xAI Acquires AI Video Startup

PLUS: Crusoe Boosts AI Data Center Energy, ChatGPT Connectors Link Slack, Drive and more.

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Today:

  • xAI Acquires AI Video Startup

  • Mistral Releases Small 3.1 Model

  • Google, MediaTek Developing AI Chips

  • Crusoe Boosts AI Data Center Energy

  • ChatGPT Connectors Link Slack, Drive

Elon Musk’s AI company, xAI, has acquired Hotshot, a startup specializing in AI-powered video generation. Hotshot previously developed advanced AI models for creating videos and secured investments from major venture capitalists. The acquisition suggests xAI is expanding into AI video production, potentially competing with OpenAI’s Sora and Google’s Veo 2. Hotshot will integrate into xAI’s infrastructure, though details on staff transition remain unclear.

Why It Matters to AI

  1. Advances AI Video Technology – xAI’s acquisition strengthens competition in AI-generated video, pushing innovation forward.

  2. Expands AI Ecosystem – Integration with xAI’s platform could lead to new AI-powered applications in entertainment and education.

  3. Strengthens Competition – It positions xAI as a direct rival to OpenAI and Google, intensifying AI industry competition.

Mistral AI has launched Mistral Small 3.1, an improved AI model excelling in text, multimodal understanding, and multilingual tasks. It features a 128K token context window, fast 150 tokens/sec inference, and outperforms rivals like Gemma 3 and GPT-4o Mini. Lightweight enough for on-device use, it supports enterprise and consumer AI applications. Available via Hugging Face, Google Cloud, and NVIDIA NIM, it remains open-source under Apache 2.0.

Why It Matters to AI

  1. Advances Open-Source AI – Competes with proprietary models while remaining freely available for customization.

  2. Enhances AI Accessibility – Runs efficiently on consumer hardware, enabling more widespread AI adoption.

  3. Expands AI Capabilities – Strengthens multimodal, multilingual, and long-context AI applications.

Google is partnering with MediaTek to design cheaper AI chips, reducing reliance on Broadcom. The new Tensor Processing Units (TPUs) will be produced in 2026, with Google handling more of the design work. This shift follows pricing disputes with Broadcom. Google is also hiring chip engineers in Taiwan as it moves toward in-house chip development. Despite this, Broadcom remains a key TPU supplier, and Google still heavily depends on Nvidia AI chips.

Why It Matters

  1. AI Chip Market Shift – Google diversifying suppliers challenges Broadcom’s dominance.

  2. Cost Reduction Strategy – MediaTek offers a cheaper alternative to Broadcom.

  3. AI Self-Sufficiency – Google aims for more in-house chip design, similar to OpenAI’s strategy.

🧠RESEARCH

ReCamMaster is a new AI tool that lets users change a video's camera angles while keeping the scene realistic. It improves video generation by using existing AI models and a custom training dataset from Unreal Engine 5. The system enhances video stabilization, quality, and expansion, outperforming current methods.

PLADIS is a new method that improves AI-generated images by optimizing attention mechanisms without extra training. It enhances existing diffusion models by using sparse attention, making them more efficient and accurate in following text prompts. PLADIS works seamlessly with guidance techniques, boosting text alignment and user preference in image generation.

Adversarial Data Collection (ADC) improves robot learning by making training data more informative rather than just larger. It uses real-time human interaction to introduce challenges, helping robots learn adaptability and error recovery. ADC reduces data needs by 80% while improving performance, making robotic training more efficient and practical for real-world use.

🛠️TOP TOOLS

Clip Interrogator - AI-powered tool that analyzes images and generates descriptive text prompts.

Pika AI - Transform text and images into captivating video content.

Stable WarpFusion v0.15 - AI-powered image manipulation tool that offers users the ability to create stunning visual effects and transformations. 

ValidatorAI - AI-powered platform designed to assist entrepreneurs in validating and developing their startup ideas.

Screenshot to Code Converter - Converts screenshots into clean, functional code for HTML, Tailwind, React, or Vue.

📲SOCIAL MEDIA

🗞️MORE NEWS

  • Crusoe, an Nvidia-backed startup, secured 4.5 gigawatts of power for AI data centers, addressing energy shortages. It partners with Engine No. 1 to supply firms like OpenAI, Google, and Meta amid growing AI infrastructure demands.

  • OpenAI is testing ChatGPT Connectors, allowing businesses to link Google Drive and Slack for AI-powered searches. The feature respects permissions, excludes private messages, and won’t train on company data. Expansion to SharePoint and Box is planned.

  • Roblox is launching Cube 3D, an AI model that generates 3D objects from text prompts. Trained on licensed and public datasets, it will eventually support images and integrate with Roblox’s AI tools to enhance 3D creation efficiency.

  • Liam Fedus, OpenAI’s VP of research for post-training, is leaving to start an AI-driven materials science company. OpenAI plans to invest in and partner with his startup, which will compete with Google DeepMind and Microsoft in this field.

  • Intel’s new CEO, Lip-Bu Tan, is planning major changes, including restructuring AI operations, cutting middle management, and revamping chip manufacturing. His focus will be on improving Intel Foundry, attracting new clients like Nvidia, and accelerating AI chip production.

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