🔥 LLMs Upgrade Faster for Less?

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Was R1 a one-hit wonder or the start of something big? DeepSeek is fast-tracking R2’s release, aiming to keep pace with US competitors and prove it’s here to stay.

What are on FIRE 🔥

• 🤖 Phi-4 Models – Microsoft Phi-4-mini & Phi-4-multimodal

• 🌟 AI Highlights

• 📚 AI Sources From AI Fire

• 🏅 AI Tools

• ⚡ 5 AI Quick Hits

• 📊 AI Chart

• 💼 4 AI Jobs

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AI INSIGHTS

🤖 Phi-4 Models – Microsoft Phi-4-mini & Phi-4-multimodal

Microsoft has introduced Phi-4-multimodal (5.6B parameters) and Phi-4-mini (3.8B parameters). Both models are designed for efficiency and on-device execution, making AI more accessible.

Key Takeaways

1. Phi-4-multimodal: A True Multimodal Model

• Processes speech, vision, and text simultaneously in a single model.

• Improved efficiency & scalability, making it suitable for mobile and edge computing.

• Outperforms state-of-the-art models in speech recognition, translation, and document reasoning. Beats WhisperV3 and SeamlessM4T-v2 in speech recognition & translation. Excels in document reasoning, chart/table understanding, and OCR, competing with Gemini 2 Flash & Claude 3.5.

• Designed for low-latency inference, making it suitable for smartphones, embedded systems, and automotive AI, unlike many larger models that require heavy cloud infrastructure.

2. Phi-4-mini: Small But Powerful

• A compact model (3.8B parameters) optimized for text-based tasks like math, coding, instruction-following, and function-calling.

• Supports 128,000 tokens, most small models (like Llama 2-13B or Mistral-7B) cannot process large amounts of text efficiently. Phi-4-mini matches or surpasses models 3-5x larger in long-context reasoning.

• Efficient for edge AI applications in healthcare, retail, and finance.

3. Low Computational Cost:

• Runs on-device or in compute-constrained environments, reducing reliance on expensive cloud processing.

• Uses ONNX Runtime for cross-platform optimization (Windows, mobile, edge devices).

4. Easier to Fine-Tune & Customize – Unlike GPT-4o or Gemini, which are closed-source, Microsoft allows fine-tuning for specialized applications.

Why it matters: Phi-4 models deliver multimodal AI in a small, efficient package, handling speech, vision, and text together—unlike larger models that need separate pipelines. Faster, cost-effective, and edge-ready, they outperform bigger models in reasoning, coding, and speech tasks, making AI more accessible and scalable.

Now available in Azure AI Foundry, HuggingFace, and the NVIDIA API Catalog.

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TODAY IN AI

AI HIGHLIGHTS

🚀 DeepSeek plans to launch its R2 AI model before May, after shaking up the industry with its low-cost, high-performance R1 model. Nvidia has already lost nearly $600 billion in market cap since R1’s launch.

🤖 Amazon finally launched Alexa+, a more conversational, AI-powered assistant that manages tasks, controls smart homes, and shops for you. Free for Prime members.

🎬 Alibaba’s Wan2.1 just topped VBench, beating OpenAI’s Sora and other rivals in video quality tests. It’s open-source, meaning developers can tweak and improve it—a rare move for top AI models.

👨‍💻 Great news for the coder: Replit’s Agent v2 upgrade now uses Claude 3.7 for deeper coding decisions, making the AI assistant smarter, more efficient, and better at solving complex programming tasks.

🕌 Trump shared an AI-generated video promoting a luxury resort in Gaza, weeks after saying he wanted to “clean out” the territory.

💰 Daily AI Fundraising: Auditoria.AI raised $38 million in Series B funding, led by Innovius Capital with Dell Technologies, Sentinel Global, and others. The funding will boost AI innovation and expand its global reach.

AI SOURCES FROM AI FIRE

NEW EMPOWERED AI TOOLS

1. 🛠️ TestAI runs 1,000 automated tests for AI agents

2. 🔐 Permit AI controls access with fine-grained permissions

3. 📊 Deep Lake explores multi-modal data with AI research

4. 📈 Scrybe helps grow LinkedIn by finding viral content

5. 🗣️ Lemonfox AI turns text into natural speech instantly

AI QUICK HITS

1. 🎙️ ChatGPT Free Users Get Daily Access to Advanced Voice (Link)

2. 🤖 Microsoft Copilot Upgrades: Free Unlimited Voice & Deep Thinking (Link)

3. 📖 $129 AI Bookmark Promises to Remember Everything You Read (Link)

4. 🚀 Claude 3.7 Sonnet Claims #1 Spot in WebDev Arena With a +100 Score Jump Over Claude 3.5 Sonnet (Link)

5. 📱 Adobe Introduces First Fully-featured Photoshop Mobile App (Link)

AI CHART

LLMs Will Get Even Better and Cheaper at The Same Time

1. Smarter Every Day

• Models like Grok 3 (trained with 10^26 FLOPs—think 634,000 years of phone power!) and Claude 3.7 are outsmarting older ones like GPT-4.

• Examples: Grok tops benchmark scores, while Claude’s whipping up 3D visuals and coding demos without me even asking—like it’s got ESP or something!

→ They’re tackling math, coding, and creative stuff like pros.

2. Cheaper Than Ever

• Costs are plummeting—GPT-4 was $50 per million tokens (a word), but now Gemini 1.5 Flash, which is better, is just 12 cents.

• How: Big models get shrunk into smaller, zippy versions that still slay but don’t guzzle cash.

→ More power, less wallet pain.

Why’s This Happening?

Two big tricks plus some tech magic:

• Bonus: It’s a loop—better AI cuts costs, cheaper AI sparks more upgrades. Snowball effect, baby!

Real Talk: The Numbers

Here’s the proof it’s not just hype:

• Grok 3: Free to try, built on xAI’s monster compute cluster, and crushing benchmarks.

• Claude 3.7: Next-level coding for paying users—like a brainy sidekick that’s still affordable.

• Gemini 1.5 Flash: Smarter than GPT-4, dropped from $50 to 12 cents per million tokens. Pennies for genius!

What’s Next?

Picture this: AIs sharper than Grok or Claude, costing less than 12 cents a pop. They’ll crunch PhD-level stuff in seconds and be cheap enough for anyone to play with. It’s not just more power—it’s more power for less dough. How’s that for a game-changer? What do you reckon—ready to jump in?

AI JOBS

• Mistral AI: Software Engineer, Full stack – Palo Alto (Link)

• Apple: Software Engineer for AI and Machine Learning (Link)

• Leidos: Artificial Intelligence Expert (Link)

• Amazon Web Services (AWS): Applied Scientist, AWS AI Labs (Link)

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The AI Fire Team

*Disclaimer: AI Fire is a news publisher. The opinions in this content are from the authors or paid advertisers. The information shared is for general purposes only and is not financial advice. It should not be seen as an offer to buy or sell investments. AI Fire does not guarantee the accuracy of the information. You should do your own research and talk to a financial adviser before making any investments. The publisher and its affiliates are not responsible for any losses from using this information.