Good morning and welcome back to another edition of The AI Rundown by Lightscape Partners.

• OpenAI will launch a new open-source reasoning model this summer, aiming to outperform competitors like Llama and DeepSeek. The move marks a strategic shift for OpenAI, responding to criticism over transparency while trying to regain momentum in the open-weight model race.

• Huawei is preparing mass shipments of its Ascend 910C AI chip, offering a powerful alternative to Nvidia’s export-constrained hardware. As the U.S. tightens restrictions, Huawei’s chip push signals China’s determination to build domestic AI infrastructure.

• Adobe continues expanding its Firefly platform with faster models and a collaborative AI moodboard app. These updates—alongside deeper Photoshop and Illustrator integrations—cement Adobe’s bet on becoming the creative suite leader in the AI era.

Stay tuned as we explore these stories and their implications for the future of AI, technology, and innovation.

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Hardware

Huawei to mass ship new AI chip amid Nvidia export curbs. Link.

• Huawei plans to begin mass shipments of its Ascend 910C AI chip in May, offering Chinese firms a domestic alternative to Nvidia’s restricted H20.

• The 910C integrates two 910B processors, doubling performance and memory, with improvements for diverse AI workloads.

• U.S. export bans on Nvidia's top chips have created a market opening for Huawei and local GPU startups.

• While some components are made by SMIC, reports suggest ties to TSMC via Chinese firm Sophgo—an issue now under U.S. scrutiny.

Models

Adobe expands Firefly with faster image models and a collaborative AI board. Link.

• Firefly Image Model 4 and 4 Ultra offer improved realism, speed, and control, with outputs up to 2K and better handling of complex prompts.

• A new Firefly Boards app enters beta, letting users collaborate on AI-generated moodboards, similar to FigJam.

• Users can now toggle between Adobe’s models and third-party options like OpenAI’s and Google’s, though only Adobe’s are marked as 'commercially safe.'

• Photoshop and Illustrator updates add AI tools for smarter editing, as Adobe gears up for a full creative AI agent.

Enterprise AI Applications

Google Supercharges Workspace Apps with Gemini AI Features. Link.

• Google added Gemini-powered features to Docs, Gmail, and more, including AI-generated audio summaries.

• A new Canvas tool lets users draft, edit, and preview content with real-time AI suggestions.

• AI in Gmail now scans messages to auto-suggest calendar entries and detects missed invites.

• These additions expand Gemini’s role in competing with Microsoft’s 365 Copilot for enterprise productivity.

Product Launches

Motorola launches AI-equipped SVX device to aid emergency response. Link.

• Motorola’s new SVX device combines a body cam, mic, and AI assistant called Assist to streamline first responders’ workflows.

• Assist can instantly process data like license plates and IDs, helping officers access critical info in real time.

• Motorola says the tool can significantly cut the 40% of time officers spend on basic data entry for reports.

• Developed with feedback from 32 agencies, SVX integrates with Motorola’s APX NEXT radios and existing 911 infrastructure.

Data Centers + Energy

Chinese AI data centers sell off idle RTX 4090Ds amid low utilization. Link.

• With activation rates below 20%, some Chinese AI data centers are dismantling and reselling underused 48GB RTX 4090D GPUs for up to $5,500.

• Selling GPUs offers quicker returns than renting, helping companies recoup loans and stay solvent amid overcapacity.

• The refurbished cards are typically modified for consumer use, despite being noisier and less efficient in solo setups.

• This sell-off reflects broader uncertainty, as U.S. export bans tighten and outdated chips lose competitiveness.

Startup Funding & Valuations.

Endor Labs raises $93M to secure AI-generated code. Link.

• Endor Labs pivoted from open source dependency security to scanning AI-generated code, citing rising vulnerabilities as adoption grows.

• Its platform integrates with tools like GitHub Copilot and Cursor, automatically flagging and fixing code risks as developers write.

• The company raised a $93M Series B, bringing total funding to $163M, and claims 30x ARR growth since 2023.

• Endor now protects over 5 million applications and counts OpenAI, Dropbox, and Snowflake among its users.

Ocient raises $42.1M to cut costs and carbon for AI-scale data workloads. Link.

• Chicago-based Ocient raised $42.1M to expand energy-efficient analytics for massive AI and operational data sets, bringing total funding to $159.4M.

• Its CASA architecture puts compute next to storage, delivering up to 300x performance gains on geospatial workloads while slashing energy use by 90%.

• Backers like Blue Bear Capital frame the investment as both a data and climate play, reflecting rising concerns over data center power consumption.

• Ocient’s clients include telcos and governments; its roadmap targets climate modeling, automotive telemetry, and ultra-high-volume structured analytics.

Auradine raises $153M to unite Bitcoin mining and AI data center cooling. Link.

• Silicon Valley-based Auradine secured $153M in Series C funding, bringing its total to $300M.

• The company develops hardware for both Bitcoin mining and AI, highlighting overlapping infrastructure demands.

• It also launched AuraLinks AI to focus on open-standard cooling solutions for next-gen AI data centers.

• Investors include StepStone Group, MARA, Samsung Catalyst Fund, and Qualcomm Ventures.

Noxtua raises $92M to build sovereign AI for German law. Link.

• Formerly Xayn, Noxtua secured €81.2M in Series B funding to launch Beck-Noxtua, a legal AI trained on Germany’s largest legal database.

• The AI is hosted on Germany-based Northern Data infrastructure, addressing geopolitical concerns over foreign cloud reliance.

• The model is tailored for legal compliance, trained on 55M documents via a partnership with legal publisher C.H. Beck.

• Noxtua’s founders emphasize that U.S.-trained AIs fall short for Germany’s legal system, where precision and sovereignty are critical.

OpenAI

OpenAI plans an open reasoning model to compete on benchmarks. Link.

• OpenAI will release a permissively licensed reasoning model this summer, aiming to surpass peers like Llama and DeepSeek-R1.

• The model will support high-end consumer hardware and may include a toggle for reasoning, similar to recent Anthropic designs.

• CEO Sam Altman admitted the company was late to open-sourcing and now seeks a new strategy with strong safety evaluations.

• A detailed model card will accompany the release, addressing past criticism over rushed rollouts and lacking transparency.

OpenAI spends millions replying to 'Thank you' and 'Please'. Link.

• Sam Altman revealed ChatGPT responses to polite phrases cost OpenAI tens of millions annually, but considers it worth the expense.

• Even short replies like 'You are welcome' use resources—each response reportedly consuming up to 50ml of water.

• These interactions, while minor, contribute to AI’s perceived human-like nature and deepen user engagement.

• Researchers warn of growing emotional dependence on chatbots as conversations become increasingly lifelike.

Thank you for reading the AI Rundown by Lightscape Partners. Please send any questions, comments, or suggestions to [email protected].