Daily AI Newsletter: OpenAI said to be in talks to raise $40B at a $340B valuation

Google Search’s new ‘Ask for me’ calls local businesses for availability, pricing

In today’s email:

🔥 Google quietly announces its next flagship AI model
☢️ A Young Man Used AI to Build A Nuclear Fusor
🍿 How one YouTuber is trying to poison the AI bots stealing her content
🧰 5 new AI-powered tools and resources. Make sure to check the online version for the full list of tools.

OpenAI said to be in talks to raise $40B at a $340B valuation

OpenAI is in early discussions to secure up to $40 billion in a new funding round that could value the company at a staggering $340 billion. SoftBank is expected to lead the investment, contributing between $15 billion and $25 billion, while also working to bring in additional investors. These talks are still ongoing and could change, according to sources familiar with the matter. If successful, this funding round would nearly double OpenAI’s valuation since October, when it was last valued at $157 billion after raising $6.6 billion.

A significant portion of the funds will be allocated to OpenAI’s commitment to Stargate, a joint venture with SoftBank and other partners focused on developing advanced data centers in the U.S. This initiative is crucial for powering OpenAI’s AI models and expanding its computing infrastructure nationwide. The estimated cost of this commitment is around $18 billion, making the new funding a strategic necessity for scaling operations.

In addition to infrastructure expansion, OpenAI plans to use the fresh capital to support its ongoing business operations, which continue to operate at a loss. Despite rapid growth, the company faces high expenses related to research, development, and maintaining cutting-edge AI capabilities. If the investment materializes, it would be one of the most significant funding rounds in AI history, further cementing OpenAI’s dominance in the industry.

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Google quietly announces its next flagship AI model

Google has quietly launched its latest flagship AI model, Gemini 2.0 Pro Experimental, without the usual fanfare, instead slipping the announcement into a changelog for its Gemini chatbot app. This new model, the successor to Gemini 1.5 Pro, promises improved factual accuracy and enhanced coding and mathematical capabilities. However, the launch has been somewhat mysterious—Google later removed mentions of the model from the changelog, calling it an “out-of-date release note” published in error. Despite this, the model is now available for Gemini Advanced users through Google’s AI Premium plan and Google Workspace add-ons.

Google describes Gemini 2.0 Pro Experimental as an "early preview" model, cautioning that it may display unexpected behaviors and is not yet compatible with all Gemini app features. Unlike some other models in the Gemini family, it lacks access to real-time information. The company says this release aligns with its approach of rapid iteration, allowing advanced users to test cutting-edge AI and provide feedback to refine future models. Meanwhile, competition in the AI space is heating up, with Chinese startup DeepSeek gaining attention for developing openly available models that rival or surpass offerings from major U.S. tech firms.

Alongside the Gemini 2.0 Pro Experimental release, Google has also introduced the Gemini 2.0 Flash model to all Gemini app users. This model, originally announced in December, is now set as the default Gemini app model. Google emphasizes that user feedback from these experimental launches is essential in shaping the broader rollout of its AI technology. As the AI race intensifies, Google’s strategy appears focused on gradual, user-driven improvements, rather than high-profile unveilings.

Google Search’s new ‘Ask for me’ calls local businesses for availability, pricing

Google is testing a new AI-powered feature called “Ask for Me,” which can call local businesses on users' behalf to inquire about services, pricing, and availability. Currently, the feature is available to those enrolled in Search Labs on both desktop and mobile. It aims to save users time by eliminating the need to make phone calls themselves. Initially, "Ask for Me" supports inquiries related to nail salons and auto shops, allowing users to request information about specific services such as tire replacements or nail art.

To use the feature, users simply search for local services like “oil change” or “nail salons nearby” and select the “Ask for me” option. After entering details about the requested service and preferred time frame, Google’s AI will make the necessary calls and provide a summary of the gathered information. This follows Google’s broader initiative to integrate AI into customer interactions, as seen with last year’s “Talk to a Live Rep” feature, which waits on hold with businesses and alerts users once a live representative is available.

Beyond “Ask for Me,” Google continues to introduce AI-driven enhancements through Search Labs. Another recent addition is “Daily Listen,” a personalized AI-powered audio experience designed to keep users informed through a customized news feed. These developments highlight Google’s ongoing efforts to streamline communication and information retrieval using artificial intelligence, making daily tasks more efficient for users.