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Friday’s top story: Google has released its “most thoughtful model yet,” that’s capable of reasoning through tasks, rivaling OpenAI’s, o1.

💼 If you want to build a 6-figure business as an AI Consultant, we recommend you get early access to The AI Consultancy Project course, run by Innovating with AI

🌤️ This Morning on AI Tool Report

1. 💭 Google releases model to rival OpenAI

2. 💼 How to become an AI consultant with Innovating with AI

3. 💰 AI start-up (Cursor) valued at $2.5B

4. 🧠 How to transform your brand’s social media with Lately 

5. 🏗️ How to structure your website content for SEO using ChatGPT

6. ✍️ ChatGPT now works with Notion?

7. 🖼️ Instagram launching game-changing video tool

Read Time: 5 minutes

FACT OF THE DAY

🤔 According to Amadeus, 53% of businesses, globally, are using AI to book work-related trips, 48% are using AI for activity recommendations, and 45% are using it to collect post-travel feedback.

STOCK MARKETS

⬇️ AI and tech stocks continued to show downward momentum during Thursday’s session with the Nasdaq losing another 0.45%. Investors are re-evaluating prices of equities at these levels, especially with the Fed hinting that rates may be left higher for longer. Learn more.

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REASONING MODELS

💭 Google releases model to rival OpenAI 

Our Report: Following the launch of OpenAI’s reasoning model—o1—and recent ‘reasoning model’ releases from other AI companies (namely DeepSeek and Alibaba), Google has thrown its own reasoning model into the ring—Gemini 2.0 Flash Thinking—that can ‘reason’ its way through complex questions in fields like in programming, math, and physics, while providing a rundown of its thoughts, which Google is calling their “most thoughtful model yet.”

🔑 Key Points:

• Although still ‘experimental,’ the model resembles OpenAI’s o1, with Google calling it its “first step” in its reasoning journey, and confirming it’s been “trained to use thoughts to strengthen its reasoning,”

• Although reasoning models usually take longer to respond (as they ‘reason’ their way through a question), it’s been built on Google’s recently announced Gemini 2.0 Flash, which critics hope will make it quicker.

• Google showed the model thinking through a series of steps before answering a question on physics, transparently displaying its “thinking” and addressing concerns over AI functioning as a “black box.”

🤔 Why you should care: Google’s release of Gemini 2.0 Flash Thinking comes after reports revealed that they’d hired a team of at least 200 researchers to focus on building the technology—no doubt to keep up with OpenAI’s o1—but not everyone is convinced these reasoning models are worth the hype as they’re expensive to run (thanks the amount of compute power needed) and many believe that while they’re outperforming benchmarks now, this rate of progress is unsustainable.

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TOGETHER WITH INNOVATING WITH AI

💼 Want to build a 6-figure business as an AI Consultant?

The AI consulting market is about to grow by a factor of 8X – from $6.9B to $54.7B in 2032.

But how does an AI enthusiast become an AI consultant?

How well you answer that question makes the difference between just “having AI ideas” and being handsomely compensated for your contribution to an organization’s AI transformation.

Thankfully, you don’t have to go it alone – our friends at Innovating with AI have welcomed 300 new students into The AI Consultancy Project, their new program that trains you to build a business as an AI consultant.

Some of the highlights current students are excited about:

• The tools and frameworks to find clients and deliver top-notch services

• A 6-month plan to build a 6-figure AI consulting business

• Students getting their first AI client in as little as 3 days

And, as a reader of AI Tool Report, you get early access to the next enrollment cycle.

1. Meco is a distraction-free space for reading and discovering newsletters, separate from the inbox ⭐⭐⭐⭐⭐ / 5 (Product Hunt)

2. Chatnode is for building custom, advanced AI chatbots that enhance customer support and user engagement

3. Didocs analyzes digital documents across various formats

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STARTUPS

💰 AI start-up (Cursor) valued at $2.5B 

Our Report: Anysphere, the makers of AI-powered coding assistant, Cursor (used by the likes of OpenAI, Midjourney, Perplexity, Shopify, and Instacart) have just raised $100M in Series B funding, valuing it at $2.5B.

🔑 Key Points: 

• The round, which was led by returning investor, Thrive Captial, with participation from a16z, comes after they raised $60M in Series A funding, which valued the company at $400M, just four months ago. 

• The increase in valuation has been driven by a huge growth in revenue: They went from $4M Annualized Recurring Revenue (ARR) in April to $48M ARR in October, valuing the start-up at over 50x its revenue. 

• This undoubtedly explains why previous investors—including Neo, Stripe co-founder, Patrick Collison, former GitHub CEO, Nat Friedman, and Dropbox co-founder, Arash Ferdowsi—are returning.

🤔 Why you should care: Anysphere was co-founded in 2022 by MIT students Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger, who completed OpenAI’s accelerator program last year, receiving funding from OpenAI’s startup fund to develop Cursor, which now competes against a growing market of AI coding assistants, including Augment, Codeium, Magic, and Poolside, and Microsoft's GitHub Copilot.

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TOGETHER WITH LATELY

Transform your brand’s social advertising with Neuroscience-Driven AI™ 🧠

Lately is the only social media training platform that defines, refines, and pinpoints the exact messaging that drives engagement, revenue, and loyalty for businesses in all sectors, shapes, and sizes.

Lately’s Neuroscience-Driven AI™:

• Elevates your content from meh to extraordinary

• Writes optimal copy to target your unique audience in your brand voice

• Populates your social media calendar for months on end

• Schedules and adapts for peak performance times

– All faster than you can grab a cup of coffee ☕

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Friday’s Prompt: How to structure your website content for SEO using ChatGPT

Type this prompt into ChatGPT:

Results: After typing this prompt, you will get ideas on using header tags and structuring your website content for SEO.

P.S. Use the Prompt Engineer GPT by AI Tool report to 10x your prompts.

Get ready for our new look 🎨

❗Did you miss the AI Skill Sprint, on Skool, last month? Attendees mastered 6 crucial AI skills in just 6 weeks.

Here’s a taster of what you missed.

Course 1: AI Readiness Reporting with Founders Forge

✅ What We Covered: Course 1 was about finding ways to assess and enhance an organization’s readiness for AI integration. Ben Etherington, from Founders Forge, gave practical ways to align AI with business strategy and explained how to implement them across all areas of business, effectively.

Want to see what else we covered during the 6-week skill sprint? Subscribe to The AI Report and get access to all 6 sprints.

Want to join the next one? It’s coming in 2025, so be ready to sign up here.

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PRODUCTIVITY

✍️ ChatGPT now works with Notion?

• On day 11—the penultimate day of OpenAI’s “12 Days of OpenAI ” campaign—OpenAI announced that ChatGPT’s desktop app on MacOS will now work with writing apps, Apple Notes, Notion, and Quip.

• In a live demo, they demonstrated how ChatGPT can work directly with Notion, with users able to highlight text and ask the chatbot to “fill out these points,” and use its search feature to provide citations/sources.

• The release also gives users the ability to use the ChatGPT desktop app with several coding apps, and they can now also access the Advanced Voice Mode feature, while working within other apps.

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VIDEO

🖼️ Instagram launching game-changing video tool

• Instagram has announced it will launch an AI video editing feature (expected sometime next year), that will allow users to “change nearly any aspect” of their videos, using “simple text prompts”

• A preview of the tool—which is powered by Meta’s Movie Gen AI video generator tool, first revealed in October—shows the ability to change outfits and backgrounds, add jewelry, and change someone's appearance.

• Instagram is the first platform to confirm that they’re utilizing Meta’s Movie Gen AI video generator tool, which promises it can “preserve human identity and motion” in the videos it creates or edits.

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