In today’s newsletter:

• News - 🚫🤦‍♂️ Microsoft Forces Copilot on Users, Raises Prices!

• Culture - 🌍🇺🇸 A.I. Will Redefine America’s Economic Landscape!

🚫🤦‍♂️ Microsoft Forces Copilot on Users, Raises Prices!

Microsoft is taking a bold new approach to push its Copilot AI assistant into the spotlight—whether users want it or not. The tech giant has rolled out Copilot to Microsoft 365 subscriptions in Australia and Southeast Asia, bumping up prices in the process. But rather than delighting users, the AI’s persistent pop-ups have caused frustration. Alistair Fleming, an Australian YouTuber, found the constant interruptions while writing scripts for his channel downright annoying, especially after seeing his bill jump from $11 to $16 (AUD). Some users have even compared Copilot to the much-mocked Clippy, Microsoft’s old office assistant.

This strategy is part of Microsoft’s larger plan to make the most of its massive $14 billion investment in OpenAI and capitalize on the booming AI market. While Copilot has made its way into the enterprise world at a steep $30 per user, it’s struggling to gain traction with consumers, who are increasingly turning to ChatGPT. Microsoft’s long-term vision? Turning Copilot users into fans of more advanced AI tools—like virtual agents that handle everything from customer service to travel bookings. But with mixed reactions so far, it remains to be seen if this AI revolution will win over the masses.

🗞️ In Other News…

• DeepSeek, a Chinese AI firm, has released its powerful DeepSeek V3 model, which outperforms major AI models in coding and integration tasks, boasting 671 billion parameters and trained on 14.8 trillion tokens, though its political views are influenced by Chinese regulations.

• The AI Art Magazine, a biannual publication celebrating AI-generated art, showcases groundbreaking works, essays, and interviews, offering a platform for human-machine creativity while maintaining editorial independence.

• Texas Rep. Giovanni Capriglione has proposed House Bill 1709, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), to regulate AI development, enhance data privacy, prevent bias, and promote education, while establishing a regulatory sandbox for testing AI programs.

• MIT scientists are developing an AI tool that combines generative models with physics-based flood simulations to create realistic satellite images of potential flooding scenarios, aiding in better flood planning, evacuation, and mitigation efforts.

• The incoming Trump administration is set to reshape the federal government's AI strategy, building on the groundwork laid by the Biden administration, with a focus on reducing risks, leveraging AI across agencies, and ensuring efficient use of resources while exploring new opportunities for AI integration.

🌍🇺🇸 A.I. Will Redefine America’s Economic Landscape!

Chattanooga, once an overlooked city, is emerging as an unlikely winner in the age of artificial intelligence. A recent study highlights its appeal for A.I. adoption, thanks to an educated workforce, affordable housing, and industries that aren’t easily disrupted by automation. As A.I. spreads beyond traditional tech hubs, cities like Chattanooga, Dayton, and Scranton are positioned to thrive, with local businesses using A.I. to enhance productivity and attract new residents. Start-ups like Truck Parking Club are already leveraging the city’s strong transportation network, cutting-edge co-working spaces, and fast internet to integrate A.I. into their customer service operations.

Chattanooga is quickly becoming a hotspot for A.I.-driven innovation, with companies like Shappi relocating from San Diego to tap into the city's tech ecosystem and affordable living. The online marketplace, which connects travelers with consumer goods shipments, uses A.I. to streamline logistics and improve customer service. The city’s commitment to tech infrastructure, including the world’s fastest internet via EPB and a new quantum network, is making it an attractive destination for entrepreneurs. With a supportive environment for start-ups and a focus on A.I., Chattanooga is shaping up to be a key player in the next wave of technological transformation.

VC Fundraising Rounds

• HuLoop Automation, a leader in efficient, fast, and affordable AI-driven intelligent automation, has announced the successful completion of its Series A funding round. (12/23/24)

• Cursor, the AI-powered coding assistant developed by Anysphere, secured $100 million in Series B funding, bringing its post-money valuation to $2.6 billion. (12/20/24)

• Nuritas, a biotech company based in Dublin that focuses on AI-driven peptide discovery, has successfully concluded its $42 million Series C funding round. (12/20/24)

• Perplexity AI Inc., an AI startup developing a search product to rival Google, has raised $500 million in funding, tripling its valuation to $9 billion. (12/18/24)

• SandboxAQ has raised over $300 million at a valuation exceeding $5.6 billion to advance its AI and quantum sensing technologies, focusing on specialized AI model development. (12/18/24)

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