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OpenAI is pouring billions into new hardware efforts, teaming with Jony Ive and designing a mysterious screenless device. Meanwhile, a Chinese tech giant makes a bold open-source move, a major new AI model hits your phone, and one CEO says machines already do half the work.

📌 In today’s Generative AI Newsletter:

  • Altman pivots to hardware, backs new device with Jony Ive

  • Baidu open-sources Ernie, signaling a new phase in China’s AI race

  • Google’s Gemma 3n runs real multimodal AI on phones, offline

  • Salesforce: AI now does 30–50% of internal work, no mass layoffs yet

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🖥️ Sam Altman U-Turns on AI Hardware, Says Current Computers Can’t Keep Up

Image Source: FE

OpenAI CEO Sam Altman has publicly reversed his long-held stance on hardware, now declaring that today’s computers can’t keep up with the demands of artificial intelligence. Once a firm believer that software alone would unlock AGI, Altman now says the shift is overdue.

What’s new:

  • A sharp reversal: Altman said on a podcast with his brother that current computers were built for a pre-AI world and no longer meet the moment

  • Hardware pivot underway: OpenAI is now developing purpose-built AI hardware, including potential custom chips and devices

  • Screen-free AI companion: Altman is collaborating with former Apple design chief Jony Ive to create an ambient and always-aware AI product.

  • Legal headwinds: A federal judge has temporarily blocked the venture’s promotion due to a trademark dispute with startup IYO

OpenAI is no longer betting on existing devices to carry AGI forward. Instead, it wants to invent a new physical interface between humans and intelligence. The future of AI, in Altman’s eyes, won’t live on your phone. It will walk beside you.

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🚨Baidu Open-Sources Ernie AI: China's Next DeepSeek Moment?

Image Credit: REUTERS

Baidu is officially open-sourcing its Ernie large language model starting today, marking a rare and powerful shift in China’s AI strategy. This is the first time a major Chinese AI company has released proprietary model tech to the public.

What’s new:

  • Open-sourcing begins today: Baidu confirmed the release of its next-gen Ernie model (likely Ernie 5) following February’s announcement

  • Model scope unclear: It’s not yet confirmed if Baidu will fully open-source architecture, training code, and weights or just release weights like Meta’s Llama 3

  • New models already out: Ernie 4.5 and reasoning-focused Ernie X1 were launched in March, with Ernie X1 reportedly matching DeepSeek-R1’s capabilities

  • Pressure on closed systems: Experts say this move could challenge US giants like OpenAI and Anthropic, which keep their models behind paywalls

Baidu’s pivot comes as it races to reclaim AI relevance and outpace rivals in both domestic and international spheres. If Ernie lives up to the hype, this could be China’s second AI earthquake and it might just redraw the battle lines for global model dominance.

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📱 Google’s Gemma 3n Shreds the Cloud. AI Is Now Truly On-Device

Image Source: Google

Google has released Gemma 3n, its most powerful open-weight model yet, built to run natively on devices with as little as 2GB RAM. It supports text, image, audio, and video inputs and delivers real-time, offline performance .

What’s new:

  • Multimodal by default: Understands video at 60fps, translates 35 languages, processes audio, images, and text natively

  • Blazing fast on phones: Powered by lightweight MobileNet-V5 and elastic inference via MatFormer, tuned for edge performance

  • Truly open: Devs can download, inspect, fine-tune, and run it anywhere

  • Offline-first: Runs entirely without internet, crucial for privacy, accessibility, and global deployment

While OpenAI just talks about local AI, Google's already delivering. Its Gemma 3n model is now freely available on Hugging Face, Kaggle, and Google AI Studio, squeezing every closed-shop lab that's still charging for basic features.

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💼 AI Does Half the Work at Salesforce. But Don’t Call It Mass Unemployment Yet

Image Credit: Getty Images

Marc Benioff says AI now handles 30 to 50 percent of Salesforce’s workload, from engineering to support, and he’s calling it a digital labor revolution. Hiring is slowing, automation is scaling, and the future of work is being rewritten from the inside out.

What’s happening:

  • Half the job, done by AI: Salesforce’s own tools are replacing the need for engineers and agents

  • No layoffs, just redirection: Support teams shrink while sales hiring grows by 22%

  • Product in use: A customer service AI with 93% accuracy is already deployed by Disney

  • A bigger shift: McKinsey says 50% of work activities are automatable, but only 5% of jobs are fully replaceable

  • Gendered risk: Clerical jobs, mostly held by women, face 3.7% automation risk, more than double that of male-dominated roles

We're seeing a workforce quickly dividing based on role and AI readiness. But it's still a messy process. While some leaders like Benioff show real results, most companies are merely crawling into AI, meaning the revolution is still on the runway, far from soaring in the skies.

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