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Tuesday’s issue is in partnership with…
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🔓 Tuesday’s AI Report:
📱 Perplexity building AI phone?
📸 In partnership with the Aragon.ai
⚠️ AI experts leaving US?
🕵️♂️ China bypassing US AI chip ban
💵 In partnership with Mode Mobile
⚙️ Trending AI Tools
🏗️ Practical AI Applications
📑 Recommended Resources
Read Time: 5 minutes
The AI Accelerator launches on March 11th…
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📈 AI STOCK TRACKER
The US markets are experiencing significant declines, with the tech-heavy Nasdaq Composite dropping 2.6%, as President Trump's announcement of new tariffs on Canada, Mexico, and China raised concerns about global trade tensions and their impact on the sector.
LATEST IN AI
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📱 Perplexity building AI phone?
🚨 Our Report — At the annual Mobile World Congress (MWC) in Barcelona, AI search engine start-up, Perplexity, announced it has partnered with German telecommunications company Deutsche Telekom (T-Mobile's parent company) to develop an AI phone (costing customers less than $1,000) that will allow users to use their voice to complete tasks—like booking taxis or doing shopping—without having to switch between apps.
🔓 Key Points:
The device, which they’ll reveal this year and start selling (to Europe first) in 2026, will run “Magenta AI” which will give users access to a suite of AI tools from Perplexity and also from Google Cloud AI, ElevenLabs, Picsart.
This collaboration has been in the works since 2024, after Deutsche Telekom teased an “app-less” AI-powered device at last year's MWC, promising capabilities similar to the Rabbit R1 (widely considered a flop).
Although many details remain unknown, Perplexity has promised it “will start doing things, not just answering questions. It will book flights, book reservations, send emails, place phone calls, and set smart reminders.”
🔐 Relevance — This announcement comes after Perplexity revealed an Android assistant in January—which many believe was a prototype for the AI phone—and shows it’s working hard to develop more “proactive” offerings to differentiate itself against other AI conglomerates, like OpenAI, Google, and Meta, with CEO, Aravind Srinivas, announcing the start-up was transitioning from “just being an answer machine.”
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TOGETHER WITH ARAGON.AI
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⚠️ AI experts leaving US?
🚨 Our Report — Last month, President Trump and his administration announced they would be making 170 layoffs and significant budget cuts to the National Science Foundation (NSF)—a federal agency that has historically played a pivotal role in America’s AI research and development advancements—which many believe will harm America’s ability to compete against the likes of China in the AI race.
🔓 Key Points:
The NSF was responsible for distributing 80% of government-funded grants to support key AI research and projects, but Trump’s cuts mean the agency’s funding has been halved, constraining its ability to support AI research.
Trump's drastic measures are also threatening a “brain-drain” in the US, as AI experts seek more supportive opportunities outside of America, weakening America’s leadership position in tech and innovation.
However, several federal judges have suggested that some of the NSF dismissals may have been unlawful, potentially meaning that Trump might have to reinstate employees or reverse some of his decisions.
🔐 Relevance — Trumps decision to halve NSF budgets and fire 170 key NSF staff has sparked a wave of criticism and concern from the public, who are worried about the long-term implications this might have on the US and argue that it seems to contradict Trumps goal to remain a leader in science, tech, and innovation, and safeguard their position against China.
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🕵️♂️ China bypassing US AI chip ban
During the Biden era, the US banned advanced AI chip exports to China to try and limit their advancement in AI, but despite these restrictions, Chinese buyers are still getting hold of NVIDIA’s latest Blackwell chips.
Turns out third-party traders in Malaysia, Taiwan, and Vietnam are legally buying chips from NVIDIA and then reselling them to businesses in China, leaving many questioning how effective the export bans are.
NVIDIA warned Biden that cutting out a major market like China would slow global innovation, and many US tech companies are now urging Trump to ease them as it could harm US business in the long term.
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TOGETHER WITH MODE MOBILE
Data Just Made Palantir Worth $250B - Is This #1 Software Company Next?
Palantir's stock just surged over 300% YOY as big data turned the company into a $250B tech giant.
The big data goldrush is here, but the company that stands to profit the most may not be Palantir…
A new disruption to smartphones gives users a share in the data earnings, already facilitating +$325M in earnings and generating +$60M in revenue.
With 32,481% revenue growth, this company is gearing up for a possible Nasdaq listing (stock ticker: $MODE), and pre-IPO shares are available at $0.26/share.
Their disruptive EarnPhone is now being distributed by Walmart and Best Buy, and it’s just a matter of time before people start catching on.
Space in Mode's pre-IPO offering is scarce, and they are 90% towards their $20M milestone.
TRENDING AI TOOLS
PRACTICAL AI
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Prompt InspirationAfter typing this prompt, you will get tools and methods to help you monitor what people think about your brand. P.S. Use the Prompt Engineer GPT by The AI Report to 10x your prompts. | What tools and methods can we use to track our brand perception? |
LIVE AI Q&A
❗Tomorrow: Live Q&A with AI Advertising Expert, Justin Hardy
❓ Who: AI advertising and funnel expert, Justin Hardy. Justin (aka. THE Funnel King) is the founder of Hardy-Marketing—which builds custom AI funnels for startups, small biz, and agencies to acquire customers, on-demand.
⌚ When: Tomorrow (Wednesday, 5th March), at 11 AM CST
🎓 Where: Skool
🙋♂️ What: Tomorrow, and every other Wednesday, AI advertising and funnel expert Justin Hardy will be going Live on Skool to answer all your questions about AI and advertising.
‼️For more information about this, our Pro community, and our future Live AI Q&A sessions, visit us at Skool.
P.S. Having built over 150+ successful funnels since 2016, Justin is also offering AI Report subscribers an exclusive advertising strategy audit. But hurry, there are just 2 spots left for 2025. Contact THE funnel king, here.
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RECOMMENDED RESOURCES
STARTUPS
Name: Eightfold
Value: $2.1B
Funding raised: $410M (Series E)
Eightfold is an AI-focused HR software provider that uses AI to power a suite of HR-related products that customers like Capital One and Hulu use to retain, train, and find talent in the marketplace.
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In this podcast, three security experts join a16z partner—Joel de la Garza—to discuss the security implications of DeepSeek’s R1 reasoning model, specifically focusing on the different aspects of DeepSeek and the world of generative AI.
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