Welcome to “Eye on AI” with AI reporter Sharon Goldman. In this release… A TikTok-like AI video app built for Gen Z… The challenges of renting a San Francisco apartment during the AI boom… TSMC profits soar 39%, setting another record for AI chip demand… Spotify partners with Sony, Universal, Warner and others to develop AI music products.
Guo Demei, 27, is the founder of Pika, an artificial intelligence video company, and has degrees in mathematics and computer science. But she's also always been creative, including writing poetry, and she loves using images and video tools to show off on social media.
That's why she dropped out of Stanford's PhD program and co-founded Pika in April 2023 with Meng Chenlin, an aspiring animator and PhD student. Just as AI video companies like Runway were starting to take off, the pair decided to create an easier-to-use AI video generator after experimenting with making feature-length generative AI movies, which attracted the interest of top Silicon Valley investors like Nat Friedman.
Now, Pika has raised about $135 million at a $470 million valuation and has 16.4 million users across multiple creative apps. It recently launched a new TikTok-like AI video app, also known as Pika, which has become so popular that last week it launched a new feature in the app called “Predictive Videos.” Unlike other video tools that require long prompts to produce good results, Predictive Video allows users to upload a selfie and say something simple like “make me a rock star” or “I'm giving a TED talk” or “let me sing in Japanese”; the tool then infers your intent, delivering a full video with script, music and dance moves, background, lighting, camera angles and visual effects.
Pika doesn't just make standalone video clips, it also predicts movement and interaction, producing a sort of mixed reality by allowing users to weave themselves or real-world elements into AI-generated scenes – something that traditionally requires extensive animation skills and production time.
Guo explained that all of this is tailored for Generation Z and Alpha, a group who grew up with short videos and use online platforms to express themselves and share ideas. “Most non-professionals will never try to make a movie using generative AI, but a lot of people enjoy making short films,” she said. “It's really about self-expression.”
This, she insists, is the opposite of “Slop,” the catch-all tool for AI video. There may be massive artificial content, but the purpose of Pika is, Ironically, using generative AI Helping people become more authentic, she said.
“We do believe this is not nonsense,” she stressed. “It's about self-expression, having personality behind it that's actually real. So a funny person will post a funny video, or a very self-centered person will post a self-centered video.” Some people like to use a visual, or create a video that captures an atmosphere or mood, or just use the tool to do things they wish they could in real life, she added.
“In a sense, it helps you achieve that,” she said. “Maybe you're a really bad singer, but in AI you can sing really well, like a pop star.”
Pika is entering a competitive landscape dominated by giants like OpenAI's Sora and Meta's new Vibes, but it's carving out a distinct niche. Sora focuses on cinematic, realistic text-to-video generation, while Vibes is dedicated to bringing AI-generated video sources into Meta's vast ecosystem. But Pika’s positioning is closer to the underlying habits of Generation Z and Alpha: it is less about large-scale exquisite production and more about Emotion, creativity and interaction in everyday storytelling.
More AI news follows.
Sharon Goldman
[email protected]
@sharongoldman
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Artificial Intelligence News
Renting a San Francisco apartment during the AI boom comes with its challenges. according to new york timesA surge in artificial intelligence startups is reshaping San Francisco’s real estate market, driving up demand and prices and intensifying competition for apartments. After his company Cluely raised $5.3 million, 22-year-old founder Roy Lee rented eight luxury apartments within walking distance of his office to foster a “fraternity” work culture that is emblematic of how tech companies are reshaping urban life. Driven by the growth of companies like OpenAI and Anthropic, rents in San Francisco have risen 6% in the past year, more than double the increase in New York City, and neighborhoods near artificial intelligence hubs such as Mission Bay have seen rents rise 13%. The scramble for housing has left renters touring dozens of units, facing same-day rejections and even bringing cash to house showings, raising new concerns about affordability and displacement in one of the most expensive cities in the United States.
TSMC's profits surged 39%, exceeding expectations, and demand for AI chips hit a new high. CNBC reported that Taiwan Semiconductor Manufacturing Company (TSMC) reported record third-quarter results, with surging demand for artificial intelligence chips pushing profits up 39.1% year-on-year, beating analysts' expectations. Revenue increased 30.3% to NT$989.92 billion (US$33.1 billion), while net profit increased to NT$452.3 billion. CEO CC Wei said that more and more consumers are adopting artificial intelligence models, which has strengthened the company's confidence in the “artificial intelligence megatrend”, prompting TSMC to increase its revenue growth forecast to about 30% in 2025 and increase planned capacity investment to at least US$40 billion. High-performance computing, including artificial intelligence and 5G chips, accounted for 57% of revenue, and advanced 7-nanometer and smaller chips accounted for 74% of wafer sales, highlighting TSMC's central role in providing cutting-edge processors to customers such as Nvidia and Apple.
Spotify cooperates with Sony, Universal, Warner and others to develop artificial intelligence music products. Spotify is working with major music industry players including Sony, Universal, Warner, Merlin and Believe to develop “responsible” artificial intelligence products aimed at supporting artists and songwriters, Variety reports, marking one of the first large-scale collaborations between streamers and music rights holders on artificial intelligence. As part of a broader push to invest heavily in artificial intelligence research and product development, Spotify plans to establish a generative AI lab and product team focused on four key goals: create tools through pre-agreement with labels and publishers; allow artists and rights holders the option to use generative music technology; open up new revenue streams; and strengthen artists’ connections with fans. The move reflects an ongoing effort across the music industry to shape how artificial intelligence is integrated into creative and business practices.
Artificial Intelligence Calendar
October 21st and 22nd: San Francisco TedAI.
November 10-13: Web Summit, Lisbon.
November 26-27: World Artificial Intelligence Conference, London.
December 2-7: NeurIPS, San Diego
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Follow the AI Numbers
26%
How many Americans are familiar with artificial intelligence mental health tools, according to a new YouGov survey that highlights how far such tools have to go to win public support. Only 11% said they would consider using AI, and trust levels were even lower – only 8% said they trust AI in this area, while 40% clearly stated they distrusted it. The top reasons for skepticism are: concerns about a lack of human difference (53%), harmful or inaccurate advice (50%), and data privacy (49%). Despite a surge of startups and investment in AI therapeutic applications, only 4% of Americans have ever tried one.
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