Need to Know News - May 9th, 2025
In this week's Need to Know News edition:
🤖 Figma drops a game-changing AI tool that turns static designs into working prototypes — just by describing what you want…
🤖 IBM replaces hundreds of HR workers with AI, sees $3.5B in productivity gains — and says it’s just the beginning…
🤖 One entrepreneur used AI to build a six-figure business in just 5 days — with zero prep and a $15K contract after one call…
And whole lot more!
Report: Most AI Spending Is Driven by FOMO
IBM reports most AI spending is driven by FOMO, not results—only 25% of projects meet ROI expectations, and just 16% scale across the enterprise. Still, AI investment is expected to double in two years, with 61% of CEOs already adopting AI agents. Major players like Meta and Microsoft are accelerating spend, creating pressure to keep up. But the results are mixed: some firms thrive, others face setbacks.
Utah Entrepreneur Says AI Helped Him Build Six-Figure Business in a Few Days
Utah entrepreneur Jon Cheney built a six-figure business, GenAIPI, in just five days using AI. The platform helps companies assess employee AI literacy and offers training. He secured a $15,000 contract after one call.
Cheney created the business from scratch without prior prep: “I thought, ‘I need to build something where I can maybe help teach people [about AI].’” His previous startup took nearly a decade—this time, AI compressed that to days.
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Netflix Debuts its Generative AI-Powered Search Tool
Netflix just launched a generative AI-powered search tool using OpenAI’s ChatGPT, offering natural-language discovery like “I want something scary, but not too scary.” It’s rolling out as an opt-in beta for iOS users this week, after early testing in Australia and New Zealand.
The tool follows similar efforts by Amazon and Tubi, though Tubi discontinued theirs. Netflix also revealed plans to use AI for multilingual title cards and debuted a short-form mobile feed and redesigned TV homepage.
Apple's Plan to Offer AI Search Options on Safari a Blow to Google Dominance
Apple plans to integrate AI search tools like OpenAI and Perplexity into Safari, threatening Google’s $20B/year deal to remain default. Safari searches fell last month, which Apple exec Eddy Cue linked to users shifting toward AI. This news wiped $150B off Alphabet’s market cap. Google responded by expanding AI Overviews and promoting its Gemini AI.
“The loss of exclusivity at Apple should have very severe consequences for Google,” said analyst Gil Luria. ChatGPT now logs over 1 billion weekly searches.
Cursor’s AI ‘Vibe Coding’ App Soars to $9 Billion Valuation
Anysphere, maker of AI coding assistant Cursor, has raised $900M at a $9B valuation, per Financial Times. The round was led by Thrive Capital, with participation from a16z and Accel. That’s a sharp jump from its $2.6B valuation just months ago.
Investors like Index Ventures and Benchmark are reportedly scrambling to join. Rival Windsurf is also seeing demand—valued at $3B and reportedly a target for acquisition by OpenAI, which already backs Anysphere.
Mistral Debuts Corporate Chatbot Amid Three-Fold Rise in Revenue
French AI startup Mistral debuted “Le Chat,” a corporate chatbot that integrates with tools like SharePoint and Google Drive. Companies can also run it on their own cloud without handing data to Mistral. CEO Arthur Mensch said, “In the last 100 days, we have tripled our business.”
This follows February’s open-source release of Le Chat. Mistral, now valued at $6B, is competing in a fast-evolving AI market aiming to reshape search, commerce, and enterprise workflows.
IBM Replaced Hundreds of HR Workers With AI, According to Its CEO
IBM CEO Arvind Krishna confirmed the company replaced hundreds of HR workers with AI, specifically its AskHR agent, which now handles 94% of routine tasks. The shift enabled IBM to redirect resources toward hiring in engineering, sales, and roles requiring “critical thinking.” AI also cut 70% of IT support volume and drove $3.5B in productivity gains across 70+ business areas. IBM’s generative AI division, now a $6B business, lets users build custom AI agents in under five minutes.
Google Will out Gemini AI in the Hands of Kids Under 13
Google is rolling out Gemini AI access to children under 13 through its Family Link platform. Kids will be able to use the chatbot for tasks like homework. The move follows warnings from Common Sense Media and Stanford researchers, who called AI companions an “unacceptable risk” for minors. While Gemini has guardrails, past bugs in ChatGPT and Meta AI show they can be bypassed.
Runway’s AI Studio Arm Launches Animated Pilot ‘Mars & Siv: No Vacancy’
Runway Studios released a six-minute AI-assisted pilot, Mars & Siv: No Vacancy, created with its Gen-4 model and produced by a team of traditional animators using Runway tools.
The studio funded and marketed the pilot under its Hundred Film Fund, which supports AI-driven projects. Creators Jeremy Higgins and Britton Korbel retained full IP and are pitching the series. Runway’s broader mission is to back storytelling that faces time, budget, or collaboration hurdles—regardless of medium.
Figma Unleashes AI-Powered Prompt-to-Code Design Tool
Figma just launched Figma Make, an AI tool that turns static designs into interactive prototypes using natural language prompts. It runs on Claude 3.7 Sonnet and lets teams add animations, test real data, and adapt designs across devices—without writing code.
Users can point to elements and say things like “Make this button trigger an animation.” It also supports real-time multiplayer editing, integrates with design systems, and enables seamless canvas-to-code workflows within Figma.
Thanks for reading.
Until next time!
The AI Marketers
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