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- šŗ Is Mercury the new AI to watch?
šŗ Is Mercury the new AI to watch?
PLUS: a new prompting technique you need to know...

Welcome, humans.
Want to see a robot do martial arts? Of course, you doā¦
Our favorite reaction: āThe video ends abruptly because he forgot to switch on Testing mode.ā
In all seriousness, these G1 robots from Unitree can do some seriously human movements, but these are more likely scripted than AI-driven (more info here).
That said, even scripted robot fights could make for some next-level TV. We can see it now: Battle bots LIVE on Netflixāitāll be like WWE, where everybody knows the fights are scripted in advance, but itās still plenty entertaining.
āCAN YOU SMELL WHAT THE BOT IS COOKING?!ā
Letās just hope there wonāt be any malfunctions as embarrassing as this one on opening nightā¦
Hereās what you need to know about AI today:
Inception Labs presented a new way to generate text.
OpenAI announced plans to release GPT-4.5 to Plus subscribers.
Amazon developed a reasoning AI model.
Coreweave bought Weights and Biases for $1.7B.

Text-based AI models are about to take a page out of the AI image playbookā¦

Right now, the top AI models most people use are AI chatbots like ChatGPT, Claude, Gemini, and Grok. All of these are ālanguage modelsā that generate text one token (word) at a time, left-to-right.
And for a while, this approach seemed like the only viable path for text AI.
Until Inception Labs. The startup just unveiled Mercury, an AI text model that uses ādiffusionāāthe same approach that powers image generators like Midjourney and DALL-Eāand it's up to 10x faster.
Hereās how it works:
Mercury generates text āall at onceā, not word-by-word.
It produces 1K+ words per second on typical hardware.
Another research model, called LLaDA, confirmed these approaches can match traditional AI chatbots on standard tests.
Think of today's AI chatbots as writers who can only type one word after another. The new diffusion approach works more like a painter who starts with a rough sketch and refines the entire canvas at once.

A speed test shared by Inception.
Mercury's code-writing tool is available to try now. If you want to see how freaky fast it is, try asking it to āimplementā any simple video game āin html5ā and it will truly blow your mind. We had a literal jaw on the floor moment testing this.
As youāll see, Mercury creates a draft of the whole response at once and improves it through multiple roundsāfixing mistakes, reasoning in any direction, and potentially reducing overall errors along the way.
What this means for the future: In a world full of similar AI chatbots, diffusion models represent the first truly different approach in years.
Andrej Karpathy (ex-OpenAI) called Mercury interesting and said it's long been a mystery why text AI uses one approach while image AI uses another.
Inception says early adopters in customer support, code generation, and enterprise automation are already seeing better user experiences and lower costs with Mercury.
Future capabilities will include faster agents, improved reasoning, controllable generation, and edge deployment on phones and laptops.
The question we have is this: if this method truly is so great, how long until a big AI lab like Google, Microsoft, OpenAI, or Anthropic releases their own version?

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Prompt Tip of the Day
Chain of draft is a new prompting method to turn ātraditionalā language AI models (non-āthinkingā) into better reasoners by having these models āthink step by stepā, but ONLY using 5 words or less per step (paper).
This trick makes AI reasoning faster AND cheaper if youāre using the API version. Matt Berman breaks down how this works in this video, but you can also just copy the text below and add it to your next prompt to try it out.
āThink step by step, but only keep a minimum draft for each thinking step, with 5 words at most. Return the answer at the end of the response after a separator ####.ā

Treats To Try.
Aya Vision is an open-weight vision model (meaning you can run it locally on a computer with a good graphics card) that helps you analyze images in 23 languages while using less computing power than competitors (HuggingFace).
Scrunch AI helps you track and improve how your brand appears in AI search results (read more), while Profound does the same, but with SEO dashboards.
Llama Index now has a cloud service to help you build AI agents that can search and use information from your PDFs, PowerPoints, and other documents.
Swap connects your e-commerce operations on one platform to handle cross-border logistics, inventory management, and returns (raised $40M).
Pieces remembers your entire work history across all desktop apps so you can instantly recall past code and conversations from up to 9 months agoāthis video explains it well (free to download, paid for team sharing + premium AI).
Nothing Phone 3A is a new ~$400 smartphone that uses AI to actively process and organize your saved content (screenshots, voice memos, photos) via its new āEssential Spaceā featureāread more.
Thereās now a ābrowser agent leaderboardā comparing how well different AI perform when using your computer.

Around the Horn.

This is a good comparison of the top AI video tools right now from Heather Cooper, one of our fave AI video educators.
OpenAI plans to release GPT-4.5 to Plus subscribers ($20/month tier) over the next few daysāsince more ppl will now actually get to use it, weāll give you our HONEST take on it ASAP.
Google built a new AI scam detector for Google Messages that flags suspicious text patterns and sends real-time alerts to block scammers before you get defrauded (more).
Elon vs Altman will go to trial this year after a judge ruled Musk āfailed to meet the burden of proofā to stop OpenAIās for-profit conversion.
Amazon may develop its own āreasoning modelā that thinks step by step for release as soon as Juneāitāll supposedly be āhybridā like the new Claude.
AI cloud provider Coreweave will buy the popular AI developer platform Weights and Biases for ~$1.7B in anticipation of its upcoming IPO.

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A Cat's Commentary.


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