Amazon’s AI investments, Open AI unveils its strategy. Plus making a viral AI app

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Date: 12-Apr-2025

Hey AI enthusiast,

This week’s edition is packed with things that you can learn from and use immediately!

In this edition:

• Open AI unveils its Strategy for Building GPT 4.5

• Making a Viral AI app

• AI 2027: The Year We Might Lose Control?

• UAE Business owners- Close More Deals than Ever w …

• Amazon’s AI Adventure: From ‘Why’ to ‘Wow’”

• More AI news scoured for you from X.com

If you’re building or just trying to stay ahead with AI news—this one is for you.

Best,

Renjit

PS: Founders- In case you want to prototype and test your AI automation idea, schedule an appointment:

Open AI unveils its Strategy for Building GPT 4.5

In a rare behind-the-scenes discussion, key members of the GPT-4.5 development team—Alex (pre-training data lead), Amin Chian (Chief System Architect), and Dan (data efficiency and algorithms specialist)—shared valuable insights into what it takes to build cutting-edge AI systems.

Key Learnings from the GPT-4.5 Development Journey

The Big Goal: 10x Smarter Than GPT-4

The team set a bold target — build a model that’s ten times smarter than GPT-4. It took them two years of careful planning, testing, and building to try to reach that goal.

Planning Came First

Work on GPT-4.5 started about a year before training even began. The team ran tests to find problems early and planned each step carefully. They made small changes one at a time and studied how each one would work at scale.

Big System, Big Problems

Training a model this big came with new problems. Things that aren’t a big deal in small models can break everything at a large scale. The team had to switch from one computer cluster to several working together, which meant building new system designs.

From Compute Limits to Data Limits

Earlier models like GPT-4 were held back by limited computer power. GPT-4.5 faced a new challenge — not enough high-quality data. This shift changes how teams build smarter AI going forward.

So What?

Prepare for the New Data Efficiency Frontier. AI is no longer limited by computer power.

Now, the biggest challenge is having the right kind of data. For businesses using AI, this means having more data isn’t enough. You need better data—clean, useful, and from different sources.

Companies that do this will stay ahead.
Full video »

Making a Viral AI app

Why do most viral AI apps fade as fast as they rise?

Take the case of AI portrait generators. They explode on social media. Everyone wants a cartoon version of themselves—for a week. Then, crickets.

VYBE, an app Nikita Bier (founder of many viral apps), started advising last year, followed this familiar arc. It went viral, then users dropped off.

🛠️ The question they asked: What would make people need generative portraits regularly?

The founder, Mandela Patrick, dug into user data. Most users left. But a small group stuck around. What were they doing?

👗 Trying on clothes. Virtually. They used AI portraits to see themselves in new outfits.

So, they pivoted. The entire app shifted focus to fashion try-ons. But they didn’t stop at that.

📱 They built a mobile browser extension, whenever users shop online, the extension shows up. One tap, and they see themselves wearing that exact item—right in the browser.

📈 The results? Off the charts

• Retention increased 4x

• Once users enabled the extension, they stuck around

• And the kicker: a better revenue model

💸 Instead of subscriptions, VYBE takes a commission from the seller. Every purchase sends a cut back to the app. Quietly. Recurringly.

No churn. No cancellations. Just steady income from behavior that already exists. (btw Nikita is worth a follow if you want to learn about how to make viral apps: @nikitabier on X)

I hope this is useful for the builders using vibe coding techniques to build a solution.

AI 2027: The Year We Might Lose Control?

AI is moving faster than most people expect. By the end of 2027, we might reach a turning point: AI systems that can build even smarter AIs all on their own.

Read my post simplifying the scenario planning done by a group of experts. Daniel Kokotajlo, Scott Alexander, Thomas Larsen, Eli Lifland, and Romeo Dean—wrote a scenario plan about what that future might look like.

They allude to Open AI in their scenario as being the preeminent AI company. The future as they paint it is a tad grim for my tastes, but is plausible. Read it to understand how they think the future of AI is going to unfold.

Link to the post on LinkedIn» 

UAE Business owners- Close More Deals than Ever with AI

Build targeted lead lists, send custom outreach, get sales coaching for your sales team, and keep your CRM up to date with the our powerful AI automations.

We work with mid-sized businesses in the UAE to solve their sales related problems.

Are you a business owner? Interested in discussing how we can increase sales and reduce your operating expenses? We have a free launch package worth AED 25,000 to give to 10 selected businesses every quarter.

Speak to us (book time with us here) to see if you qualify.

Amazon’s AI Adventure: From ‘Why’ to ‘Wow’”

Ever wondered why Amazon keeps asking “why”?

CEO Andy Jassy believes this simple question fuels big changes. In his 2024 letter to shareholders, he shares how this mindset drives Amazon’s growth and innovation.

Key Highlights:

• Financial Growth: Amazon’s revenue grew by 11% in 2024, reaching $638 billion. Operating income increased by 86%, totaling $68.6 billion.

• AI Investments: The company is focusing on generative AI, developing over 1,000 applications to enhance customer experiences in areas like shopping and healthcare. Amazon plans to allocate approximately $100 billion in capital expenditures in 2025, with a significant portion directed toward AI infrastructure

• Custom Chips: To reduce AI costs, Amazon is creating its own chips, such as Trainium 2, aiming to make AI more affordable and efficient.

Jassy attributes much of Amazon’s innovation to its “Why Culture,” a relentless pursuit of questioning the status quo to drive progress.

Jassy’s letter serves as a strategic blueprint for CEOs aiming to harness AI’s potential. Link here» 

Why read it?

In case your business stakeholders are dragging their feet in implementing AI in your business, this letter will help provide you with points to convince them.

More AI news scoured for you from X.com

1. China's ByteDance dropped Dreamina (formerly called OmniHuman-1).

This AI can make a single image talk, sing, and rap expressively with gestures from audio or video input. X post below:

2. Pikatwists by Pika labs was launched last week

It allows users to modify the motion or action of a specific object or character in a video while keeping the rest of the scene intact.

3. Google just released Firebase Studio. 

Could this be a competitor to Replit, Bolt, V0 and so on?

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