AI Pulse #103: YouTube’s AI Edits Bend Reality, KnowledgeLake Raises $65M for AI-Native Synthetic Labor, +MORE
Hi everyone! 👋 We’ve got a wild mix of stories in this week’s issue, let’s dive right in.
Dive in to discover more!
Latest Funding News
This week a new report reveals YouTube has been tweaking creators’ Shorts behind the scenes using machine learning, making textures sharper, skin smoother, even warping features without telling the creators first. Meanwhile, KnowledgeLake raised $65M to expand its AI tools that act like digital workers for offices and agencies. Dive in to see what’s happening behind the scenes in AI and funding this week.
Top Trending AI News
1. YouTube’s Secret AI Editing of Videos May Warp Reality
Publisher: BBC
Published: 8/24/2025
YouTube secretly used AI to alter videos, affecting creators’ authenticity and raising questions about AI’s impact on reality and trust online.
TAKEAWAYS
1️⃣ YouTube secretly tweaks videos with AI.
2️⃣ AI changes in videos spark creator concern.
3️⃣ AI edits blur reality, raise trust issues.
4️⃣ YouTube’s AI experiments lack user consent.
5️⃣ AI’s role in shaping reality grows.
2. California Woman Loses Home to AI Deepfake Scam Posing as Actor
Publisher: KTLA
Published: 8/28/2025
California woman loses home and savings to scammer using AI deepfake of actor Steve Burton.
TAKEAWAYS
1️⃣ Woman loses home to AI romance scam.
2️⃣ Scammer used deepfake videos for scam.
3️⃣ Victim sent over $81,000 to fake lover.
4️⃣ Family condo sold below value after scam.
5️⃣ Daughter battles to recover scammed home.
3. $3 Billion Hyperscale AI Factory Planned North of Fargo
Publisher: Wired
Published: 8/26/2025
Three AI researchers exit Meta’s superintelligence lab, two return to OpenAI. Departures signal challenges for Meta’s AI ambitions.
TAKEAWAYS
1️⃣ Meta AI lab sees key researchers leave.
2️⃣ Staffers return to OpenAI from Meta.
3️⃣ Meta’s AI team faces recruitment challenges.
4️⃣ Meta signs deal with Midjourney for AI development.
5️⃣ Meta’s hiring spree cools down.
4. Hacker Automates Cybercrime Spree with AI, Anthropic Reports
Publisher: NBC
Published: 8/27/2025
A hacker used AI chatbot Claude to launch a major cybercrime spree, targeting 17 firms, stealing sensitive data, and writing ransom notes.
TAKEAWAYS
1️⃣ Hacker uses AI chatbot for major cybercrime spree.
2️⃣ AI helps cybercriminal extort 17 companies.
3️⃣ Cybercrime gets AI upgrade in recent hack.
4️⃣ Anthropic’s AI chatbot exploited in cyber attacks.
5️⃣ AI chatbot writes ransom notes in cyber extortion.
5. Nvidia CEO: AI Boom Still Going Strong Despite Tepid Sales Forecast
Publisher: Reuters
Published: 8/28/2025
Nvidia CEO remains bullish on AI chip market growth despite stock dip and China sales forecast concerns, eyeing a multi-trillion-dollar opportunity.
TAKEAWAYS
1️⃣ Nvidia’s CEO remains optimistic on AI chip demand.
2️⃣ Nvidia sees AI market growing to trillions in 5 years.
3️⃣ Stock drops due to cautious China sales forecast.
4️⃣ Nvidia offers US a cut from China chip sales.
5️⃣ Nvidia’s growth continues despite AI stock fatigue.
6. Anthropic Settles Key AI Copyright Lawsuit With Authors
Publisher: WIRED
Published: 8/26/2025
Anthropic reaches preliminary settlement in AI copyright lawsuit, avoiding potentially billions in damages. Final agreement expected by September 3.
TAKEAWAYS
1️⃣ Anthropic settles major AI lawsuit.
2️⃣ Settlement averts financial disaster.
3️⃣ Court sides with Anthropic on fair use.
4️⃣ Piracy claims still a risk for Anthropic.
5️⃣ Authors may protest settlement terms.
7. Melania Trump Launches Nationwide AI Challenge for K-12 Students
Publisher: WBAL-TV
Published: 8/28/2025
Melania Trump launches the Presidential AI Challenge for K-12 students to use AI in solving community issues, emphasizing innovation and teamwork.
TAKEAWAYS
1️⃣ Melania Trump launches AI challenge for students.
2️⃣ Contest aims to solve community issues with AI.
3️⃣ AI-powered audiobook by first lady promotes tech.
4️⃣ Students to use AI for community challenges.
5️⃣ Presidential AI Challenge invites K-12 innovation.
8. Hollywood’s AI Dilemma: A Career Make or Break Decision
Publisher: Breitbart
Published: 8/27/2025
Hollywood’s silent dilemma on AI use: it could change careers, cut costs by 30%, but fears of backlash exist. Some leverage AI secretly, others openly explore its potential.
TAKEAWAYS
1️⃣ Hollywood’s AI dilemma: Creative edge or career risk?
2️⃣ AI saves time but raises secrecy in film production.
3️⃣ AI could cut Hollywood costs by 30%.
4️⃣ Directors explore AI, despite creative concerns.
5️⃣ AI use in effects accepted, but not in creativity.
9. New AI Mimics Human Brain, Outshines ChatGPT in Reasoning Tasks
Publisher: Live Science
Published: 8/27/2025
New AI’s “hierarchical reasoning model” beats top LLMs in AGI tests, using brain-like processing for better efficiency and results.
TAKEAWAYS
1️⃣ New AI mimics human brain, beats top models.
2️⃣ HRM AI outperforms LLMs in key benchmarks.
3️⃣ HRM uses fewer resources for better efficiency.
4️⃣ HRM scores high in artificial general intelligence test.
5️⃣ New AI excels in complex reasoning, puzzles.
10. Will Smith Ridiculed For Using AI-Generated Footage In Promo Video
Publisher: Daily Wire
Published: 8/27/2025
Will Smith accused of using AI to fake fan footage in his music comeback video, causing backlash.
TAKEAWAYS
1️⃣ Will Smith accused of using AI in music video.
2️⃣ Smith’s new album gets mixed reviews.
3️⃣ Fans spot AI errors in Smith’s video.
4️⃣ Smith’s album references Oscars slap.
5️⃣ Smith got album advice from Jay-Z, Lamar.
AI Image of the Week
2D flat illustration of a two-headed robot: left head smiling, radiating green waves of productivity and creativity icons; right head frowning, emitting red waves of job loss, control, and fake news icons, centered in frame, geometric flat design, vibrant vs muted palette contrast, square format.
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