Greetings, AI Explorers!

Today’s edition is packed with major AI breakthroughs and new developments. From “Musk aiming higher” to “Manus signalling expansion”, the landscape is shifting fast.

As AI continues to integrate into everyday life, staying ahead of these developments is crucial. Let’s dive in!

Here’s what’s in store for you today:

• 🚀 Musk’s xAI Aims for a $20 Billion Raise, Eyes $120B Valuation

• ⚖️ Anthropic vs. OpenAI: Takedown Notice Highlights Tension in AI Development

• 📈 Manus AI’s Funding Boost Signals Ambitious Expansion Plans

LATEST DEVELOPMENT

xAI

🚀 Musk’s xAI Aims for a $20 Billion Raise, Eyes $120B Valuation

lon Musk’s xAI Holdings is reportedly seeking $20 billion in fresh funding- a raise so massive it would become the second-largest private funding round ever, right behind OpenAI’s $40 billion haul last month, according to Bloomberg.

If it closes, xAI’s valuation could soar past $120 billion, giving Musk’s AI ambitions (and X’s crushing debt load) a serious boost.

Key Points:

• xAI is targeting $20 billion in new funding, valuing it at over $120 billion.

• The cash influx would help cover X’s $1.3 billion+ in annual interest payments.

• Investors likely include Musk’s usual allies: Valor Equity’s Antonio Gracias and Gigafund’s Luke Nosek.

• The raise underscores AI’s staying power with investors- and Musk’s growing political influence.

• Talks are still in early stages, and xAI hasn’t publicly commented.

Importance:
A raise of this size would cement xAI (and Musk himself) as a towering force in the AI race, giving him even more firepower to compete against OpenAI, Google DeepMind, Anthropic, and Meta- and potentially reshaping tech, media, and politics all at once.

AI BATTLE

⚖️ Anthropic vs. OpenAI: Takedown Notice Highlights Tension in AI Development

Anthropic's recent takedown notice to a developer reverse-engineering its Claude Code has stirred the developer community, placing it in contrast with OpenAI’s more open approach with Codex CLI.

Key Details:

• Claude Code: Anthropic’s coding tool, tied to a restrictive commercial license, prohibits modifications and reverse-engineering without explicit permission.

• Codex CLI: OpenAI’s tool is under the Apache 2.0 license, which allows for free distribution and commercial use, fostering a more open and collaborative developer ecosystem.

• Developer Backlash: When a developer de-obfuscated Claude Code’s source code and posted it on GitHub, Anthropic issued a DMCA takedown request, sparking frustration among developers.

• OpenAI’s Approach: OpenAI, by contrast, has embraced community-driven improvements, incorporating developer feedback into Codex CLI, including support for third-party AI models like Anthropic’s.

Importance:

This clash between Claude Code and Codex CLI is more than a technical battle- it reflects two divergent philosophies in AI development. While Anthropic is keeping its code under wraps, OpenAI is leaning into more openness, even if it means letting third-party models into its ecosystem.

Could this shift open the door for more open collaboration in AI development, or will stricter licenses become the norm? Only time will tell.

MANUS AI

📈 Manus AI’s Funding Boost Signals Ambitious Expansion Plans

Manus AI, a Chinese startup focused on AI agents, has secured $75 million in a funding round led by Benchmark, propelling its valuation to $500 million and marking a major step towards global expansion.

Key Details:

• Funding Round: Manus AI raised $75 million, led by Benchmark, at a $500 million valuation. The startup plans to use the funds to enter new markets, including the U.S., Japan, and the Middle East.

• Previous Funding: Prior to this round, Manus raised over $10 million from investors like Tencent and HSG (formerly Sequoia China).

• Product Launch: Manus debuted a demo of its general AI agent earlier this year, which received mixed reviews regarding its task completion capabilities.

• Subscription Plans: Following the demo, Manus introduced subscription plans ranging from $39 to $199 per month.

The Bigger Picture:

Manus AI’s latest funding highlights the increasing global interest in AI agent tools, as well as the competition within the space. With this influx of capital, Manus is positioning itself for a stronger foothold in international markets, though it will face challenges in meeting the performance expectations set by its early demos. The question now is whether Manus can scale its technology and maintain its promise to customers while competing with larger players.

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📰 Everything else in AI today

• 🎥 Higgsfield AI: Introduces Turbo model and new motion styles for videos

• 🇺🇸 Donald Trump: Signs executive order for AI education and challenge

• 🛠️ Loveable 2.0: Launches multiplayer workspaces, upgraded chat agent, new UI

• 🎤 Tavus: New SOTA lip-sync model excels in realism, accuracy

• 🎶 Imogen Heap: Releases AI stylefilters to create tracks inspired by her

• 🧠 OpenAI: Open-source reasoning model beats rivals, launches this summer