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Good morning! Today is Friday, May 30, 2025.

We have some exciting AI news today: DeepSeek has released an upgraded AI reasoning model that challenges top-tier models from OpenAI and Google, and Perplexity has launched a new tool capable of generating comprehensive reports and dashboards.

1. DeepSeek's New Open-Source AI Rivals OpenAI and Google on Math and Logic

Chinese AI startup DeepSeek has upgraded its open-source model R1 to a new version, R1-0528, boosting its reasoning skills and performance to rival leading models from OpenAI and Google. The model now achieves 87.5% accuracy on a benchmark math test, up from 70%, thanks to deeper reasoning and more tokens per question. Free under an MIT license, it can run on private servers for full data control. With improved logic, reduced hallucination, and advanced coding support, DeepSeek’s upgraded model is quickly becoming a go-to option for companies wanting powerful, customizable AI without relying on big tech.

2. Perplexity Launches Labs to Build AI-Generated Spreadsheets, Dashboards, and Reports

Perplexity has introduced a powerful new tool called Perplexity Labs that lets Pro users generate spreadsheets, dashboards, reports, and even mini web apps using AI. Available now on the web, iOS, and Android, Labs expands the company’s focus beyond search by helping users complete complex projects with AI-powered research, chart creation, file generation, and code writing. The tool aims to handle deeper tasks by investing more time and leveraging more advanced capabilities. Perplexity Labs is part of a growing push to turn the search startup into a full productivity platform.

3. China’s Tech Giants Start Replacing Nvidia as US Export Limits Bite

Alibaba, Tencent, and Baidu are beginning to shift away from Nvidia chips and test homegrown alternatives as US export restrictions tighten and Nvidia stockpiles dwindle, according to the Financial Times. The move signals a broader push by China’s top tech firms to secure AI development capabilities with domestic semiconductor solutions amid rising geopolitical tensions and growing demand for powerful AI chips.

4. FLUX.1 Kontext Launches with In-Context AI Image Editing for Enterprise Use

The creators of Stable Diffusion have launched FLUX.1 Kontext, a powerful new image generation model designed for enterprise teams. Unlike traditional AI tools, Kontext can edit images using both text and reference photos, allowing for fast, precise, and consistent changes. The model supports local edits, preserves character consistency across scenes, and maintains visual style with minimal delay. Two versions are now available on platforms like KreaAI and LeonardoAI, while a developer-friendly version is in private beta. Users can try the tool through BFL’s new Playground before full integration via API.

5. Run Local AI Even Faster: AnythingLLM Now Optimized for NVIDIA RTX PCs

The popular open-source AI assistant app AnythingLLM just got a major speed boost thanks to new support for NVIDIA NIM microservices and RTX GPUs. With this upgrade, users can run advanced AI workflows like document summarization, data analysis, and code generation directly on their PCs at lightning speed. AnythingLLM works with a wide range of LLMs, connects to personal data, and now taps into the power of NVIDIA’s AI-accelerating Tensor Cores for smoother and faster performance — no complicated setup required. Perfect for developers and AI enthusiasts looking for privacy, flexibility, and power.

6. Grammarly Lands $1 Billion Without Giving Up Equity

Grammarly just secured $1 billion in nondilutive funding from General Catalyst, giving the AI writing assistant a major boost without selling any shares. The money comes from General Catalyst’s Customer Value Fund, which offers revenue-backed financing instead of taking equity. Grammarly will use the funds to expand its sales and marketing, while preserving its capital for strategic acquisitions. With over $700 million in annual revenue and a recent shift toward becoming a full AI productivity platform, Grammarly is doubling down on growth without lowering its past $13 billion valuation.

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

Cheers,
Zephyr