Microsoft has “tapped on the brakes” of its spending on artificial intelligence, reducing capital expenses by more than $1 billion in the first three months of 2025. But after 10 straight quarters of increased AI outlay, momentum continues to propel the sector forward with new data center commitments in 16 countries and the expansion of the Phi small language family with the debut of Phi-4 (that supports text, visual and voice inputs). The moves come on the heels of $70 billion in sales for the first three months of 2025, when profits were up 18 percent to $25.8 billion. Continue reading Microsoft Reduces Spending on AI but Momentum Continues

OpenAI is expanding ChatGPT’s shopping capabilities, adding product recommendations to help users discover products and brands. The chatbot’s results for shopping queries will now automatically include things like prices, images and ratings, much like searches using Amazon or Google Shopping. The company says that products it features in shopping search results “are chosen independently and are not ads.” With the company under pressure to turn a profit, a challenge for many AI startups, that could of course change. The company is reportedly already working with partners to ensure pricing is up to date. Continue reading OpenAI Improves ChatGPT for Shopping with Built-In Pricing

China’s Huawei Technologies is getting ready to test its newest AI processor, which the company believes is powerful enough to replace high-end chips from U.S. rival Nvidia, whose top-tier products are prohibited from export to China due to a trade embargo. Huawei’s AI ambitions suggest a superpower competition over semiconductors gearing up despite the U.S. government’s attempt to stymie Beijing. Huawei expects to receive its first samples of its latest AI processor, the Ascend 910D, as early as next month, and is reportedly casting about for tech firms capable of testing it out. Continue reading Huawei’s Processor Could Chip Away at Nvidia Market Share

YouTube is testing a new AI Overviews feature for search and discovery powered by Gemini. A “small number” of YouTube Premium subscribers in the U.S. will notice a video results carousel popping up for some English-language search queries. The feature taps AI to highlight clips from videos deemed most helpful for a particular search. Initially, the feature will appear in response to practical inquiries, aiming for a more helpful response to things like product inquiries and requests for information about a place or activity. The idea is to provide quick highlights from several videos. Continue reading YouTube Testing Gemini-Powered AI Overviews for Searches

Adobe has released its free Content Authenticity web app in beta. The app is designed to help protect creators’ work and allows them to embed a request that generative AI models don’t use their work for training. Users can apply tags for up to 50 images at once. In addition to applying tags, users can customize and inspect Adobe Content Credentials using the the Adobe Content Authenticity browser extension for Google Chrome. The information is invisible until the inspection tool is opened and can include links to a creator’s social media account, website or other identifying attributes. Continue reading Adobe Launches Its Content Authenticity App in Public Beta

Perplexity AI has entered into a deal with Motorola to preinstall its artificial intelligence search engine technology in Motorola smartphones, giving buyers three free months of Perplexity Pro, which costs $20 per month and includes a deep research feature. Earlier this year, Motorola launched a Moto AI beta program to test core features like “Catch me up,” “Pay attention” and “Remember this” prompts. Based on feedback, Motorola says it has enhanced these features further as well as developed new AI experiences that will be available on the new generation of Razr and Edge devices. Continue reading Motorola Will Preinstall Perplexity on New Razr, Edge Models

TSMC introduced its new logic process technology, A14, at the company’s North America Technology Symposium in California. Designed to drive AI forward with faster computing and greater power efficiency, the 1.4nm A14 process is expected to be a boon to smartphones, expanding their on-board capabilities. The company says A14 is an improvement over TSMC’s N2 2nm node, set to go into volume production later this year. TSMC plans to begin producing chips using the A14 process in 2028 for AI clients including Nvidia, the company told reporters and analysts on the eve of its conference. Continue reading TSMC Says New A14 Tech Will Make ‘Smartphones Smarter’

News from Adobe MAX London 2025 spanned new Firefly image models to a refreshed web app that includes third-party image generators, an AI agent that automates Photoshop, an updated Firefly mobile app coming soon to iOS and Android, and the Firefly Video model in general release. The latest release of Firefly “unifies AI-powered tools for image, video, audio, and vector generation into a single, cohesive platform and introduces many new capabilities,” according to Adobe, which says that since its debut nearly two years ago, creatives have used Firefly to generate more than 22 billion assets worldwide. Continue reading Adobe Unveils Two New Image Models and Array of Products

Nvidia has released NeMo microservices into general availability with version 25.4, pivoting its profile from a modular toolkit for creating custom generative AI models to emphasizing it as a platform for building AI agents at scale. As AI agents have become an in-demand commodity, Nvidia is leveraging the fact that NeMo’s capabilities seem purpose built to help them grow and thrive. Built around the Kubernetes open-source container management system, NeMo microservices are offered as “an end-to-end developer platform for creating state-of-the-art agentic AI systems,” according to Nvidia. Continue reading Nvidia Positions Its NeMo Microservices for AI Agent-Building

Character.AI, a platform offering AI chatbots for socializing and role play, has released a video generation model called AvatarFX in closed beta. Promising the ability to make photorealistic images “come to life — speak, sing and emote — all with the click of a button,” the technology combines audio and video to create a variety of visual style and voice, from realistic 3D — including “non-human faces (like a favorite pet)” — to 2D animations, according to the company. AvatarFX also has the ability “to maintain strong temporal consistency with face, hand and body movement” and can “power videos with multiple speakers.” Continue reading Character.AI Introduces New Video Generator in Closed Beta

Instagram has released a standalone video editing tool called Edits that is being described as a full-fledged suite that also has camera capabilities. The resulting content can be released on any social platform, not just those from Meta Platforms, though an Instagram account is required to access Edits. Available worldwide for iOS and Android, Edits is positioned as a way for social videographers to level-up their Instagram or Facebook Reels, but also as a tool for professionals who want a simple mobile solution for short-form videos. Edits also offers analytics so creators can see how their work is performing. Continue reading Instagram ‘Edits’ Video App Is Released for iOS and Android

Roku is partnering with Adobe to integrate its Roku Data Cloud with Adobe Real-Time Customer Data Platform (CDP) for a new real-time advertising data platform. The idea is to allow advertisers to access more in-depth insights that can potentially be used to launch “more personalized and performant advertising” while prioritizing privacy, according to Roku. “This integration will unlock the opportunity for traditional performance marketers — like search and social buyers — to plan, activate, and measure campaigns on Roku,” said Miles Fisher, the streamer’s senior director of strategic advertising partnerships. Continue reading Roku Teams Up with Adobe on a Real-Time Ad Data Platform

LG has partnered with AI startup Zenapse and will leverage its proprietary large emotion model (LEM) to power advertising that reflects viewers’ moods and emotions. Building on Zenapse’s “emotional AI and psychographic targeting,” the companies say they will “redefine viewer engagement, personalization, and campaign performance” by applying the technology to LG Ad Solutions’ advanced connected TV platform. As part of the multi-year deal, Zenapse and LG Innovation Labs will work to develop new CTV ad products that integrate emotional intelligence to deliver “more meaningful and measurable brand experiences across 200 million LG smart TVs globally.” Continue reading LG and Zenapse Partner on Emotionally Intelligent Advertising

OpenAI has released two new AI models that use images as part of their reasoning process, “thinking with images.” OpenAI o3 and o4-mini “are the smartest models we’ve released to date, representing a step change in ChatGPT’s capabilities for everyone from curious users to advanced researchers,” the company says. The new entries in the “o” series also have agentic capabilities and can independently “use and combine every tool within ChatGPT, including searching the web, analyzing uploaded files and other data with Python, reasoning deeply about visual inputs, and even generating images.” Continue reading OpenAI Introduces New Models That Can Reason with Images

Adobe has taken a stake in business avatar firm Synthesia, which creates clones for corporate videos using generative AI. The investment of an undisclosed sum through Adobe Ventures was interpreted by one media outlet as a bet that the UK startup’s technology “will transform video production.” Adobe couched the move as a strategic alliance. The investment became public along with Synthesia’s announcement that it surpassed the $100 million mark for what the privately held company says qualifies as recurring annual revenue. Nvidia is also an investor. Continue reading Adobe Investment in Synthesia Could Fuel AI Video Production