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Artificial Intelligence

AI Coding Startups Grapple with High Costs and Slim Margins

AI coding startups like Windsurf and Anysphere (Cursor) face challenges due to the high costs associated with using large language models (LLMs). Windsurf, after failed acquisition talks with OpenAI, was eventually sold off in parts after facing negative gross margins due to the expense of running its AI coding product. The most direct solution involves building proprietary models to cut supplier costs, but this is capital intensive.

Anysphere, the maker of Cursor, is also experiencing margin pressures despite its rapid growth and $500 million ARR. They are exploring building their own model and have adjusted pricing to reflect increased LLM costs. The article highlights the competitive landscape, suggesting that user loyalty is not guaranteed if superior tools emerge. Windsurf's founders and key employees ultimately joined Google after a deal that led to a $2.4 billion payout.

Other AI coding tools like Replit, Lovable, and Bolt also rely on model makers, indicating the broader industry's reliance on LLM providers and the struggle to achieve profitability.

Social Media

Navigating Instagram Map: Location Sharing and Discovery

Instagram has launched Instagram Map, a new feature similar to Snap Map, allowing users to share their location and discover location-based content. Location sharing is opt-in and only updates when the app is open or running in the background.

Accessing Instagram Map: Navigate to your DMs and tap the 'Map' option. First-time users will see a pop-up explaining that location sharing is off by default and can be changed.

Setting Location Preferences: Choose who can see your location (Friends, Close Friends, selected users, or no one) in settings under 'Story, live and location' > 'Location sharing'.

Using Instagram Map: View locations of friends who share their location and discover location-based Stories and Reels. You can also leave ephemeral messages ('Notes') on the map.

Finance

Brex Expands to EU with New License, Eyes UK Next

Brex, a financial services provider, has secured a license to operate in the European Union, enabling it to directly issue credit and debit cards and offer spend management products in all 30 EU countries. This expansion allows Brex to sell its products, including embedded payments, to EU companies and startups. While banking and bill pay services will not be immediately available, the company intends to introduce them in the future. Brex is also planning to expand into the UK. The company aims to be cash-flow positive by 2025, with projected revenue of $500 million this year. In March 2024, Brex secured $260 million in debt to support its business.

Artificial Intelligence

GPT-5: OpenAI's New Era of Unified AI Redefines Capabilities and Accessibility

OpenAI has launched GPT-5, a unified AI model that combines reasoning and fast responses, marking a new era for ChatGPT.

GPT-5 can complete tasks such as generating software, managing calendars, and creating research briefs, with simpler user experience.

CEO Sam Altman claims GPT-5 is the best model in the world, representing a significant step toward artificial general intelligence (AGI), and is now available to all free ChatGPT users.

GPT-5 excels in coding, scoring 74.9% on SWE-bench Verified, slightly outperforming Anthropic’s Claude Opus 4.1. It also shows improvements in answering health-related questions with lower hallucination rates.

ChatGPT receives user experience upgrades, including new personalities and higher usage limits for subscribers, while developers gain access to GPT-5 via the API with varying sizes and verbosity controls.

Technology & Business

Duolingo's AI-First Strategy Defies Backlash, Driving Revenue Growth

Duolingo's shift to an 'AI-first' approach, despite facing user backlash, has resulted in the company exceeding quarterly revenue estimates and a nearly 30% stock increase. CEO Luis von Ahn's decision to prioritize AI led to the introduction of 148 new language courses and a reduction in reliance on contract workers. While some users have criticized the AI features, Duolingo anticipates surpassing $1 billion in revenue this year, with daily active users growing by 40% year-over-year. The company addressed negative social media sentiment by adjusting its content strategy, focusing on positive messaging. Despite ongoing criticism on platforms like TikTok, Duolingo's financial performance remains strong.

Crime & Politics

Teens Charged in Attack on Ex-DOGE Official

Two 15-year-olds have been charged with unarmed carjacking after allegedly attacking Edward “Big Balls” Coristine, a former Neuralink intern and prominent figure in the Trump administration's Department of Government Efficiency (DOGE).

The incident occurred around 3 a.m. Sunday in Washington’s Logan Circle. A group of teens approached Coristine's car and made comments about taking it. Coristine confronted the group and was subsequently attacked.

President Trump shared an image of Coristine on Truth Social, calling for prosecuting teens as young as 14 as adults and for federalizing Washington.

Technology

X to Integrate Ads into Grok Responses to Monetize AI

Elon Musk announced that X plans to introduce advertisements within Grok's responses to generate revenue.

This initiative aims to monetize the AI chatbot and offset the costs of the GPUs powering it.

Advertisers can pay to have their solutions suggested to users seeking problem-solving assistance from Grok.

Musk also intends to leverage technology from xAI to enhance ad targeting on the X platform.

Data Security

Bouygues Telecom Hit by Cyberattack, Millions of Customers Affected

Bouygues Telecom, France's third-largest phone carrier, has confirmed a cyberattack and data breach impacting 6.4 million customer accounts. The breach, detected on August 4, compromised personal information including contact details, contractual data, civil status, and IBANs.

The company has reported the incident to France’s data protection agency, CNIL. A hidden "noindex" tag was found on the webpage detailing the attack, potentially hindering search engine visibility.

This cyberattack follows a similar incident at Orange, another major French telecom, which experienced disruptions in late July.

Software and Apps

Dia Browser Introduces Pro Subscription with AI Features

The Browser Company has launched a Pro subscription for its Dia browser, priced at $20 per month, offering unlimited access to AI-powered chat and skills. Free users will now have limited access to these AI features.

The company plans to introduce multiple subscription tiers, with the current plan being one of several options based on different feature sets. The Pro plan was initially spotted online before being officially launched.

The Browser Company has raised $128 million from investors and faces growing competition in the AI-enhanced browser market from companies like Perplexity, Opera, Google, and Microsoft.

Crime & Politics

Teens Charged in Attack on Former DOGE Official: A Summary of Events

Two 15-year-olds have been charged with unarmed carjacking after allegedly attacking Edward “Big Balls” Coristine, a former Neuralink intern and figure in the Trump administration’s Department of Government Efficiency (DOGE).

The incident occurred around 3 a.m. Sunday in Washington’s Logan Circle, where a group of teens approached Coristine and his girlfriend, making comments about taking their car. Coristine reportedly pushed his girlfriend into the car for her safety before confronting the group, who then attacked him until police arrived.

Following the attack, Musk praised Coristine's bravery on X, and President Trump shared a graphic image of a battered Coristine on Truth Social, advocating for prosecuting teens as young as 14 as adults.