantial investments from tech giants like Microsoft, Amazon, and Nvidia that offer robust funding and strategic partnerships. As a result, the VC exit value has significantly declined, dropping down 86% from 2021, and venture-backed IPOs are at their lowest since 2016, while most generative AI investments are directed towards companies higher up in the technology stack that develop applications requiring less capital.

Continue reading here.

Robotics

How Self-Driving Cars Get Help From Humans Hundreds of Miles Away

Autonomous taxis from companies like Zoox, Waymo, and Cruise, which are starting to operate without drivers in cities like San Francisco and Las Vegas, still rely on remote human assistance to navigate challenging or unfamiliar situations. Despite their advanced technology, these self-driving vehicles require human intervention from technicians in command centers, who provide guidance and corrective actions when the cars encounter obstacles or scenarios beyond their programmed capabilities.

Continue reading here.

Papers

A Framework for Solving Parabolic Partial Differential Equations

MIT Algorithm Solves Nonlinear Parabolic PDEs on Triangle Meshes: MIT researchers developed an algorithm using Strang splitting to efficiently solve nonlinear second-order parabolic PDEs on triangle meshes by breaking them into simpler steps. This breakthrough enhances simulations of dynamic processes like fire propagation in computer graphics and has potential applications in biology and chemistry for solving coupled parabolic PDEs.

Continue reading here.

📽️ New Videos:

🧰 AI Toolbox

• Thriving AI Art Platform with Community Focus: NightCafe, an early AI art platform, has grown to over 25 million users and nearly a billion images created. Despite facing competition and moderation challenges, it remains profitable through its bootstrapped model and continues to offer unique tools and a marketplace for AI-generated art, while fostering a strong community.

• AI Bookkeeping Startup Finally Raises $200M in Equity and Debt: Miami-based AI bookkeeping startup Finally has raised $200 million in a combination of equity and debt, strengthening its financial position. On the same day, Progress announced the acquisition of ShareFile for $875 million, and Apple's Glowtime event is expected to introduce the iPhone 16 series and new Apple Watch models.

• AI Cameras Spot Seat Belt Offences in Devon and Cornwall: AI cameras in Devon and Cornwall detected over 2,000 seat belt violations, including 109 involving children, between July and August 2024. The cameras, part of a year-long project, are driving calls for stricter penalties as they aim to improve road safety by influencing driver behavior.

🔥 Perks for Referrals

🛰️ Houston, we have more headlines!

• AI CPU Export Restrictions: U.S. export controls on AI chips are now impacting general-purpose CPUs with AI features.

• Josh Kushner's OpenAI Role: Josh Kushner, founder of Thrive Capital, has become a key player in OpenAI's fundraising.

• Agentic AI Future Vision: Tech leaders envision "agentic AI," systems capable of autonomous actions.

• xAI Datacenter Expansion: Musk's xAI is building a massive AI datacenter in Memphis, positioning him as a major AI competitor.

• Unlocking Brain’s Neural Code: Analyst Azoff suggests that deciphering the brain's "neural code" could lead to superhuman AI.

• Grok AI Privacy Concerns: Grok AI, developed by Elon Musk's xAI, faces criticism for privacy violations and misinformation.

• Summit on Military AI Ethics: An international summit in Seoul seeks to establish guidelines for responsible military AI use.