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Elon Musk’s xAI Acquires Social Media Platform X

Also: OpenAI Faces Challenges Over AI-Generated Art Styles

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AI KATANA
March 30, 2025

Hello!

In today’s edition, major moves are reshaping the AI and tech landscape, with Elon Musk consolidating control by merging xAI and social media platform X in a $33 billion all-stock deal, creating a formidable AI-data synergy worth $80 billion. Meanwhile, OpenAI is navigating the ethics of art style mimicry amid viral demand for Studio Ghibli-style images, spotlighting ongoing concerns around creative copyright. Meta is under legal fire for allegedly training AI on pirated books, defending its stance as “fair use” while authors demand compensation and legal safeguards. In the virtual world, a hyper-realistic AI influencer is blurring boundaries in fashion and social interaction, raising questions about digital personas and emotional connection. On the global front, Apple is eyeing Alibaba’s AI model to boost its presence in China, signaling a strategic shift in localizing advanced AI experiences. From industry reshuffles to AI ethics and cultural integration, today’s updates reflect the evolving power dynamics in the AI arms race.

Sliced just for you:

  • 🤖 Elon Musk’s xAI Acquires Social Media Platform X

  • 🎨 OpenAI Faces Challenges Over AI-Generated Art Styles

  • 📚 Meta says copying books was ‘fair use’ in authors’ AI lawsuit

  • 👩‍💻 AI-Generated Virtual Influencer Gains Popularity

  • 🍎 Apple Explores Integration of Alibaba’s AI Model

Earthquake in Myanmar: Children need your help now
Initial reports show severe damage to buildings and roads in Sagaing as well as in Nay Pyi Daw and Mandalay, urban centers which are home to hundreds of thousands of children. Damage has also been reported in Bangkok and other parts of Thailand.

Donate today: https://help.unicef.org/myanmar-earthquake

Elon Musk’s AI company, xAI, has acquired the social media platform X (formerly Twitter) for $33 billion in an all-stock deal. This acquisition merges two of Musk’s enterprises, potentially enhancing xAI’s AI model training capabilities by leveraging real-time user data from X. The combined entity is valued at $80 billion, though specifics regarding investor compensation and leadership integration remain undisclosed. The deal may face regulatory scrutiny due to its significant consolidation of Musk’s business interests.

OpenAI has encountered a surge in requests for AI-generated images styled after Studio Ghibli films, a trend initiated by software engineer Grant Slatton. In response, OpenAI’s CEO Sam Altman announced temporary rate limits due to the high volume of image requests. To address concerns about mimicking specific living artists, OpenAI has restricted some requests for Ghibli-style content while allowing broader studio styles. This situation highlights ongoing debates regarding the ethics and copyright implications of AI-generated art.

Irish authors have discovered their books on the pirated content database LibGen, allegedly used by Meta to train its AI model, Llama 3, leading to a US copyright infringement lawsuit by authors like Sarah Silverman and Andrew Sean Greer against Meta. Authors feel helpless as there is no safeguard against their work being used in AI training datasets. In contrast, Meta claims this usage falls under “fair use” and has financial means to compensate authors but chooses not to. The publishing industry, trying to adapt, offers deals allowing authors to approve AI training with compensation, but some authors refuse due to uncertainty. The Society of Authors advocates for government intervention to protect creators’ rights as the power dynamics favor tech companies over artists.

Aitana López is an AI-created virtual influencer from Barcelona, renowned as Spain’s “hottest supermodel.” Developed by Clueless AI, Aitana’s hyper-realistic features and vibrant personality have garnered her 350,000 followers and brand partnerships worth £1,000 per post. However, she often causes confusion among fans and brands unfamiliar with her artificial nature. Her creator emphasizes that while AI models like Aitana pose unique advantages and challenges to the traditional fashion industry, they offer opportunities for coexistence, speed, and cost efficiency. Clueless AI aims to expand its portfolio and explore new applications, including virtual companions to combat loneliness and mental health issues, though some experts warn of potential social consequences of such AI relationships.

Apple is considering incorporating Alibaba’s AI model, ‘Qwen2.5-Omni-7B,’ to enhance iPhone capabilities in China. This model processes text, images, audio, and video, generating real-time responses and can operate directly on smartphones without a constant server connection. Apple awaits regulatory approval to offer its AI service, Apple Intelligence, in mainland China. This partnership could bolster Apple’s presence in the Chinese market, where iPhone sales have declined.

🛠️ AI tools updates

Microsoft is enhancing its Microsoft 365 Copilot with two advanced AI-powered tools—Researcher and Analyst—designed to tackle deep research and complex data analysis tasks. Researcher integrates OpenAI’s deep research model with advanced orchestration and search capabilities, enabling tasks like go-to-market planning and client reporting using both web data and third-party connectors like Salesforce and Confluence. Analyst, powered by OpenAI’s o3-mini reasoning model, handles iterative problem-solving and data analysis using Python, offering transparency into its process.

💵 Venture Capital updates

Yutori, a new AI assistant startup founded by former Meta executives Devi Parikh and Dhruv Batra, has secured $15 million in funding to build autonomous AI agents capable of handling complex real-world tasks. Backed by notable investors including Radical Ventures, Fei-Fei Li, and Jeff Dean, Yutori aims to redefine productivity by going beyond chatbots to create assistants that can independently complete tasks such as booking travel or ordering food. The startup is focused on post-training methods to enhance model reasoning and navigation of the web, tapping into the growing trend of systems that can perform extended sequences of actions without human oversight.

Chinese AI start-ups are adjusting their business strategies in response to the rapid success of DeepSeek’s technology. Companies like Zhipu, 01.ai, Baichuan, and Moonshot are shifting focus to stay competitive, with some aiming for IPOs and others narrowing their market focus or altering product offerings. DeepSeek’s breakthrough R1 model has transformed China’s AI landscape, prompting these strategic changes.

🫡 Meme of the day

⭐️ Generative AI image of the day