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Good morning! Today is Tuesday, May 6, 2025.

We have some exciting AI news today: a stealth AI model has outperformed DALL·E and Midjourney on a key benchmark, and OpenAI is set to acquire coding startup Windsurf for $3 billion.

1. Recraft’s Secret AI Image Model Beats DALL·E and Midjourney — and Just Raised $30M

San Francisco startup Recraft has quietly built a powerful image generator that outperformed OpenAI’s DALL·E and Midjourney on a major benchmark — and now it’s raised $30 million in Series B funding led by Accel. Its standout model, nicknamed “red_panda,” excels in brand-specific image generation, helping companies create marketing materials with precise logos and layouts. With 4 million users and $5M in ARR, Recraft is positioning itself as a design-first AI rival to Canva, led by former Yandex ML lead and solo founder Anna Veronika Dorogush.

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2. Nvidia Unveils Real-World AI Tools for Biotech, Robotics, and Transportation

Nvidia is pushing AI beyond chatbots and image generators, showcasing over 70 research papers focused on “embodied intelligence” — AI that can perceive, reason, and act in physical environments. From robotics that learn new tasks faster, to a biotech model that could outpace DeepMind in protein design, Nvidia is aiming to revolutionize fields like vaccine development, logistics, and autonomous navigation. The company also introduced tools like STORM for real-time 3D mapping and NIM for streamlined AI deployment, signaling its bold vision for real-world AI dominance.

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3. IBM Unveils AI-Powered Mainframe to Modernize Enterprise Computing

IBM has launched the LinuxONE Emperor 5, a next-gen mainframe built for the AI era, blending cutting-edge AI acceleration with legendary mainframe reliability. Powered by the new Telum II processor and packing up to 24 trillion operations per second, the Emperor 5 is designed to handle mission-critical workloads, slash costs, and offer enterprise-grade security—including post-quantum encryption and confidential computing. It’s a bold move to bring old-school tech into the future of hybrid cloud and AI.

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4. OpenAI to Acquire AI Coding Startup Windsurf for $3 Billion

OpenAI is set to acquire Windsurf—formerly known as Codeium—for around $3 billion, marking its biggest acquisition yet as it doubles down on AI-powered software development. Windsurf specializes in AI-assisted coding tools, and the deal is expected to strengthen ChatGPT’s growing capabilities in code generation and developer productivity. The move comes as OpenAI's user base soars past 400 million weekly active users and the company eyes a massive $40 billion funding round at a $300 billion valuation.

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5. Anthropic Launches Free AI Access for Scientific Research

Anthropic has announced its new AI for Science program, offering free API credits to support researchers tackling high-impact scientific challenges—especially in biology and life sciences. The initiative aims to speed up discovery in areas like genetic research, drug development, and agriculture by leveraging Claude’s advanced reasoning and language capabilities. Researchers from accredited institutions can apply to use the AI tools to analyze complex data, generate hypotheses, and design experiments faster and more efficiently.

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6. OpenAI Ditches Full For-Profit Plan, Becomes Public-Benefit Corporation to Scale AI Responsibly

OpenAI says global demand for its AI far exceeds supply — and scaling it could cost trillions. In response, the company is scrapping its plan to become a fully for-profit business and will instead convert its commercial arm into a public-benefit corporation (PBC). This shift keeps OpenAI under nonprofit control, while allowing it to raise capital more easily and prioritize both mission and profit. CEO Sam Altman says the new structure will help the company make AI tools more broadly accessible while staying true to its founding purpose.

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

Best,
Zephyr